Some businesses today are using credit cards to help finance new purchases, pay vendors, and add employees, but what happens if those credit cards don’t get paid off, or your business needs a larger line of credit? You might think credit cards and charge cards are one and the same. Both cards are borrowing money from an issuing company based on your income and information on your credit report. Both credit cards and charge cards is a means of buying goods and services on credit. But this is where the similarities between them end.

How much cash would you save/make if you didn’t have to pay business expenses for a month? Imagine this scenario. Your company spends $50k/month on marketing.  Instead of paying by check or credit card, you pay with a charge card.  Depending when in the billing cycle your card is charged, you could then have more than a month to pay off the amount on the card.  By pushing off your payments, you kept $50k in cash in your checking account.

Businesses are using charge cards to extend their cash flow without incurring longer term debt. Sometimes a cash flow cycle is longer and the short term funding from a charge card offers purchasing power as your business evolves.

With a credit card, you have a spending limit. Business owners “borrow” this money from the issuing credit card company and have the option to either pay back the amount borrowed in full or by installments with added interest each month.

Charge cards on the other hand, do not have the option of making payments over an extended amount of time as credit cards do. A charge card is a means of making a purchase in a very short-term –it doesn’t offer you a revolving line of credit, you must pay the balance in full during a single billing cycle, but there is not a pre-set spending limit.

So Which One is Better?

Both have their advantages and disadvantages, it all depends on what the consumers are looking for and which card is a better fit for their business. Borrowers who make timely payments without being late can eventually raise their credit scores, saving money on insurance and acquire loans from financial institutions when needed down the future.

Credit cards give the flexibility for business owners to pay back in increments, giving them time to come up with the money they borrowed to pay back their credit card balance. But this flexibility could be a double edge sword as well. With no specific time limit, the borrowed balance could accumulate a with hefty interest that could make it harder for consumers to pay back later on.

You can’t carry a balance with a charge card the way you can with a credit card. Partially paying off what you may owe on a charge card could result in a costly late fee, as much a 5% of your balance, and possibly restrict your usage of the card or canceled all together. But since there is no “loan,” there is no interest accumulated in a charge card, unlike a credit card. And unlike a credit card, charge cards often comes with additional services and benefits, such as: free roadside assistance, free food at airports, free hotel upgrades and many more. The Gold Card from American Express gives travel reward points for every dollar spent (in addition to other discounts on purchases), so in the example above, you also probably earned enough points for a free round trip flight and hotel for your next business trip.

Good news for small business owners: The American Recovery and Reinvestment Act of 2009 was signed into law by President Obama in February 2009, which is the first step in mending an ailing economy. The benefits of the bill will provide $730 million to the SBA to reach out to small businesses in need of funding in order to stay afloat or begin operations. The bill’s funding includes a number of lending and investment programs that will enable small business owners to flourish in an economy that lost 2.6 million jobs in 2008. The programs provided by the bill entail:

• $375 million for temporarily eliminating fees on SBA-backed loans and raising SBA’s guarantee percentage on some loans to 90%
• $255 million for a new loan program to help small businesses meet existing debt payments
• $30 million for expanding SBA’s Microloan Program, which is enough to finance up to $50 million in new lending and $24 million in technical assistance grants to micro-lenders
• $20 million for technology systems to streamline SBA’s lending and oversight processes
• $15 million for expanding SBA’s Surety Bond Guarantee Program
• $25 million for staffing in order to meet demands for new programs
• $10 million for the Office of Inspector General

The Small Business Administration (SBA) (www.sba.gov) offers a variety of assistance through its website to provide business owners with the help they need in order to succeed in their journey. Among the top lending programs include debt financing (loans), equity financing, and surety bonds. Although the SBA does not provide grant money, which typically is given to non-profit entities, it does provide a multitude of helpful resources to obtain or apply for a grant. A grant may be something to consider in the future, but for any business that is in the process of commencing operations first needs financing in order to move forward. Loan programs such as “equity financing” and “surety bonds” may sound like a foreign language, but can be easily understood by visiting the SBA website or reaching out to a well-versed business mentor or coach.

