We all want to go into a profitable venture in life but we are afraid to start because of the unknown ; this unknown is the fear of factors that bring about failure in business, simply put the fear of failure. We can all overcome this, ever thought of why funding organizations demand a plan of your idea before giving you capital..the reason is simple, because that is your road map, all your ups and downs are written down and an experienced eye can tell your level of commitment to your idea and expected success.
Before you indulge in any business venture you need a well written business plan, it gives you a preview of your business (i.e) mode of operation, risks/threats and opportunities. Businesses fail because of risks/threats that are either expected or non-expected. Researching on your idea helps you have in mind possible solutions in hand before hitting the road.
My personal experience on the importance of planning came in my venture in Wheat farming six years ago, I took a loan that perfectly fitted my budget to farm 20 acres in Mau Narok, with a hurriedly written proposal my two other group friends and I trooped into our constituency Youth Fund offices for funding. The officer thought our idea was brilliant just as we thought and guided us on the other procedures, we quickly registered our business name and within a short while we were loaded with part capital, we raised the remainder as per our road map (proposal).
By January of 2007 we had our land ploughed and did everything on time with the enthusiasm that befitted a starting and youthful group. It takes four months for wheat to mature and more time to dry up. In our case things were good until the third month when a disease - wheat rust-hit our plantation. We had not budgeted for this eventuality and looked in pain as part of our vegetation withered away. luckily the plants were at an advanced stage and despite the disease we still reaped a handsome profit, it would have been better in quantity since the weather was fair that year, we could not intervene because we had no money, we had not foreseen this eventuality, had it been severe we would have lost more including our borrowed start up capital . (I will my share experiences in wheat farming in a later post)
From that experience , it is my conviction that however little I am investing I must put in place a business plan that captures all eventualities, I invest a lot of time reading on my venture and visiting practicing entrepreneurs on my idea, that's how I build up my proposal. Do not go into an idea that you do not understand - the only way to be confident is by writing down your idea or having it written for you. When you hit the road be guided by your plan especially for starting entrepreneurs who may be tempted to experiment on hear say. A good proposal helps others interrogate your idea and genuine people will always advice in-case of short comings.
A well written proposal is SMART, it must be Specific, Measurable, Achievable, Relevant, and Timely.
Today it is a requirement to have a proposal for your business idea when requesting for funding, from banks, Uwezo fund, Youth fund and Women fund.
For more and written sample proposals in farming and business contact me at centerprises4@gmail.com
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