Bolster Credibility with Investors - Avoid These Phrases in Your Business Plan

Remember Papa John's commercial on TV with the slogan "Better Ingredients, Better Pizza"? Well its nothing more than puffery: general, non-provable, inane claims. The problem is puffery is not only acceptable it's often expected. Phrases like "the biggest," "the best," "the cheapest," and so forth are so over used most people simply ignore them.

If you're guilty of using puffery in your business plan, you risk filling your plan with circumstantial evidence and bold claims that won't do a thing to market your business. These frivolous claims add nothing to help an investor decide whether your business venture is truly any different from the other ventures they are evaluating. To weed out general, non-provable, inane claims, you need a plain and simple puffery sensor. And, here it is: whenever you make a claim in your business plan ask yourself this question, "Will investors really believe this?"

Let's take as an example a business plan for a car dealership that included these claims:


"We've got the largest selection of Ford cars and trucks in the entire city."
"We're the largest volume Ford dealer in the southwest."
"We sell more Fords than anyone else in the state."

Seasoned investors read right over this kind of hollow puffery in business plans. They're to the point that they expect entrepreneurs and business owners seeking investment monies to say anything and everything in an attempt to impress them.

In fact, one of the great pioneers of action-oriented advertising, Claude Hopkins (Tested Advertising Methods: http://testedmethods.bizplansecrets.com/) often drew this analogy to describe the use of general, non-provable, inane claims in advertising and I've found it equally applicable to writing business plans: "Platitudes and generalities roll off the human understanding like water off a duck's back. They make no impression whatsoever."

Aren't puffery, platitudes, and generalities all the same thing? You bet they are. And if you believe Mr. Hopkins, these kinds of statements roll off the human understanding like water off a duck's back. They make no impression whatsoever. I don't know about you but if I'm spending my money and time writing a business plan to raise capital for my business, I want it to make an impression!

Here are some other examples I've seen in business plans. A commercial realty company says, "We Go The Extra Mile For Our Clients." It's puffery. How about this wonderful statement regarding a consulting firm's competitive advantages ..."Knowledge. Expertise. Determination." That's it. That's the first line! That's their big "hook" to get investors to part with their money and back the firm's business plan. They might as well not list any competitive advantages.

Then there's the construction management company that claims, "We fine tune the process to create unique building solutions that function better, cost less, and open sooner." Don't get me wrong. All of these sound like fine benefits. But do you really think investors believe this? If you play the puffery game, it can cost you your credibility, lengthen or even prevent you from getting funded. Avoid these kinds of statements in your business plan - they make no impression whatsoever on potential investors.

Now, suppose this construction management company explained their "unique" process, provided cost comparisons, and gave the actual length of time to complete their last twenty projects against industry standards for similar projects. And, suppose they provided customer testimonials to back their figures. Would this be more believable? More convincing?

See the best remedy for puffery is hard verifiable facts and evidence. The same type of facts and evidence that you would want a defense attorney to present to a judge and jury on your behalf if you were on trail and facing death row.

Okay, I think we beat puffery to death already; it's pretty straightforward. To summarize, let me repeat Claude Hopkins' quote: "Platitudes and generalities roll off the human understanding like water off a duck's back. They make no impression whatsoever." So use the puffery sensor as you write and review the statements in your business plan. Simply ask yourself, "Will my potential investors really believe this?" If the answer is no, dig deeper for the evidence that will convince them.

Article by Michael Elia ? mike@business-plan-secrets-revealed.com. Mike is a CPA/MBA, visit his site http://www.business-plan-secrets-revealed.com for a free business plan guide and more articles on business plans.

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Make Money on Facebook With These 12 Free Applications

Making money with Facebook! If you are a Facebook user or have been around social networking sites for a while, you probably have heard that. But, is it really possible to make money with Facebook? How would you go about making money on Facebook?

Well, thanks to some very useful and user friendly applications, today almost anyone who has a Facebook page, can make money in verity of ways. With one simple installation, you can be on your way to make money on Facebook. Of course like any other methods of making money, specifically making money online, it takes hard work and persistence to be able to make a decent amount of money on Facebook. Although these applications make it very easy to get on the path of making money with face book, its the strategy and a well thought out plan, combined with persistence and hard work, that ultimately factors in your success or failure in making money with Facebook. Here are 12 applications you can use to make money on Facebook.