SBA loan applications must obtain the following documentation for a loan request evaluation: a business profile, loan request, collateral, business financial statements, and personal financial statements. No need to panic – there are plenty of helpful avenues for assistance. Visit www.sba.gov, www.score.org, and www.recovery.gov to learn more and to begin the process of procuring capital for your business.

It might not feel like it, but there is actually a lot of money going around for small business owners, and most of it is coming straight from the Stimulus Package through the SBA.  I found this out from my friend Eric Ness, from the Wisconsin SBA office, when he and I were in Washington, D.C. for National Small Business Week.

Under the American Recovery and Reinvestment Act, the SBA has received $375 million to temporarily eliminate loan fees and raise loan guarantees up to 90%.  The SBA’s Microloan program also received additional $50 million in new loans, available today for loans up to $35,000.  Overall, the SBA is working to unfreeze small business lending from banks in order to help businesses compete for construction and service contracts, create new jobs and promote investment in small businesses.  Eric said, “We know small businesses have a prove ability to create new jobs and commerce.  The next phase of our economic recovery rests in their hands.”

If you’d like to find out more, you can read the article Eric wrote for SBA here.  M3 Racers are already receiving SBA loans to fuel their growth and writing about their experiences blow-by-blow, which you can see here.

We were both in D.C. a few weeks ago to cheer on a remarkable woman who has been a leader for women, for entrepreneurship, and for Count Me In. Laurie was named National Women in Business Champion by US SBA Administrator Karen Mills. Laurie is the CEO and Co-founder of Inacom Information Systems a Madison, WI., a company with revenues of $80million with more than 150 employees.

If your dream is to build your business like Laurie built hers, go to SBA.gov or contact the SBA office in your state and learn about new financing opportunities. You can also get in touch with many women who are finding and using SBA money right now by joining them in the M3RACE here.

In terms of connecting with people who share your business interests and finding ways of promoting ideas or products, the internet has become as real a place as our physical world. Online, you can find tools to communicate with clients, potential partners, contractors and many other parties that are involved in the creation of a new business.

Along with online networking groups such as Resource Nation’s Vantage Network, there is an abundant amount of resources for those looking to start up a new venture. The following is a sampling of some the best business and finance resources that you can find on the net.

Getting Funding

One of the first challenges for any emerging entrepreneur is acquiring some type of funding for their new enterprise. Looking around for potential investors can be a stressful task, but the following online resources may help you locate and communicate with possible sources of financing.

1. Biz2Credit
   This site connects small business owners with service providers and lenders, empowering them to effectively compete with big business, innovate their services and products.  
2. Find That Money
   Find that Money is social network especially for funding-seekers, investors and lenders to get together and do business. You can set up a profile of your proposed business and contact investors and lenders directly via their profile.
3. Venture Deal
   Venture Deal is a venture capital database that provides businessmen with the latest info on venture capital firms and venture-backed technology companies.
4. American Capital Advance
   This is a lending service that is catered especially for entrepreneurs seeking funding for their new business enterprises. American Capital Advance offers fast loans, so you can get started on building your business right away.
5. Financing: Where to Find It
   A financing guide from Inc.com that will let you know where to go for quick business financing.

Time Management

Any successful business is characterized by tight and efficient time management. Keeping your start up’s business goals on schedule as well as handling day-to-day commitments and deadlines is one of most important parts of an entrepreneur’s job. The following links will take you to sites that offer tools for task and time management.

