The study would take a critical look at the business planning process and attempt to drive home the essentiality of such a process. Many a failed business has paid lip service to this step and has been found guilty of subversion…
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The Business Plan The business plan is the enterprise on paper. It is an attempt to capture in so many words and graphs what the business would be or look like when it is eventually implemented. It is an attempt to depict on paper the idea brewing in the mind of a would-be entrepreneur that he feels very strongly would transform into a successful venture. The business plan is the idea initially taking textual and graphic form. Literature is abundant with what makes a good business plan. Many authors would establish business plan formats containing the elements that would make a sound plan composition together with the elements’ sequencing. This paper however shall not dwell on the creation and development of these elements but shall focus on the process of planning, providing weight to the issue of the why and the how of the planning process. Business Plan Elements and the Planning Process Kuratko and Hodgetts (2009) offer the following elements in a business plan: executive summary, the business opportunity, market potential, market analysis, competition analysis, technical data of product or service, commercial strategy, methodology of operation, vision-mission and financial projections. These elements however are outputs of an enterprise planning process that proceeds with the idea generation, setting up of strategic objectives, analysis and research of market, understanding competition, understanding the financials and formulating the competitive strategies (Kuratko and Hodgetts, 2009). Critical Analysis Seeding the Idea: It s simple logic that there is always a purpose or reason for business, and if one pursues the economic theory...
The paper tells that it is simple logic that there is always a purpose or reason for business, and if one pursues the economic theory that business is meant to generate profits for its owners, it follows that the business must be attractive to its intended customers to generate a green bottom line. An enterprise begins with an idea, whether it is a product or service, and that idea must answer a need of the market. This process of idea generation is otherwise known as the creative process or simply, creativity. Of course, it is now known, courtesy of brilliant thinkers such as Harper and Drucker, that creativity is the seed of innovation, where innovation is the finished product or service that benefits the market. It was Drucker who said that “innovation is the specific instrument of entrepreneurship – the act that endows resources with a new capacity to create wealth.” It would be necessary as an approach to this analysis to first define what an entrepreneur is before proceeding to create the attribute silhouette of the successful enterprise owner. As literature has an abundance of such a definition, this paper shall adopt the version of Drucker in his famous book Entrepreneurship and Innovation. An entrepreneur, according to Drucker, is one who always searches for change, responds to it and explores to the maximum its potential as an opportunity. Many authors and researchers have ventured into identifying the attributes that successful entrepreneurs possess.
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Enterprise and Entrepreneurial Management Introduction It is often said that the success of most ventures is the result of a proper planning. It is true in the case of a successful business venture as well. In the case of a successful enterprise, a good Business Plan is the primary step.
Most entrepreneurs operate in environments that have considerable competition. It is necessary for the business to establish its own products or services and then differentiate them from competition. According to Boone and Kurtz (2007), differentiation is one of the most primary competitive elements that helps position the business against competition and establish a unique brand that customers recognise.
In fact, the act of planning in itself is an exercise of foresight and exemplifies the planner’s recognition of the uncertain future and inevitable change. In business, this procedure with its significant incorporation of time is referred to as the business planning process.
This article critically analyses the steps involved in a business plan. Each stage of the Business Plan is critically examined in terms of what should be included in each step. Also, the contribution of each step to the overall plan is dealt in extended detail. The intention of the assignment is to develop a clear understanding and framework of the requirements for setting up and operating a successful business.
The sole trader is the most viable business structure as it eliminates the risk of partnership liabilities and provides more operational controls to the sole trader. Yankee Clippers will procure financing through traditional banking and lending facilities to ensure successful start-up management and subsequent launch of this new, inspirational brand.
Business plans earlier considered a corporate exercise, but currently they consist of the core financial support and staff recruitment. Competent business plans give an exclusive explanation on the how the business operates and mainly used in investor attraction.
100,000, which will be supported by talent experts that perform excellence in service through flair and food juggling presentations. The breakeven point for this business is quite moderate, at only 810 customers per month, which is achievable since the business at start-up will be operating three mobile food carts.
cash outflows and inflows, projection of the sales demand. Apart from that, the business plan is also critically evaluated using academic textbooks and journals to check the viability of the plan. The critical evaluation also involves analysis of the various assumptions made while preparing the business plan (Garnier and Gasse, 2011).
I have taken an account to include and discuss all the positive and negative aspects, prospects and threats too, which was helpful in determining SWOT matrix. After analyzing the matrix and Quantitative strategic Planning; strategic plans