1. RadicalBuy This is almost like a Facebook made eBay. You can sell anything on your Facebook page using this unique app. List an item and have it visible to all Facebook users instantly. Now, the cool think is that you can offer commission to others who will sell your items on their Facebook page, allowing you to reach more potential buyers. Of course that means, even if you don't have any item for sale, you can show other peoples item on your Facebook page and make money with the commission you get for selling there stuff.

2. MyMerchStore Zazzel allows you to create and design any product on their site(which is free), and sell them on your face book. Think about the potential buyer base for customized t-shirts and hats and etc, specially if you have a lot of Facebook friends. You can also sell product created by other artists and earn a commission on those. So, even if you don't want to deal with designing, you have a way to make money on face book using Zazzle.

3. CafePress It's the same idea as Zazzle, but with a much bigger and well known online store. Cafepress lets you easily sell any product from anti Obama Shirts to pro Obama Shirts, on your Facebook and make money, whether it was created by you or someone else.

4. Ether Ether is a website that you can make money on by giving advice to people over the phone or by chatting. But now, you can use their new application on Facebook to make money while giving advice to people over the phone. If you're good at giving advice, this may be the way for you to make some extra money on Facebook. Also if you know a second language, this app makes it easy to teach others and make money. You set the rates and Ether provides a number that individuals can call. The call will then be forwarded to your personal telephone number.

5. MusicBlaster With MusicBlaster you can put a simple little music store on your Facebook, and sell music from BlastMyMusic.com. You earn 5% for each song sold. The cool think about this app is the fact that you can help your favorite band or singer to sell their music while you make money, as well as helping them to gain more exposure.

6. GarageSale The name says it all, its the good old Garage Sale, but a "Facebooky" Garage Sale. Simply add Garage Sale to your profile page and list every thing you want to sell. When someone buys something, Garage Sale automatically bills the buyer's credit card and lets you when to ship the item. Your money is deposited directly into your Pay Pal account, or you can request payment by check. However they charge a 5% commission on the total sales price, but that's all. No other fee for setup or anything like that.

7. Shopit Shopit is a free Social Commerce Network that gives users the ability to buy, sell or trade any product or service. Simply add a free store to your Facebook and sell anything you like. Another easy way to make money on Facebook.

8. FlameTunes FT was founded in 2007 by an Iranian-American named Nima Khakpour. This app is more for the artists to sell their music. So, if you are an artist, FlameTunes enables you to sell your music on your Facebook. You can also use it to sell music on myspace.

9. Lemonade Remember when you setup your first lemonade stand in your community? Well, this app allows you to use the same concept, combining commerce and community, and have a lemonade stand in a digital (Facebook) neighborhood. Basically you add what you want to sell to a lemonade stand, and put it on your Facebook. It's free and easy.

10. eBay Who knew that was coming? Yep, you guessed it. Now you can have your ebay on Facebook. This application allows you to add eBay auction listings to your Profile. Sell things to your Facebook friends from crafts, jewelry to diary pages, undies and dinner dates or just whatever you're selling on eBay! You also have the option to add a charity auction that you support, on your Facebook profile. I think it's a very smart way to combine eBay and Facebook, and you don't even need an eBay Account!

11. Lending Club It's almost like prosper, where you land money to others and make money with the interest you make from the loan. Not to worry though, lending club has all the detail covered. So, it's completely safe, and the whole legal and trust issues are taking cared by lending club. If you can use it safley, it can be a good way to make money with your Facebook.

12. e3buy Auction Buy, sell or trade anything. Auction your used or new stuff. With e3buy you can open a customizes store, upload your logo and start selling things. Unlike ebay, there is no commission or fee to be paid. it's completely free to use. It is also fully integrated with paypal, so you can get paid fast.

These are just some of the great Facebook money making ideas. But, I am sure as the social networking sites become more popular, there will be more and more of such ideas and applications, not only for Facebook, but for many other social networking sites as well. There you have it, 12 Free applications that you can take advantage of to make money on Facebook.

Struggling to make money with this or any other method? Tired of wasting time and money and not making a dime? Want to learn the secrets of making money online? Visit my blog to learn this and many other ways to make money online in a matter of hours.

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