hi I’m Evan Carmichael welcome to another edition of ask Evan in today’s
another edition of ask Evan in today’s
another edition of ask Evan in today’s episode I’m going to answer a question
episode I’m going to answer a question
episode I’m going to answer a question from one of my readers Nelson who wrote
from one of my readers Nelson who wrote
from one of my readers Nelson who wrote to me asking me to check out his
to me asking me to check out his
to me asking me to check out his business plan and I thought the easiest
business plan and I thought the easiest
business plan and I thought the easiest way to do it would be to do a screencast
way to do it would be to do a screencast
way to do it would be to do a screencast so you can kind of watch along with me
so you can kind of watch along with me
so you can kind of watch along with me so Nelson is one of my Twitter followers
so Nelson is one of my Twitter followers
so Nelson is one of my Twitter followers and watches some YouTube videos of mine
and watches some YouTube videos of mine
and watches some YouTube videos of mine and he’s trying to get funding for this
and he’s trying to get funding for this
and he’s trying to get funding for this business idea he’s based in South Africa
business idea he’s based in South Africa
business idea he’s based in South Africa and wanted my advice on his plan and so
and wanted my advice on his plan and so
and wanted my advice on his plan and so he attached it along with a whole bunch
he attached it along with a whole bunch
he attached it along with a whole bunch of different attachments down here so I
of different attachments down here so I
of different attachments down here so I just opened the major document here at
just opened the major document here at
just opened the major document here at the business plan and having a
the business plan and having a
the business plan and having a background as being the venture
background as being the venture
background as being the venture capitalists we used to raise half a
capitalists we used to raise half a
capitalists we used to raise half a million to 15 million dollars for
million to 15 million dollars for
million to 15 million dollars for companies to expand their businesses and
companies to expand their businesses and
companies to expand their businesses and I looked at I don’t know how new
I looked at I don’t know how new
I looked at I don’t know how new business plans too many to count and we
business plans too many to count and we
business plans too many to count and we rejected you know 99% of them and most
rejected you know 99% of them and most
rejected you know 99% of them and most of them were rejected right here at this
of them were rejected right here at this
of them were rejected right here at this face so somebody even emails me a plan
face so somebody even emails me a plan
face so somebody even emails me a plan and don’t they get a quick look and then
and don’t they get a quick look and then
and don’t they get a quick look and then they get a rejection notice pretty
they get a rejection notice pretty
they get a rejection notice pretty quickly soon after so this will be a
quickly soon after so this will be a
quickly soon after so this will be a kind of sneak peek as to how I looked at
kind of sneak peek as to how I looked at
kind of sneak peek as to how I looked at business plans for any of those of you
business plans for any of those of you
business plans for any of those of you who are looking to raise funding
who are looking to raise funding
who are looking to raise funding hopefully this helps
hopefully this helps
hopefully this helps so just looking up the document here’s
so just looking up the document here’s
so just looking up the document here’s this document so we’ll just go through
this document so we’ll just go through
this document so we’ll just go through it quickly so business plan fine Pasi
it quickly so business plan fine Pasi
it quickly so business plan fine Pasi events management CCTA on print so I’m
events management CCTA on print so I’m
events management CCTA on print so I’m not exactly sure what all this is it
not exactly sure what all this is it
not exactly sure what all this is it looks like the company’s name is on
looks like the company’s name is on
looks like the company’s name is on print I don’t know what all of this is
print I don’t know what all of this is
print I don’t know what all of this is before I haven’t kind of seen that kind
before I haven’t kind of seen that kind
before I haven’t kind of seen that kind of model maybe it’s past the events
of model maybe it’s past the events
of model maybe it’s past the events management and I don’t know what this
management and I don’t know what this
management and I don’t know what this means but so I’m a little confused
means but so I’m a little confused
means but so I’m a little confused already from the just the first page
already from the just the first page
already from the just the first page going down so the table contents it’s
going down so the table contents it’s
going down so the table contents it’s fine one thing I noticed here you know
fine one thing I noticed here you know
fine one thing I noticed here you know you want to make it look as professional
you want to make it look as professional
you want to make it look as professional as you can so it’s great to have a table