1. Google Calendar
   Google calendar, as with most Google software products, is steadily growing in popularity. It is simply a free online calendar service that lets you to share your calendar dates with others, which can make coordinating meetings and events easier.
2. Vitalist
   This is a web-based task manager that was created to work in conjunction with “Getting Things Done”, or GTD, the popular iPhone application.
3. Backpack
   Backpack is a personal and small business organizer that can help you manage your business information, intranets and to-do lists.
4. Basecamp
   This is a web based tool used by small businesses as well as large corporate brand names to coordinate and run individual business projects. It lets business owners connect with contractors and other business owners in order to manage a project. Fee required.
5. Side Job Track
   Provides online invoicing, reporting and management software. Good for tracking jobs to make sure projects stay on schedule.

Communication

More than any other form of communication, the Internet has managed to bring people from all over the world together with little or no cost whether it is by email or other sources. Here are a few more online resources that will help you connect and stay connected with people as you grow your business.

1. Skype
   Unlimited free calls over the internet. Talk to other Skype users whenever you like and for as long as you like.
2. Vonage
   Vonage is a major provider of voice over internet protocol broadband telephone services.
3. Gizmo
   Yahoo Messenger, Google Talk and Windows Live users can use Gizmo international calling services for free, and non-users have access to low cost calls.
4. VoipBuster
   A free program that provides you with high-quality voice communications. PC-to-PC calls are free and you can regular phones as well, often free depending on the service provider.

Data Storage

Having a system in place for storing sensitive information can prevent a potentially disastrous data loss. The following resources offer some good data storage options.

1. Mozy
   Mozy is an online storage service that offers unlimited storage space for $4.95 a month. If your laptop gets stolen Mozy will help you find it by tracking all the new information that the thieves put in it. And if all your hard drives get destroyed, Mozy will still have all of your files intact and available.
2. Intronis
   Same as Mozy, with remote computer data backup software.
3. Carbonite
   Same as above. The price is a flat $54.95 a year.
4. Data Deposit Box
   Affordable data backup service that lets you run a system recovery wherever you are.
5. Athena Backup
   Athena Backup automatically stores all your computer files, so you never have to worry about losing anything.

Invoicing

Programs specifically designed for sending and tracking invoices can save you time by streamlining the process and making it much more efficient. The following resources will help you keep your invoices organizes and let you focus on more important aspects of your business.

1. Bamboo Invoice
   A simple, online invoicing program that lets your organize and keep track of all your invoices. It is an Open Source program, which means you won’t have to pay for upgrades ever, and you can modify it to fit your needs.
2. FreshBooks
   A professional looking online invoicing and tracking program. It also lets you manage expenses.
3. Transcepta
   Transcepta is an electronic invoicing service that requires no software or hardware.
4. InterlinQ Solutions
   This site provides not only online invoicing services, but daily job reports, time sheets, job tracking, and mobile billing.
5. 2nd Site
   2nd Site is an invoicing site with online payment and online employee timesheets.

Any other resources I’m missing? Let us know.

Now that Apple has given 3rd party developers the go-ahead to write applications for the iPhone and the iPod Touch, consumers literally have the world’s creativity working for them every day to come up with new and innovative apps.

The Apple App store has been opened for over six months now, and it’s true that a good number of apps are throwaway imitations of one another. But there are many jewels to be found. For the busy businessperson looking to optimize, here is a list of 25 of the most useful finance and money apps out there.

25 Personal Finance & Money Management iPhone Applications

ACTCurrency - $0.99
This is a fairly simple currency converter. Easy to use and incredibly handy for when you’re traveling out of the country. At $0.99, it’s an obvious buy.

ACTGratuity - $0.99
Ever wish there was an easier way to figure out the tip when you go out to dine at a nice restaurant? ACTGratuity does just that. The app also lets you split the bill, letting everyone know exactly how much each person is supposed to pay.

Bloomberg – Free
Bloomberg is one of the best financial sites on the web, and now you can instant stock quotes, charts and in depth financial analysis directly on your iPhone with the Bloomberg iPhone application. And the best part: it’s free!

Budget - $4.99
This is an excellent app for keeping track of your personal budget. It has an easy-to-use interface and gives the option of full-color graphs.

