Anatomy of a Business Plan - Example

Outline and Introduction Name: University affiliation Contents Table of Contents Contents 2 Table of Contents 2 Executive Summary 3 Introduction 4 Strengths of mid west recycling plan 6 Strengths of Virtual assistant plan 7 Weaknesses of the two plans 8 How to improve the business plans 10 Challenges faced and how they were addressed 11 Lessons from business planning 11 Competencies demonstrated 12 Conclusion 13 Reference list 13 Executive Summary The paper evaluates and compares two business plans of different organizations. The two business plans belong to Mid Atlantic recycling plan and virtual assistant business plan. The ideas presented in the plans are different and this is why the plans are very different. The paper evaluates the differences in terms of the weaknesses of each plan, the strengths of each as well as how the plans can be improved. The recommendations on how to improve the plans relate to the weaknesses of each business plan. The paper also analyzes the lessons that are learnt in the preparation of business plans. Introduction A business plan can be defined a document describing comprehensively how a startup investment is likely to attain its goals. A business plan lays out written plans starting from the sales and marketing, fiscal and operational standpoint. From time to time, business plans are prepared for reputable businesses that would be moving in new directions. A business plan entails a depiction of the organizations or small enterprises, their service and/or product and how these organizations are meant to attain their goals. A business plan entails an inclusive budget, present-day and anticipated financing, market analysis as well as its marketing stratagem. In the context of the business planning, the business owners project returns and expenditures for a particular time interval and give a description of operational activities and expenses associated with the businesses. The two business plans that were selected are the Mid Atlantic recycling plan and Virtual assistant plan. We have made some comparisons between the business plans of the abovementioned companies. There are also various contrasts that have been unearthed between these business plans. The document has also identified and explained the strongest aspects of the business plans of these two organizations. We have identified and explained various weaknesses that exist in each of these business plans. Various improvements have been put forward that need to be implemented on these business plans. There are some challenges that we faced and explanations on how they were overcome. A statement of different lessons learnt regarding business plans is also included in this report. During the course of writing this report, we faced many challenges but we managed to overcome them since we developed some skills which have been included in the report. The main motive of coming up with business plans is to give the business proprietors more clear picture of the possible expenses and shortcomings to particular commercial decisions and helps them revise carefully before the implementation of these concepts takes place. The format of business plans may be similar but some organizations may concentrate more on particular areas as opposed to some areas. This could be meant to achieve the certain objectives of an organization and also depends on the need of the organization. However, it is crucial that the business plan is made to be strong by all means. This is why this paper compares two different business plans for different companies. Mid Atlantic recycling plan brings up a new idea of solving pollution to the environment. The plan also responds to the legal changes that have barred land filling of human waste. The plan if implemented is likely to bring a new business in place. The activity of the business is to buy human waste from the municipalities and then process the waste to usable product that can be sold to companies that manufacture fertilizers. The company is to solve problems in that by accepting waste from the municipality at a cost, it saves them the cost of having to dispose the waste. In return, the new business will receive revenue from the municipality. The new products made from the waste will be advantageous for agricultural activities and this will boost the economy by improving agriculture. In that case, the business is a viable plan that faces no competition because there are no other similar businesses in the region. Everywhere assistant is an already existing business that intends to expand considering the increasing need for the services provided. Many people, companies and nongovernmental organizations need to outsource services considering that their employees are very busy and may not handle all tasks. It is cheaper to get services from everywhere assistant because this does not involve giving a fulltime job to an employee. This is why everywhere assistant is a business that has a great future because the demand for the services from the company will increase with time. However, there are other business and individuals offering similar services. If the company is well managed, its success is undoubted considering that its customers can be found all over the world through the widely available internet. The two business ideas are all attractive to invest in if there is a proper plan. After evaluating the plan, it is now important to evaluate the differences between the two plans as well as evaluate their weaknesses as well as their strengths. Strengths of mid west recycling plan The plan has a comprehensive marketing plan that looks achievable. The marketing plan is designed in such a way that it will be implemented in phases depending on the needs of the organization. This makes it more realistic. Even though the plan