Your plan is your roadmap to a great future. Businesses that have a formal business plan have at minimum 30% higher revenues and market value than businesses that don’t. They grow faster and the owners have more fun.
If your sales we’re $1,200,000 last year then with a plan sales would have been $1,600,000. If you’re making $150,000 you could be earning more than $350,000 year in less than three years. If you can sell you business for $5,000,000 today, you can sell it for $18,500,000 in five years. Whatever you do today you should be doing at least 30% better next year and every year after. Would that be worth it?
One of our clients saw that their traditional business model had become uncompetitive in the market. After preparing a new business plan, the management team developed 3 new revenue centers. Two years later sales have increased by over 150%. After the new business plan was communicated to the team, it took them less than 90 days to recognize that they should allocate resources in a different direction. The team started to naturally make the right decisions at the right time. This lead to more intimate customer relationships that yielded new revenue centers. If our client had not seen the value in formal planning they might have missed this incredible opportunity.
Why did the company hire BMC to do the planning? Company management recognized it didn’t have the objectivity or the time to create a plan. They were busy running the business. BMC’s objectivity combined with the management team’s industry knowledge combined to become a catalyst for change.
A primary component of any business plan is the marketing and sales plan. One BMC client, who in our opinion is genius when it comes to operations, achieved a 10 year growth trajectory of over 25% per year, because he chose to forgo the business plan and focus only on the Marketing & Sales plan. He knew that when business started coming fast and furious he would be able to deliver. Once we aligned the internal processes of marketing with the needs of sales, revenue generated a sustainable climb for over ten consistent years.
Remember marketing is about more than just tactics, it include pricing, distribution methodologies, product development, customer service and tactical lead generation and sales closure. Everything is woven together to create the optimal machine that is profit tested to ensure success.
One of our clients had an idea of a new service that she wanted to add to her offerings. Not only did the new service result in a 25% increase on the top line, but the service was crafted to incubate future customers for the company’s traditional services. It was so effective they increased their market share by 14% in just 20 months. The management team didn’t have the time to prepare a new rollout plan and called BMC to make it happen. We spoke to customers, partners, referral networks, regulatory agencies, and competitors. Then we identified the key features and benefits, pricing and marketing tactics and created a plan that was a great success.
What good is raising capital if you only end up owning a small piece of the company? One of our clients needed to raise $30,000,000 over 3 years. They needed a plan that effectively communicated the opportunity to investors, but that also positioned the management team to retain a larger than traditional share of the company. In the end, the plan placed a heavy emphasis on management’s experience and execution plan, the investors were happy to create a win-win opportunity where they received a great ROI, and the management team was excited about their stake in the company. We created a top notch marketing plan, pitch deck, teasers, level 1 and level 2 financial statements plus an investment analysis which the management team used to raise the necessary capital.