CHECK YOUR BIZPLAN HELP WEBLOG URL

December 1, 2005 - If you are using an aggregator, RSS Feed, or link to the BizPlanHelp Weblog (blog) in any other way, make sure you check the URL. This is necessary because we have switched where we publish the feed so if you want the most recent news, make the change.

The URL for the Weblog (blog) is:
http://www.bizplanhelp.com/blog/blog.htm

FEED URL
The Atom Feed is:
http://www.bizplanhelp.com/blog/atom.xml
Or, The XML Feed is:
http://feeds.feedburner.com/BPHelp

Eagle Strategy Group LLC Launches Active Mentoring Program

Manhattan, NY, November 22, 2005 – Eagle Strategy Group LLC today announced that it will begin offering an Active Mentoring Program (AMP) to small and medium businesses. The driving principal behind AMP is to train internal employees to identify needs, assess conditions, create solutions, implement solutions, and monitor results, while an experienced consultant serves in a mentoring role.

AMP is a flexible approach that can be utilized at any level or within any department in your organization. An Eagle Strategy Group Consultant works as a “Mentor” within your organization. Through group workshops and interviews, the Mentor helps employees identify needs or areas for improvement. The Mentor then facilitates the assessment and creation of a solution by training employees to utilize modern business principals, tools, and technology. Finally, the Mentor helps the employees implement the solution and monitor the results.

Steve Mooar of Eagle Strategy Group LLC commented that “There are a lot of small and medium business out there that would like to initiate projects that bring new business principles to their organizations, but do not have the resources internally or the resources to bring in external people to complete these projects.” He went on to say that “AMP gives these businesses a cost effective way to complete these projects by training internal employees and guiding them through the project.”

There is also an Active Mentoring Program (AMP) for Startups, where Eagle Strategy Group works with entrepreneurs on new ventures. Through AMP for Startups, a mentor guides the entrepreneur through the business plan and business launch process.

About Eagle Strategy Group LLC
Eagle Strategy Group provides Strategy Consulting Services to small and medium sized businesses. Eagle specializes in developing strategic solutions in Operations, Information Technology (IT), Startup, and Merger and Acquisitions (M&A), as well as provides interim management support. For more information on AMP, AMP for Startups and other consulting services go to www.eaglestrategygroup.com and contact:

Steve Mooar
info@eaglestrategygroup.com
Phone: 917.475.4691
Fax: 917.591.5239

SMB Strategy Cast Podcast Available at iTunes

The SMB Strategy Cast Podcast is now available at the iTunes Muisc Store. A few months ago, Apple added a PodCast section to the iTunes software as well as a directory of PodCasts in the Music Store. In the Music Store, users can search PodCasts by keyword or browse by subject and subscribe and listen to the Podcasts. If you use iTunes and are on a computer with iTunes running, you can click on this link to listen to the SMB Strategy Cast.

If you are not an iTunes user you can still download or stream the SMB Strategy Cast from the weblog for the PodCast located on our site at www.bizplanhelp.com/podcast/. If you use an aggregator to view weblogs or listen to Podcasts, there is the option to subscribe to the XML feed.

Also, if you want to search for other Podcasts, the iPodder.org directory is a good start. The SMB Strategy Cast is listed in the iPodder “Business” section with many other great business podcasts. The site also has many other categories to explore.

New Business Strategy Resources – Links & SMB Strategy Podcast
October 12, 2005

We continue to update the BizPlanHelp.com Alpha site. Last week we added the first few categories and links to Business Strategy Resources that we find valuable to the entrepreneur. These resources are available in the Links Section of BizPlanHelp.com. The first three categories are:

• General Startup - Resources that cover Business Plans as well as other topics important for startups and SMB's like Biz Plan Help.
• Business Plan Help - Sites with resources to help entrepreneurs create business plans.
• Business Plan Samples - Sites with sample Business Plans.

We are also accepting site recommendations from our readers. To recommend a site send an email to links@bizplanhelp.com with "Recommend a Site" in the subject area. In the email include the URL, Site Name, Brief Description, and Topic Area. If your site does not fall under a current topic area, but you feel it is a good resource for Startups and SMB's, suggest the new topic area in the email.

