A majority of entrepreneurs accept the need for creating a business plan however, a few often fail to realize that an effective and comprehensive business plan can lay down a road map to success for their businesses
A business plan can typically have different uses, like to obtain funding from investors, or to increase business efficiency. Irrespective of the use, a business plan needs to be well drafted in order to serve its purpose. From an investment perspective, while a well drafted business plan cannot guarantee funding, it certainly improves the chances of getting funded.
It is interesting to analyze how entrepreneurs react to certain business terms like operations strategy or business model. In my experience, the outcomes range from absolute disdain to an extended discussion around the “nuts and bolts of their business”. Again, it is difficult to generalize, but the more mature a business, greater is the ‘evolvement’ from “a brilliant idea to sustainability” with an acceptance towards the importance of planning and structuring. At that point in time, a so called fashion statement becomes a necessity and creating a business model a reality.
The key step in scaling up your venture is to acquire external funding. While newer and more affable avenues of funding are opening up the competition amongst fund seekers are also rising exponentially. Let me be very categorical here, investors whether it’s a bank or a private investment houses like venture capitalists or angel investor are in the business of investing. It has become almost impossible to raise funding just on the idea itself. A lot of factors play before a successful investment deal is made.
Over the years of our working with entrepreneurs, we have noticed that while there is generally a robust understanding about the start up process and funding requirements, things seem to taper down when it comes to scaling up of the business. While a valid argument is that entrepreneurs seldom get time to think about the “next-step”, in essence it is essential to plan for expansion early in the business life cycle. A robust business plan where key milestones and triggers are well defined goes a long way in supporting this process.
Business planning is becoming an integral part of the startup ecosystem. A well crafted business plan gives shape to budding ideas, showcases the unique proposition of the business and highlights the fiscal potential that might attract potential investors to fund the project.
We often hear that an idea can change the world. It’s true, it can. However, an idea alone does not mean anything. It’s the execution that really counts. Over the years, we have helped several startups and entrepreneurs right from the ideation phase to implementation. One thing, which we can confidently say, is that without the power of execution, your ideas are as good as nothing. Our firm belief and our advice to all entrepreneurs is:
A killer business plan does not guarantee funding but definitely increases your chances to get funding. Funding depends on a lot more factors than just a business plan. For example, the management team, business model, risk associated and various other factors influences the decision of an investor. With our experience of working with over 250 [...] Read More
You have leveraged an outstanding business plan to acquire a round of funding. The venture looks really promising and as an entrepreneur, your million dollar business is all set to take shape. What else do you need, as all the hard work is done and the world is your oyster. On one aspect, a lot [...] Read More
Business Planning is one of the key pre-operative steps on which an entrepreneur must invest their time and energy. Business plans are the foundation block to any business, irrespective of the size and industry. Most entrepreneurs do not carry a formal training or functional knowhow on how to draft business plans, the idea is to [...] Read More