Business Planning facilitates business funding success

Howard Myers of HMI International wrote this piece. Good insights on the importance of creating a business plan, get this, prior to trying to go for funding!

Dare to do Business Planning to Facilitate Funding Success

The most important thing an entrepreneur needs to do before they write their business plan and then go out to engage potential investors for the purpose of securing funding is to engage in business planning. Yes, you need to first begin your start-up business by doing the appropriate amount of business planning. Business planning, as investors know, is what differentiates successful start-up companies from unsuccessful start-up companies. In addition, this is where most entrepreneurs fall short. There are two primary reasons for this, including the following:
• Entrepreneurs either chose to ignore, or lack the desire to put in the required effort to do business planning. They do not want to do the unavoidable hard work on their way to developing an investor quality business plan, including, the due diligence, research and overall planning that will ultimately define their start-up company. This lack of desire to do this hard work will ultimately hurt you and your start-up company.
• Entrepreneurs do not have the proper backgrounds or do not have an understanding of the importance of business planning in the road to developing an investor quality business plan. In this case, again, a lack of knowledge can hurt you and your start-up company.
Whatever their underlying reason, entrepreneurs need to understand that the business planning exercise is where all of the required business plan details are formulated, developed and finalized. Business planning is where you acquire the required knowledge regarding your proposed business proposition. From the target markets, to competitor positioning, to the projected financial returns, this is where you become an expert in both your product offering and your business. By not engaging in the required business planning, in the near term, you will not impress your investors with the knowledge required to secure funding. In addition, in the long-term, not knowing your competitors or the markets will not allow you, as an entrepreneur, to maximize the return on investment for your start-up company and for your investors.

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