as you can so it’s great to have a table
as you can so it’s great to have a table of contents everything’s aligned nicely
of contents everything’s aligned nicely
of contents everything’s aligned nicely the right side here looks way off so you
the right side here looks way off so you
the right side here looks way off so you know clean that up a little bit so
know clean that up a little bit so
know clean that up a little bit so people get a positive impression of you
people get a positive impression of you
people get a positive impression of you and your business so you know
and your business so you know
and your business so you know the numbers could be aligned better
the numbers could be aligned better
the numbers could be aligned better these are some weird-looking numbers
these are some weird-looking numbers
these are some weird-looking numbers down here breakeven is on page 221 you
down here breakeven is on page 221 you
down here breakeven is on page 221 you know just little things like that if an
know just little things like that if an
know just little things like that if an investor right like right away here this
investor right like right away here this
investor right like right away here this is almost game over right if somebody
is almost game over right if somebody
is almost game over right if somebody submits this kind of business plan to me
submits this kind of business plan to me
submits this kind of business plan to me when I was in my venture capital days
when I was in my venture capital days
when I was in my venture capital days your almost game over you have to really
your almost game over you have to really
your almost game over you have to really Wow me after this if there’s any kind of
Wow me after this if there’s any kind of
Wow me after this if there’s any kind of errors or sloppiness on your you know
errors or sloppiness on your you know
errors or sloppiness on your you know table of contents you’re probably gonna
table of contents you’re probably gonna
table of contents you’re probably gonna have a lot more mistakes later on so you
have a lot more mistakes later on so you
have a lot more mistakes later on so you want to really go through it with a
want to really go through it with a
want to really go through it with a fine-tooth comb what I would typically
fine-tooth comb what I would typically
fine-tooth comb what I would typically look for and looking at business plan is
look for and looking at business plan is
look for and looking at business plan is I start with the executive summary I
I start with the executive summary I
I start with the executive summary I then go to the about us of the the team
then go to the about us of the the team
then go to the about us of the the team which I don’t really see this little bit
which I don’t really see this little bit
which I don’t really see this little bit about the business so we’ll check that
about the business so we’ll check that
about the business so we’ll check that out but there’s nothing about management
out but there’s nothing about management
out but there’s nothing about management BIOS and then we go down to the
BIOS and then we go down to the
BIOS and then we go down to the financials so let’s start with the
financials so let’s start with the
financials so let’s start with the executive summary and see what it’s all
executive summary and see what it’s all
executive summary and see what it’s all about
about
about from the an executive summary airborn
from the an executive summary airborn
from the an executive summary airborn communication see see the company so I’m
communication see see the company so I’m
communication see see the company so I’m now even more confused because it’s
now even more confused because it’s
now even more confused because it’s airborne communication CC and at the top
airborne communication CC and at the top
airborne communication CC and at the top it’s past the events management and on
it’s past the events management and on
it’s past the events management and on print so I’m not really sure what the
print so I’m not really sure what the
print so I’m not really sure what the name of this company is so it’s
name of this company is so it’s
name of this company is so it’s registered in 2007 by Nelson a thirty
registered in 2007 by Nelson a thirty
registered in 2007 by Nelson a thirty year old black male I don’t know if this
year old black male I don’t know if this
year old black male I don’t know if this is relevant if you’re blocking out or
is relevant if you’re blocking out or
is relevant if you’re blocking out or how old you are
how old you are
how old you are company was registering response is
company was registering response is
company was registering response is identifying the opportunity to open to
identifying the opportunity to open to
identifying the opportunity to open to open establish a print on demand graphic
open establish a print on demand graphic
open establish a print on demand graphic design service so right here grammatical
design service so right here grammatical
design service so right here grammatical mistake so to open you know or establish
mistake so to open you know or establish
mistake so to open you know or establish wouldn’t have both of them so probably
wouldn’t have both of them so probably
wouldn’t have both of them so probably this point that’s it I’m done as an
