Business Plan for a Startup Business - Research Proposal Example

Business Planning Introduction: A Business Plan explains a business opportunity. It is similar to a road map since it tells an individual what to anticipate and what alternative roads one can take to attain one’s destination. Several research studies have specified that thriving small business managers set practical goals and sketch how they are going to achieve them. Planning assists a person to work elegantly rather than harder. It keeps a person future-oriented and inspires him to attain the results he desires. Planning considerably enhances his opportunities of achievement by focusing on areas in which small business operatives occasionally get lost. Planning facilitates him to identify problems that require outside sources of information and help. The nature of markets and customer needs alter rapidly. Planning cannot forecast alteration but it helps an individual to identify it and map his business policy accordingly. Small businesses tend to either cultivate too rapidly for their capital base or too sluggishly to sustain cash flow. Planned growth facilitates him to plan his capital requirements in advance and to guarantee that funds are accessible when one needs them. A detailed Business Plan allows one to scrutinize his results against a prearranged set of objectives and performance principles (Business Planning, n.d.; Business Plan for a Startup Business, n.d.). Rationale: The rationale behind forming a business plan is that one can expect problems that are likely to take place and decide how they should be dealt with in advance. For instance, a lot of small business proprietors spend so much time ‘putting out the fires’. A business plan often helps an individual to justify his deeds. Often, one chooses to do something because it ‘sounds’ or ‘feels’ right. Preparing a Business Plan compels one to confirm the validity, or at least consider the logic behind one’s plans. Business proposal implies one’s capability and commitment. It is a remarkable document if it is well prepared. It helps us to convince the outsiders for example, lenders and suppliers that one comprehends the business. It is a long-standing management tool by which decisions can be taken for the future that best suit with the intentions of the business. The business proposal helps in scrutinizing and assessing the new business opportunities, proposes a case for finance, and portrays a lucid picture of the business and its prospect. The business objectives should be kept in mind. In the long-term, what is the intention of the business to attain any certain objectives is the focus that should be given beforehand. A business proposal must be framed keeping in mind that who will direct and handle the business. The criteria and the qualifications one seeks for in a managerial position. The required number of personnel, their job profile and descriptions, the plans of recruiting employees, remuneration, wages, incentives, training and supervision should be taken into consideration. The management plays a vital role. The management of finances, record-keeping, the requirement of consultants or specialists, choice of legal type of ownership, need of certifications and permissions and the influence of the regulations on business (Business Planning, n.d.). A business plan plays a very important role in assisting to evade mistakes or identify hidden opportunities. It facilitates the management to comprehend more evidently what they want to attain, when they can perform it and how they should execute in a rational order. Review of Literature: Stutely (2002) talked about fast-track recommendation for executives and entrepreneurs who desire to get beyond the fundamentals and create definitive, driving and smart business plans. The book reflects the current best practices for planning new projects within the business and wraps every feature of creating an appealing business plan and an accomplishing business. It incorporates an assessment of the existing status of one’s business, including talents, resources, commodities, markets and rivalry. Vision, assignment, principles, core purposes, and operating aims have been defined. How to attain and develop premeditated and operational plans is also described. Pinson (2001) discusses the technology related aspects as well as the stock market crash for which the business plan requirement is obvious to become the best friend of an entrepreneur. Every business will gain from the research leading to a cautiously written business plan. There are 3 main reasons for writing that plan. There is an extra benefit if one carried business globally. The most vital reason for writing a business plan is to expand a guide that one will pursue throughout the life span of one’s business. It will offer all the details of the corporation’s past and current processes, as well as its projections for the next few years. A business plan is an obligation if one is planning to look for financing. If one is looking for capital, the particulars of business plan should be taken into account. How the preferred investment or loans will advance the company’s objectives and enhance its profits should be kept in mind. Lenders and investors have the right to entry of figures that are considered to be a standard for a variety of industries. Hence, one needs to be certain that the projections are sensible. If one carries business globally, a business plan offers a normal meaning of assessing one’s business prospective in a foreign marketplace. The expansion of a business plan will reveal ways in which one’s business can put itself forward in this international economy (Pinson, 2001, p. 2). The Business Planning Guide by Bangs (2002) offers 3 complete sample business charts and provides expert supervision, including information on how to gather pertinent information from inside and outside one’s corporation. How to assess present market conditions in addition to one’s business’s strengths, weaknesses, and opportunities is also illustrated. The suitable amount and types of financing required has been determined through this book. The author provides his business philosophy for businesses, small or large, profit or non-profit. His philosophy is that the adventure in making a business cultivate is found in serving more clients, attempting new ways to distribute value to them, and