There are business plans and then there are the ultimate business plans created by the INVIZEN IT Real-Time Status (RTS) Program systems known as CapPro and DevPro by professional business plan writers who can also take your proposal to the capital markets. The INVIZEN IT Real-Time Operations (RTO) Plan is a live document that is designed to be updated each month as part of our investment loss severity risk management and loss mitigation program. If you are seeking capital investment, the odds of failure are greater than 4 out of 5 and your business plan developed from a template or goofy software program is probably not helping your case. From an underwriter’s point of view (and we routinely provide underwriting analyses and due diligence reviews for promoters seeking capital financing from lenders or investment bankers), there are only two (2) questions we have to answer when business plans are submitted: (1) does the preponderance of surveyed market evidence demonstrate the investment opportunity exists? and (2) does the promoter’s business plan demonstrate that execution risk is going to be systemically managed for the benefit of the capital investors or not?
The answer to the first issue is, more or less, a pretty straight-forward process. We run our real-time feasibility analysis program and use the results to drive our real-time underwriting program to get that answer pretty darn quick. The second answer is where many capital financing proposals tend to fail. The execution risk management program is either completely missing in action or it is based upon the failed idea the promoter has great credit, huge personal net worth, loads of experience or a great vision of the future.
The reality is that credit underwriting and default risk underwriting give no real consideration to the claims of the promoter. These claims sound good, in as far as they go, but the question of what would happen to operations if the promoter (or any other employee for that matter) were to be no longer with the company. Uh-oh, your business plan doesn’t speak to this issue? You now have a problem and that problem is you are part of the 4 out of 5 companies that need capital financing but fail to get it on terms they can accept. If your business plan has already been repeatedly rejected your lack of knowledge of these issues is a big contributor to those rejections.
The CapPro approach (view INVIZEN IT RTB Business Plan Sample) is specifically designed to provide the promoter (acting as borrower or issuer) to not only demonstrate the systemic management of investment loss severity risk owing to execution risk, but addresses the other key underwriting issues your business plan would benefit from when it comes to that crucial initial review process where the goats are separated from the sheep. The INVIZEN IT approach is based upon the experience of professional business plan writers who also have direct knowledge of capacity, collateral, credit and default risk underwriting. Templates, software and 99% of commercial business plan writers probably don’t understand these requirements, much less have the means of addressing them. INVIZEN IT’s business plans are purposely built for capital financing in a way you can’t find anywhere else and the difference is telling:
- The INVIZEN IT business plan is the end-product of an end-to-end solution for answering underwriting requirements by demonstrating the required due diligence activities have been professionally undertaken and VERIFIED by a third-party due diligence process. The implied credibility of the third-party material representation of facts helps put the inherent conflict-of-interest issue to bed (i.e.: it’s not just you pumping your deal, it’s the findings of an independent professional who has already reviewed the deal in terms of the entirety of the underwriting exercise).
- The business plan is the outcome of the following component processes that serve
to create the ultimate output:
- The creation of the Enterprise Risk Management Plan; then
- The creation of a full, complete and tested project feasibility study; then
- The creation of the Business Plan of Operations that includes:
- The creation of the Regulatory Risk Management Plan; and
- The creation of the Management Reporting & Communications Plan; and
- The creation of the Employee Claims Risk Plan; and
- The creation of the Third-Party Claims Risk Plan; and
- The creation of the Liquidity Risk Management Plan (i.e.: bankruptcy and foreclosure prevention); and
- The creation of the Marketing, Media, Advertising & Sales Plan; and
- The creation of the Employee Productivity Management Plan; and
- The results of the underwriting analysis and due diligence review itself.
If these issues have not been addressed in your due diligence, then failure is the only outcome you can expect. Find out more about how you can maximize your odds of success and get serious about obtaining capital financing on terms you can swallow. Contact INVIZEN today at 832.663.9634.