this point that’s it I’m done as an
this point that’s it I’m done as an investor you know I have on your other
investor you know I have on your other
investor you know I have on your other business plans to look at and don’t have
business plans to look at and don’t have
business plans to look at and don’t have time for this one anymore well just just
time for this one anymore well just just
time for this one anymore well just just to kind of quickly go through the review
to kind of quickly go through the review
to kind of quickly go through the review I’ll keep going
I’ll keep going
I’ll keep going for your sake Nelson so going through
for your sake Nelson so going through
for your sake Nelson so going through sponsor form the company the offer
sponsor form the company the offer
sponsor form the company the offer graphic design print on demand service
graphic design print on demand service
graphic design print on demand service product which product will be recently
product which product will be recently
product which product will be recently priced so another grammatical mistake
priced so another grammatical mistake
priced so another grammatical mistake there the business focus on service
there the business focus on service
there the business focus on service quality and turnaround time sponsor to
quality and turnaround time sponsor to
quality and turnaround time sponsor to attain
attain
attain services hooli you can of stuff okay so
services hooli you can of stuff okay so
services hooli you can of stuff okay so you haven’t you haven’t grabbed me and
you haven’t you haven’t grabbed me and
you haven’t you haven’t grabbed me and the the job of your executive summary
the the job of your executive summary
the the job of your executive summary here is you want to grab the reader to
here is you want to grab the reader to
here is you want to grab the reader to say this is really interesting I want to
say this is really interesting I want to
say this is really interesting I want to learn more so you got to do that in the
learn more so you got to do that in the
learn more so you got to do that in the first couple sentences
first couple sentences
first couple sentences I want to know you know what the demand
I want to know you know what the demand
I want to know you know what the demand is like in your markets all its shows
is like in your markets all its shows
is like in your markets all its shows here is that you saw an opportunity it
here is that you saw an opportunity it
here is that you saw an opportunity it would be good to have you know a little
would be good to have you know a little
would be good to have you know a little more data and also show what is that you
more data and also show what is that you
more data and also show what is that you do that’s unique and different so a
do that’s unique and different so a
do that’s unique and different so a print on demand graphic design service
print on demand graphic design service
print on demand graphic design service doesn’t really showcase what’s you know
doesn’t really showcase what’s you know
doesn’t really showcase what’s you know so different about you you’re gonna
so different about you you’re gonna
so different about you you’re gonna focus on service quality and turnaround
focus on service quality and turnaround
focus on service quality and turnaround time you know everybody’s gonna say that
time you know everybody’s gonna say that
time you know everybody’s gonna say that so again you haven’t you haven’t pulled
so again you haven’t you haven’t pulled
so again you haven’t you haven’t pulled me so for a busy investor or banker
me so for a busy investor or banker
me so for a busy investor or banker who’s seen tons of these you’re you’re
who’s seen tons of these you’re you’re
who’s seen tons of these you’re you’re more likely to get rejected if you can’t
more likely to get rejected if you can’t
more likely to get rejected if you can’t grab them quickly so I focus on cleaning
grab them quickly so I focus on cleaning
grab them quickly so I focus on cleaning this up a little bit really showing that
this up a little bit really showing that
this up a little bit really showing that there’s a strong demand for your
there’s a strong demand for your
there’s a strong demand for your business in your area and grabbing them
business in your area and grabbing them
business in your area and grabbing them quickly with what makes you different
quickly with what makes you different
quickly with what makes you different and why you’re gonna succeed where other
and why you’re gonna succeed where other
and why you’re gonna succeed where other companies have failed so this is good to
companies have failed so this is good to
companies have failed so this is good to show the the source of fun so I guess
show the the source of fun so I guess
show the the source of fun so I guess you’re gonna be doing a hundred thousand
you’re gonna be doing a hundred thousand
you’re gonna be doing a hundred thousand we know whatever your currency is here
we know whatever your currency is here
we know whatever your currency is here and then you’re gonna be asking for four
and then you’re gonna be asking for four
and then you’re gonna be asking for four hundred fifty thousand in return I don’t
hundred fifty thousand in return I don’t
hundred fifty thousand in return I don’t know what that converts to in terms of