Mobile Banking - Free
If you’re a Bank of America customer, this application can be very useful. Keep track of your accounts and instantly find the closest ATM machine. It’s a shame that non-Bank of America customers can’t use it.

Save Benjis - Free
Save Benjis is an app that lets you seach online and find the lowest prices for anything on the market. In tough economic times, saving money is becoming everyone’s priority. If you’re at a store wondering whether you should buy an item or see if it’s cheaper elsewhere, this app can save the day. And it’s free.

eBay Mobile - Free
eBay has gone beyond the call of duty to provide customers with an optimized iPhone version of its website, with its own client and unique, streamlined interface. It works so well, that it can be easier to use the site on your phone than on your home computer.

iCredit Calculator - $0.99
This application lets you estimate your current credit card debt and approximately how long it will take you to pay it off. It is simple and has three different calculation modes. Easy to use and understand.

PortfolioLive - $5.99
Portfolio live provides you with the real-time value of your stock portfolio wherever and whenever you happen to be. This is by far the best portfolio management application available. Get instant quotes and create as many portfolios as you want.

FlightTrack Pro - $9.99
This application is your personal travel assistant. FlightTrack Pro is the most popular travel app, and it comes with TripIt, an online travel organizer. Perfect for busy travelers, it allows you to track cancellations, delays, gate changes and more. You can view your itinerary, local weather and time, all in an easy-to-use interface.

CompareMe - $1.99
Good for the price conscious shopper, CompareMe allows you to check product prices, compare them and convert the prices of items with different size packages. You can calculate discounts and premiums into the equations to see what the best deal truly is.

Mobile News Network - Free
Get the up-to-date news from the Associated Press directly onto your phone. Mobile News Network gives you access to local, national and international news. Great way to get your news on the go and in a compact, user-friendly interface.

iJobs - $0.99
Job hunting? If so, iJobs can come in quite handy. It uses the iPhone’s location services to find job openings near you. It automatically searches through thousands of sources from all over the internet. No matter what gig you’re looking for, iJobs can be an excellent hunting companion.

The Vault - Free
The Vault is a virtual strong box for storing sensitive information. It uses the famous and ultra-secure Blowfish encryption code to protect all your data. Your password is not stored on your iPhone, and none of the information you store goes anywhere.

Blaze Mobile Wallet - $1.99
In addition to letting you purchase products from 8,000 supported companies, this application uses the Blaze Mobile Prepaid MasterCard Paypass Sticker, so that you can simply wave your iPhone over a retailer’s POS supported terminal and the purchase is done. Participating locations include McDonalds, 7-Eleven, CVS Pharmacies, and more.

Sales Report - $19.99
Sales Report downloads the sales trends reports from iTunes Connect and stores them on you iPhone permanently. You can view data on graphs and get email reports that help you see how marketing campaigns are going.

Moneypedia - $0.99
While Moneypedia serves no immediate and practical financial or organizational function, it is a lot of fun. A virtual collection of sample currency from around the world, it has tons of unique images and historical information. It is always good to read up on the different systems of currency around the world.

iOwn - Free
iOwn helps you keep track of the things you own, plain and simple. It has an easy to use and very fast interface. It lets you itemize and keep track of your possessions, in case you ever need to store them for safe keeping or later use. You will never forget where you put something ever again.

ACTPrinter - $0.99
ACTPrinter is not a printer in the technical sense. It simply offers an alternative, as it lets you store and view electronic tickets, boarding passes and other documents that you’d normally have to use paper for. Good for the environment.

TickerPicker - $3.99
This application lets you pull up stock data for technical analysis about any ticker. Just input the stock ticker and you’ll get a price, moving average, volume, RSI and MACD charts, all in the palm of your hand.

The Financial Accounting Standards Board has recently announced that it plans to release its codification of accounting standards in July of 2009.  The codification does not change Generally Accepted Accounting Principles (GAAP), rather it re-organizes, codifies, and simplifies the existing structure of guidance which had become a labyrinth of convoluted accounting literature.  The new codification will be based on a topical format rather than the existing format that is organized by standards.  So, how does this affect our San Diego accounting firm, other San Diego accountants, CPAs, and others within the industry?  And is this a change for the better?

