Is it necessary to have a Business Plan? (Guest Post)

by: Scott Morris
Are you planning to start a new business? Or are you considering expanding your current business and require a bank loan or investment from outsiders?

If you are going to look for an investment of capital it is quite likely that you will be required to have a business plan. If you are starting a business, despite the work involved, a business plan can prepare you for the obstacles ahead and help ensure your success.

A business plan is something that many small businesses fail to create, however, many business owners are adamant that having a written business plan is one of the keys to their present success. Creating a business plan forces you to contemplate possible obstacles to your business and prepares you to find solutions that will help you to overcome them.

To find investors or get a bank loan, they will want to see that you have the experience or resources to run the business. They will want to see your projected income as well as your suggested repayment plan already laid out. Taking the time to do this is not only important for them, but it gives you a measuring tool to verify if your business is growing properly. You can gauge your success on how close to the plan your business has actually performed. Perhaps you’ll do worse, or perhaps you’ll do better, either way, it helps you determine how well your business is getting on.

If you have never seen a business plan before you may be concerned that it is too difficult a proposition for you to manage on your own.

While there are services available where you can hire someone to write a business plan for you, depending on your needs it may be wise to familiarize yourself with a business plan’s layout. This will not only help you to provide the necessary information but may encourage you to try your own hand at it.

There’s a free tool at www.bdc.ca that will assist you in creating a business plan. Some of the topics you will be required to explain are your Market, Customer, Competition, Marketing Plan, Research & Development along with financial forecasts. You may consider hiring someone to help you with your financial sheets after completing the written part of the Business Plan.

Your Business Plan will become your guide and silent business partner – indicating where you need to improve and helping you stay one step ahead of your competition. Make it a priority to have this crucial road map for your business.

About the author:
Scott Morris’s personal site on accounting business and business administration http://businessexcel.com
for more information, you can visit http://businessexcel.com
  • For ease of access and to your benefit – we have compiled a list of our templates to assist you with your personal/business planning -> Click Here
  • For assistance, advice, coaching or mentoring, feel free to contact us directly -> Click Here
  • Sign-up to our mailing list – Click Here

Private Funder – Where Investor and Entrepreneurs meet

FB_IMG_1439744614555

Driving from one client meeting to the next this morning, I am listening to HOT91.9fm to a discussion on “Hot Entrepreneurs” and it got me thinking; What is stopping any person from taking the leap and starting their own business? Granted the guest today does come from a very corporate background and has been a qualified Chartered Accountant for as many years as I have had my eyes open in this world.  This leads me to a couple of questions:

  • What does it take to become an Entrepreneur?
  • Why are so few willing to become an Entrepreneur?
  • When is an individual classified as an Entrepreneur?
  • How does an individual decide to become an Entrepreneur?
  • Could this not be a solution to the unemployment problems?

While I am trying to answer my own questions – the guest states the following:

… To start the individual does not need education … all they need is some support and working capital

How many Entrepreneurs are out there needing something specific = Start-up Capital … Working Capital … Financial Input … Cash – just to get going? And while the discussion continues in the background, I think back to a meeting earlier this week with clients, who are looking into an alternative investment… These clients are looking into Alternative Investments – not the normal Unit Trust or Linked Investments … something that will not just provide them with a return on their investment ( capital and interest) but maybe something that could assist them in their cause? And of course, it has to fit their branding!

Success Tree

And it struck me like a lightning bolt! Surely it could be done? The infrastructure already exists, the need for both sides exist, all that is needed is the platform and security for all parties involved…

After doing some further thinking, I have already drawn all the pictures in my head, but all the puzzle pieces together… and it will work!

Coming back to my earlier questions, here is how this platform will meet the need and provide solutions to factors that some might find troubling.

What does it take to become an Entrepreneur?

Most individuals are under the misconception that an Entrepreneur is someone special, someone like Richard Branson, Brian Walsh, Robert Kiyosaki, Jim and Nancy Dornan, Bill Gates,  Donald Trump, Billy Banks, David M. Overton, J.K. Rowling, Oprah Winfrey just to name a few. But are they really a special kind of person, or is their success as a result, of external factors or personal trades?

If you go and do some research on some of these icons – you will find that some came from less than what “normal” people would have and yet they made it to world fame. So what did make the difference for all of them – they all decided they wanted better and took action!

Why are so few willing to become an Entrepreneur?

