At 5 years old, my kids have a healthy fear of water, and didn't want to get in pool at first. They liked *idea* of learning how to swim, but reality of getting into water up to their necks was scary. They wanted to have their lessons in wading pool. I tried explaining it's a little hard to swim in 12 inches of water, but try reasoning with three 5-year-olds. It was a slow torturous process getting their entire bodies into water. By time they got all way into water first lesson was almost over.

What does this have to do with local online marketing? As I listened to instructor try to coax them into water, it reminded me of conversations I'd had with small business owners about getting onto web.

"C'mon, just stick your feet in."

"See? That's not so bad, is it?"

"Now, let's do little bunny hops down steps. Hop! Hop! Hop!"

Little by little, they got used to being in water. Then, getting their faces wet. After a few lessons, they were jumping off side and having a great time. I had to practically drag them out of water.

By William F.(Bill) McCready, www.VenturePlan.com

Most business plan books and software do a thorough job of teaching you to describe your business from an entrepreneur's perspective, focusing on your product or service.

Unfortunately, if you wrote your plan in order to obtain funding, it's vital to write it from an INVESTOR's point of view.

HOW INVESTORS READ a BUSINESS PLAN

A potential investor will initially spend only 5 minutes with your plan. The following areas will be evaluated, each area taking about 1 minute!

1. Determine characteristics of (1) industry and (2) this particular company.

- What other publicly held similar companies are there? - Is there a larger company that is extremely successful? - Is company in a 'glamour field'? (important to ensure a good public offering)

2. Determine terms of deal.

- How much of company is being sold for what price? - What is form of debt or equity being requested? - How will funds be used? o To retire old debt (bad idea)? o To undertake new activities that will, in turn, increase profitability?

3. Review bottom line with special emphasis on years three through five.

- Earnings or potential earnings are reviewed to determine company's valuation. - Sensitivity analysis, or what if analysis to see how business model adjusts to changing prices, expenses and competition.

4. Determine caliber of people in deal. (The most important aspect of business plan!)

- What is track record of founders and managers? - How much balance and experience does inner management team possess? - How long have members worked together? - Who are banker and accountant, and what are their credentials?

5. The marketing plan is reviewed with careful consideration to current and future threats.

- Is product or service in demand now or will it be in near future? - What is Unique Selling Proposition for product? - What other company or companies are already in this space that could leap frog this business? - Can customer be easily identified and marketed to successfully?

*** =============== SAMPLE BIZ PLANS =============== ***

High Tech and Traditional Business Plans