Entrepreneurship is the endeavour of seeking out an idea and putting it into commercial or other profitable action.  Usually that means starting a business.  It could be a new product you’ve created and would like to sell, or it could be a much needed service in your area.  Sometimes, it’s taking an existing business and remodelling it to give it new life and new profit.

What is a Business Plan?

For any business to be successful, you need a business plan.  Even if you’re thinking small, having a business plan lets you sort out the details of how you will earn money and what you will spend money on.  The more intricate your business, the more critical the business plan is.

A business plan is an outline of your business model.  As a very basic example, let’s say you decide to make and sell homemade jam.  You need to make yourself a chart that will show how much your supplies will cost as well as how much your jam will sell for.  Include things like the cost of jars and rings, as well as fruit, sugar and pectin.

How many jars of jam will you need to sell in order to break even with your cost?  How many additional jars will you need to sell to show a profit?  Is it worth it?  Sometimes you need to adjust the selling cost, or maybe find cheaper supplies.  You also have to take into account how you will advertise that you have jam for sale.  At some point you will have to factor in your time, to see if it’s reasonable to make enough jars of jam in a timeframe that makes it profitable.

In many cases, building a business plan might show you how much money you’ll need to have in reserve to live on until your jam starts earning enough profit to provide you an income.  While selling jams is a relatively small scale business, the larger the entrepreneurial endeavour, the more critical it is to have a solid business plan, with all the operating requirements laid out.

Why Do You Need to Market Your Business Plan?

Once you’ve laid out the foundation of your business plan, it will be one of your best tools to help finance your entrepreneurship.  Banks and investors won’t take you seriously if you don’t have a business plan that details how you intend to make your business profitable.

Marketing your business plan attracts people to your enterprise and motivates them to support you.  In order to market it successfully, you need to make sure all the details are accurate and verifiable.  Don’t offer over ambitious projections, even if you honestly believe they are possible.

Marketing your business plan to potential financiers is all about presentation.  Whether you are approaching a financial institution for a loan, or friends and family as investors, you need to treat it with respect and professionalism.

Plan and Practice

Plan your pitch.  Like it or not, you’re selling what is really just an idea.  You need to practice how you will explain it to others, and how you will show the benefits, profitability and earnings others will generate from it.  Never, ever wing it.

Go through your business plan and decide what research or demographics will support your idea.  Prepare charts, pictures or other tools to help you demonstrate this to investors or lenders.  Practice reciting key elements of your plan, so you know them by heart.

Be prepared for questions.  Have an associate “grill you” with tough questions that punch holes in your idea.  If you stumble over answers or get stuck, you are not ready to market your plan.  Find answers that illustrate the benefits of your business model, until you can recite them in your sleep.

Marketing your business plan to investors or lenders is the pivotal moment that will get your enterprise off the ground.  It may seem like a lot of work, but you will likely only get one meeting at the bank, one appointment with an investor, or one chance to plead your case.   Most would-be entrepreneurs fail in the marketing and end up not getting the investment they are looking for.

If you want to be a successful entrepreneur, you need a good business idea, a well thought out business plan, and a rock solid marketing presentation that potential investors won’t be able to say no to.