FB_IMG_1440239071770

“The biggest fear is the fear of fear itself ” or “Better the devil you know than the one you don’t”

Most individuals are afraid of the unknown! Not knowing if their idea is the merit justified? Not knowing if they will be able to make it profitable? But the biggest of all is – where will the capital come from? I have heard my fair share of business entrepreneurial ideas and have seen how many have just let their dreams die because of funding, and sometimes the amount needed is not even millions, not even hundreds of thousands – sometimes it is just a few thousand, or just that extra couple hundreds

I have heard my fair share of business entrepreneurial ideas and have seen how many have just let their dreams die because of funding, and sometimes the amount needed is not even millions, not even hundreds of thousands – sometimes it is just a few thousand, or just that extra couple hundred that they just cannot get together. Such as most individuals are they would rather just try themselves (bank loans or own savings) to get their funding instead of asking … but one also has to understand why? For the fear of rejection or the fear that the “rich” are going to steal your ideas.

When is an individual classified as an Entrepreneur?

If I may quote Wikipedia:

Entrepreneurship is the process of designing, launching and running a new business, i.e. a startup company offering a product, process or service.[1] It has been defined as the “…capacity and willingness to develop, organize and manage a business venture along with any of its risks in order to make a profit.” [2]

The entrepreneur perceives a new business opportunity and often exhibits positive biases in their perception (i.e., a bias towards finding new possibilities and unmet market needs) and a pro-risk taking attitude that makes them more likely to exploit the opportunity.[3]“An entrepreneurial spirit is characterized by innovation and risk-taking.” [4] The exploitation of entrepreneurial opportunities may include design actions such as to develop a business plan, acquire the human, financial and other required resources, provide leadership and be responsible for its success or failure.[5] Entrepreneurship may operate within an entrepreneurship ecosystem which includes government programs and services that promote and support entrepreneurs, non-government organizations such as small business associations or organizations that offer free advice to entrepreneurs (e.g., through entrepreneurship centres or websites), entrepreneurship resources (e.g., business incubators and seed accelerators), entrepreneurship education programs, training and financing (e.g., loans, venture capital financing, angel investing and grants).

For me – it is the individual who creates and builds his / her own dream J.O.B. for a living in order to live the dream life they set out to achieve!

How does an individual decide to become an Entrepreneur?

FB_IMG_1439574606000

In those famous words – JUST DO IT!

Decide – once you have decided you will find yourself doing what is necessary to achieve whatever it is you want to achieve. But here again, the ‘FEAR FACTOR’ come into play. Once you remove the ‘FEAR FACTOR’ what is really stopping the individual from going out to become an Entrepreneur?

Purely the fact that we are sometimes so caught up in the ‘Rat-Race’ that we have forgotten how to exercise our right to choose… Choose what we want to do and then actually doing something about it.

All the great and famous Entrepreneurs refer to the three main factors: 1. Decide … 2. Take Action … 3. Make it …!

Could this not be a solution to the unemployment problems?

Definitely – According to the World book our population in South Africa was 52.98 million in 2013; of which between 25.5% to 26.4% of eligible workers are unemployed. Should only a quarter of this number of individuals ( 6.375%) go out to creating their own businesses and then maybe create employment for 1 to 3 other individuals… Just imagine the impact it would have on our Economy? Never mind that, make it any Economy!

Creating and sustaining employment for any individual … and should the individual be a forward thinker and concentrate on environmental concerns such as waste removal and recycling… the return on investment, as well as the improved conditions of habitats, could just be that ‘Win-Win’ situation everybody talks about, but nobody actually takes action to resolve.

But where does Private Funder come into play?

Meet and greet

My proposal: to provide on the established platform a private investor the opportunity to invest in the entrepreneur. Providing the capital for the individual to put his plan into action and create profitability for both parties. How?

Simply put – here is the meet and great for both parties! Both Investor and Entrepreneur establish their interest and on our platform, we link the two parties up with each other! We provide the introduction after a detailed selection process, establish an agreeable contract between parties and provide the infrastructural needs to implement the agreement, with security measures and recommended insurance cover for both parties.

For more information contact our offices via yvonne@clients.yevl.co.za

From the desk of

Untitled
Social Media Integration by Acurax Wordpress Developers
Visit Us On FacebookVisit Us On TwitterVisit Us On PinterestVisit Us On LinkedinVisit Us On YoutubeVisit Us On Instagram