CARTOONS BY CHRIS BRITT

ADVANTAGES
Plan on paper reduces risk. Taking the time to develop marketing, cash flow and
operations plans is always a good idea. Doing this as part of the coursework encourages
you to reflect, test assumptions, build in time for research and ensure the final plan is
complete and viable. These classes help build that discipline and follow-through.
Learn in your own community. These programs often hold classes where the
entrepreneur can learn business tools and skills in small groups with their peers. Being
self-employed can be a lonely pursuit and the journey long. These classes can help you
build a network of other business people who can provide valuable feedback and the
opportunity to test ideas in a safe environment.
Better chances for financing. The goal of these programs is to improve your credit
worthiness and acquire the skills lenders are looking for in a borrower. By knowing what
you’re getting into up front and solidifying your business plans, you will have an easier
time getting a loan because the lender will believe you have the ability to pay it back.
DISADVANTAGES
It takes time. Completing these programs is a lot of work. Programs can be up to three
months long and the work is intense, since the goal is to instill discipline and process into
your business planning activities. This is time and energy you will be taking away from
actually starting the business.
Financing isn’t guaranteed. Entrepreneurs discover the risks and limitations in their
thinking and their strategy when they methodically move through the process of writing
a business plan. It can be disappointing if you come to the conclusion that the business is
not practical or the lender decides that for you.
Loans are relatively small. These are microloans after all, and in some cases it is hard to
stretch out the loan to cover start-up costs when there are so many priorities.
MICROENTERPRISE DEVELOPMENT EXAMPLE
Selma received a microloan under $10,000 for her yogurt company after she
completed a business planning program. She originally had planned to raise sheep but
after working out the numbers in the Enterprise for Equity’s business planning program,
she decided to pursue her earlier dream of selling healthy yogurt in collaboration with
a dairy next to her farm. After testing several different flavors of yogurt with customers
in Independence Valley she began marketing the people’s choice under the Flying
Cow Creamery brand. She is now selling her product in many stores in the region in
returnable glass jars.
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