know what that converts to in terms of
know what that converts to in terms of dollars so if that’s a reasonable amount
dollars so if that’s a reasonable amount
dollars so if that’s a reasonable amount for start-up or not one thing I noticed
for start-up or not one thing I noticed
for start-up or not one thing I noticed here is is a mistake here on the numbers
here is is a mistake here on the numbers
here is is a mistake here on the numbers the source of funds an application of
the source of funds an application of
the source of funds an application of funds this should be 550 instead of 450
funds this should be 550 instead of 450
funds this should be 550 instead of 450 all right so both numbers should add up
all right so both numbers should add up
all right so both numbers should add up ideally to 550 and these two will add up
ideally to 550 and these two will add up
ideally to 550 and these two will add up to 550 so there’s some you know
to 550 so there’s some you know
to 550 so there’s some you know numerical error here of how you’re gonna
numerical error here of how you’re gonna
numerical error here of how you’re gonna be you know spending using the funds
be you know spending using the funds
be you know spending using the funds again you know as somebody you’re
again you know as somebody you’re
again you know as somebody you’re talking to guys who are gonna pour over
talking to guys who are gonna pour over
talking to guys who are gonna pour over your numbers you got to make sure that
your numbers you got to make sure that
your numbers you got to make sure that every number makes complete sense and
every number makes complete sense and
every number makes complete sense and you can you can break it down really
you can you can break it down really
you can you can break it down really clearly so right away again if there’s
clearly so right away again if there’s
clearly so right away again if there’s any mistake with your numbers you’re
any mistake with your numbers you’re
any mistake with your numbers you’re probably gonna get a no pretty quickly
probably gonna get a no pretty quickly
probably gonna get a no pretty quickly so I’d want to go through that a little
so I’d want to go through that a little
so I’d want to go through that a little more clearly
more clearly
more clearly I don’t know again what the conversion
I don’t know again what the conversion
I don’t know again what the conversion here is the dollars it looks like you
here is the dollars it looks like you
here is the dollars it looks like you might want to think about having some
might want to think about having some
might want to think about having some more working capital this might be the
more working capital this might be the
more working capital this might be the low you said somewhere that you’re
low you said somewhere that you’re
low you said somewhere that you’re you’re not gonna even be making a loss
you’re not gonna even be making a loss
you’re not gonna even be making a loss of the first five months so you might
of the first five months so you might
of the first five months so you might need a little more working capital than
need a little more working capital than
need a little more working capital than this especially if it takes you longer
this especially if it takes you longer
this especially if it takes you longer than five months to get profitable so
than five months to get profitable so
than five months to get profitable so that’s something to consider if I’m
that’s something to consider if I’m
that’s something to consider if I’m giving you money you might be concerned
giving you money you might be concerned
giving you money you might be concerned that you would spend all this money
that you would spend all this money
that you would spend all this money buying up all your equipments and
buying up all your equipments and
buying up all your equipments and supplies and then you wouldn’t have
supplies and then you wouldn’t have
supplies and then you wouldn’t have enough money to actually run your
enough money to actually run your
enough money to actually run your business so that that might cause me
business so that that might cause me
business so that that might cause me some concern is somebody potentially
some concern is somebody potentially
some concern is somebody potentially giving you some money let’s skip down
giving you some money let’s skip down
giving you some money let’s skip down and see if we can find out a little bit
and see if we can find out a little bit
and see if we can find out a little bit more about your business so sponsor is a
more about your business so sponsor is a
more about your business so sponsor is a thirty year old black male again I don’t
thirty year old black male again I don’t
thirty year old black male again I don’t know I don’t know why that makes a
know I don’t know why that makes a
know I don’t know why that makes a difference if you’re black or not or how
difference if you’re black or not or how
difference if you’re black or not or how old you are necessarily accepting
old you are necessarily accepting
old you are necessarily accepting experience in graphic design business
experience in graphic design business
experience in graphic design business print web marketing branding animation
print web marketing branding animation
print web marketing branding animation TV attach the marking manager experience
