Business Planning

BUSINESS PLANNING STAGES

Seed Stage The seed stage is the very first stage of a company. Seed stage is usually the stage of a company that is just beginning and may not have a product prototype yet.

Early Stage This stage describes a company that is still in its formative phase. At this stage, a company may have a product prototype or may be developing its prototype. Early stage or startup stage is usually divided by different funding series. These series are series A and B. Series A is usually the first round of funding in early stage funding. This round of funding is usually earmarked for getting the product or service prototype developed and prepared for mass production or implementation. Series B basically describes a round of early stage funding that is earmarked for companies who already have a fully developed prototype and is at the stage where their product prototype can be manufactured. This funding round usually provides the capital to hire more staff and workers, prepare facilities for mass production, and finally allow the company to open for business.

Growth or Expansion Stage is usually referred to companies who are already established and already have a client flow and revenue coming in. When a company reaches this stage, it is usually already doing well and wants to expand into different markets.

Mezzanine Stage is a stage that a company goes through as it prepares itself for an initial public offering (IPO), going to have its shares publicly traded in the Stock Exchange.

Liquidation Stage is usually the phase of a company’s life where the investors make their exit and cash in on their investments. Liquidation can be divided into different kinds of stages, such as mezzanine stage, managed buyouts, and leveraged buyouts.

Managed Buyouts are usually when the management of a company works together with investors or the management of other larger companies to buy that company.

Leveraged Buyouts are when investors who have a controlling share in the company leverage the buyout.

A well written business plan virtually ensures a business will attract funding for development, infrastructure and growth. Most small businesses that earn annual revenue of $1 million or less are experiencing serious difficulty acquiring capital to sustain growth. 41% of small businesses report that they cannot obtain adequate financing. With the business plan you can source capital, reduce the cost of capital, restructure capital, design investment strategies, and develop plans for the long-term financial goals of your enterprise.

A growing portion of the nation’s banks saw a spike in demand for loans to smaller firms according to the latest Federal Reserve figures. 3Q 2016 saw 26% of banks that experienced “moderately stronger” demand for commercial and industrial loans from small firms earning up to $50 million USD. That percentage was the highest all year, rising from 8% the previous quarter. Although the data is consistent with a modest recovery and an uptick in business confidence, nearly all banks surveyed kept their credit standards extremely tight, and their loan terms the same.

Even with the moderate recovery and increased demand for capital, the vast majority of banks kept credit tight, as 94% reported that credit standards for small firms remained basically unchanged. A similar proportion of banks said the maximum size of credit lines and requirements on collateral also stayed the same. Many small businesses are either struggling to get by or simply keeping their powder dry when it comes to capital investments, hiring and borrowing.

We prepare well written clear business plans to will ensure your business attracts funding for operations, business development, infrastructure and growth.

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Jump start your business today with superior planning for maximum effectiveness. Ensure your enterprise embraces best practices for effective market leadership. We provide technical implementation for all planning initiatives in compliance with Best Practices / PMBOK.

Whether you are planning for a new service, or product, capital raising, or addressing market trends, contact us to discuss your plans. 1-800-791-6962 Email: Info@mmixl.com