Every
entrepreneur knows how important the business plan is for raising funding
for the new business. Sometimes, it is easy to miss out some of the crucial details
required in successful business proposals.
All business proposals should create a vision. After all, that is the basic point
to business proposals. Proposals for new business ventures should begin with a mission
statement and define the short term goals and priorities of the new business.
Budgets and financial analysis are essential for all successful business proposals.
An entrepreneur looking to get capital access from a lending institution such as
the bank cannot afford to miss this section.
Entrepreneurs of new business ventures should also not ignore their customers and
their needs. An entrepreneur may think that he or she does not have to do market
research because they know the tastes of the target audience as well as their needs
and desires; however, this could lead to the downfall of the new business. Market
research is one of the most important segments in the business proposal.
The entrepreneur should also not diminish the strengths of their competition as
it could lead to the downfall of the new business venture. All business proposals
should outline the strengths an weaknesses of the competition. An entrepreneur who
does not take competition seriously is in for trouble.
Finally, the entrepreneur of a new business needs to be prepared to take risks.
Successful business proposals do not avoid risk but instead propose a strategy to
meet and tackle the challenges. In fact, sound business proposals of new business
ventures anticipate possible challenges and include a variety of scenarios for meeting
those challenges.
All entrepreneurs need to get a second and third opinion on the business proposals,
even the most senior and experienced of them because everyone can benefit from a
different point of view.
The new business entrepreneur should also expect the unexpected and be prepared
to tackle it. Every business plan needs some wiggle room to allow for unexpected
changes. The entrepreneur should be prepared to tackle all emergencies.
Finally, the entrepreneur should not skip on the
business plan. Even if the entrepreneur
is very clear about the business idea and the process, the entrepreneur should not
avoid creating a business plan. The business plans are critical for receiving seed
funding.