A business plan is one of those documents that you will be expected to write and present to your Parents, Uncles, Aunts or any organisation you wish to get funding or sponsorship from in future.
So what is a business plan and why is it so essential to every would be business man or entrepreneur?
A business plan is a well written step by step procedure about how a particular business idea will be successful.
Knowledge about how to write a successful business plan is very essential to those who wish to get funding to start a new business or those people who wish to get grants to expand their business.
Business plan education is one of the essentials of Entrepreneurship. One of the greatest problems that most Entrepreneurs face is funding problem (how to get funding).
Only a well written business plan will compell or captivate a sponsor or funder to fund your business idea.
Most people who wish to start a business already have an imaginary business plan (a vision) in their head of how success will be achieved but their sponsors or funders often have little or no clue about their line of business and this makes them very reluctant to fund their projects.
So it very neccessary that you present a feasible business plan so that your sponser can also get a very clear picture of what your business idea is all about and how success can be achieved so as to be motivated to fund your business proposal.
You can,t just walk up to your parent, uncle, aunt or a funding organisation and say give me 800,000 frs CFA, i want to start a restaurant business and you expect them to immediately give you that money lol. You will need to present a well written business plan of that business for feasibility examinatio.
A business plan contain the cost of setting up a business, how every coin will be invested into the business to achieve success in the line of business and the expected return.
A business plan outlines the actions needed to take the business idea from a mere “idea” to “reality.”
Please only present a business plan for a business that you have the necessary skills to achieve it ( if you are going to run the business yourself) or clearly state the qualities of those people you intend to hire to run the business. However even if you intend to hire somebody, you must still poses atleast a basic knowledge about the business as the CEO of the business.
The salaries or wages of those you intend to hire should be included in the cost and clearly stated in the business plan.
A business idea without the essential skills is not a good business idea for you.
Just as you have evaluated and you are very convinced that your target sponsor or funder has the neccessary fund to fund your business, the funder also has to carry out a feasibility study to make sure that the money you are requesting from them will be used accordingly.
Funders are only willing to fund feasible business ideas and not business ideas. Anybody can come up with a business idea but only the intelligent and skilled humans can come up with a feasible business venture worth funding.
The main reason why the request for funding is rejected by most potential funder is because the skills and attitude of the individuals requesting fund are totally inconsistent with their line of businesses they wish to venture into. for example a teacher requesting funding for an agricultural project. Its very obvious that the request will be rejected. Many Intelligent funders now tend to focus their feasibility study more on evaluating the personality of the individual behind the project than whats written on their Business plan.
Nowadays there are lots of foolproof business plan templates for almost any business idea on the internet that have been written by intelligent entrepreneurs. This has made funders not to focus too much on the details of a business plan but on the individual who will run the business. Does he/she have what it takes to run this million or billion dollar business proposal, if the answer is no, then the project will not be funded.
So try to optimize yourself to your business plan…… make sure you posses necessary skills and attitude required to execute your business plan. This explains why every business plan aught to be written after a careful feasility study(research) of a target business venture. Feasibility study is an analysis of the viability of a business idea. A feasibility study of your target business venture will help you answer the essential question of “should i proceed with the proposed business idea or not?. It is done in order to identify the problems that often hinder success or retard growth in a particular business so as to perfectly evaluate yourself to determine if you have what it takes to succeed in your target business venture and to identify the neccessary resources (both human and material) required to achieve success.
In other words , after carrying out a feasibility research about your target business venture, ask your self this question; with my current skills, attitude and available resources, will i be able to achieve success in my target business venture?.Determining early that a business idea will not work for you, saves time, money and heartache later. So it very important that you carry out a feasibility study.
Every business idea is feasible but the main reason why so many people fail to succeed is because their skill, attitude and available resources were inconsistent with their business idea. Like i told you before, a good business idea without the essential skills and adequate resources is not a good business idea for you.