To begin, once released, the codification will supersede all existing guidance from the Financial Accounting Standards Board (FASB), the American Institute of Certified Public Accountants, emerging issues task forces, and other related sources.  So, say goodbye to every acronym that once went by FASB, FIN, EITF, SOP, ARB, SAB, etc, etc, etc…  All of this literature will now be considered non-authoritative.  This puts all of those in the accounting environment on a level playing field in terms of locating certain accounting related literature and guidance, as we all must now familiarize ourselves with the changes so that we are ready for the transition.

Next, as opposed to the current format, the new codification will be topical in format, reorganizing U.S. GAAP into about 90 accounting topics.  This will greatly simplify the research process.  As opposed to running the risk of being unaware of existing guidance, the researcher can now take comfort that all information on the related topic is organized together, thus reducing the risk of noncompliance with standards and reducing time and effort in research.

Once released on July 1, the codification will become the single official source of nongovernmental U.S. generally accepted accounting principles, superseding existing literature from FASB, the American Institute of Certified Public Accountants, emerging issues task forces and related sources.   After that date, all other literature will be considered non-authoritative.

The current codification changes are a step towards simplifying and organizing GAAP as it has become today.  In addition, it is a switch toward the more topical approach, which is consistent to the eventual plan of converting to the International Financial Reporting Standards (IFRS).  Most of the younger generation accounting and financial personnel will applaud the change as overdue.  Some seasoned veterans of the profession may grumble about having to find where everything is again.  Overall, this is a positive step for the FASB and will assist in easing the transition into IFRS.

As this historic year comes to a close, it will be necessary for all small business owners to take time from their busy schedules and conduct careful inventories of their respective financial situations. Unfortunately, in many cases due to the dramatic downturn of the second half of 2008 it will be a difficult and painful process. As a small business owner there are a few suggestions I have as the new year approaches. Conducting a thorough financial review will be an important first step in terms of tax preparation, a 2009 company operations budget (although in some cases this particular exercise will have already been completed) and anticipating changes that may be in order when the Obama Administration takes office. It is also absolutely the right time to make decisions on ways to make your organization leaner and more efficient heading into the new year.

If you’re a small business owner and looking for financing services or tax preparation, visit our tax reporting business service center.

The details in regards to proposed tax cuts are relatively few under President-elect Obama’s plan, even as to whether his $250,000 threshold is on Adjusted Gross Income or Taxable Income. That would make a big difference for many small businesses. Generally for everyone above the mark, you would want to maximize as much as your cash flow allows in terms of contributions to retirement plans: SEP’s, Simple’s, IRA’s, deferred compensation plans, etc. Equipment purchase write-offs are most important in those high income years. For one to consider deferring Social Security benefits or taxable retirement income to later years when income is lower may be preferable. At this point there is very little information as to what the Obama plan actually is and what will materialize from it, so it will be advisable to watch closely how this all unfolds in future months.

It’s certainly very easy to be negative and cynical when times are tough, especially after the second half of 2008. However, it’s also essential to keep in mind that history dictates this as a cyclical occurrence and things should improve at some point in 2009 or 2010. It’s equally essential to take a few minutes to remember every day how fortunate we are to live in the greatest country in the world. I ask that you reflect upon the incredible freedoms and capitalistic traditions we all benefit from.

During a year in which there has been a lot of disagreement throughout our country on a long laundry list of issues, at the end of the day, I don’t think you’ll find a lot of division on this particular statement.

Peter Miralles is the President of Atlanta Wealth Consultants (www.awc2.com).

Because of the economic conditions that are currently facing our economy, many businesses are struggling to remain cash flow positive.  In order to accomplish this, the first thing that companies look to do is to reduce expenses.