Also, the first episode of BizPlanHelp.com’s Podcast, Small and Medium Business (SMB) Strategy Cast was published today. The SMB Strategy Cast covers business strategy topics that pertain to startup, small, and medium businesses. Each episode will be limited to 10 minutes and cover one topic. The first few episodes will cover the Business Plan for startups as well as seasoned companies.

The first episode can be downloaded in the Interactive section of BizPlanHelp.com, http://www.bizplanhelp.com/interactive.htm. We are in the process of creating a weblog with an XML feed that will include show notes and links, so if you use an aggregator for retrieving your Podcasts like iPodder (www.ipodder.org), you will be able to subscribe. For feedback, comments, or questions, email us at podcast@bizplanhelp.com.

Network by eBay; The Inexpensive IT Solution

Manhattan, NY, September 19, 2005 – Eagle Strategy Group continues to add to the Biz Plan Help alpha website (www.bizplanhelp.com). Even though the site is under development, it is open to the public and the latest content is a new articles Network by eBay; The Inexpensive IT Solution. The article endorses the use of eBay and other auction sites as well as sites that specialize in refurbished equipment as an inexpensive source for Information Technology (IT) gear. Here is an excerpt:

I have told the story of building a company around information technology (IT) systems purchased at eBay to many startup and small business clients and always get a disbelieving response. But, the fact is I worked on a team that started a company in 2003 and all the information technology was purchased on eBay or similar auction sites as well as sites that handle refurbished equipment with the exception being a few desktop PC’s and software. I purchased the desktop PC’s new because it is so inexpensive to get new desktops with on site service and more horsepower than is needed in a business PC.

The company was a Consumer Electronics Startup that was selling products to national music store chains as well as big box electronics stores and mass merchants. So, in addition to having PC’s on a network with Internet access, the information technology systems needed to support accounting, inventory control, manufacturing, and Electronic Data Interchange (EDI) transactions. I did have an advantage that made this approach possible in that I could build the system over a 4 week period, which gave me the time I needed for the auction sites. Read More.

IT’S NOT A STARTUP; IT’S A JUMP START – PART 3: HOW TO GET STARTED
By Steve Mooar
Manhattan, NY, September 2, 2005 – This article covers what an entrepreneur should do to get started on a Jump Start strategy. It is Part 3 of a 5 part strategy series on the Jump Start. If you missed the Introduction or first 2 parts of the series, they can be viewed at www.bizplanhelp.com/blog/blog.html. Part 4: Financing the Acquisition will cover ways to seek and obtain funding.

Business Plan
Despite the entrepreneur’s intention of utilizing one of the Jump Start strategies outlined in Part 2 of this series, Advantages of a Jump Start Over a Startup, you still need a business plan. Even if you are going to make the acquisition with cash out of your pocket and run the business yourself without help, a business plan is a great way to get organized. The exercise of creating the plan often shows areas of angst that would not have otherwise been apparent. I am a strong advocate for every business having a business plan and regularly updating the business plan.

Jump Start Hint: Download a free Business Plan Outline to get you started.

Identifying Targets
Whenever I am writing or lecturing about mergers and acquisitions (M&A), I refer to the company being acquired as the target or acquisition target. So, with the business plan complete it is time to identify your acquisition targets. Review your venture and make a list of the characteristics in an acquisition target that would fit your new venture. When developing the list put the characteristics in order from most important to least important.

Jump Start Hint: For a few clients I have worked with them to develop a list that includes a weighted point system, where the more important characteristics get more points. When looking at targets assign the points and you have another way to help make a decision.

If the new venture is a restaurant then here are some of the items that me be on your list:
- Location – a specific town or busy road in a town
- Real Estate – owned or leased?
- Fixtures – bar, waiting area, properly equipped kitchen
- Existing Amenities – Outdoor seating if you are in a warm area.
- Size – number of people it holds and size of parking lot
- Genre – what type of food is served at current location

In Part 2 of this series a few different approaches were introduces to utilize the Jump Start strategy. Let the characteristic list drive the approach, not the other way around. This way you do not limit your characteristic list to items that match the approach, because you may find after completing your list that there is a better approach. Returning back to the restaurant, before creating the list one might think the best Jump Start approach is to buy an existing restaurant in the same genre as an ongoing entity; however, after viewing the list one sees that Location and Real Estate are the most important characteristics. Genre is last on this list and the target being open is not even a factor, so this entrepreneur is looking to purchase assets.

