| |
| |
|
Go Back | About | Contact | Web Design News | |
|
|
|
Business Planning Overview
The successful entrepreneur is generally more inclined, once a business idea is selected, to sharpen the concept by a detailed planning process. The result of this step is a comprehensive business plan, with its major components being the marketing "mix," the strategic plan, operational and logistical structures, and the financial proposal. The purpose of the business plan is to recognize and define a business opportunity, describe how that opportunity will be seized by the management team, and to demonstrate that the business is feasible and worth the effort. The business plan is the "blueprint" for the implementation process. It focuses on the four major sub-plans: marketing; strategy; operational/logistic; and financial. While the business plan often goes through some revision, it generally represents a rather advanced stage in the planning process. The primary product or service to be offered, based on the results of the market research, should be determined. Whether the business will be a start-up, purchase of an existing business or a franchise should certainly be firm at this point. Often, a specific business location is indicated, or at least a rather specific area. Time estimates in a business plan should allow for meeting all the necessary regulatory requirements and acquisition of permits to get to a "customer-ready" condition. The amount of funding required and a general approach to raising these funds should be determined. Marketing mix issues focus on how the product or service is differentiated from the competition. A business can differentiate itself on any of what are often referred to as the "four P's" of marketing: product characteristics, price structure, place or method of distribution, and/or promotional strategy. Strategic issues relate broadly to the company's mission and goals. Every venture must continually assess its strengths and weaknesses, the opportunities to be seized, and any threats to the success and plans of the business. Operational issues relate to company structure, and the scope of the business. The operational plan addresses tangible items such as location, equipment, and methods of distribution. Decisions on these issues largely determine startup costs. The financial proposal includes an estimate of the amount of money needed to start the venture, to absorb losses during the start-up period, and to provide sufficient working capital to avoid cash shortages. It projects sales and profitability over some period into the future, generally 3 to 5 years. Where outside funding is sought, it also describes distribution of ownership of the venture and methods of debt repayment and/or buyback of partial ownership. Where implementation of the plan requires participation of lenders and/or investors, the plan must clearly and convincingly communicate the financial proposal to the prospective stakeholders: how much you need from them, what kind of return they can expect, and how they can be paid back. Many entrepreneurs insist that their business concept is so clear in their heads that the written plan can be produced after start-up; this attitude "short-circuits" one of the major benefits of producing the plan. The discipline of writing a plan forces us to think through the steps we must take to get the business started, and, to "flesh out ideas, to look for weak spots and vulnerabilities," according to business consultant Eric Siegel. A well-conceived business plan can serve as a management tool to settle major policy issues, identify "keys to success," establish goals and check-points, and consider long-term prospects. The plan must realistically assess the skills required for success of the venture, initially and over the long run, and match the skills and interests of the team to these requirements. Test the plan, and an accompanying oral presentation, on friends whose business judgment you value. Let them assume the role of a prospective investor or lender. John B. Vinturella, Ph.D. has almost 40 years experience as a management and strategic consultant, entrepreneur, author, and college professor. For 20 of those years, Dr. Vinturella was owner/president of a distribution company that he founded. He is a principal in business opportunity sites jbv.com and muddledconcept.com, and maintains business and political blogs.
