Starting a business requires a lot of preparations such as sourcing material and non-material resources. Experts however said having the needed resources are not enough when a convincing business plan has not emerged. It is through the plan that the routes and decisions that would be taken regarding the business operations within the first three or five years of being in existence would be known. Asides this, a well-researched and written business plan helps in getting loan from banks and investors who have interest in the idea intended to be exploited by the aspiring entrepreneur.
No doubt most traditional lenders do consider it as one of the criteria for judging the readiness of upcoming entrepreneurs. Lenders want to know how the idea would translate into substantial financial gains based on strategies and dynamic capabilities of the kinds of people who would constitute the management team. That is why a good business plan should indicate alignment between strategy, objectives, vision and key performance indicators. It actually needs total commitment and professional inputs. The exclusion of these would lead to loss of getting finance from the interested lenders. In the words of Andrew Clarke, Chief Executive Officer, Ground Floor Partners, if these are omitted business may never get off the ground.
Experience has shown that majority of aspiring and young entrepreneurs failed to get the needed capital because their plans are embedded with a lot of technical flaws, unfounded or unrealistic assumptions and poor presentation. Whereas, a strategic business plan is expected to be realistic, justifying assumptions and avoiding unrealistic expectations.
Getting professional help
It is true that aspiring entrepreneur who has the relevant writing skills could write a business plan, but to have one with technical and professional errors needs professional inputs. This is where professional advisory firms such as Enterprations become useful. The firm has professional mechanism to ensure logical arrangement of the necessary components of the plan and its presentation to the appropriate stakeholders.