Building a Business From the Ground Up
At Calyx King Consulting, we’ve worked with dozens of clients both here in the States and Internationally. And the types of clientele we see come in through the front door range from well-prepared investment management firms to two guys with a dream. But 9 times out of 10, we see potential clients coming to us without a critical component to support their ideas – a Business Plan.
Many people we encounter are already down the path of raising money among friends and family to start their fledgling cannabis business. But I’m always amazed by the sheer number of folks that haven’t thought about the most foundational step for any business. I’m also amazed by the number of people they’ve already convinced to give them money without having any semblance of a plan – but that’s another story altogether for PT Barnum to tell.
Business Plan Development 101
It’s easy to understand why folks want to just get started. They have an idea and are powered by the energy that comes from the belief that they are going to make it big. Any entrepreneur worth their salt will tell you that the power of motivation in the beginning is what drives them towards their goals.
Too often, people they lose their way, go off their chosen path, and end up on a random detour with no money or resources to pull themselves out of the ditch. And then, the dream dies a quick, early death. Working without a plan can work for a little while. But it’s generally a recipe for disaster in the long run.
The reasons we generally see and/or hear for bypassing the crucial step of building a Business Plan range anywhere from:
- Arrogance – “We don’t need a plan, we already know what we’re doing” – (they generally don’t)
- Fear – “We don’t want anyone else to steal our ideas” – (most ideas are not new – profitability is in the efficient execution of them)
- Conceit – “We can just wing it and be fine – we’ve been doing this for years” – (tell that to the people you are asking for millions of dollars from)
- Ignorance – “I don’t really know how to use spreadsheets or work with numbers” – (not inspiring for investors or anyone you want money from)
- Impatience – “We don’t have time for writing all this stuff down. We’re going to miss out if we don’t get going fast!” – (See The Hare & The Tortoise)
Penny Wise and Pound Foolish
Much of the time, potential clients are so eager to get started that they just want to go go go! They have a good idea, have honed their trade and knowledge on a smaller scale, and have a burning desire to succeed with their idea.
They are also generally limited on both capital to start their business as well as understanding how to even build a plan to launch it. Sure – there are a number of great resources on the internet to help you write a basic business plan. But doing it in a silo can lead to making poor assumptions and second guessing decisions.
Key Elements of a Business Plan
Our firm doesn’t attempt to reinvent the wheel when developing a business plan with a client. We use a tried and true methodology that focuses on creating cornerstone content that can be used for both planning purposes as well as solicitation of investments in a business or idea.
Our process focuses on walking clients through several key areas of business planning including the following:
- Mission, Vision and Company Overview
- Value Propositions
- Product and Service Outline
- SWOT Analysis
- Keys to Success
- Company Structure and Staffing Model
- Operations Overview
- Market Analysis
- Customer Analysis
- Branding and Marketing Approach
- Legal and Regulatory Analysis
- Financial Analysis
In addition, we help clients develop 1-3 year Pro Forma Financial Statements with Revenue, Cost and Labor projections that help to solidify business planning and investment requirements.
Hire the Right Help
All of the reasons above demonstrate why it can be extremely helpful to hire an outside resource to help objectively develop your plans with you in a collaborative fashion. Having an experienced sounding board that can guide you through the process of planning your future business is an invaluable asset when getting started. And building a foundation which you’ll leverage to solicit investment capital, guide your future work, and generate enthusiasm and comprehension of your plans is critical to success.
Contact Us Today
Whether you are just starting out with your new venture, or have begun your journey and need to catch up on your plans – we can help get you there. Our team is well-versed in working with white and ‘green-collar’ professionals.
We can step you through the process to build a business plan by asking the right questions, providing insight and helping you to not only value your business appropriately but also connect you with potential investors.
Contact us today to discuss your project and to learn about our team at firstname.lastname@example.org or 206.717.3420.