Finding Targets
Locating targets that meet the list can be a very daunting task for anyone, even if they have merger and acquisition experience. There is good news, the Internet has made searching for business for sale as easy as finding a best selling book. There are web sites that allow users to search for business for sale by industry, location, selling price, revenue, and other criteria. Some examples are:

- BizQuest – http://www.bizquest.com/ – is a free site that allows users to search by keyword, location, industry, and industry segment. The site will also help you find a business broker as well as save a search and have an email sent daily with new listings that meet your criteria.
- International Business Brokers Association, Inc. (IBBA) – http://www.ibba.org/ – is a site that allows users to search for businesses for sale and business brokers.
- BizBuySell – http://www.bizbuysell.com/ – has the same search functionality as the other two sites, but also includes franchise search and search by type of sales such as asset sale, startup, and real estate sale.

Jump Start Hint: Don’t forget general search sites when looking for acquisition targets. Use the advanced search options in Google (http://www.google.com/) and Yahoo (http://www.yahoo.com/) or any other Internet search tool that you are comfortable with.

Two of the sites mentioned above have business broker search options. Working with a broker to guide you through the acquisition process is a good option. Your best bet is to select a broker located in the area you want to open your business and/or a broker with experience in your ventures industry. They will have already worked on projects like yours and will also have knowledge of what business are for sales. Like anyone you are going to work with, meet the broker and make sure that you are comfortable working with them. Do some legwork like you would for hiring an employee and ask for a resume and references. Many brokers also have web sites, which will allow you to do some research.

Another way of finding targets is people networking. Hiring a broker gives you a leg up since a good broker is already networked in the local business community. But other sources are trade shows, chamber of commerce, banks that specialize in small business, business trade groups and other business groups. The car leasing company that I mentioned in Part 2 of this series found out about the car rental business target from a loan officer at a bank.

There is also nothing wrong with cold calling. If you see a business you like at a trade show, on the internet, or driving down the street, then call and find out who the owner is and ask if their business is available. Being political and polite will leave the owner flattered about your interest even if they are not interested in selling. They could also become an ally to guide you through the industry or know of others interested in selling. I have been involved with a few transactions where the target was approached at a trade show and although not looking to sell ended up taking advantage of the situation for the exit opportunity.

Conclusion
Using a Jump Start strategy does not mean you do not have to get organized. Do your homework and put together a business plan and then create a prioritized list of what you are looking for in an acquisition target. If you are not comfortable with doing your own leg work to find acquisition targets, then use the Internet and/or find a business broker. Finally, don’t settle, look at a lot of different companies even if you do not come to terms with a target, you learn something with each meeting.

About the Author
Steve Mooar has over 10 years experience in Operations and Information Technology and has worked on numerous Startup and M&A projects. He is the president of Eagle Strategy Group, which provides Strategy Consulting Services to small and medium sized businesses. Eagle specializes in developing strategic solutions in Operations, Information Technology (IT), Startup, and Merger and Acquisitions (M&A), as well as provides interim management support. For more information go to www.eaglestrategygroup.com.

IT’S NOT A STARTUP; IT’S A JUMP START – PART 2: ADVANTAGES OF A JUMP START OVER A STARTUP
By Steve Mooar
Manhattan, NY, August 19, 2005 – This article takes a look at the advantages of a Jump Start over a Startup when creating a new venture. It is Part 2 of a 5 part strategy series on the Jump Start. If you missed the Introduction or Part 1: What is a Jump Start, they can be viewed at www.bizplanhelp.com/blog/blog.html. Part 3: How to Get Started will cover the strategy for putting a Jump Start together.

