Writing Start Up Business Plans:
Never, Never Be A "Start Up"!

Start up business plans present challenges that others do not. Conquering those challenges is what makes you real entrepreneur material.

The "NEW" Issue In A Start Up Business Plan

Lenders and investors can be real stuffy. For the most part, they don't like "new". "Innovative" is ok. "Creative" is so-so. But "new" is a "No." There are a number of reasons for this, the most important one being that the idea hasn't been tried. Do you remember the "pet rock" phenomenon? The entrepreneur made a million dollars on it, but he never got bank financing because the idea was too new, too innovative.

Imagine for a moment all the money and clout it takes to introduce a "new" style in women's fashion. One fashion house alone just can't do it, no matter how many millions it has behind it. It takes many designers, and costs many millions of dollars, to convince the public to try something new. That is how mini skirts and hip boots and Afros came into style.

So let your business "grow". No matter how new it really is, it is still growing, evolving, becoming something more. It has some kind of success behind it. Use that success to your advantage in your start up business plan.

Tagging Along in Start Up Business Plans

It is, of course, possible that your business is New. It may be a new style of cuisine, or a new type of business services that hasn't been tried before. Should you discover yourself in a "New" position, try to latch onto something Tried and True.

That "new cuisine"? It is an ethnic cuisine based on a very popular travel destination.

That "new business service"? It is a business service with comprehensive services for a modern environment.

The goal is to tag your "new" business onto something that is established and successful. That is the straightest path to success in a start up business plan.

Making Your Start Up Business Plan Expansive

"Growing" and "expanding" are great concepts in start up business plans.

It doesn't matter if you are growing from a part time online business to a full time brick and mortar business. You are growing. You are expanding. You are evolving. You are taking success that is already there and making it better.

And that is good.

You Gotta Know the Territory

With existing businesses, the owner has already proved her mettle. Everyone can see The Success, and respect it.

Not so with A start up business plan. It is not always easy to see the success of the owner(s) behind the business in a startup. Proving that this person (or this team) has already generated business success is absolutely essential. The more success, the better. And the closer the previous success is to the business at hand, the better.

Options For Funding Start Up Business Plans

The SBA is surprisingly receptive to startup business plans, perhaps because they typically require two to three backup equity positions anyway. (That means that will want you to guarantee your loan with your house, your stocks, your first born child and anything else of value that you may have.)

Angel investors are the other really great source of start up business plan financing. Angel investors are those magical creatures who believe in new ideas. Often they will have experience in your line of business and be able to provide great contacts for you as well.

Bootstrapping is a technique not to be overlooked. It is a seriously under-valued means of funding new businesses. Basically it means that you look to yourself and your talents to push the business as far as you can before approaching an outside funding source.

For sophisticated entrepreneurs, don't overlook an IPO, especially one offered in England. There are strong advantages to a London Stock Market IPO. Venture lending might also be an option. Explore alternative financing as well as standard financing, and develop a mix that works for you.

Writing Start Up Business Plans

How about wine bars? or a medical billing service? or an internet cafe? Start up business plans for each of these entities is a bit different.

The Wine Bar would likely be funded by an angel investor, or by the SBA, depending on security available. If the Medical Billing Service is a smaller business, it would benefit from bootstrapping or microloans. The Internet Cafe could be SBA funded.

If you have the security to pledge, go first to the SBA. The rates will be lower. If that doesn't work, expand your horizons to other potential investors/lenders.

Focus on what your lender/investor will gain from the loan. The SBA just wants to get paid back. An angel investor may be looking for something quite different. Figure out what it is that they want, then target the business plan accordingly.

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