Bankable Business Plans: Second Edition (Bankable Business Plans)

282 Pages·2007·4.59 MB·English

by  Edward G. Rogoff

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Foreword by
Jeff Bezos
Founder & CEO, Amazon.com
Bankable Business Plans
Second Edition
Edward G. Rogoff
Foreword By
Jeff Bezos
Founder & CEO, Amazon.com
Copyright ©2007 by Edward G. Rogoff
For more information, contact Rowhouse Publishing, 1375 Broadway, Suite
600, New York, NY 10018-7060, [phone]. Find us on the Internet at
www.bankablebusinessplans.com.
ALL RIGHTS RESERVED. No part of this work covered by the copyright may
be reproduced or used in any form or by any means—graphic, electronic, or
mechanical, including photocopying, recording, taping, Web distribution or
information storage and retrieval systems—without the written permission
of Edward G. Rogoff.
Brief excerpts, as submitted from Annual Statement Studies by The Risk
Management Association ©2006, reprinted with permission of The Risk
Management Association.
Library of Congress Cataloging in Publication Data:

Rogoff, Edward G., 1951-
Bankable business plans / Edward G. Rogoff; foreword
by Jeff Bezos. — 2nd ed.
p. cm.
Includes bibliographical references and index.
LCCN 2007921044
ISBN-13: 978-0-9791522-0-7
ISBN-10: 0-9791522-0-8
1. Business planning. 2. New business enterprises—
Finance. 3. Business enterprises—Finance. I. Title.
HD30.28.R644 2007 658.4’012
QBI07-600083
Printed in Canada
The names of all companies or products mentioned are used for
identification purposes only and may be trademarks or registered
trademarks of their respective owners. The author and publisher
disclaim any affiliation, association, connection with, sponsorship of, or
endorsement by such owners.
Book and Cover design by Jack Mayer
In memory of my father…
who made the best plans.
This page intentionally left blank
xi Acknowledgments
xv Foreword
Jeff Bezos, Founder and CEO, Amazon.com
xix Preface
1 Part I
The Power Of A Bankable Business Plan
3 What A Bankable Business Plan Is And How It Can
Help You Start A Successful Enterprise
4 Bankable Business Plans Serve A Specific Purpose
7 Your Business Plan Is An Extension Of You
14 Entrepreneurship Is A Team Sport
vi Bankable Business Plans
17 Part II
The Ten Essential Action Steps
19 Action Step 1
Define Your Company: What Will You Accomplish
For Others…And Yourself?
What Will Your Business Accomplish For…
21 Your Customers?
21 Your Investors?
23 Your Lenders?
24 Your Suppliers?
25 Your Employees?
27 You?
29 Action Step 2
Identify Your Company’s Initial Needs: What Will
You Require To Get Started?
32 The Major Expenses
33 Real Estate
33 Employees and Employee Benefits
34 Startup and Capital Costs
34 Advertising and Promotion
37 Action Step 3
Choose A Winning Strategy: What Will
Distinguish Your Product Or Service From Your
Competition?
38 Create A Powerful Competitive Advantage
44 Use A SWOT Analysis To Determine The Competitive
Advantage Of An Existing Business
45 Plan Ahead: Anticipate An Exit Strategy
45 Match Your Strategy To Any Type Of Industry
46 Emerging
Contents vii
49 Maturing
52 Stagnant and Declining
53 Fragmented
54 Industries with Dominant Leaders
57 Action Step 4
Analyze Your Market: Who Will Want Your
Product Or Service?
60 Research Your Potential Market Thoroughly
65 Target Your Market Like A Bull’s-Eye
66 Test Before You Launch
69 Action Step 5
Develop A Strong Marketing Campaign: How Will
You Reach Your Customers And What Will You
Say To Them?
72 The Four Ps
72 Product
74 Price
75 Place
78 Promotion
83 Action Step 6
Build A Dynamic Sales Effort: How Will You
Attract Customers?
87 Get An Order Today—Or Yesterday
87 Make Sales A Priority For Everyone
88 Never Delegate Yourself Completely Out Of Sales
89 Create The Right Ethical Environment
89 Be Highly Organized
90 Compensate Based On Long-term Performance
91 Your Sales Force Can Be Your Competitive Advantage
viii Bankable Business Plans
93 Action Step 7
Design Your Company: How Will You Hire And
Organize Your Workforce?
96 Structuring Your Company
96 Product Organization
97 Geographical Organization
97 Functional Organization
98 Matrix Organization
99 Hybrid Organization
99 Means Of Control
99 Human Resource Management
103 Legal Structures
105 Matching The Legal Structure With Your Investors
106 Franchises
107 Action Step 8
Target Your Funding Sources: Where Will You
Find Your Financing?
111 Potential Sources Of Financing
115 How Banks Decide On Loans
119 Action Step 9
Explain Your Financial Data: How Will You
Convince Others To Invest In Your Endeavor?
121 The Essential Financial Statements
125 The Six Key Financial Assumptions
128 How To Create Statements
131 Financial Statements For Lightning Larry’s, Inc.
139 Action Step 10
Use The RMA Data: Check Your Answers Against
The Answer Key
Contents ix
140 Working With The RMA Data
143 The Answer Key Revealed
146 It Really Is That Simple
148 RMA Data Pages – Retail Florists
153 Part III
Putting It Into Action
155 What A Business Plan Should look Like
156 The Physical Qualities
159 The Actual Layout
167 Have Outsiders Read It
168 How Long Should It Take Me?
169 How To Create A Time Line
170 The Primary Components
172 Examples Of Time Lines
177 Demonstrate That You Can Manage
Contradictions
177 Keep It Simple…Yet Detailed
179 Focus On Growth…Even In Mature Industries
181 Reassure Investors…Even With Competition All Around
182 Commit To Your Plan…But Be Willing To Pursue Other
Good Opportunities
185 Present Yourself In The Best Light
188 The Text Of Your Business Plan
190 Your Résumé