A Successful Business Plan - Thesis Example

The value of planning cannot be questioned because most investors wish to see a business plan first which helps them decided whether to invest or not (Mason & Stark, 2004).  However, entrepreneurs, being young and inexperienced, are unable to define their businesses in line with the business plans. The poor business plans that they draw up do not reflect their business objectives. Because of the lack of knowledge and information, the business plans do not reflect the mission, objectives, plan of action, and financial projections in a manner to attract investors. These challenges lead to greater issues and may even lead to projects. They may realize that lack of planning is the cause but by this time they have ended burning up valuable resources such as time and money.

A business plan defines how the venture is expected to operate in the current environment. A business plan is essential for both internal and external purposes. Entrepreneurs may have brilliant ideas to start a new venture. They may also have the resources to implement their ideas.  However, unless the ideas and plans are compiled together it could soon become confusing for the entrepreneurs as well. Planning is an opportunity evaluation and is important for an entrepreneur who is faced with the decision to enter the market. Therefore, a business plan I necessary to start a new venture, to attract investors, and more importantly, to make the entrepreneurs aware of what they expect to achieve from their business activities.

Developing the business plan in an organized format is essential to achieve the full benefits. This paper presents the guidelines for an effective business plan.

2.0 Definitions

Before proceeding to explain the steps to a successful business plan, it is essential to understand the definition of certain terms.

2.1 Entrepreneurs

Awe (2006) refers to the Webster definition of an entrepreneur and describes it as “one who organizes, manages and assumes the risks of a business enterprise.” An entrepreneur has also been described as a person who perceives and fulfills a need in the market for profits. Awe describes this based on the definition from the Entrepreneur’s Desk Reference and contends that vitality is created by the dual role of the entrepreneur. This gives an idea of the difference between a small business owner and an entrepreneur.