Business Plan - Strongest and Weakest Components - Essay Example

Business Plan Report Strongest Components The strongest points of the two business plans are that the tours business plan has graphs showing the way the industry is in various markets. This gives much confidence to the investors because they will be capable of getting the right picture of the industry. Moreover, the charts give a sneak peek into the tour industry, thereby making it possible for the targeted investors to understand the goals and techniques to be met in a bid to make sure that the business grows. The investors in the long run will be capable of relating with the vision of the company (Hiduke & Ryan, 2013). The real estate business plan also has graphs showing the progress and performance of firms in various markets in the industry. This wins the confidence of the prospective investors and boosts their interests in the company as well. This fact will assist in the investors project their anticipated results on investments by doing various calculations of the same. The charts will also give the managers a picture on how the industry operates and thus leading to a better means of planning based on the statistics that are drawn from the market (Hiduke & Ryan, 2013). The graphs also show projection of funds of the business operations that will be undertaken within the firm. This gives an understanding of the various operations that can be conducted within the industry that the company operates and thus a high level of confidence among the investors who will be willing to put their money into a viable investment. The summary of the business objectives in the real estate business plan gives a breakdown on the manner every goal for both business plans would be undertaken by the firms. This makes it easier for the investors to get a rough idea of the manner the company intends to undertake its plans within the market and further understanding of the method the plan will be implemented within the market. Moreover, it will be easier for the management to understand the way various operations within the company are being undertaken and the manner they will be engaging the various investors they target to have within the industry. The plan will also act as a step by step procedure that the interested parties will be capable of keeping track of the manner the plans will be undertaken within the company (Hiduke & Ryan, 2013). In addition, the objectives will be highly useful in showing transparency in case a party may doubt the way the implementation of the business plan will be undertaken. This thus helps in building trust among the major parties implementing the business plan, and the investors will be at peace when they see everything going according to the laid out plan. The objectives stated on the tours and travel business plan assures the prospective investors of the level of transparency of the entire business plan. In addition, the customers will be capable of understanding the manner various operations within the company will be undertaken and further understood by the all the various individuals tasked with the role of implementing the business plan. The head of the operations within the company will also be in a position whereby they will be capable of undertaking all the operations smoothly without interruption. This thus puts them in a position whereby they will be finishing the implementation of the entire business plan effectively and get the desired result in the long run. The investors will also be willing to put in more money into the plan since every step that will be undertaken is clear and easy to follow through. This thus helps in undertaking the operations smoothly within the firm and the ease in undertaking the implementation because the needed funds will be availed by the investors (Hiduke & Ryan, 2013). Thirdly, the financial analysis provided in the real estate business plan makes it easier for the investors to know the actual performance of the company. The analysis consists of the company’s performance in the past years before they approached the investors within the market. The breakdown is an important factor to determine how stable the company is. It also determines the means it is capable of overcoming various challenges faced within the company and the market at large. A clear financial breakdown makes it easier for the business to earn the confidence of the investors and the market at large. In addition, it also makes it easier to attract more investors within the market. It thus earns the company an excellent reputation within the firm. The improvement of the operations will be successful because of the clarity of explanation on the manner the money put in the plan will be used. In the tours and travel business plan, the financial breakdown will also be effective since the investors will be capable of following through. In addition, an investor is usually keen regarding the financial performance of the company and transparency is effective in ensuring a healthy relationship. This thus puts the investors in a position whereby they have to be convinced of all the performance of the company thus ensuring that the managers within the firm are capable of meeting the desired goal within the company (Hiduke & Ryan, 2013). In addition, an investor looks at the level of profitability and losses made by the firm over the past years to find out if they will be capable of getting their returns after putting a certain amount of money requested by the management of the firm. An adequate financial breakdown will also be essential in understanding the way the funds invested will help in transforming the company so that the operations are enhanced and improved for the better operation within the firm. Weakest Components The mission for the tours and travel business plan is not clear. They are however useful in understanding what a business aims to achieve. It is an immediate communication to the public and in the event that the public do not understand they are likely exercise laxity in investing in the company. The investors find it hard to connect the mission with what the organization does. The investors will, therefore, struggle with the decision to put their money in the company because of the fear of the unknown (Hiduke & Ryan, 2013). An investor is always interested in being capable of connecting with the goal of a particular company before risking their hard-earned money. They also have to get a look at the business operations and get the necessary details before investing. The poorly constructed