Answering Why You, Why Now Critical in a Winning Business Plan

Business plans continue to be an essential element of the capital-raising process. They must convince investors to take notice ? investors that are shrewder today due to the ups-and-downs they have experienced over the past few years.

Adding to the financing challenge is the plethora of high-quality companies, both public and private, in which investors can choose to invest. In this environment, more and more investors are asking companies seeking capital the question "Why You, Why Now"?

The question seems simple at first, but has many complexities. The management team must clearly delineate what it is about the business opportunity that makes it such a good investment now. Should this investment have been made a year ago to cement a market leadership position? Or, is the venture before its time - will slow market adoption cause slow sales over the next few years, and as such, should the investment wait. Questions like these, based on investment failures from the past few years, continue to surface and must be addressed by the management team in their business plans.

Likewise the team must address what it is that makes them uniquely qualified to succeed. Does the team have proprietary (and protectable) technology, management talent, long-term strategic partners and experience that competitors do not? According to Growthink president, Dave Lavinsky, "Management teams must prove to investors why they are unique and why they will succeed. They can't just state how wonderful they are - they need to prove it through detailing past successes and unique qualifications."

A business plan that fails to address the "Why You, Why Now" question, is most likely a business plan that will remain in the stack of "not now" business plans. Business plans must present a compelling argument as to why the investor should invest and in our fast-paced world with unbelievable opportunities and opportunity costs, why investors should invest now.

As President of Growthink Business Plans, Dave Lavinsky has helped the company become one of the premier business plan development firms. Since its inception, Growthink has developed over 200 business plans. Growthink clients have collectively raised over $750 million in financing, launched numerous new product and service lines and gained competitive advantage and market share.

---

Business Planning Overview

The successful entrepreneur is generally more inclined, once a business... Read More

The Heroic Entrepreneur: Profiting from Your Brilliance

If you look up the definition of hero in Webster's,... Read More

Boundary Setting 101 for Solo Entrepreneurs

Select the best response to the statement below:As a solo... Read More

Oil Change Guys History; Part I

How do franchise companies come to be? How do they... Read More

Delivery Companies Make the Grade

In the United States we have the most efficient delivery... Read More

The Entrepreneurs Prayer

As I awaken with the gift of yet another day... Read More

The Reluctant Entrepreneur

It seems odd to think of a person opening a... Read More

How To Get More Clients and Customers; Dont Sell Be of Service

Whether you are just starting your business or focusing on... Read More

From Employee to Entrepreneur: Taking the Plunge

Before you decide whether or not running your own business... Read More

Surviving the Three Pitfalls of Business Ownership

The morning sun sheds its brilliance and warmth... Read More

Oil Change Guys History; Part IV

One trait of franchisors and something you will find in... Read More

The Term Sheet?s Role in Raising Venture Capital

Entrepreneurs and companies who are seeking venture capital often negotiate... Read More

Go Slow to Go Fast - Why Over 80% Of High Tech Startups Fail And What To Do About It

With billions of dollars of venture capital residing down the... Read More

The History of the Franchise Business - Learning about Business Opportunities by Looking at the Past

Hair care has been around as long as humans have... Read More

Vendor Relations

Communication is the key to vendor relations. In your small... Read More

Financial Strategies for Transitioning from Salaried to Solo

7 Financial Strategies for Transitioning from Salaried to SoloA 40's... Read More

How to Be an Entrepreneur and Keep Your Sanity

Define for yourself what an Entrepreneur is:What makes you think... Read More

Online Women Entrepreneurs Need To Pace Themselves

Saving time means pacing yourself, being organized, and always prioritizing... Read More

Herb Filled Pillows Make Over a Million Dollars

Lauren Rosenstadt was a single mom working at a herbcompany... Read More

Hurricane Katrina, Death, and a Different Type of Entrepreneurship

I've seen terrible images today on the television and internet-bodies... Read More

What Part of Handwriting on the Wall Dont You Understand - They Dont Hire People Over 50

In a recent talk to the Detroit Economic Club, President... Read More

How to Start a Franchise

Franchising InformationFranchise oppotunities are all around us today. You may... Read More

Do You Have What It Takes?

I think it's fair to say that not everyone is... Read More

Traits of The Successful Entrepreneur

Want to know why certain people succeed and others don't.... Read More

An Entrepreneur Is

An entrepreneur is an innovator. She sees a need in... Read More

3 Essential Elements of Operating a Successful Business

Have you ever imagined what it would be like to... Read More

Starting Your Business By The Book

I've gotten several questions recently about the legalities of starting... Read More

Reducing the Stress of Being an Entrepreneur

Starting and running your own business can be exciting and... Read More

Financial Issues in Business Startup

A primary inhibitor of business start-up is that few people... Read More

Opportunity Does Not Knock

Q: I'm graduating this year with a degree in business... Read More

Starting Your Business: 3 Tips for Bootstrapping Your Way to the Top

Bootstrapping a business startup does not necessarily mean that you... Read More

Youve Found Your Guru, Now What?

In my last article, "Follow That Guru", I told you... Read More

Increase Profits with No Pain, No Change Approach

Implementing changes, even when they're good for your business, can... Read More