observing one’s employees mature and develop. Pinson and Jinnett (2006) portrays that when it comes to initiating a new business, there are many information which entrepreneurs need to think about. They include obtaining a name, acquiring finance, authorization and marketing the novel venture. Without a realistic business plan, new notions float or are lost totally owing to a lack of training. Over the years, a number of of the most winning entrepreneurs have found this book to be one of the most trustworthy and enlightening resources in the market. Butler (2000) in his book, Business Planning sketches the alternatives and risks concerned in establishing a business. The significance of thorough planning is often ignored and only becomes apparent if the business fails. This is emphasized in a recent study by the SFEDI of 486 bankers and accountants where lack of planning was the most general reason quoted for businesses being unsuccessful. Similarities Financial predictions, cash flow protuberances and operating budgets are incorporated and all these information together are presented into an excellently crafted business plan. The kind of funding required, the place from where to obtain funds and the worth of funds into the business have been cited. How to use one’s plan to help run his business professionally and successfully is said in the book by Stutely (2002). Similarly, the chapters in the book by Covello and Hazelgren (2005) show entrepreneurs how to consider through strategies and equilibrate enthusiasm with facts, detain and hold the interest of probable lenders and investors, appreciate and develop their financial statements, identify the unique selling benefit of their products or services and shun potentially catastrophic errors such as, undercapitalization and negative cash flows. Abrams and Kleiner (2003) added advice on applying new technology to current business plans. In addition, details on financing trends and planned position development are also mentioned. Covello and Hazelgren (2005) discussed the process by sketching the diverse parts of a business plan. They, in a straightforward question-and-answer style, helped the business proprietors create an endearing plan for their business. Forsyth (2002) revealed main areas of business planning from considering why a plan is essential and what issues it should speak to compiling the preparation and using it to express the business and guarantee that goals are met. In the similar manner, Bangs (2002) provided technological, the sensible, established, and real-life advice in his book, “The Business Planning Guide”. If an entrepreneur or manager desires to start and develop his venture on more solid monetary footing, then this book provides step-by-step approaches he needs to assemble a complete business plan and financing scheme. McKeever (2008) illustrated to the readers how to pen down the business plan and loan package required financing a new or enlarging business and making it operate. The incorporated CD-ROM offers obliging spreadsheets and sample business plans. He conferred the requirement to write a business plan. Reading (2002) provided a clear and vigorous business plan which is essential to any winning enterprise. It must be understood by workers, purchasers, and stakeholders, and must have the worldwide support of the whole leadership team and board of directors. The approach that the senior executives develop is not full-bodied and will alter with even slight economic slumps or industry trends. Robust approach requires chasing the most striking strategic targets, stressing the resources of the business on them and supporting the organization, arrangements and know-how to bear their accomplishment (Reading, 2002, p.1). Dissimilarities Business Planning by Butler (2000) reveals how to keep away from this failure by highlighting on the planning phase and building on this structure as the business expands. This is the only book which revolves around the Small Firms Enterprise Development Initiative (SFEDI) for extraordinary proprietors and executives. It has all the strengthening factual information needed to prepare and propose a successful Business Plan for appearance to a bank manager, or an optional possible source of finance, or for application in a National Vocational Qualification (NVQ) portfolio. It is in proportion to the main syllabuses for Business Start-Up, and can be utilized as a course book for anyone carrying out a formal NVQ level 3 qualification in this domain, with instructions on NVQ arrangement and evaluation. This book covers all the necessary information for sketching a business proposal for funding applications, or as a section of an NVQ. Pinson (2001) talked about the technology as well as the stock market crash for which the business plan is a major requirement. Forsyth (2002) incorporated key planning aids such as SWOT analysis, the Boston and Ansoff matrices, and practical instances. He also drew advice from banks and accounting companies as well as business professionals and gurus such as Philip Kotler. His book incorporates a glossary of major ideas and a guide to resources. The book by Pinson and Jinnett (2006) has been written for small business proprietors. This widespread guide provides established methods for constructing a business on a solid base. With modern information on new know-how, e-commerce, web resources, and the trendiest marketing systems, budding entrepreneurs can produce and execute their business plans to the fullest level. The forms, instances, and worksheets make this workbook a perfect resource for anyone interested about, thinking, or serious about entrepreneurship. Summary of key findings and implications: The majority of lenders or investors require a written business plan before reflecting on one proposal acutely. Even a number of landlords require a real business plan before leasing a room. Prior to making a commitment, they want to notice that an individual have thought through serious issues encountering him as a business proprietor or he actually has understood his own business. Business plan assists in deciding whether to continue or to stop. As a potential business owner, one must induce the reliability of one’s proposal. The written plan lets one individual develop his business idea. It helps to see how the altering sections of the plan add to the profit or achievements. Writing a business arrangement helps beat the odds. It advances one’s odds of success. It facilitates to keep one in track. The plan provides clear course towards the upcoming future and makes one’s choice making easier (McKeever, 2008, p. 6-8). Methodology: In the final study, we are going to carry out qualitative research. In case of qualitative study, types of data which will be collected generally involve the opinions and beliefs of the researcher and the subjects who will be studied, through the application of various instruments.  