The Quality Training and Health Club - Case Study Example

Name: Professor: Course: Date of Submission: Business Plan Evaluation Evaluation and analysis of business plans are crucial undertakings in the quest to determine the ability of the plan to provide a viable road map to the running of a profitable business. Identification of strengths in a business plan is particularly important when sourcing for funds while weaknesses reduce the chances of investing in the target business venture. Business plans are evaluated based on the various sections of a standard business plan. An evaluation of individual business plan about quality training, and health business provides a platform for comparison that reveals strengths and potential weaknesses in both investment avenues. QUALITY TRAINING BUSINESS PLAN Strengths The business plan entitled ‘Quality Training’ comprises of a properly planned table of contents that outlines major topics and subtitles to enable quick evaluation of the plan. It is possible to have a glimpse of entire plan content by virtue of going through the table of contents. On the other hand, the executive summary is written in point form to capture all the important points in the plan. The summary covers some of the details contained in the plan in a concise manner to enable any individual not interested in going through the entire plan to get the necessary information. The executive summary outlines the objectives, mission and goals of the organization as well as the market situation and financial viability of the organization’s venture (Innovation and Business Industry Skills Council Ltd 5). In the executive summary also, there is an outline of what the company intends to do in the 2006-2007 time span. There is comprehensive information on the products to be offered by company. The other strength in this business plan is that it provides detailed information about the competition that includes analysis of the competitors, and opportunities that can be exploited for optimal profits (Longenecker, Petty, Palich and Hoy 24). The detailed SWOT Analysis in the business plan is important in providing a comprehensive picture of what the market looks like to determine the viability of the plan. The quality training plan also provides strategies for taking advantage of opportunities and minimizing threats identified in the SWOT analysis. The plan also presents thorough market analysis including trends and marketing strategies as well as the pricing strategy. Weaknesses The management section of the business plan only provides information on the organization ownership without any information on the management team. Prospective investors are interested in well managed organization hence the need to provide detailed information about the management in order for the entire business plan to be convincing (Longenecker, Petty, Palich and Hoy 25). The management team section should not only provide information on structural organization as evinced in the Quality Training Company’s plan. There is no background information on those who will manage the business. The other identifiable weakness in this plan is the lack of realistic operating budget, income and expense projections. The business plan also lacks financial statements and other important information on the company’s financial position. Although, the executive summary mentions financial analysis, there are no documents to allow calculation of cash flow, expenses and projected returns. The other weakness is the failure to cover regulatory issues affecting the market in the business, which may greatly interfere with organizations’ operations (Gillman and White 52). Overview Summary and Recommendations The Quality Training business plan generally covers most of the contemporary information required in a business start up strategy. The strengths in this plan include reflection of the right format and inclusion of most sections of a viable business plan. SWOT analysis emerges as the other important feature of the plan in which important information on the company’s position and the market is properly outlined. There is strong evidence in the plan that adequate market research has been conducted as supported by the detailed market analysis. The plan also provides detailed information on its proposed activities and products as well as the marketing strategies (Innovation and Business Industry Skills Council Ltd 12). On the other hand, few weaknesses can be identified in the plan including the lack of information on the management team, skills background, income and expense projections and detailed financial information (Longenecker, Petty, Palich and Hoy 24). However, with additional information on the qualifications of the management teams and their background information the plan can be improved to a competitive standard. The plan also requires inclusion of detailed financial information with income, expenses and cash flow. The plan should also entail sufficient documents to allow calculation various financial estimates relevant to the organization. HEALTH CLUB BUSINESS PLAN Strengths This business plan reflects the ideal format for a conventional venture planning with all sections being well outlined and listed in a temple of content. The executive summary in this plan is well detailed and concise covering the major points just like in the Quality Training Case. The plan provides the values underlying the business activities including the foundation of the business. The business objectives, mission and successes are well covered in the executive summary. The summary also provides the financial position of the organization in form of graph that summarizes important financial information about the organization. This plan provides clear financial breakdowns needed for the business to kick off (Bplan.Com 1). The start-up for the business is presented graphs, which can easily be interpreted. The plan not only provides a list of the services to be provided but also provides a brief description about the services. The plan also comprises of detailed competition analysis including comparison of competitors, and the general competition. In this plan, market analysis is presented in terms of figures that are easier to analyze compared to detailed description of the market. Returns for competitors in the market are clearly presented depicting intensive research about the market. Market segmentation is well presented in the plan in form a chart to facilitate quick interpretation (Bplan.Com 1). The plan also sets out the map for successful implementation of the business plan. Another important component of the business plan is the stipulation of clear milestones to guide the implementation process. The marketing strategy is also well detailed including all the 4Ps important in the successful marketing of products and services. Finally, the other strength that can be identified in this business plan is the inclusion of clear sales forecast, income and expense projections. The plan has clear information of the organizational structure and management team. The management team is well outlined with clear background information on the experiences and qualifications of the management team. In addition, the plan also identifies the management team gaps, which can be filled with time (Bplan.Com 6). Personnel plan is an important aspect as it determines the ability of the organization to achieve the established goals and objectives. Weaknesses The main weakness in this plan is the lack of the company’s SWOT analysis, which is a major section of any business plan. The plan lacks identification of the organization’s weaknesses, opportunities and threats. In this case, the organization does not identify the opportunities in the market that the organization can focus on to realize its sale forecasts and income projections (Gillman and White 47). In addition, the plan does not show any threats that the organization should put up strategies to overcome in the process of their operation. Overall Summary and Recommendations The Health Club business plan meets most criteria for standard business plans as evinced by the various sections of a business plan. The various sections of the business plan are well outlined in the table of contents with concise summary of all issues covered in the plan in the executive summary (Bplan.Com 1). The plan also utilizes various statistical features including graphs and charts that facilitate interpretation and understanding of the plan. The plan further provides comprehensive information on the target market, analysis of competition, comparison of competitors and presentation of market analysis in form of figures. The business plan comprises of a detailed financial analysis including start-up finances, income and expense projections. The plan provides investors with a broad picture of the organization’s financial position and clear estimates. In addition, the plan also provides a clear map to guide the implementation process. The plan also provides a clear personnel plan to ensure that the objectives and goals of the organization are achieved. However, the plan can be improved through inclusion of important sections missing that include identification of the organization’s strengths, weaknesses, opportunities and threats (Gillman and White 48). The plan should also have clear strategies outlining specific strategies for overcoming identified threats as well as ensure maximization of the opportunities in the market. Finally, the Health Club business plan can be termed as a better plan because it covers majority of the key aspects of a viable business plan with only limited weakness that can be improved through the above recommendations. However, the two plans can be improved to the required standard through implementation of the proposed recommendations. Work Cited Bplan.Com. “Health Club Business Plan”. Bplan. Com. 2012. Web. Gillman, Joan and Sarah, White. Business Plans That Work: Includes Actual Business Plans That Successfully Attracted Financing. New York, NY: Adams Media, 2001. Print. Innovation and Business Industry Skills Council Ltd. “Business Plan: Quality Training”. Innovation and Business Industry Skills Council Ltd, 2010. Web. Longenecker, Justin, William, Petty, Leslie, P and Hoy. Small Business Management: Launching and Growing Entrepreneurial Ventures. Stamford, CT: Cengage Learning, 2011. Print. Read More