Experience Writing World-Class Business Plans
We write world-class, professional Business Plans and Private Placement Memorandum documents (PPM) to secure loans, angel investors, venture capital/private equity funding or that can serve as roadmaps for our clients' businesses. We have the experience to deliver results. Every one of our plans has received funding.
After 20 years of writing award-winning Business Plans and PPMs, we know what it takes to get funding regardless of the state of the economy. What are the investor turn-ons? What are the red flags? Whats realistic and whats unfounded blue sky? We know.
What sets us apart from the common business plan factory is our pedigree. At D&M Business Consulting, were much more than graduates of top-notch Business Schools or skilled writers -- were seasoned entrepreneurs. We know what it means to be in business and not just write about it. We have first-hand experience working with small businesses and Fortune 500 alike, and ventures ranging from oil & gas to entertainment to restaurants and more.
The SBA estimates that the typical entrepreneur spend approximately 400 hours on their business plan. This is truly a complex document that needs to not only convey your "great idea" and your enthusiasm as an entrepreneur, but do so in a down-to-business way -- investors and banks need to know exactly how your're going to accomplish plans, and this needs to be founded in reality.
Business Plans: Contact Us; Time to completion -- 10-30 days
Private Placement Memorandum ("PPM"): Contact Us; Time to completion -- 10-15 days
Elements of Business Plans
After many years of experience composing Business Plans that get funding, we understand what investors are looking for. We write 100% custom Business Plans for our clients, but they generally have the following key sections -- each complex documents in their own right:
1.) Executive Summary
The Executive Summary is always the LAST section of the Business Plan to be written, because it is a summary of the entire plan. It is quite a challenge to condense a 50-70 page document into a few pages, yet retain the same informative qualities. The Executive Summary must "hook" the reader, so another challenge is to convey a high level of excitement about your venture... page one is the quintessential "elevator pitch." You have very little time to truly capture the attention and interest of an investor, and it is the job of the Executive Summary to do just that.
2.) The Company and the Product(s)/Service(s)
Here we give an overview of your business, including a brief overview of the industry. We then go into the product/service your business offers its customers, discussing what distinguishes you from your competition and why your product/service fills a particular need in the marketplace. We also discuss product/service pricing and manufacturing considerations (if applicable).
3.) Organization Plan
In this section, we discuss such things as the organization structure; ownership of stock or LLC member interests; the management team and key employee positions (including bios of each); salaries and benefits; board of directors and advisory board; vendors, suppliers, distributors; and intellectual property (trademarks, patents, etc.).
4.) Marketing Plan
The Marketing Plan is usually the most complex section of the Business Plan. Here we discuss such things as: industry profile; target market profile; market strategy (your "unique selling proposition" and marketing messages); advertising and promotion, including promotion budgets; a SWOT analysis (strengths, weaknesses, opportunities and threats); and how you compare to the competition.
5.) Financial Plan
Ahh... the almighty numbers! Obviously investors want to know how they will make money; banks want to know how you're going to pay back their loan. This means looking into the future, and the future is based on assumptions. Are those assumptions based in reality? Investors and banks consider this very carefully! In the Financial Plan, we lay-out professional, realistic financial projections for years into the future. We also discuss the valuation of the company based on your future assumptions, the returns to investors, production costs and profit margins, breakeven and sensitivity analysis (how does a change in price or production costs affect your earnings?), exit strategy, and the proposed use of funds.
The Appendix contains all the gritty details upon which your year-to-year financial projections are based: assumptions, detailed financial projectsions for multiple years, broken down monthly (income statements, cash flow, balance sheet); payroll; production schedules; sales projections; equipment costs and depreciation schedule; and an analysis of how your financial ratios (projected) compare with the industry as a whole. Also included in the Appendix are any contracts (including employment contracts between key employees and the company); resumes; market studies (if any); licenses and permits; leases, etc.
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Elements of a Private Placement Memorandum ("PPM")
A Private Placement Memorandum ("PPM") is crucial for raising money from private investors. This is a complex legal document that essentially provides a contractual agreement between you and your investors. It protects both you and the investor; therefore many sophisticated investors will require a PPM before they will invest in your venture.
Typically, the PPM is written along side the Business Plan, since it contains several elements from the Business Plan itself, such as a summary of your business. But there is more to a PPM than this. It also contains details about stock issuance and individual stockholders; investor suitability standards; dilution; a VERY detailed discussion of risk factors; subscription agreement; investor and professional advisor questionnaires; detailed use of proceeds; and, of course, the terms of the investment offering itself.
At first glance, the PPM might be considered somewhat "pessimistic" with such a detailed discussion of risk factors. But remember: the PPM is your "insurance" against a disgruntled investor in the event your business does not do as well as you had planned. It also keeps you clear of violations to State and Federal securities laws and anti-fraud statutes! Finally, it protects the investor and instills a greater sense of trust in your venture, since it so clearly lays-out the details of your business and the investment opportunity being offered.