TV attach the marking manager experience
TV attach the marking manager experience as well there mumbling to myself as I
as well there mumbling to myself as I
as well there mumbling to myself as I read CV attached I would include more
read CV attached I would include more
read CV attached I would include more here so this was a number two thing that
here so this was a number two thing that
here so this was a number two thing that I looked at as as a venture capitalist
I looked at as as a venture capitalist
I looked at as as a venture capitalist is who’s the team and it’s great to have
is who’s the team and it’s great to have
is who’s the team and it’s great to have the CV but if you don’t grab people
the CV but if you don’t grab people
the CV but if you don’t grab people again here quickly then you’re not going
again here quickly then you’re not going
again here quickly then you’re not going to get a yes you’re making them do extra
to get a yes you’re making them do extra
to get a yes you’re making them do extra work so I would I would quickly show
work so I would I would quickly show
work so I would I would quickly show here some of the highlights of both of
here some of the highlights of both of
here some of the highlights of both of your careers and why you guys are
your careers and why you guys are
your careers and why you guys are uniquely situated to become a success in
uniquely situated to become a success in
uniquely situated to become a success in this industry where you know others may
this industry where you know others may
this industry where you know others may not have been as successful that’s the
not have been as successful that’s the
not have been as successful that’s the biggest worry for any investors they’re
biggest worry for any investors they’re
biggest worry for any investors they’re gonna give you money and you’re gonna
gonna give you money and you’re gonna
gonna give you money and you’re gonna lose it Ryan anybody can spend money but
lose it Ryan anybody can spend money but
lose it Ryan anybody can spend money but not everybody can make money or earn
not everybody can make money or earn
not everybody can make money or earn money and that’s the biggest fear for an
money and that’s the biggest fear for an
money and that’s the biggest fear for an investor is that they’re gonna lend you
investor is that they’re gonna lend you
investor is that they’re gonna lend you all this money and you’re gonna just
all this money and you’re gonna just
all this money and you’re gonna just blow it and not be able to make a return
blow it and not be able to make a return
blow it and not be able to make a return so that seems to be it so this is all
so that seems to be it so this is all
so that seems to be it so this is all you have on your management team so I
you have on your management team so I
you have on your management team so I definitely ramp that up do show more
definitely ramp that up do show more
definitely ramp that up do show more about yourself your experience show that
about yourself your experience show that
about yourself your experience show that you have an existing client base of
you have an existing client base of
you have an existing client base of people you’ve worked with any momentum
people you’ve worked with any momentum
people you’ve worked with any momentum you can show at all if you’ve been in
you can show at all if you’ve been in
you can show at all if you’ve been in the media if you’re an expert I need any
the media if you’re an expert I need any
the media if you’re an expert I need any big-name clients that they might
big-name clients that they might
big-name clients that they might recognize and since you’re both kind of
recognize and since you’re both kind of
recognize and since you’re both kind of young what I might suggest is also
young what I might suggest is also
young what I might suggest is also having some advisors join on so advice
having some advisors join on so advice
having some advisors join on so advice is a great way to show some momentum
is a great way to show some momentum
is a great way to show some momentum with your business and you want to tap
with your business and you want to tap
with your business and you want to tap into people who have a little bit more
into people who have a little bit more
into people who have a little bit more experience than you do and whose name
experience than you do and whose name
experience than you do and whose name might carry some more weight than you do
might carry some more weight than you do
might carry some more weight than you do how you compensate an advisor
how you compensate an advisor
how you compensate an advisor it could be monetary so you could pay
it could be monetary so you could pay
it could be monetary so you could pay them a fee but a lot of times people
them a fee but a lot of times people
them a fee but a lot of times people will agree to be an advisor just just to
will agree to be an advisor just just to
will agree to be an advisor just just to help because people you know want to
help because people you know want to
help because people you know want to help other entrepreneurs and see them
help other entrepreneurs and see them
help other entrepreneurs and see them become successful so even though they
become successful so even though they
