Wednesday, November 5, 2008

Capital West Advisors discusses a possible buy low, sell high exit strategy

Even at the planning stage, the exit strategy is always a significant factor in molding the overal growth strategy of a company. Because most business owners do not understand how to read market indicators and forecasts, many people miss their chance to exit successfully. Why would a company want to exit? Many reasons including high risk of a product or service becoming obselete, high interest in the sector that creates a sales price premium, or attrition of crucial management. These are just a few relevant examples, but it is important to realize that many of the same strategy in buying stock in a company should be used in analyzing the exit strategy in a business. Buy low (startup phase, low cost of entry, low sweat equity investment) sell high (at a premium, people see that you make money, high interest in acquisition, market is about to turn for worst). During a recession could be a good time for buying a small business that has not been affected by the external economic indicators.

Wednesday, October 22, 2008

Capital West Advisors reveals the importance of highlighting a company’s management strengths, strategic partnerships, and existing relationships.

When an investor analyzes a business, two of the several key factors that he will typically assess are: (1) the strength and experience of the management team and (2) the existing relationships with customers, affiliate partners, and any outsourced providers that will play a key role in the operational and marketing process of the business.

An investor wants to know that the management has the necessary experience to grow and sustain the business; particularly with a start-up or early stage company. The business plan should contain a management section with a well presented biography for each key member of the executive management team. If the company is not very small, it is often beneficial to include an organizational chart to give a clear depiction of how operations will function from an organizational and hierarchy perspective.

One of the most important factors that an investor will evaluate is the strength of the company’s marketing channels. Along with a solid marketing plan, the business plan should emphasize and demonstrate any relationships that the company has with affiliate partners, distributors, manufacturing/operational partners, or co-marketers. The existence of strategic and affiliate partners in a company’s marketing plan can give the investor the extra confidence that the company will be able to grow effectively and smoothly. The business plan should discuss who the partners are, how they will benefit the company, and how these relationships will positively impact the growth of the company.

Saturday, September 27, 2008

Capital West Advisors reveals list of advantages to starting a business during tough times

Not that a recession is the best time to start a business, there is always a glimmer of light in even the most dire of times. Please read the list below to gain insight on a few competitive advantages that new startups realize when entering the market during an economic contraction. Capital West Advisors assists companies with business planning and capital introduction services.

1. Less barriers to Entry

During hard times, many companies exit the industry because they feel that the best times have come and gone. Economic contractions are great opportunities for newcomers to enter an industry and bring fresh and more innovative business models that replace those that have exited. Because there are fewer players, you also have a chance at gaining more market share.

2. Financing equals perceived lower risk by the market

Although most banks have closed their doors to many different forms of small business financing, private investors are abundant and looking for sustainable business models that can make up for recent market losses. If you are able to gain financing during an economic recession, consider the fact that a risk averse investor believes that you may be sitting on a gold mine during an economic downturn. The other side of the coin is a situation during an economic growth period where you are pooled with hundreds of other companies and your investors had no faith in your business model to begin with.

3. You will be ready for the good times

Companies that have established their businesses during tough economic periods have adapted their business models to more rigid cost requirements while paying the bills. Proving such discipline places companies in an extremely advantageous position as the economy begins to recover and gross profits soar.

4. Lower costs of entry

Many vendors and exiting companies offer fire sale discounts on services and assets during times of economic contractions because wholesale businesses suffer and liquidity for capital assets decreases as a result of rigid lending parameters.

5. Return of the little guy

Remember those neighborhood initiatives fighting to protect their cities from being invaded by large low priced, high volume super stores? Well, those stores are consolidating their business plans due to oil prices and fuel price effects on centralized distribution networks. In other words, it is getting expensive to ship one hundred thousand two dollar bottles of pickles from New York to Alabama. The United States is beginning to see a changing of the guard from the large conglomerate “everything for as cheap as possible” stores to the return of Uncle Andy’s hardware store.

6. Cheaper Employees

Real Wages have declined in cost significantly since the 2001 dot com bubble crash. The major reason involves the fact that barriers to entry for jobs in many industries have decreased and some jobs have even been outsourced to countries where wages are as low as one dollar per hour.

