So you have a great business idea. How do you move forward? At Krogger we create world-class, bespoke and comprehensive business plans that help our clients take the first step to make their ideas happen.
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Today more than ever, business creation in the form of start-ups or new initiatives in established businesses, is a vital source of long-term economic growth and job creation. In the UK alone, more than 450,000 new companies are created every year1 and many more change, adapt and succeed by accessing new markets or launching new products. Business ideas matter.
Unfortunately, a significant number of these ideas fail. Around 18% of new start-ups in the UK end up liquidated every year2 and in the US almost 75% of venture-backed firms do not return money to investors3. Furthermore, almost one fifth of SMEs cannot even identify the risks their businesses face in order to survive4.
Although there are numerous reasons explaining this trend, they all stem, one way or another, from one factor: lack of planning. Indeed, many start-ups and new business ideas in established operations fail because of fundamental weaknesses in their business planning, and in most cases because they didn’t have a business plan at all.
Having a well-developed plan is critical for any business. Specifically, a business plan can help entrepreneurs and managers identify and tackle most of the reasons behind business failures, such as:
Overestimating Demand – Lack of research leads to misalignment of the business forecasts compared to the real potential indicated by the market. A large proportion of companies that fail, do so because expected sales never materialise.
Underestimating Competition – Identifying current and potential competitors is not enough. Establishing what makes your business different is paramount to succeed in the marketplace.
Insufficient Capital – The vast majority of businesses and projects greatly underestimate the amount of cash they need and the time they have to effectively deploy it.
Weak Management Team – Many unsuccessful ventures fail to identify their management gaps. Understanding that effective execution requires putting the appropriate team in place is fundamental to build a sustainable company.
Sub-par Cash Management – Not knowing when, why and how much cash a company uses is a recipe for disaster.
Lack of Clear Strategy – Where does the company go? What markets does it target? Which product mix to offer? What business model is appropriate? All are questions that need to be answered before taking the big step.
Wrong Target Market – Failure to grasp the subtleties of market segmentation could mean the difference between a real business and just a good idea that never takes-off.
Overinvestment in Fixed Assets – Without a proper plan, some businesses end up spending all their cash in the wrong places. Counterintuitive as it sounds, overspending in fixed assets, dramatically reduces a new company’s chances to survive.
Misunderstanding of Risks – Bad planning is just inviting all risks factors to materialise. Having a deep understanding of potential risks, is basic survival tactics for any new project.
Unexpected Strong Growth – Uncontrolled growth can kill a company. Not having a plan to cope with a sudden increase in revenues is more common than thought.
More importantly and particularly for start-ups, a high quality business plan is the sine qua non of successful capital raising. In today’s environment, where capital is scarce and many of the most innovative ideas incur costs but have little or no revenues initially, it is impossible to raise money without a way to communicate properly with potential investors or lenders. This is the role of a business plan, hence its importance.
Source: (1) UK Companies House; (2) The Insolvency Service; (3) Shikhar Ghosh Research - Harvard Business School; (4) Axa
Krogger’s business plan experts help clients with their most pressing objectives. Be it having a business plan ready for an investor road show, to support a bank loan application, or as a blueprint to help management deploy a new operational strategy, Krogger delivers tailored solutions that increase our clients' probabilities of success.
Our areas of expertise include:
Safe Due Diligence® - Our business planning practice offers a unique service that evaluates your business idea and business plan (if you have one), just as any potential investor or lender would do. Krogger helps clients and their companies navigate this unfamiliar terrain by challenging them and highlighting the areas that they can improve on, all in a safe environment
Business Plan Makeover - For those clients that already have a business plan, Krogger offers “makeover” services to bring these plans up to date, fix their weaknesses and ensure that their quality and tone are appropriate for their objectives
Krogger’s business planning is quite different from what’s offered by other providers of similar services. We approach every client and every business idea as distinct, but we leverage our deep industry, functional expertise and international footprint to bring unparalleled insights that we have learnt from other engagements into our plans.
When compared to current alternatives in the market, our business plan services are:
Completely Bespoke – Our clients, their businesses, their ideas and their teams are unique; the same should be true about their business plans. Relying on off-the-shelf, pre-written industry-specific plans not only fails to grasp what sets your business idea apart; is actually detrimental to the objectives of having a business plan in the first place. Indeed, most experienced investors and lenders easily recognise (and quickly discount) generic plans.
In contrast, Krogger’s services are fully bespoke and respond to the specific needs of our clients. We work with them to identify and highlight what is unique about their businesses and prepare plans that are purposefully written for their intended audience, be it potential equity investors, banks or internal teams.
Truly Professional – At Krogger, we are 100% business planning professionals. This is our focus and only interest. We work for our clients on an exclusive basis and their objectives are our objectives.
We combine the knowledge brought by our consultants’ commercial and financial background, with the intensity of acting as your exclusive advisors, but we do not impose. As true business planning professionals we are free from the tendency other providers have to rely on their area of expertise (e.g. accounting, law, etc.) as the only or most important focus of your plan. In contrast, our plans are always well balanced and built from a full understanding of your objectives.
Dynamically Integrated – The vast majority of business plans out there are a dysfunctional combination of financials, research and write-ups that are clearly disconnected and worse, are completely static. Many providers are incentivised to give you plans that are difficult to update (unless you pay an additional fee) and so, they often fail to provide you with a plan that is prepared to grow and change in tandem with your business.
A business plan is a tool. It should evolve as required by your business and therefore you should be able to modify it to accommodate your future requirements. At Krogger, we understand this reality and this is why our business plans, models, documents, presentations and analyses are all fully dynamic. You can change them whenever you see fit and with the exception of complex, ad-hoc analyses, you can do this without us. This is true because all the components of our deliverables are integrated and aligned with each other; be it our research supporting your financial forecast or simple things such as modifying our professional graphics and tables, our dynamically integrated plans set us apart in the market.