Business Diagnostics Blog

A recent article in the Financial Post section of the National Post notes that many small business owners and start-ups turn to the Internet to download free business planning templates.

That is what the founders of Smiths Falls, Ont.-based Maple Lane Equestrian did when they launched in 2005.

“We did a financial business plan on paper when we set up our business, and we used a template from the Internet and one from a program I had taken,” Marsha Houlahan, co-founder and president of Smiths Falls, Ont.-based Maple Lane Equestrian, told reporter Alexandra Lopez-Pacheco. “It [the template] covered the financials as well as how to market and what products we should bring in at the beginning–that kind of thing.”

In the same article, Theodore Homa, managing partner in consulting at Business Development Bank of Canada, said the main purpose of a business plan is to obtain financing. The better organized, thoughtful and comprehensive the plan, the better the ultimate pitch the startup will make to the banker.

However, with free, boilerplate-style planning forms, you usually get what you pay for says Mike Thompson, co-author of Business Diagnostics, insisting that start-ups – and more mature operators – need to carefully plan and prepare their proposals using well-structured, professionals guides and advice. A poorly structured financing pitch can set a new business back and damage long-term viability.

In the same article, Mr. Homa suggests business owners focus on two core areas when preparing a business plan:
The first is a market analysis. “Have you done market research? Why is there a need for your product or service? Who buys it? What’s your position in the market and why would you have success in selling your product?” Mr. Homa said.

The second is cash flow and profitability. “So how much are you going to spend on developing this product? How much are you going to earn from selling it? What’s your expected profit and your break-even points?” he asked.

Mike Thompson says Business Diagnostics was developed to assist business owners in these specific areas. Business Diagnostics is a manual, guide and reference for current and aspiring business owners. The book provides a unique framework that helps small and medium size company owners and managers evaluate their corporate health while providing indispensable insight and reference for small business start ups.

Essential for everyone in the small to medium sized business sector, authors Rich Mimick and Mike Thompson are highly regarded management, accounting and commercial banking experts and have compiled a remarkable resource of information and guidance on raising equity, obtaining financing, implementing growth strategies.
Business Diagnostics can be reviewed and purchased here.