In times like this, when the economy takes a downturn, it is good to start a business. Some people might think that this is ridiculous. But more people are unemployed and costs are actually lower. Potential clients are more probable to invest in new suppliers who could increase competitiveness and cut down costs; because even established companies focus on reducing their expenses rather than increasing their market shares. All this would be helpful in starting the business successfully, if only the businessman could write a convincing and clear business plan. His aptitude in writing a business plan needs to be outstanding. Otherwise, the business would only result in failure. This is not surprising, though, because the potential investors are mostly afraid to risk during these unstable times. That is why a lot of business plans do not succeed in making good impressions. Most of them are basically ignored, and their inadequacies become noticeable because they are made even before sufficient work has been finished.
Essentially, an effective business plan has to have three significant elements. It has to include a commonsensical problem statement and the solution for it. It also needs to include real evidence, as well as, the truth about the gaps, risks, and any other postulation that may actually be proven wrong. Then, the business plans that habitually go wrong must be avoided. For instance, a businessman is so besotted with the sophistication of his technology. So, his plan would begin with detailed explanations about his technology instead of beginning it with the problem that needs to be resolved. This kind of business plan would only provide the impression of uncertainty when it comes to priorities. So, when writing a business plan, it would be better to start off with a problem that is clearly determined; because if the businessman could convince his readers about the reality of such problem, they would be enthusiastic into reading his whole plan and seeing if he had really found the solution.
Then, another mistake when it comes to writing a business plan is putting in too much optimism. A business plan that is composed solely of positive ideas and opportunities is very much likely to be rejected. Investors are well aware that even great and seemingly flawless business opportunities have certain weaknesses. A lot of opportunities are actually uncertain, and most of the new business enterprises only fail. So, instead of attempting to cover up the uncertainty and tough spots, the businessman should identify and handle them directly in his plan. He should be bold enough to talk about the possible risks rather than deny them and state that they would not occur. In addition, the investors would not be astounded by a businessman’s diploma or his previous employments. They just want someone who has adequate experiences and could handle their challenges. The plans that indicate a businessman’s lack of certain skills surprisingly do well, by accepting such lacks and convincing the potential investors to fulfill them with someone they appoint.
Source by Ewen Chia