A business plan does two things. First, it helps you know your venture well and how you will run it. Second, it helps draw the needful resources like funds, supplies, contacts, and human resources.
Writing a Business Proposal requires an honest and practical approach. When you start writing, forget that you need to raise funds. Focus on what exactly you intend to create from your idea. This will be your first draft. It will convert your idea into a plan.
The first draft is never the final one. In fact, you need to go through several drafts before you have a refined business proposal in your hands. The first draft is just an attempt to jot down your idea to elaborate whatever information about your business you have gathered till now. This draft may have plenty of improvement areas. It may even be incomplete as of now.
The second draft will eliminate the errors of the first. It will be more comprehensive than the first one. You need to do intensive market research and competitive analysis, along with detailed financial assessment. Be ready for hard work. Be ready to invest plenty of time too.
Now that you’re ready with the second draft after having sweated it out, you may be happy with your plan. But, hold it; this is not the final draft! You still need to write a third draft!
This is where most inexperienced entrepreneurs falter. They stop at the second draft, thinking it is their business plan.
You might be wondering that after such intensive plan writing, why isn’t this the final draft?
The thing is: the second draft is still aloof from the real business world. You have prepared a highly logical plan with everything in perfect place.
Is the real world like this? Does everything works as planned?
The real world contains unpredictable people and incidents. On top of it, it’s a dog-eat-dog world. If you have something beneficial for the world, show it fast and convincingly, or else somebody else will take your place. It’s because of this world that you need a well-written business plan.
The third draft shows the gap between what you plan theoretically and what may happen practically. Initially, you may feel frustrated and want the world to abide by your plan and not vice versa. Gradually, as you accept the truth, you start reconstructing your plan, bringing it closer to the real world.
As you continue to write drafts, you become more refined in your plan. Everything gets clearer. The following things start happening:
• You become more confident of your idea and are almost prepared to start up the venture.
• You become more practical in your approach to the business world. You know that, if situation demands, you may need to adjust your strategies accordingly.
• You have already started behaving as the CEO of your company. Your newfound confidence envelops you and you’re ready to present the business plan to the concerned people.
Does Writing a Business Proposal seem exciting now? We’re not saying it’s easy; but it’s certainly worth taking this challenge.