I used to draw up business plans as a hobby for friends and family, and this morning I received an email from someone I had once helped with formulating a proposal for finance from the bank for his new business.
It seems banks are no longer so eager to be handing out huge loans unless your business plan is as watertight as a frogs bum.
Most people who read the news at least once a week would know this. Maybe even if you read the news once a month. Heck even if you just read the news headlines on the odd occasion as you drive to work you would know this.
Not so this friend of mine.
Seven years ago he asked me to help him put together a business plan for a new concept in fast-food. His plan was to radicalize the burger industry by being the first person to introduce a 'square' burger.
We all know bread comes in square slices. He figured why not take a square slice of bread and introduce it to a square burger patty.
So we drew up this business plan which even included long-term franchising options.
Anyways, the three banks he approached for financing all turned him down, not because the idea wasn't viable, but because he wasn't willing to put any of his own money upfront to kick-start the business.
So here we are today with him wanting to try a new venture.
You've heard of hellopeter.com right? A rather popular customer-service site where you can complain or compliment business's throughout the country. Very popular.
Well our intrepid entrepreneur decided that he would like to start a website where kids can complain or compliment their parents. I'm still not sure how such a site would make much money, as kids by nature would sooner spend their allowance on video games and airtime than on advertising on a website.
I'll keep you posted on his venture but don't hold your breath.
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