is a marketing tool, the marketing plan reveals good arrangements on how to penetrate the market as well as establish and expand services that are to be provided. The marketing tools to be used match with the target market. Publicity is used considering that the business targets the public and governmental organizations. The use of advertising that is face to face will ensure effectiveness. The use of internet is a key feature considering the nature of business environment where internet is a common feature in marketing. Market needs is a major strengths of mid Atlantic recycling plan. The business is to face less competition in the region of operation because there are no direct competitors in Virginia State. The competitors are the companies that produce the inorganic fertilizer. The business will engage in production of organic fertilizer products that are preferred in the current market. This means that the new business will better meet the needs of the market as compared to the indirect competitors. The new product is another strength that the business can capitalize in. in this case, the future of the organization is to expand its facilities in west Virginia and beyond. The advantage is that there are no competitors in the region and this gives the business organization a chance to expand without challenges as well as ensure that the company becomes preferred among its target customers. Strengths of Virtual assistant plan Virtual assistant plan has great strengths in several areas. First, the business targets various segments of the market. Target market segmentation gives it an advantage in that the business will not depend excessively n a certain segment. This ensures that there will be certainty in the generation of profits. When the services demanded by one segment decline, the business can rely on another segment in generating revenues ad this means that there will be no shortage of revenues. The plan also highlights various services that will be provided showing great diversification in the process of generating revenues. The profits and losses stated in the plan is strength of the plan. It shows that the business owners are not over ambitious which can be dangerous. The projected profits are reasonable taking care that there may be competition that can affect the revenues. On the other hand, the profits are not very low to scare away potential investors. The projected profits are hence manageable with fewer efforts which give the business strength. The plan shows comprehensive management information which indicates strength in the virtual assistance business. Having information in a business that deals with technology are a great strength that other business mat lack. It shows that the business will easily gather more information and cope with new trends to avoid being competed from the market. With the good management information, it means that the implementation of the plan will not face many challenges and the target goals will be easily achievable. The analysis above shows that the two business plans have different strengths. It means that the businesses to be implemented are very different and at the same time, the priorities of the management of each business are different. These differences can also be revealed by evaluating the weaknesses of each pan. Weaknesses of the two plans Mid Atlantic recycling plan has several weaknesses that have to be addressed to make the business to operate better. First, the business plan shows overstaffing. It should be realized that the business will be in initial stages of operation and needs to minimize costs. There should be fewer employees such that in the future, employees can be employed depending on need. More employees will also be hired as the business expands but as for now, the number should be reduced so as to reduce costs and hence increase profitability. The wages for the employees is too high and this poses another weakness in mid Atlantic recycling plan. High wages accompanied by large number of employees means that the highest expenditure in the business will relate to wages. This means that the business swill have no enough funds to buy the capital that is required in the recycling process. Investors and other organizations funding the business may think that the business intends to benefit the employees and not engage in its major activity of recycling waste. This will scare aware these investors. Over expectation of sales is another weakness in the plan. The management assumes that the idea will easily sell in the market and will result to huge sales. This is a wrong assumption that should be reevaluated. There are chances that other business individuals have similar plans and can compete with the company. In addition, the target market may be resistant to accepting the deals and this can mean fewer sales to the business. Virtual assistant also has several weaknesses. First, the plan lacks a good sales plan. This raises question as to how the business is to reach customers and ensure that sales are achieved. Lack of sales plan means that the planners have not devised a way of reaching their potential customers and providing them with the required services. Virtual assistant plan also lacks the number of employees to be hired. Employees are an important variable that affects sales and its absence means that the business will not be in a good position to correctly project costs. Other parties reading the plan may question the costs indicated as well as projected profits. The salaries for Sadie are very high in the case of virtual assistant. This creates a weakness in that it increases the costs in the new business entity. The business requires capital which may not be affordable if huge costs are incurred in relation to salaries. There is a need to reduce costs and ensure that profits are