A business plan for an entrepreneur

Some have asked me why banks often refuse their loan applications. There are many reasons banks can use to reject an application. These range from a lack of proper collateral, the wrong cash flow, or an unconvincing business plan. I feel it is paramount to me to further explain a compelling business plan. The entrepreneurial journey is truly rewarding and also a journey of discovery. We live in a world governed by laws. Failure to comply with the law regarding a certain aspect means failure in that line. Business is also not to be forgiven. There are laws of success that govern business operations.

For a business venture to grow and be sustainable, proper planning is required. There’s a popular adage “If you don’t plan, you plan to fail” (Benjamin Franklin), which sounds like you’ve heard it all over the world, but business planning is a key area where The importance of planning for any project is appreciated. Sadly, this planning step is often overlooked and the results are always devastating.

There is a lot of money in Zimbabwe that can be exploited by businesses if they have a good plan. Some good business ideas are dying, just because they lack the right business plan that can attract finance.

What is a business plan?

A business plan is a clear road map that details how a company intends to achieve its goals and objectives. It seeks to map out a written roadmap for the company from marketing, financial and operational perspectives. Both startups and established companies use business plans. A business plan is a document that presents strategic action items. Planning involves setting the goals of the business for a certain period of time and formulating different courses of action to achieve those goals by choosing the best possible alternatives ( or alternatives) from the various activities available. It involves both ends and that is: what is to be done and how is it done. It bridges the gap between where we are and where we want to be. It is a rational approach in which all members of the organization need to work to achieve the goals of the organization. In fact, everyone in the business should make a plan, try to keep a to-do list to achieve those daily goals.

It is a summary structure of the business. To run a business smoothly, there is no other way than to make a business plan. Depending on the sector, a business plan can sometimes be thought of as a business proposal, investment prospectus, joint venture plan, loan proposal, etc.

Use a business plan

It is used by financiers and investors. For example, banks want to see how the company can achieve its goals. This plan is used to attract investment before a company has established a proven track record. Thus, it helps to secure lending from financial institutions. For large organizations, a business plan can help keep the company’s executive team on the same page in terms of strategic action items and on achieving established goals. They are very useful, especially for startups, because they show the way. Ideally, the plan is periodically reviewed and updated to reflect goals that have been met or changed. Sometimes a new business plan is created for an established business that has decided to move in a new direction. It provides direction for the business. A business plan reduces the risk of uncertainty. It reduces overlapping and wasteful operations. Planning to promote creative ideas. Decision making is made easier. Plan to establish standards for control.

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1. A business plan is a very important and strategic tool for entrepreneurs.

It helps entrepreneurs focus on the specific steps required for them to execute their business ideas successfully, and it also helps them achieve their short-term and long-term goals. While it is essential to have, some entrepreneurs are still reluctant to put this in writing. They believe that every day must be different from the other and others also think that they are driven by how the economy plays out, especially in a hyperinflationary environment like the Zimbabwean economy. However, great business ideas can be useless if you cannot conceive, execute and execute a strategic plan to make your business idea a success. If you are looking to raise capital from institutional investors and lenders, remember that having a good business plan is extremely valuable. The goal is to have a well-documented plan that speaks for itself. It needs to be clear and easy to read and understand.

2. Fundraising for your business

Potential investors or lenders want a written business plan before they give you money. In Zimbabwe, many businesses have failed before and to minimize risk Investors, Banks etc require a business plan to see if the Management knows the extent of their business. or not. Just describing the business concept is not enough. The plan should include a thorough business and financial plan that demonstrates the likelihood of success and the extent to which the business needs to be successful in the long term.

3. To make the right decision

Besides banks, a business plan serves as a guide for entrepreneurs. Deviations from instructions are minimized. Having a business plan helps you define and focus your business ideas and strategies. Because a plan involves many aspects, the entrepreneur will focus not only on financial issues but also on management issues, human resource planning, technology and creating value for customers. row.