As we approach the end of 2008, companies are also in the process of completing their 2009 budgets.  While the prospects of reducing salaries and headcount, advertising costs, or a host of other costs can be frightening and painful, reducing the fees that you are paying to your financial statement auditor can save your business thousands of dollars and can be easy and painless.  So what are ways to reduce audit fees and create a more efficient audit?  The following strategies can be used by businesses of any size to assist in creating a more efficient and less costly financial statement audit.

• - Manage your Auditor. As a former Audit Senior Manager with a “Big Four” San Diego accounting firm, I know firsthand the enormous amount of pressures and time constraints that the typical auditor is facing during the audit process. The typical auditor is juggling multiple engagements of all complexities, all while working 60+ hours per week. Because of this, it is the proactive companies that will get the best service and most attention. Being proactive and asking questions during the audit process will keep your auditor focused on you and your company. In addition, you will be more aware of what to expect during the process and will be more prepared for any obstacles that may arise.

• - Start early. Request a planning meeting with the auditor BEFORE year-end. Preferably this meeting would take place at the company’s location and would include Company management and all relevant parties. Depending on the size of the company being audited, this could include the company’s CEO/President, the individuals responsible for overseeing the progress of the audit (CFO/Controller/Accounting Manager), Audit Partner, and Audit Manager. Ask for a copy of the list of items that they will request of the company in order to begin the audit. Become familiar with this information and plan accordingly. Make sure that your team and accounting department is adequately staffed to take on the rigors of an audit. If you have any questions of the auditor, ask them now and any time prior to the start of the audit. By becoming familiar with the information prior to year-end, you will be in a position to appropriately prepare the information correctly, with no errors, when it is due. Remember, the auditor will send a bill for this meeting, but in the end, it will be well worth the extra few hours.

• - Be Complete. Fully complete the year-end close process AND the list of items and schedules requested by the auditor prior to the beginning of the audit. This is the cause for most inefficiencies during the audit process and as a result, the result of the increased fees. Many companies feel that they can complete the list of requested items during the completion of the audit. This is rarely the case. Unexpected questions will arise from the auditor during the audit process. These questions will create additional questions that Company management may have not been prepared for and will delay the preparation of the other items on the list. In order to maximize efficiencies and to support their accounting department, many companies these days will hire an outside specialist or accounting firm to work with the company and their auditors to assist in the year-end close process, preparation of all auditor requested schedules and documents, preparation of financial statements, and assistance with research and resolution of any complex accounting issues that may arise. These firms work with the company to put a plan in place that is in the best interest of the company. These services typically result in a reduction of audit fees that exceed the fees charged by the accounting firm. These firms also assist in offloading management time by providing an extra layer of expert review to reduce the number of audit adjustments and to make sure that all schedules, source documents, and sub-ledgers tie back to the final trial balance, thus providing Company management with additional flexibility to attend to their regular daily responsibilities. In San Diego alone, there are several San Diego accountants and San Diego accounting firms of which to choose from.

To summarize, an efficient audit results in the reduction of audit fees.  To accomplish this, a company must be organized, prepared, and must have the infrastructure in place within their accounting department to appropriately prepare and complete the requested information, along with the time to answer all audit related questions.

We are all sinners – at least in the business sense. And, it is hard not to be a business sinner today. In our current pell-mell state of rushing about putting out current “business fires” it would be beyond the capacity of mere mortals not to make one or more of the so-called business sins. Knowledge of these seven great business sins will not make you perfect, but can allow you to be a better business manager.

1. WORSHIPPING HIGH PROFIT MARGINS
If you maximize your profit margins, you’ll also maximize your competition. High margins mean your competition will lower their costs just to beat you out. Rather than have the highest profit margin, go after market share instead.

2. MISPRICING A PRODUCT OR SERVICE ON WHAT “THE MARKET WILL BEAR.”
Maximizing the price of a product or service based on what people will pay will not increase your market share. Find your niche, stay in it, and price your product or service to bring in more clients and customers.