high in the initial stages of the business to make it possible t expand the business. How to improve the business plans The business plans could have been improved through evaluating the current weaknesses. As for the mid Atlantic plan, there is the need to re evaluate the salaries of the employees so that the total expenditure in the business will reduce. This will show the seriousness to invest in the activities of the business rather than reward individuals. Another correction should relate to staffing. The number of employees indicated is very high for a business that is in initial stages of operation. It means spending so much on employees and leaving less for the capital investment. The number of employees should be reduced, retaining only the employees who will be very vital for the business. The projected sales should also be modified to reflect the fact that the business is new in the market and that there will be initial resistance in the market and sales may not be as high as projected. The virtual assistant plan also has to be modified to make it better. The management should develop and good sales plan showing how the sales will be achieved. This will give confidence to investors in that it will indicate the ability to generate and improve sales that influence the revenues and the profitability of the business. The plan should also indicate the number of employees in the initial business. This will help to accurately project the costs to be incurred in the business hence the profits to be realized. The huge salaries paid to some employees should be modified with the reasoning that the salaries can be increased after the business starts operating and performs well in the market. Challenges faced and how they were addressed The greatest challenge faced related to using statistical tools to arrive at the various figures in the plan. It required skills and great reasoning to develop figures and make projections relating to things like sales and costs to be realized in the projected financial year. With the absence of data in the initial stages, a lot of time was spent in consulting and reasoning together and this is why a solution was solved. It requires involving experienced and skilled individuals to develop reasonable data relating to performance of a business. Another challenge relates to compilation of the report. One requires time and hard work to ensure that all the tasks and parts of the plan are well addressed and are comprehensive enough to act as a guide in the implementation of the plan. This challenge was addressed by setting deadlines for the different parts which ensured that each part was given enough time to avoid incomplete work or failure to consider some issues that are important in the parts. Lessons from business planning First, one learns the importance of concentrating on each issue at a time. Planning requires that an issue is completely addressed before going to the next stage of planning. This is the only way of ensuring that good plans are made. It was also a lesson that teamwork is necessary in the planning process. Planning requires various skills and expertise which cannot be found in one particular individual. When many people with different skills and expertise are used, the results are more accurate decisions that are made within a short period. Working in a team requires willingness to change points of view and listening to others and appreciating their opinion. One learnt from the planning process that there is a need to evaluate the plans made at a later date to evaluate whether there are issues that were overlooked in the planning process. The planning process may be a very demanding activity that some issues may be overlooked and this can be identified if the plans are evaluated after they have been put down on a paper. Adjustments can them be done after consultations to avoid challenges in the implementation stage. Competencies demonstrated Critical thinking was a key competency that was demonstrated. The ideas presented in the planning process illustrated that the involved individuals were able to evaluate issues carefully before presenting them. This is considering that the ideas were reasonable and practical. Any problem that arises was solved because of good critical thinking. Emotional intelligence was also demonstrated because the individuals involved were able to evaluate issues raised without emotions. This gave time for proper reasoning before reacting on ideas presented. This skill ensured that conflicts were eliminated in the planning process. Negotiation was another key competency that was demonstrated. This was a skill that was applied in arriving at the final conclusion because the people with the different standpoints were able to adjust their thinking and come to an agreement. Conclusion In conclusion, planning is a complex process that requires collaboration between employees to ensure that the made plan is the best for the organization. Different organizations have different plans because of their different objectives and different views. The various parts of a business plan have to be addressed carefully to ensure that the implementation of the plan is not faced by any challenges. This is why there is a need to evaluate weaknesses of a plan after its completion and make necessary adjustments before it is implemented. Reference list Fullen, S. L. (2005). How to write a great business plan for your small business in 60 minutes or less. Ocala, Fla: Atlantic Pub. Group. Fiore, F. (2005). Write a business plan ... in no time. Indianapolis, IN: Que. McKeever, M. P. (2012). How to write a business plan. Berkeley, CA: Nolo. Pinson, L. (2004). Anatomy of a Business Plan: A Step-by-Step Guide to Building a Business and Securing Your Company’s Future (6th Edition). Dearborn Trade: Chicago, USA. Read More