While defining the Jump Start in Part 1 of this strategy series a couple advantage were pointed out including:
- Speed to Market
- Lower Cost of Assets
- If purchasing an active business, Cash Flow from Day 1
- Brand Recognition
In this article I will cover these advantages more in depth as well as introduce other areas were the Jump Start strategy gives the entrepreneur advantages over a Startup.

Speed to Market
One measure of success for any company is how quickly it can turn research, development, and other investments into revenue generating products and services. The longer a company has to spend money on development without revenue the more pressure is put onto cash flow, particularly for a startup. In other words, Time is Money.

In an extreme example, lately in the technology industry it is not unusual for a startup to be in stealth mode for a year or more while developing a product. The company has not generated revenue, so the R&D process is being supported by outside funds putting pressure on the entrepreneurs to bring a successful product to market before running out of funds or going out for another round of financing. Since the dot com bubble it has become more difficult for companies to go out and raise additional rounds of funding and the cost of the funding from an ownership stand point has also greatly increased.

If the entrepreneur of the stealth mode startup can find a strategic acquisition they can alleviate some of the cash needs if the strategic acquisition provides one or more of the following:
- Technology or knowledge that speeds up R&D process
- Product(s) in the target market
- Existing Customers that would be interested in the stealth product resulting in a quicker initial sales cycle

Cost of Assets
I recently worked on a project for a startup car leasing company. Their Jump Start Strategy was to acquire for pennies on the dollar the assets of a rental car business that was shutting down. Included in the assets were a phone system, network equipment, and computer system with accounting and fleet management software specific to the car rental and leasing business. The street value of the software alone was $30,000 and the hardware would have cost another $30,000. In addition they received a customer list of primarily local customers.

In the Car Leasing case, the rental company was going out of business, so the assets were being liquidated. When assets are being sold under distress, they generally sell for 5% to 25% of the book value or originally price depending on the asset. If the assets are being sold under a normal course the assets could be sold for 50% to 100% of book value or original price. In a transaction like this a Fair Market Value (FMV) is calculated, which will be covered in Part 4 of this series Financing the Acquisition. The bottom line is that if you are buying assets from a distressed seller or under normal conditions you can negotiate a price that less than what it would cost on the street.

JUMP START HINT: Take a look at eBay and other auction sites for buying assets below cost. Computers, raw materials, manufacturing equipment, and whole companies are available on auction web sites.

Cash Flow
One of the biggest concerns of a startup is cash. When will the venture start generating cash? How much of investment is needed until the venture is cash flow positive? The two previous Jump Start cases both resulted in decreasing the time to cash flow even though that was not the primary objective. The Technology Jump Start decreased its time to market, therefore decreased its time for generating cash. The car rental company decreased the time it would take to setup the infrastructure, therefore decreasing the time for generating cash.

If cash flow is the entrepreneur’s primary reason for considering a Jump Start, a good point to start is by looking at companies available in the same industry. If the entrepreneur is looking to open a store or restaurant, check if there are any for sale in the area. By buying the existing business the entrepreneur has sales from day 1. Also, one will be better prepared since the business’ financial history is available prior to an acquisition.

Brand Recognition
Many white papers, articles, and books have been authored by marketing gurus on building brands. Also, many financial and accounting types have also chimed in on how to put a value on brands. Having more of a Operations background, I consider the marketing people to be witch doctors working with smoke and mirrors. Even though I do not try and understand how the marketing people do it, I understand the importance of a brand. How great would it be if Eagle Strategy Group had the same recognition as Nike or if my Business Plan Program was as widely known by the public as Apple’s iPod.

I am sure your Jump Start Strategy does not include buying Nike or Apple, but any existing business you buy has a brand attached. The current and past customers, as well as anyone else that has had contact with the business during its operation, know the business and its products; therefore there is a brand. No matter the size of the business being acquired do not underestimate the power of the brand or the customer list. Putting the brand and customers into the hands of a savvy witch doctor will result in revenue.

JUMP START HINT: When performing due diligence on an acquisition target inspect the customer list for complete contact information.

