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	<title>VCPlan - The Path to Success &#187; profitability</title>
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	<description>How investors qualify entrepreneurs -- How entrepreneurs attract investors.</description>
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		<title>Free Can Cost Too much</title>
		<link>http://vcplan.com/archives/431/admin/14-point-list/execution/free-can-cost-too-much</link>
		<comments>http://vcplan.com/archives/431/admin/14-point-list/execution/free-can-cost-too-much#comments</comments>
		<pubDate>Mon, 07 Sep 2009 12:00:50 +0000</pubDate>
		<dc:creator>Steve</dc:creator>
				<category><![CDATA[Execution]]></category>
		<category><![CDATA[Plan]]></category>
		<category><![CDATA[free]]></category>
		<category><![CDATA[productivity]]></category>
		<category><![CDATA[profitability]]></category>
		<category><![CDATA[trade]]></category>

		<guid isPermaLink="false">http://vcplan.com/?p=431</guid>
		<description><![CDATA[Entrepreneurs often look at doing it themselves, trade, or even getting it for free to save them cash.   The only benefit is to preserve cash while the disadvantages can be large:

Quality is often lower.
Lower in priority for service (late delivery, missed deadlines, longer timelines, etc.)
Harder to find someone to do it.
More time spent on starting task and managing task where that time [...]]]></description>
			<content:encoded><![CDATA[<p>Entrepreneurs often look at doing it themselves, trade, or even getting it for free to save them cash.   The only benefit is to preserve cash while the disadvantages can be large:</p>
<ol>
<li>Quality is often lower.</li>
<li>Lower in priority for service (late delivery, missed deadlines, longer timelines, etc.)</li>
<li>Harder to find someone to do it.</li>
<li>More time spent on starting task and managing task where that time can be spent elsewhere.</li>
</ol>
<p>The end result is less value, less productivity, and less sales.  Whether you decide whether to do it yourself, get it for free, trade, or hire someone depends on the urgency, complexity, your ability, and availability of others. </p>
<p>Two solutions are either to master these issues or to hire someone. As Seth Godin puts in his blog yesterday, &#8220;<a title="Seth Godin's blog entry: Pay for Stuff" href="http://sethgodin.typepad.com/seths_blog/2009/09/pay-for-stuff.html" target="_blank">Pay for Stuff</a>&#8220;, sometimes it is best to avoid getting it for free and to pay for it.  The value of more productivity, faster, better quality, leads to more sales and more profitability.</p>
<p>How appropriate to say this on Labor Day (the ironic day of doing no work celebrating those that do work): The objective is to develop the ability to determine to pay or not to pay.  If you do not want to pay for things, the next challenge is to manage getting it for free, trade, or doing it yourself so you do not suffer the drawbacks.</p>
<p>Otherwise, it can only cost you quality, service, and your time.  Ultimately, this leads to lower sales and profits.  Sometimes its best to spend some money to make some money.</p>



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		<item>
		<title>List What Makes This Company Unique and Special</title>
		<link>http://vcplan.com/archives/335/admin/14-point-list/pitch/list-what-makes-this-company-unique-and-special</link>
		<comments>http://vcplan.com/archives/335/admin/14-point-list/pitch/list-what-makes-this-company-unique-and-special#comments</comments>
		<pubDate>Tue, 14 Jul 2009 12:00:53 +0000</pubDate>
		<dc:creator>Steve</dc:creator>
				<category><![CDATA[Pitch]]></category>
		<category><![CDATA[Plan]]></category>
		<category><![CDATA[business plan]]></category>
		<category><![CDATA[executive summary]]></category>
		<category><![CDATA[focus]]></category>
		<category><![CDATA[profitability]]></category>
		<category><![CDATA[proof]]></category>
		<category><![CDATA[winning points]]></category>

		<guid isPermaLink="false">http://vcplan.com/?p=335</guid>
		<description><![CDATA[In this series of installments I am discussing the executive summary and how to make it stand out.  The executive summary should present the compelling reason for the investor to buy into the company.
Have you ever had someone just look you straight in the eye and ask: “Enough telling me about who you are, what [...]]]></description>
			<content:encoded><![CDATA[<p><em>In this series of installments I am discussing the executive summary and how to make it stand out.  The executive summary should present the compelling reason for the investor to buy into the company.</em></p>
<p>Have you ever had someone just look you straight in the eye and ask: “Enough telling me about who you are, what you are going to do, and the market size; tell me why is THIS COMPANY and project going to be successful? How am I assured that I will get my money back and more?”</p>
<p>In this section of the executive summary, you should list all the reasons the company will be successful and will pay back the investors.  Rather than just write that, the following list of key questions can be answered, and help build a compelling story for the investors: </p>
<ol>
<li>What key management experience will be used for this?</li>
<li>What key management decisions (i.e. focus of the company) will enable this company to be successful?</li>
<li>How will the budget/cost be managed successful and affect the profitability?</li>
<li>Where (channels, markets, etc) will the profits come from?</li>
<li>What is the compelling need of the market? What is the PROOF of this need?</li>
<li>Who are the customers? Include demographics of the largest segment. How big and what is their purchasing power?</li>
<li>What makes this company and product unique or special?</li>
<li>What barriers to entry exist (from outsiders and competitors)?</li>
<li>Are there other reasons that this project will be successful (i.e. short ROI, short payoff of capital expenditures, key contracts)?</li>
</ol>
<p>Notice that there are many sections of the business plan incorporated into this one section: marketing, management, sales, operations, finance.  These questions pull in the key winning points from each section. When these questions are compiled into a single story, the investor will see that another company making the same or similar product/service will not be as successful.  It can be simply stated as a bullet point list with the header: “How We Will Be Successful”.  This section delivers the key idea that this company will be the next big winner.  More importantly, it addresses how the investors will win with this company in their portfolio.</p>



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