become successful so even though they may not have a formal role with the
may not have a formal role with the
may not have a formal role with the business if they agree to lend their
business if they agree to lend their
business if they agree to lend their name especially for a business plan
name especially for a business plan
name especially for a business plan it adds a lot of credibility so if I’m
it adds a lot of credibility so if I’m
it adds a lot of credibility so if I’m an investor and I’m looking through this
an investor and I’m looking through this
an investor and I’m looking through this document and I see the name of somebody
document and I see the name of somebody
document and I see the name of somebody who I recognized then that might make me
who I recognized then that might make me
who I recognized then that might make me want to at least keep reading on with
want to at least keep reading on with
want to at least keep reading on with the document okay so yes I clean up the
the document okay so yes I clean up the
the document okay so yes I clean up the table of contents then work on your
table of contents then work on your
table of contents then work on your executive summary make it more grabbing
executive summary make it more grabbing
executive summary make it more grabbing fix up your numbers definitely add more
fix up your numbers definitely add more
fix up your numbers definitely add more on your management BIOS and then the
on your management BIOS and then the
on your management BIOS and then the next thing would be to look at your
next thing would be to look at your
next thing would be to look at your financials I won’t go into it here just
financials I won’t go into it here just
financials I won’t go into it here just so we don’t reveal all your numbers
so we don’t reveal all your numbers
so we don’t reveal all your numbers publicly but I would definitely make
publicly but I would definitely make
publicly but I would definitely make sure that all your numbers add up
sure that all your numbers add up
sure that all your numbers add up properly the the bankers or investors
properly the the bankers or investors
properly the the bankers or investors are definitely gonna look through every
are definitely gonna look through every
are definitely gonna look through every number and you need to have an answer
number and you need to have an answer
number and you need to have an answer for why each number exists on that page
for why each number exists on that page
for why each number exists on that page and how you’re gonna use that money if
and how you’re gonna use that money if
and how you’re gonna use that money if you hesitate at all then you’re probably
you hesitate at all then you’re probably
you hesitate at all then you’re probably gonna get a note right they might pick
gonna get a note right they might pick
gonna get a note right they might pick one number off of that huge sheet and
one number off of that huge sheet and
one number off of that huge sheet and say why are you spending X on Y right
say why are you spending X on Y right
say why are you spending X on Y right why are you spending this much money to
why are you spending this much money to
why are you spending this much money to buy whatever it is and you have to have
buy whatever it is and you have to have
buy whatever it is and you have to have a really clear answer and if you
a really clear answer and if you
a really clear answer and if you hesitate then it shows that you haven’t
hesitate then it shows that you haven’t
hesitate then it shows that you haven’t really thought it out much and you’re
really thought it out much and you’re
really thought it out much and you’re not probably gonna get the money so
not probably gonna get the money so
not probably gonna get the money so hopefully that helps now for those
hopefully that helps now for those
hopefully that helps now for those watching the video if you like the video
watching the video if you like the video
watching the video if you like the video you want to see more like this please
you want to see more like this please
you want to see more like this please give it a thumbs up it makes me want to
give it a thumbs up it makes me want to
give it a thumbs up it makes me want to do more of these videos for you I really
do more of these videos for you I really
do more of these videos for you I really enjoyed and hopefully it’s adding value
enjoyed and hopefully it’s adding value
enjoyed and hopefully it’s adding value to you your business so I always love
to you your business so I always love
to you your business so I always love things seeing those thumbs ups come in
things seeing those thumbs ups come in
things seeing those thumbs ups come in and if you have a comment about this
and if you have a comment about this
and if you have a comment about this video about his business plan or if you
video about his business plan or if you
video about his business plan or if you have a question that you’d like me to
have a question that you’d like me to
have a question that you’d like me to help you out with feel free to leave it
help you out with feel free to leave it
help you out with feel free to leave it in the comment section below and we’ll
in the comment section below and we’ll
in the comment section below and we’ll see you on the next episode
”
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