The aim of management colleges nowadays is not just to prepare future managers but also to encourage entrepreneurship. With encouraging and promoting schemes from the government for entrepreneurs, colleges and institutions include business plans in the curriculum as a vital step in the direction.
The inclusion of business plan as part of study contributes towards shaping future entrepreneurs. When they complete the course and step out to start a business, they already have the ability to prepare a systematic plan, they are familiar with all its aspects and they can at least approach a bank or financial company with some degree of confidence.
The knowledge of preparing a business plan enables the amateurs to follow the right path and direction when they dream of a new venture.
Difficulties involved in the preparation of a business plan:
A business plan prepared in advance is very useful, no doubt, but it is not so easy to prepare. Starting a new business is a courageous act in which there is monetary investment of the entrepreneur and in which there may be other stakeholders. Hence, it has to be done with utmost care and responsibility.
The first difficulty is the concept. Unless there is some kind of novelty, some innovation, a business plan is not likely to work. Students often lack the resourcefulness and originality. Experts have the ability to present old ideas in a new way, so that the plan succeeds.
Students lack future vision that is necessary for the success of a business plan. Unless they have foresight they cannot project a plan into the future.
Sometimes, students are so excited when they think of something new that they fail to check whether it is really new or whether nobody has already thought of it earlier. Sometimes, the idea may be new but they do not check the practicality and feasibility. A plan should also have some sustainability. If students fail to include all the aspects in their plan, and if the pans are rejected by their instructors, the students get discouraged. With little guidance and no assistance, they look for help from friends or seniors. This help is not always useful and valuable. However, students welcome any kind of help for preparing the business plans.
Few important points in writing a business plan
- A business plan - A roadmap that outlines minimum 3 to 5 years of a development routs that a company intends to follow initially.
- Company description - Whether it will be a small scale or medium sized company.
- Market analysis - Whether the product the company plans to manufacture or the services it plans to provide have a good prospective market, who are the competitors etc.
- Service or product line - What kind of product or service will be provided, whether FMCG etc.
- Capital and investment - How much capital will be needed? From where will the arrangement be made?
- Financial projections - When will the company reach a BEP? How much profit is expected and after what period of time?
- Executive summary - A short summary of the entire business plan.
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