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4. Identify any potential weaknesses

Having a business plan helps you identify potential pitfalls in your idea. You can also share the plan with people who can give you their opinion and advice. Identify professionals and experts capable of giving you invaluable advice and share your plan with them. Even banks can tell you the risks involved in your business when you apply for a loan.

5. To communicate your ideas with stakeholders- Feasibility

A business plan is a communication tool that you can use to secure investment capital from financial institutions or lenders like Banks. You can also use it to convince people to work for your business, secure credit from suppliers, and attract potential customers. For an International company that wants to invest in ZIDA locally, it is required that they have a written plan to license the organization. For special licenses, for example, the Telecommunications licensing authorities also review the Business Plan and the Business Proposal.

6. Making a business plan involves a lot of thought.

You need to consider what you want to do and use that as a starting point. It doesn’t have to be complicated. At its core, your plan should define where you are now, where you want your business to go, and how you’ll get there. Writing a good business plan doesn’t guarantee success, but it can help you reduce the odds of failure. Besides, even if you’re not looking for an investment, your business plan will quickly fall apart without a guiding plan.

7. Planning to reduce the risk of uncertainty

Planning helps entrepreneurs foresee and anticipate changes by deciding in advance the tasks that need to be done. The business plan outlines how to deal with uncertain (unexpected) changes and events. Changes or events cannot be dismissed (rejected), but they can be anticipated (predicted), and managers’ reactions to them can be developed in advance. Thus minimizing the impact of the risk.

8. Planning reduces overlapping and wasteful activities

A good business plan must demonstrate the coordination of efforts of different departments, departments and individuals. It must also ensure clarity in thoughts and actions, helping to smooth and uninterrupted work. It must show stakeholders like the Bank that confusion, misunderstandings, and useless activities have been minimized. It makes it easy to spot inefficiencies and reduce work pressure.

9. A good plan sets the standards for control

Control involves comparing actual performance to predefined standards. In the event of a deviation, management can take corrective actions to improve results. All of this is reflected in a business plan. In the absence of a business plan, the manager will not have the standard to control the actual operation.

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10. It must include Industry Analysis:

A good business plan includes an industry background and overview, along with key trends, key success factors, and prospects for the future. This gives a broad overview to the financier. It shows the profitability of the business.

Important elements of a business plan

1. Executive Summary – This section covers the management structure of the business plus it includes the Company’s Mission statement.

2. Products and Services – This section seeks to build on the services or products the business offers or intends to bring to market.

3. Market analysis – Businesses must show that they fully understand their market. Remember the Bible says that there is nothing new under the Sun- (Ecclesiastes 1:9) so business is not unique but trends that affect business have been experienced by others.

4. Marketing Strategy – businesses must show how they intend to retain their customers and reach a newer group of customers.

5. Cash Flow – It should include financial projections for startups or historical for existing businesses.

6. Budget – A budget is needed to show investors or banks how the business intends to use the funds.

Recommendations

It takes a lot of time to make a good business plan that talks about your Business. It’s always good to get Business Plan experts to speak. FAILURE PLAN IS PLAN FAIL. To run a business smoothly, there is no other way than making a business plan. The business plan must be followed to make the business successful, it must not just be shelved. I encourage business leaders to approach professionals like this writer to execute their Business plans.

There are many investors in Zimbabwe looking for a place to put their money but they sometimes fail to attract businesses to put their money. I have been approached by a number of potential investors who are eager to invest in this country and my encouragement to businesses is to have a proper Business Plan, cash flow, keep the books of account and the system in place. Banks and investors also want to invest their money in a company that has an effective and efficient business plan that clearly demonstrates the financial projections and the expected chances of business success.

Francis Chitambira is the founder of Smartfiscal Consultants – a business consulting firm. He is a business consultant, entrepreneur, business tutor, tax consultant and business developer. He has interests in agriculture as well as marketing. He can be reached at mobile / WhatsApp: +263775844941 or email: [email protected]; Website: www.smartfiscal.co.zw

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