Importance of Writing Business Proposal - Essay Sample

Business proposals are like road maps; people can travel without roadmaps, but the chances of getting lost are very high. Business proposals are also referred to as business plans; entrepreneurs use them for guidance (Wasserman, 2016). Business plans help entrepreneurs visualize the bigger picture, make plans for the future, and make vital decisions to see their businesses succeed. Business proposals allow entrepreneurs to lay out their goals and track the company's progress to ensure that it is in line with the structured goals. Having worked with church and robotics teams, I understand that a business plan is vital to its progress. This paper discusses the importance of business proposals to organizations.

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A business plan allows entrepreneurs to gauge the profitability of their business ventures. Business proposals allow entrepreneurs to look into their potential markets to determine their viability (Wasserman, 2016). Entrepreneurs get a chance to do some market mapping and analysis to see if their ideal businesses can thrive. When coming up with a business, it is crucial to be as realistic as possible; a business plan allows entrepreneurs to make realistic projections. Entrepreneurs can gauge whether their ideas are too risky to invest in, if it is the case, they can go for less risk opportunities (Wasserman, 2016). Business plans help organizations prepare for the unknown business world; doing business without a plan is like planning to fail.

Business plans allow entrepreneurs to make critical decisions ahead of time (Wasserman, 2016). Organizations require management to make endless critical decisions as the business progresses. Managers need to be on their toes and anticipate some issues that their organization is likely to face. Creating a business proposal is a robust plan to tackle some of the severe issues facing businesses (Wasserman, 2016). Managers have to consider their business components before starting, for instance, what the company will sell and the market for the products. A business plan allows management to be more organized.

Business plans are essential in securing financing (Steingold, 2020). Investors and financiers need to be sure that their money does not go to waste. A business plan allows entrepreneurs to demonstrate to investors that their finances can be channeled into the right uses. Most of the startup businesses cannot finance themselves; hence they require third party interventions (Steingold, 2020). Investors are interested in businesses that are lucrative and can fetch high returns. Preparing a business proposal can help entrepreneurs convince financiers that their money is in good hands.

Business plans help reduce the chances of risks occurring (Steingold, 2020). The business world is highly risky, leaving everything to chance looks clumsy in such a competitive world. Business proposals help entrepreneurs to look into their potential projects and analyze their risk profile. It would be inappropriate to venture into a highly risky business (Steingold, 2020). However, at times entrepreneurs devise mechanisms to see their businesses through. Business proposals allow entrepreneurs to leave less for chance and make better decisions because everything becomes clear.

To conclude, business plans are vital for any organization that desires to progress. Business proposals allow organizations to put their plans on a blueprint to act as a guidance mechanism towards achieving the organization's goals. Business plans create a clear path for organizations to make wise investment decisions because they can visualize about their prospective businesses.

References

Steingold, F. (2020). Why You Need to Write a Business Plan. https://www.nolo.com/legal-encyclopedia/need-business-plan-reasons 29758.html

Wasserman, E. (2016). How to write the financial section of a business plan. Inc.com. https://www.inc.com/guides/business-plan-financial-section.html