FROM THE PRESIDENT ...

In providing assistance to these emerging businesses, we have seen many common mistakes repeated in business plans and presentations. While some of these flaws may only be embarrassing, others could cause injury while some are assuredly fatal blows. Based on our experience these are some of the mistakes that should be avoided or at least minimized in developing a successful business plan. They are provided in no particular order.

• THE "BETTER MOUSETRAP" CLICHÉ has deluded many entrepreneurs There are more than 1000 patents on "better" mousetraps but few have ever been marketed. Products are not bought; they are sold.
• "THE R&D IS NOT QUITE COMPLETE" differentiates many scientists and engineers from true entrepreneurs. The quest is more important than the results. There is a time when the design needs to be frozen and the product taken to the marketplace.
• "WE HAVE NO COMPETITION" is near certain predictor for failure. Not only is it never true, but it demonstrates a clear lack of reality and naiveté on the part of the entrepreneurs.
• "CASH IS LIFE" and a lack of cash is death. Most entrepreneurs underestimate product development time, and overestimate sales and gross margin. A start-up venture is a race against insolvency.

• "THE MARKET'S THERE, TAKE OUR WORD FOR IT." Without detailed, segmented market research with solid third party verification, the new venture is skating on very thin ice.
• LACK OF FOCUS is a common failing in many business plans. Management talent is a scarce resource in any venture, and taking on multiple tasks is inviting across-the-board mediocrity or worse.
• BEING THE LOWEST PRICE COMPETITOR is a clearly losing strategy for a start-up venture. High gross margins and the resulting cash flow can help overcome adversity and the many unplanned setbacks experienced by new ventures.
• A WINNING TEAM not only includes an experienced CEO but a committed skilled group of individuals with experience in operations, marketing/sales and finance with fire in their bellies. A one person show will not make it happen.
• NOT PLANNING WORST CASE SCENARIO or worse yet not believing there is a possibility of disaster is inviting one. It is critical to reduce strategic objectives to detailed action plans and execute in accordance to the plan.
• DISPLAYING THE TRAPPINGS OF SUCCESS before achieving success is a sure sign of misplaced priorities. When the business plan calls for fancy office space and the company car is a Porsche 911, you have all the makings of a failure.

We often work with small start-up companies for some time in an iterative approach before their business plan is fully developed and ready for implementation. We believe that whether NCIC funding is provided or not, the company should benefit from the evaluation and assessment process and be referred appropriately.