A business plan is a document that commercializes the business idea, as a whole, to potential investors and stakeholders (Schewtje 2010 p.1). A business plan is the starting point of any business venture…
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A business plan is aimed at justifying business idea and its future potentials. It is the conclusive document that details the strengths, risks, future developments and other relevant technicalities involved in undertaking the business venture. Business plan is primarily and usually developed for undertaking a new business venture. However it may also be developed when an existing business makes some new initiative changes for which a sizeable investment and analysis is required. Externally, business plan helps in communicating to the potential stake holders about the financing of the new business idea. Simultaneously, a business plan serves the internal purpose by making the picture clear to the people in organization about the business. Having a conclusive business plan serves as a guideline of future moves and is an important controlling mechanism against which actual performance can be compared. The business plan encompasses several elements of significant importance to new business idea. These include idea generation, strategic objectives, market analysis and research, understanding the competition, cash flow, profit and loss forecasts, balance sheet projections, competitive strategy and scenario analysis. These elements are critically analyzed in the following discussion. Elements of Business Plan 1. Idea Generation Idea generation is the process in which problem under consideration is understood and ideas to solve that problem are generated and communicated. It is the basic element of business plan on which the success of business relies heavily. An idea that understands the problem only at surface and does not address the core depths of issue will result only in short-term success and ultimate failure. A successful idea is the one, for a new business, that is feasible and profitable. Idea generation is the rigorous task (Legrand 2011, p.125). It requires a great analysis and commitment to arrive at successful business ideas. Most of the business failures trace to unworkable business ideas. Business idea turns out to be a failure because of very common problems that include; surface understanding of problem, improper understanding of environment where idea is to be introduced and miscalculations in assessing future potential of idea generated. These are the most common areas that are not properly addressed while proposing any idea. In organization, a leader can take steps to help in generation of useful and successful ideas. He/she can do so by directing idea generators in a way so as they may not overlook the common areas of mistake that result in ultimate failure of business plan. Group idea generation is the common organizational practice. It offers the benefit of the pooled knowledge f group and ensures a proper critical analysis of idea before it is implemented. 2. Strategic Objectives: The term ‘Strategic Objectives’ refers to the concrete financial and non-financial goals that an idea is supposed to achieve. Setting of strategic objectives serves various important purposes in a successful business venture. It defines the targets in concrete terms and also the role of different functional units of organization for achievement of strategic objectives. Strategic objectives outline the amount of financial and non-financial resources that are required to make an idea a success. This is a critical step in business plan. A business idea can be a failure if its translated strategic objectives are vague, unclear and ill-calculated. A major coordination problem, among functional units, will arise in case the objectives are not well understood. A
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(“Business plan- definition Essay Example | Topics and Well Written Essays - 2750 words”, n.d.)
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(Business Plan- Definition Essay Example | Topics and Well Written Essays - 2750 Words)
“Business Plan- Definition Essay Example | Topics and Well Written Essays - 2750 Words”, n.d. https://studentshare.org/business/1393147-international-business-globalisation.
Thus, important elements of a business plan will be discussed in the first part of the essay and these include the following: idea generation, strategic objectives, market analysis and research, understanding the competition, cash flow, profit and loss forecasts, balance sheet projections, competitive strategy and scenario analysis. .
Through the review, it has been established that indeed the United Kingdom has a lot of potential for he decorative industry and the production of paints. Comparing the characteristics of B2B and B2C however makes B2B the most preferred option for the company.
Products as well as the restaurant shall be designed and implemented taking into consideration the target market which is predominantly Western, without losing the oriental touch and feel. A start up company, Mr. Choi is owned by partners who have strong desire to offer a food product without alienating the target market.
The purpose of this business plan is to provide a blueprint for import and distribution of SHAG (the beer), SHAG RTD (Ready to drink) and SHAG Blue (caffeine and guarana) from Holland. Dark Horse Imports Inc., is a soon to be launched branch of The Spirit, Hop and Grape Company (SHAG), to commence operations in January 2006 and is ready to import and distribute premium lager SHAG and other related products in the Australian marketplace.
This plan will communicate about the demand in the market, estimated growth and profits, required financials and the benefits to the investor.
The business plan should give the information about the business, demand in the market, investment requirements, financial
things, the thematic areas covered include Relational skills, Teambuilding, Interpersonal Communication, Ongoing Personal Development, Understanding Family Dynamics, Understanding Youth Culture and Community Building. The company provides personalized services to its customers