Instruments which will be used to collect the primary data will include questionnaires and conducted through telephones and internet as the mediums of communication. Interview is considered to be very useful and powerful for conducting qualitative researches. During a research, interviews of some selected people are conducted to find out what an individual actually thinks regarding a particular issue. Interviews enable researchers to access the opinion of the people who are being interviewed and in this case it will point out the trend in preferences. Through interviews it is possible to find out certain important things relevant to the studies that cannot be obtained or observed directly. Interviews also help in discovering and exploring the implications of certain things related to people’s behavior, feelings, habits, routines etc. Through interviews researchers get an access to a wide range of experiences, different kinds of circumstances and a range of knowledge that could otherwise not be obtained. The questionnaire will comprise of 10 questions. Fifty individuals from USA are proposed to be interviewed for the research. The sample chosen will be through random sampling. Some of the questions will be close-ended and the rest will be open-ended. The interview would be taken using a questionnaire and probably using a Likert-type scale. The basic idea is to find out how the written business plan helps corporate executives to enhance their business skills and improve profit within the organization. The interviews will be taken through face-to-face meetings, telephones and e-mail.   Two types of approaches have been considered in this study- inductive and deductive. An inductive approach might construct an investigative study through the following objectives- investigate relevant literature and case studies from secondary sources, identify the arguments related to resistance to change, collect primary data from an organization currently undergoing a change initiative, identify reactions to change initiatives and recommend possible solutions to dealing with resistance to change. A deductive approach would be more likely to construct objectives to test from an existing theory. The assumption which will be tested in this study is that the managers and the senior executives are more dependent on a well-documented business plan. Using the same questions as above I create the following hypotheses. Two hypotheses are to be considered in this study. Hypothesis 1: A written business plan has been able to increase the profit of any organization within a given time period. Hypothesis 2: The senior executives, especially the CEOs and the managers are implementing them in practice. In case of the qualitative study, the primary data sources will comprise of the businessmen or the senior corporate executives, mainly the CEOs. A number of economists have also been incorporated into the process of interview. Conclusion: Depending on the principle of the Business Plan a suitable conclusion can be developed. This could have been a final précis of the purposes and main potencies of the business along with an apparent statement of the course of the enterprise, an acceptance or rejection of the new business opportunity and a clear statement outlining the benefits of investing in the business to a potential financier. Considering the review of literature, five questions can be developed for further study and research. The business plan is not same for all the companies. Thus, it has to be analyzed that what kind of business plan suits the majority of the companies. Marketing plays an important role in the growth and development of any business. Who are the possible customers and how will a company magnetize and hold its share of the market? The contenders should also be taken into consideration. What are the strategic moves taken by the rivals should be kept in mind while framing a business plan? What are the aspects which affect the choice of any location for the establishment of any business? These are the issues which can be discussed in the forthcoming research. References: 1. “Business Planning”, n.d. Department of Trade and Economic Development. Government of South Australia. Available at: http://www.southaustralia.biz/library/Business_Planning.pdf (Accessed on Nov. 24, 2009). 2. “Business Plan for a Startup Business”, n.d. Available at: http://www.ecell.in/resources/Getting.Started/Business.Planning/Formulating.Business.Plan/A_Business_Plan_for_a_Startup_Business.....very_good.pdf (Accessed on Nov. 24, 2009). 3. Abrams, R, Kleiner, E, 2003. The successful business plan: secrets & strategies. The Planning Shop (California). 4. Stutely, R, 2002. The definitive business plan: the fast-track to intelligent business planning for executives and entrepreneurs. FT Press (New Jersey). 5. Covello, J.A, Hazelgren, B.J, 2005. Your first business plan: a simple question-and-answer format designed to help you write your own plan. Sourcebooks, Inc. (Illinois). 6. Pinson, L, 2001. Anatomy of a business plan: a step-by-step guide to building a business and securing your companys future. Dearborn Trade Publishing (Washington). 7. Forsyth, P, 2002. Business Planning. John Wiley & Sons (New York). 8. Bangs, D.H, 2002. The business planning guide: creating a winning plan for success. Kaplan Publishing (New York). 9. Pinson, L, Jinnett, J, 2006. Steps to small business start-up: everything you need to know to turn your idea into a successful business. Kaplan Publishing (New York). 10. Reading, C, 2002. Strategic business planning: a dynamic system for improving performance & competitive advantage. Kogan Page Publishers (London). 11. McKeever, M.P, 2008. How to write a business plan. Nolo (California). 12. Butler, D, 2000. Business planning: a guide to business start-up. Butterworth-Heinemann (Oxford). Read More