MORE RESOURCES:
SEO - Google News |
|
|
|
RELATED ARTICLES
Realism vs. Optimism in the Business Plan The most important function of a business plan is to create interest among investors so that they write a check. In achieving this goal, business plan writers are often challenged by determining the proper level of optimism in their plan. Enterprising Route is to Go Your Own Way DON'T talk to me about education for entrepreneurs. They're pouring far too much public money into it already - not counting the millions some well-known Scottish entrepreneurs are prepared to waste on it. What Makes an Entrepreneur? Rupert Steiner in his book 'My First Break' attempted to define the secret of becoming an entrepreneur and following interviews with over one hundred entrepreneurs, Steiner concluded that there was not one defined path. He has, however, drawn out observations of an entrepreneur's personality traits. Entrepreneurship Story; Over Regulation in Franchising Part I Jim and Sally run a successful auto business, which they have built up over two decades and have expanded to three stores and many of their friends keep saying, "You should Franchise." They think about this for about five years read a few books, like "Franchising for Dummies," The "E-Myth", "The Franchising Bible" and many others on the shelves of the new big book store in town with the coffee shop inside. Vendor Relations Communication is the key to vendor relations. In your small business, you will be in need of many products and services. Entrepreneurs - Your Well Being Should Come Before Profits I believe the spiritual aspect of life, especially to entrepreneurs, is very important. While business may be the focal point for an entrepreneur's life, it's your outlook on life that shapes what kind of person you are. Entrepreneurs, Are You Hauling Buckets? Once upon a time, there was a village on the banks of a fine, clear river. The villagers all drew their water from the river, and used it to cook, and bathe and water their gardens. Compensating for Your Entrepreneurial Style-or Lack of Style I recently took an entrepreneurial quiz which evaluated my answers and informed me I would do best as a hired hand! So why am I a successful home business owner? Because I've learned to fill the holes in my entrepreneurial style, and compensate for my deficiencies. Let's start with a list of qualities that might benefit someone working for him/herself: 1. Business Planning Overview The successful entrepreneur is generally more inclined, once a business idea is selected, to sharpen the concept by a detailed planning process. The result of this step is a comprehensive business plan, with its major components being the marketing "mix," the strategic plan, operational and logistical structures, and the financial proposal. From Bank Clerk to Entreprenuer What seems like a century ago, I left school and joined a well-known High Street Bank. In those days working as a bank clerk was a well-established route for many school leavers and perceived to be a proper job with prospects. Customers - Why Should They Buy From You? There are a whole range of reasons why customers buy aproduct or service. They usually buy to solve either real orperceived problems. Be An Entrepreneurial Artist: Paint A Picture, then Commit It to Canvas James had an original concept and he needed an investor. He had a compelling business idea that was a sure winner with the right financial backing. What It Takes To be An Entrepreneur Series: Action Many people have the professed desire to be their own boss, start their own business ecetera, ecetera.. Do You Have What It Takes? I think it's fair to say that not everyone is cut out to be a successful business owner, now some of you maybe disputing this statement but hear me out.I'm not saying that if you put a person in the perfect business environment that they won't succeed but how often does the perfect business environment appear?Based on my own study and observations, as well as, the common themes that come through articles on my Minds Alike Blog Site (www. Entrepreneurial Hate, its out there Today, I got an email from a lady who hates all business people and entrepreneurs, because they are Greedy, Arrogant and a Host of other atrocities. She was replying to an article I wrote about entrepreneurs and how they bring to the civilization; everything you see, everywhere you go and without us, you would have nothing. Goals and New Venture Creation More and more corporate workers are leaving their jobs to start new ventures. When taking this leap, it is important that the goals of these entrepreneurs are solid, as these goals may ultimately determine the success of the new venture. 5 Habits Of Successful Entrepreneurs Habits get a bum rap. When you think about your habits, I bet you think of the "bad" ones - the ones that you aren't particularly proud of, like eating too much sugar, or smoking, or dwelling on your negative thoughts. Coating Service Business Case Study There are many coating businesses in the market today, but have you ever asked yourself how one gets into this line of work? How they are formed or what prompts someone or some entrepreneur to go out and start a business to fill this niche? Well this is an interesting case study that shows how we became interested in this industry from a sub market of the coating business; Spray in Bed Liners. Our company is in the auto detailing business, www. The Risks of Entrepreneurship The "spark" for many entrepreneurs is seeing an opportunity that doesn't yet exist. Ted Turner, for example, launched CNN because he perceived that people wanted more television news than they were being offered. Walt Disneys Failures Could Inspire Entrepreneurs You are a struggling entrepreneur and sometimes it feels like you are pushing a 3 ton boulder up a steep hill. Costs keep mounting and you are considering giving up.
|
ChicagoAnimation's Acquisitions: Market Polls - 1pennyStock.com
Sponsors: Paving | VTL's | Religious Statues