Nothing is guaranteed in business during any cycle, but not everything is gloom and doom when the market takes a turn. If anything, you need to have solid business planning. Go to to see a list of our business planning and capital introduction services.

Friday, September 26, 2008

Capital West Advisors portrays the importance of a strong Market section in a business plan.

The Market section of a business plan should include the following: A comprehensive market analysis that described the sales figures, information, and trends in the region (s) that the business will target, a target market analysis that analyzes the entire potential B2C market and/or B2B market, A thorough and detailed profile of direct competitors, a competitive analysis, demographic information (if there is a B2C element) and industry analysis. It is important that whoever develops the business plan has great access to comprehensive and professional market research reports that highlight key information, figures, trends, and market segment information & figures, according to industry experts.

The profile of direct competitors should profile the competing players within the industry that are targeting the same market that you will be targeting with a similar or same product or service. The competitive analysis should give a more macroscopic perspective of the industry in terms of the key players within the industry and number of players, and trend of companies to focus on particular products or services. The competitive strategy should take into account all of the market demand (sales figures & growth) and market supply (competition and sophistication of the key market players) and is critical to developing the competitive strategy and marketing strategy of your business model. Demographic information should take into account key demographic information of the target consumer profile, which would include age, gender, income, personal habits.
It is upon preference whether you elect to integrate the marketing plan (marketing overview, strategy, methods, and examples) within the Market section, but Capital West Advisors prefers to keep these 2 as separate sections.

Tuesday, September 23, 2008

Capital West Advisors adds to investor introduction network

Capital West Advisors increases investor network with 100 new Venture Capital firms and 15 new angel investor networks. Capital West Advisors now has a total of approximately 950 Venture Capital firm contacts and 100 Angel Network contacts. CWA has established these new contacts through a combination of networking, telephone introductions, and correspondence, with the intent of expanding its database to include any new VC firms that have been formed over the past year.

VC & Angel Network Identification: CWA identifies the venture capital firms and angel networks in our database, whose investment criteria aligns with your business model. CWA will indicate how many firms and networks this amounts to. The average company will meet the investment criteria of 100-200 venture capital firms and 10-20 angel networks. After CWA has identified the number of venture capital firms and angel networks that have the potential to show interest in the investment opportunity, you will be able to elect how many venture capital firms and angel networks you would like to submit your business plan to. CWA will price you according to a pricing plan that can be viewed at the company website:

Thursday, September 18, 2008

Capital West Advisors Business Planning

Capital West Advisors Business Planning

Capital West Advisors assigns a team of at least one managing director, one associate, and one financial planner to every project. Each business plan is carefully developed using proven business modeling techniques and is fully customized. Capital West Advisors develops unparalleled marketing, operational, financial, and growth strategies that maximize your company’s success and chances of securing capital. Throughout the process, the Capital West Advisors team of consultants assigned to your project will develop and subsequently present multiple business strategies and market opportunities to each client in order to exploit industry voids.

After conducting the thorough initial business development consultation, Capital West Advisors managing director will provide you with an outline and engagement letter with a fixed price quote. To ensure the highest possible client satisfaction rate in the industry, Capital West Advisors engagement letter specifically identifies the deliverables based upon the proposed business plan outline and further guarantees your satisfaction by implementing additional suggestions and revisions at no additional cost.

For clients that have an existing plan that merely needs to be updated and further developed, Capital West Advisors will assess the existing business plan and provide an engagement letter with a fixed price quote that specifically details every function that we will perform to modify the plan at a substantial discount.

Capital West Advisors

Welcome to Capital West Advisors!
Capital West Advisors is headquartered in Los Angeles, CA and has satellite offices in San Francisco, Chicago, and New York. Our clients range from entrepreneurial start-ups to multi-national corporations and we are well-equipped to work with clients anywhere across the United States and around the world. We have provided services to hundreds of clients in a wide array of industries including:
Health Care
Con. Products
Tele/Data Com
Medical Device
Real Estate

Capital-West-Advisors far exceeds the limited scope of business plan writing by providing each of our clients with business coaching, fundraising advice, business development consulting, and access to our vast network of esteemed affiliate partners. Additionally, CWA provides an array of additional writing services including: drafting grant proposals, brochure content, website content, and PowerPoint investor slide presentations.