PART 1 - THE PROBLEM

Is your new product or service a "solution" looking for a "problem?"

If you're trying to raise money from a venture capitalist or angel then you should always pitch your business from the perspective of solving a customer's problem. Don't make the mistake of telling everyone how cool your new widget or new technology is unless you can directly tell the story of how it solves someone's problem. It's the same thing when you're a sales person and you're constantly selling your product or service's "features" instead of its "benefits." A customer doesn't care about the bells and whistles of your widget unless they can see how it will benefit them.

The same concept holds true when putting together your business plan. You have to be crystal clear that your business is solving problems and generating a benefit to a market. Start by explaining why the situation exists in the marketplace and why it is that only now can it be addressed. Use this part of your Executive Summary to explain the market dynamics and the size of the opportunity...briefly.

NEED CAPITAL - GET ATTENTION!

Aside from prayer and/or doing the moondance naked through an investors office there are only a few real-world things you can do to get their attention. Guess what? Without their attention you don't get a check. So, pay attention!

Your business plan is one of the most important tools that you can have to create buzz about your project. The Executive Summary in your plan is often the first and last section that investors will read. If your Summary is positioned and written well then the investor will have lots of questions about your business model. If not, they will most likely show you the exit. Most entrepreneurs make the mistake of making their Executive Summary a description of their business written in operational terms with piles-o-jargon. As Guy Kawasaki puts it, the "Executive Summary is about selling not about describing."

We have had much success using a simple and straight-forward approach that includes 5 key components. Although I can't guarantee that your plan will generate a check, I can tell you that these 5 components will help you position your business for investment and perhaps soon you'll be off changing the world with your new product or service.

In the next 5 blog posts I will define these components:

1. The Problem

2. The Solution

3. The Business Model

4. The Request

5. The Exit

CONNECTING ENTREPRENEURS AND MONEY!

Here is an interesting video from Vator.tv. In this particular episode of Vator Box they are discussing the different websites and organizations that match investors and angels with entrepreneurs and ideas.

See this video on Vator.tv »

NO DECAF STRATEGY!

If you follow me on Twitter then you saw that I made a comment about Starbucks recently. Apparently, they plan to pursue a number of cost-cutting initiatives including cutting jobs and store locations. In addition, they plan to stop offering decaf coffee in the afternoons. Isn't that when people drink decaf? I guess I'm kickin' it "old school" when it comes to this stuff because I don't understand that strategy. Without having a complete picture of the idea it would be my guess that this may improve operating margin in the short-term. At any rate, this post is mostly about the reaction that Caribou Coffee is taking towards the Starbucks decaf cut. I LOVE IT!

Here's a recent press release:

MINNEAPOLIS, Jan 29, 2009 /PRNewswire-FirstCall via COMTEX/ -- Caribou CoffeeCompany, Inc. (Nasdaq: CBOU), the second largest company-owned gourmet coffee house operator based in the U.S., will give away free cups of decaf coffee starting at noon on Friday, January 30.

The promotion is in response to competitor Starbucks eliminating decaf coffee ready in the afternoons. All Caribou Coffee locations will offer free 12-ounce cups of decaffeinated coffee from noon until closing on Friday, January 30.

"Decaf drinkers deserve better!" says Caribou Coffee Senior Vice President of Marketing Alfredo Martel. "Caribou Coffee is first and foremost a coffeehouse, emphasis on coffee. We strive to give our customers the very best coffee, when, where and how they want it. And if that means a cup of decaf in the afternoon,then we're more than happy to oblige. We invite all decaf coffee drinkers to experience Caribou Coffee's exceptional customer service by tasting a truly delicious cup of our Natural Decaf(TM) coffee on the house.

"Contrary to competitors, Caribou Coffee first selects the highest quality coffeebeans, then uses an all-natural decaffeination process involving no chemicals. Soaking the beans in an all-natural water solution draws out the caffeine, leaving the robust coffee flavors, but none of the buzz. The result is a smooth,delicately balanced decaffeinated coffee experience, indistinguishable from regular coffees.

ABOUT THE COMPANY Caribou Coffee (CBOU), founded in 1992, is the second-largest company-owned gourmet coffeehouse operator in the world based on number of coffeehouses. At Caribou Coffee, our mission statement is "an experience that makes the daybetter." We provide this by sourcing the highest-quality coffee in the world and craft roasting it in small batches to bring out the best in every bean. We then bring this extraordinary coffee to our customers via several channels including grocery locations, online or via our coffeehouses, which provide a relaxing escape for our customers. Caribou Coffee is committed to expanding our business by bringing this experience to new customers through multiple means without compromising our unwavering commitment to quality. Caribou Coffee is a proud recipient of the Specialty Coffee of America Association's (SCAA's) 2008 Roasters Choice Tasting Competition Gold Award.

SOURCE Caribou Coffee Company, Inc.