Other Advantages
Here are a few more advantages that make the Jump Start Strategy a good alternative for the entrepreneur:

• Experienced Personnel – you are buying a business with people who have lived it everyday.
• Financial History – anyone that has tried to get a business loan knows that it is much easier when there is history.
• Supplier Relationships – customer lists were already mentioned in this article, but suppliers can be just as important, particularly for manufacturers, wholesalers, and distributors.
  

Conclusion
The 3 biggest advantages of a Jump Start are Speed, Speed, and Speed. Jump Starts go-to-market faster, raise money faster, generate cash faster, and do everything else faster than a Startup. All the advantages that help the entrepreneur move faster during the startup phase, give him the resources to do what he does best – CREATE VALUE.

About the Author
Steve Mooar has over 10 years experience in Operations and Information Technology and has worked on numerous Startup and M&A projects. He is the president of Eagle Strategy Group, which provides Strategy Consulting Services to small and medium sized businesses. Eagle specializes in developing strategic solutions in Operations, Information Technology (IT), Startup, and Merger and Acquisitions (M&A), as well as provides interim management support. For more information go to www.eaglestrategygroup.com.

Biz Plan Help Alpha Site Launched

Manhattan, NY, August 18, 2005 – Eagle Strategy Group LLC launched the alpha version of Biz Plan Help at www.bizplanhelp.com. The site offers Eagle Strategy Group’s business plan and business strategy intellectual property for free to the public.

BizPlanHelp.com is currently being built, but is available to the public during the build. When completed, the site will include information for helping entrepreneurs create business plans and other business strategy products through White Papers, News, Blogs and Podcasts. “Podcasting” is the creation of mp3 audio files, “Podcasts”, that can be listened to on a computer or downloaded to an Apple iPod or other portable device that plays audio files. For more information on Podcasting go to www.ipodder.org.

About Eagle Strategy Group LLC
Eagle Strategy Group increases their client’s income by providing Strategy Consulting Services to small and medium sized businesses. Eagle specializes in developing strategic solutions in Operations, Information Technology (IT), Startup, and Merger and Acquisitions (M&A), as well as provides interim management support. For more information go to www.eaglestrategygroup.com.

IT’S NOT A STARTUP, IT’S A JUMP START – PART 1: WHAT IS A JUMP START
By Steve Mooar

Manhattan, NY, August 5, 2005 – This article defines the term Jump Start and provides sample projects. It is Part 1 of a 5 part strategy series on the Jump Start. If you missed the introduction that was published on August 2nd it can be viewed at http://bizplanhelp.blogspot.com/2005/08/its-not-startup-its-jump-start.html. Part 2 will cover the advantages of the Jump Start over the Startup

Definition
Jump Start – an entrepreneur forms a new company by acquiring another company. The word “company” is used loosely in that it can be an active company or division or even the assets of a shuttered company or division. By purchasing existing assets the entrepreneur gets a jump start over a pure start up with a time advantage as well as a cost advantage since typically the assets are purchased at a discount.

Sample Projects
I have been involved in a few Jump Starts over my consulting career and they have been very successful. The first Jump Start that I was involved in was for a mid-market private equity firm. The project involved buying assets from the household cleaning division of a $1 billion Pharmaceutical company and forming a new company. The assets purchased in the transaction were three brands, intellectual property, and a manufacturing facility. All three brands were active, so even though this Jump Start had many of the same issues as a startup, having to setup processes, personnel, and systems, the business had revenue on day 1.

Another Jump Start that I worked on involved purchasing assets from an $8 Billion Paper Products Company. Unlike the last sample, the assets had been retired by the Paper Products Company 6 months prior to purchase. In the transaction, the entrepreneurs purchased a brand, intellectual property, and tooling for the product line. The advantage to the entrepreneurs that purchased the assets is they now had an internationally recognized brand with strong brand awareness in the United States as well as the tooling to make the products. Within one month a new company was formed around the purchased assets and the new company began taking orders and producing products. By purchasing the assets, the entrepreneurs saved 6 months to a year in startup costs as well as saving millions of dollars in tooling costs.