3. USING COST-DRIVEN VS. PRICE-DRIVEN PRICING
Cost driven is taking in all your costs and adding a profit margin on what you sell. Price driven is coming up with a price that will cause your product or service to move. It’s usually a lower price, but with that comes less competition. If you get a handle on costs, become price driven and get market share—you will beat out the competition.

4. FINANCIALLY STARVING THE OPPORTUNITIES & FEEDING THE PROBLEMS
Because business owners often have trouble focusing on more than one concern, they put capital into old problems rather than putting it towards new opportunities. Old problems keep you stagnant whereas new opportunities are potentials for growth and can bring in much-needed revenue.

5. PLANNING YOUR BUSINESS FUTURE IN AN ECONOMIC VACUUM
Day-to-day activities of running a business keep many business owners unaware of what’s going on in the economy. This causes them to react to changes instead of planning for it. Seeing beyond the forest will help you prosper in what will be a turbulent economy.

6. NEGLECTING THE TOP LINE (SALES)
Unless your sales and revenue are growing, your bottom line will eventually shrink. Just being a good money and production manager is not enough. You must be a good marketing manager to bring in more business, referrals, and sales.

7. STRAYING FROM YOUR CORE BUSINESS
Don’t go into a business that you know nothing about. It’s foolish to branch out if your second business doesn’t increase your sales significantly and adds to your bottom line. Unless you maintain a certain rate of return on your invested capital, you may wind up losing both.

Here are the 5 most important aspects of the business that investors want to read about in your business plan:

1) That The Company Has Focus

The company has clearly defined its business and can state it in a single strong sentence that says it all. Yes, your plan probably will have a more expansive description in its executive summary but you need to open your plan with that one simple declaration to show the clarity of your vision for the business.

2) That The Market Has Potential

The company has a large existing market for its products and services. If your company does not have significant growth potential then it is probably not going to be of interest to many equity investors. If you are shooting for debt based capital that may not matter most to them (market stability would be though so keep that in mind if your plan is geared towards raising debt based capital); but to an equity investor growth is of paramount importance and the size of the market signifies the opportunity potential.

3) That The Company Has Specific Solutions For Their Market

The company has identified what its customers most need and has created a value proposition for them to make it a simple “buy” decision. If there is nothing unique or distinct about your company’s products/services then you do not have a defensible position in your market. Defensibility of your market position is of key importance to investors and funding sources.

4) That Customer’s Show A Readiness & Willingness To Buy From The Company

In an ideal situation, the company’s customers have a recurring need for their products and/or services, with a reasonable sales-cycle and opportunities for premium up sell of additional products & services.

If you don’t have customers ready and willing to buy now … then that does not bode well for interest from most investors and funding sources. If your market is a long-term development type of proposition then your company will need to prove that it is truly a disruptive business model that will have people flock to it once it is functional. Its not so much “if you build it will they come” but rather “if you build it will they buy?”

5) That The Company’s Main Dynamics Are Strong

What are the main dynamics of a company? Simply put it is two components: a sellable product/service and a management team that can run the business well. Investors and funding sources want to know that the company has created unique solutions superior to their competition. And that the management team consists of smart people able to deliver products/services to their customers, control expenses and make a profit … repeatedly.

* * *

If you create your business plan to address the above; then you are ahead of what most people end up with in their business plan. Weaknesses (dilution) caused by putting too much of the wrong content and not enough of what mattes most, kills interest in a company’s plan. It’s the answers to these 5 important aspects that investors and funding sources find most interesting. How well you answer them will affect the outcome of your search for capital.

In my next post I will get into how to use these 5 as your guide for creating (or revising) your business plan to make it an optimal document that says what it should. Be sure to watch for:

How To Really Get Your Business Plan Read (by investors & funding sources)! Learn how to create the type of business plan that investors and funding sources will enjoy reading and will take action on.

Dennis Lowery
Adducent, Inc.