Business Plan and Learning Entrepreneurship

Ideally, a business plan contains detailed information about establishing, operating, and even expanding the business. A good business plan is also an objective assessment of the probability of the company to succeed. Typically the business plan contains information on the business competitors, operation, cash flow, and customer segment, and market analysis.

The business plan is one of the elements that shape the strategy of the business that any serious entrepreneur cannot take for granted. There are two critical roles in a business plan. First, it simplifies and clarifies the business strategy. Most often, there are so many things in an entrepreneur's mind that sometimes they are "lost in the woods." Prioritization and focus are essential to accomplish a stated goal, and a good business plan can direct the thinking of an entrepreneur. Second, a good business plan attracts potential venture capitalists.

A successful business plan help entrepreneur determine the sustainability of the business and the potential sources of capital. Also, the business plan details the operation and the possible expansion of the company. It is a detailed plan that describes the direction of the business, including the potential action needed over time. Thus a business plan is a regularly evolving document which entrepreneurs need to modify and adjust based on the changing environment. However, a business plan is not a guarantee that there will be no problems, though it provides entrepreneurs with focus and direction on what to do if a problem arises.

Business plan preparation enhances entrepreneurship education. Students in an entrepreneurship course have the opportunity to apply actual methods against theory-based learning. Since learning entrepreneurship, students need to experience nature. Thus the best way to learn the subject is through learning experiences. Learning entrepreneurship is comparable to learning a skill similar to architecture or programming. The student must attain both procedural and declarative knowledge. The ability of the student to gain understanding and exhibit this knowledge, such as on examination, is declarative knowledge. On the other side, knowledge obtains from an OJT or internship is procedural knowledge. Unfortunately, in the present situation, it is challenging to provide these learning opportunities to students. Hence the most probable is to require student activities that require them to analyze problems condition and recommend alternative solutions, which is the preparation of a business plan. The different areas in the business plan, such as preparing the marketing, is only possible through procedural knowledge.

References:

Dongol, R. and Neupane, B., 2009. Effective Business Planning:: A key To Successful Enterprises.

Zimmerman, J., 2012. Using Business Plans for Teaching Entrepreneurship. American Journal of Business Education, 5(6), pp.727-742.