mission statements put them off, and they will not risk putting their money within the company. The idea behind the tours and travel business is therefore hard to know. (Hiduke & Ryan, 2013). The real estate business is also has a poor mission that is difficult to understand. The investors will also be reluctant to put in their money in something that they do not understand. This leads to a decline in the level of understanding of the way the employees within the firm will be capable of delivering without a clear mission statement. The investors will choose to stick with the appropriate company that has a mission statement they can follow through. The real estate company will also lose out on the available investments in the market (Hiduke & Ryan, 2013). The lack of an active mission that the management can relate with will also be hard for the clients to follow through once more. This leads to a decline in the level of understanding of the major issues within the firm and thus making it hard for the investors to understand the way their money will be used. Their goal is also unclear and thus leading to a rise in the level of misunderstanding on the way the company will be operating. This worries an investor whose main intention is to make better returns in the form of the percentage thus he or she is likely to withdraw the intentions for investing within the company. The management will also find it hard to give various targets that are to be met by the employees thereby leading to a decline in the performance of the company (Hiduke & Ryan, 2013). The fact the real estate business does not have a clearly stated business plan; it becomes difficult for the investors to follow through. The business plan shows them the picture of the business. In addition, the appropriate needs that the company will have to meet and understood by the prospective investors before they put their money thus ensuring that they are capable of getting the desired returns as had been agreed by the management. Moreover, a unique approach in the market would be a great selling point to the investors since they have a vast knowledge of the market. This makes it possible for the various investors in the real estate market to scramble for the slots available because of the promising future of the business. Without a unique idea however as in this case, the investors will be hesitant to invest in the company and thus a decline in the level of investment anticipated in the market (Hiduke & Ryan, 2013). The unclear financial projections for the tours and travel business plan make it hard for the investors to follow through thereby making it hard for the investors to follow. This will also make them hesitant in investing in the same venture because it is hard to understand the way the company will meet the intended goals in the near future (Hiduke & Ryan, 2013). The signs of poor projections also put the company in a bad light and the investors will, therefore, not be willing to risk their hard-earned money on a company that may make them lose their money in the process instead of earning. This is the greatest fear that an investor can ever have before considering investing. This will, therefore, lead to lack of investments from the potential investors in the industry. Lastly, lack of adequate vision for the tours and travel business plan also shows that the company has no direction, and the investors will hesitate being associated with them. The management will have difficulty convincing the prospective investors once they notice that company’s goals do not connect with the vision in place. This thus leads to a high level of misunderstanding of the actual aims of the company and as a result, leads to the loss of potential investors in the company (Hiduke & Ryan, 2013). Improvement of the business plans In a bid to improve the business plan, the management has to concentrate on the various components of the business plan. First, the management should come up with an appropriate mission statement that clearly describes and fits the business plan. The business plan should be designed to relay information of the various goals that the company intends to achieve. The goals should be clear, and the major operations of the company have to be communicated on the mission statement. For instance, if the company is to provide better housing, then the mission statement should have some element of affordable or quality homes to the clients. This will be precise and clear to the investors, and they will readily understand the main intention of the company within the market (Hiduke & Ryan, 2013). The tours and travel business plan can be improved by coming up with a vision that the investors can be capable of understanding within the environment the company operates. Coming up with a clear and concise vision statement will do a lot of good to the company. It will also be effective in achieving the desired goal since the investors will be capable of relating with the various needs of the clients within the firm (Hiduke & Ryan, 2013). Introducing the planned goals to the investors and connecting them with a vision statement in place, will also help in attracting more investors to the company. Thus, a rise in understanding the way different challenges within the firm could be adequately understood by the investors. Challenges faced There was difficulty in understanding the various financial projections on the business plans. The manner the calculations were done was not clear. This was solved by reviewing the accounting books to find the appropriate concept used in deriving the answers provided. In addition, difficulty in understanding the manner strategic goals were assessed. This was understood by going through the set goals and comparing them with the various strategies of the company the objectives were assessed (Hiduke & Ryan, 2013). An evaluation to determine the value of a business was somewhat difficult since the assessment is done by both companies was not precise. It was solved by reviewing the operations of the company to get the value of the business within the firm. I have learnt that business arranging ought to have a calendar. It likewise ought to additionally have monetary projections and a correlation of the contenders exercises. Also, unmistakably expressed goals and methods of the association must be considered. The skills I exhibited were logical to a huge degree and surveyed goals to a high extent. Reference Hiduke, G. P., & Ryan, J. D. (2013). Small business: An entrepreneurs business plan. Mason OH: South-Western. Read More