About the Author
Steve Mooar has over 10 years experience in Operations and Information Technology and has worked on numerous Startup and M&A projects. He is the president of Eagle Strategy Group, which provides Strategy Consulting Services to small and medium sized businesses. Eagle specializes in developing strategic solutions in Operations, Information Technology (IT), Startup, and Merger and Acquisitions (M&A), as well as provides interim management support. For more information go to www.eaglestrategygroup.com.

IT’S NOT A STARTUP, IT’S A JUMP START – INTRODUCTION

By Steve Mooar

Manhattan, NY, August 2, 2005 - So, you have the perfect idea for a new business and you have started to put together the bullet proof business plan to raise money, go public, and be on your way to challenging Bill Gates for the top of the Forbes 400 list, well, at least Warren Buffet or Paul Allen. But is the Startup really the route you should take or should you consider a Jump Start.

Eagle Strategy Group LLC will be presenting a series of strategy articles on an alternative to the Startup – The Jump Start. This series will define the Jump Start, review the advantages over a Startup, and provide resources for finding an acquisition target and financing the acquisition. The articles will be published in 5 parts throughout August 2005.

Part 1 – What is a Jump Start
Part 2 – Jump Start vs. Startup
Part 3 – How to Get Started
Part 4 – Financing the Acquisition
Part 5 – Putting a Strategy Together

About the Author
Steve Mooar has over 10 years experience in Operations and Information Technology and has worked on numerous Startup and M&A projects. He is the president of Eagle Strategy Group, which provides Strategy Consulting Services to small and medium sized businesses. Eagle specializes in developing strategic solutions in Operations, Information Technology (IT), Startup, and Merger and Acquisitions (M&A), as well as provides interim management support. For more information go to www.eaglestrategygroup.com.

DOWNLOAD FREE BUSINESS PLAN OUTLINE

Manhattan, NY, June 27, 2005 – Eagle Strategy Group LLC today made available for download a Business Plan Outline. The Business Plan Outline is just one of many downloads and other materials to help entrepreneurs develop business plans that will be free to the public through a web site that will be created over the next month. The web address for the new site will be http://www.bizplanhelp.com/

The outline has a brief description of the following 8 sections that are typically included in a business plan:

• Introduction
• Executive Summary
• Industry Analysis
• Description of Venture
• Production Plan
• Marketing Plan
• Assessment of Risk
• Financial Plan

Information on Eagle Strategy Group’s Business Plan Writing & Assessment Program and the Business Plan Outline downloaded can be found at:
http://www.eaglestrategygroup.com/Services/businessplan.htm

About Eagle Strategy Group LLC
Eagle Strategy Group provides Strategy Consulting Services to small and medium sized businesses. Eagle specializes in developing strategic solutions in Operations, Information Technology (IT), Startup, and Merger and Acquisitions (M&A), as well as provides interim management support. For more information go to www.eaglestrategygroup.com.

EAGLE STRATEGY GROUP LLC TO CREATE BUSINESS PLAN AND STRATEGY RESOURCE SITE

Manhattan, NY, June 16, 2005 – Eagle Strategy Group LLC today announced that it will begin offering its business plan and select business strategy intellectual property for free to the public through a web site that will be created over the next month. The web address will be www.bizplanhelp.com

The site will include general information for helping entrepreneurs to create business plans as well as White Papers, News, and other material on business plans. Interactive content such as Blogs and Podcasting will also be included. “Podcasting” is the creation of mp3 audio files, “Podcasts” that can be listened to on a computer or downloaded to an Apple iPod or other portable device that plays audio files. For more information on Podcasting go to www.ipodder.org.

Steve Mooar of Eagle Strategy Group LLC commented that “There are a lot of would be entrepreneurs out there that need a push to make their dreams come true and we hope this site will provide that push.” He went on to say that “offering our intellectual property for free is a good business move. We expect that as potential clients see our high quality work they will turn to us for business plans and other business strategy projects.”

About Eagle Strategy Group LLC
Eagle Strategy Group provides Strategy Consulting Services to small and medium sized businesses. Eagle specializes in developing strategic solutions in Operations, Information Technology (IT), Startup, and Merger and Acquisitions (M&A), as well as provides interim management support. For more information go to www.eaglestrategygroup.com.