Business Plan Guidelines - Coursework Example

Business Plan Guidelines Name: Institutional Affiliation: Business Plan Guidelines Introduction Identification of a Potential Innovation There are many types of product or service innovations, which any organization, can adapt in order to foresee its growth and development. Therefore, there are guidelines, which an individual or a company can follow in order to identify the most appropriate line of innovation to adapt. This could be a service innovation or a product innovation. The sources of these innovations are obtained from the previous successes or the attempt by an organization to try to find out where these new product or services are in the future. The more the product or service innovations in the future, the more it demonstrates that the benefits of these innovations are not limited to the new product development (Altmann, 2007). Additionally, the process of categorization also helps in identifying a suitable product or service innovation for an organization. It also assists in allowing for the comparison of performance of these innovations and evidence-based choices. These can provide guidelines on where various improvements and advances might generate the highest return for a certain investment. Therefore, the chosen product innovation should be able to provide adequate return on investment (Blyth, 2009). In addition, alternative frameworks for innovations could lead to differing types of innovation, and this would be based on the approach and the objective of inherent in the framework. In any organization or business, innovation is usually considered in the context of different categories of life as a service or product. This is used by various organizational or business client and differentiates their purchases. The different types of innovations are disruptive, life extension, marketing, application, integration, acquisition, organic, service or product innovation. Additionally, there are innovations patterns, and they could take many types. They include, networking, product performance, channel, customer experience, product system, core processing, and product (Bouwman, 2008). On the other hand, there are those types, which consider change, scope and change impact, and they include breakthrough innovation, incremental innovation, and transformational innovations. In a manner that is extremely similar, an alternative approach always considers an impact to the present business as the leading categorization of innovation into market creation, competitor disruption, and cannibalization. In situations where innovation leads to external versus internal innovation, managing the level of innovation is extremely necessary. The innovation type especially product innovation is highly determined by the decision that the company or organization makes. A target market decision is the source of product innovation opportunities. Similarly, a brand decision would lead to a brand innovation strategy. A framework within which innovation focuses on different elements exists. A decision network enables innovation measurement where outcomes are highly traced by the source of innovation. Category lifecycle points towards the decision in the business strategy are likely to generate value for a service or product category. Therefore, businesses should be extremely clear on where they are to find new opportunities and chances to innovate and create the value as routine expectations of research and development. However, the innovation type is exposed to the different frameworks. It also suggests different types of innovations as exposed to the framework and suggest the multiple sources of innovation across the organization, business, industry, or even function. Ultimately, the value is created for the decisions made for business: a single decision provides a complete environment where innovation would take place. Analysis and Description of an Opportunity It is extremely crucial for an organization in whichever industry be it hospitality, telecommunication, or any other business industry to be able to identify a service or a product in which to innovate in, and assist the organization in its general growth. This is where an organization, where an existing organization or a new organization should identify a future opportunity from where to improve on their services. In this case, a telecommunication organization is involved, and this organization has been able to outline their business plan after identifying the service innovation, which would assist them in their growth and development. The organization has come up with various services to entrepreneurs and small, medium enterprises by making it easier for them to access all the necessary market information. It has also identified potential business partners who might be among them, enable them overcome legal obstacles to their businesses, and identify this innovation service’s support and the transitional technology transfer services. According to this organization, this is an extremely appropriate innovation because they use of the internet or the ability to provide internet and other forms of technology, which can help other businesses acquire information, is one of the key areas that have been forgotten. It is the duty of different organization, especially those that have already grown to try to assist the upcoming businesses access all the relevant information that would help them grow. In order for this to happen effectively, the organization has been able to identify some of the small, medium enterprises and other entrepreneurs with whom it will work with and provide adequate internet where they will be accessing relevant business opportunities and ideas. This is crucial for small organizations because it would cost them extremely high amounts of funds to acquire all the information required to boost their businesses. However, with an organization such as this corporation, which has assisted them, it will be easier and less costly for the small and medium enterprises. These businesses will pay lower fees than they would have to in case they obtained the information themselves directly. These costs could be paid monthly to the organization that provides both the entrepreneurs and the small business organizations with these services. The organization, therefore, identifies about six hundred small and medium enterprises and entrepreneurship, and employs about four thousand experienced employees who are vested with the work of distributing the services to these small and upcoming businesses. This helps in increasing the competitiveness of different businesses in both the large corporations sector and the small business sector. Some of the services offered by this organization to the small and medium businesses include, providing information about any ready or upcoming market opportunities for their products. Additionally, they are provided with information on where to acquire raw materials or resources for their businesses. Therefore, it is pertinent to note that the first and the most crucial step for this company or organization in preparing its business plan are identifying the area with a need and identify the service that should be offered by the organization to these needy small businesses. It is also significant to note that supporting small businesses is this organization’s cornerstone of its drive for growth and development. The organization has adapted many small businesses in order to support them: that ninety-nine percent of the organization is now made up of the small and medium enterprises. This accounts for about seventy-two percent of the company’s jobs, and the growth of these small and medium enterprises also boosted the economy. Development of Business Model and Strategies After successfully identifying the service innovation that the organization is venturing in as the first and most crucial step in its business plan, the organization then identifies the business models and strategies as its second business plan step. A business plan will assist the organization in providing the relevant data and articulating the logic and other evidences: these will identify how the business will create and deliver services to its clients who are the entrepreneurs and their entrepreneurship businesses together with small and medium enterprises. This is also the model that will be used in the outlining of costs, revenues, and profits that the business or organization will incur in the process of trying to deliver services to their clients. On the other hand, the business model is used in this case depends on how technology is used. This is because other people who are also interested in this type o9f business will create models that will depend on the emergent of the technology. Technological models assists an organization be able to access all its clients with extremely low costs. The first model to be adapted by this organization is the business model canvas. This is a model that is used on the bases of the similarities between the wide ranges of business models conceptualization. This model enables the organization to describe its other business model and aspects of its infrastructure finance, customers, and offerings. Others include the organization’s business reference model which highly concentrates on the architectural aspect of the key business of the organization, the services the organization offers its clients, and its revenue contribution towards the government. The other model is the component business model used to scrutinize the enterprises or the entrepreneurship that the organization is dealing with in its operations. Finally, is the industrialization of services business model, which assists the organization on the strategic management and service advertising that treats service stipulation as an industrial process. However, this is subject to industrial optimization procedures. Additionally, there is also Click and Brick business model whereby the organization can integrate an online and an offline presence of small enterprises. For instance, the small and medium enterprises and entrepreneurship exemplifies this and are able to order products or their raw materials and resources online, but then they are allowed to pick them up within the premises of the organization. There is the collective business model, which shows how the organization is exposed to many, and extremely different small and medium businesses, professionals and business people in the same or other related fields of endeavor which shares information, provides information and provides other benefits for their members. There is also the model of cutting out of all the business intermediaries such that the organization works directly with its clients and clients with the organization. In case of any consultations or payments, everything is done directly; this is a model that has been extremely crucial to the organization that provides the services because it helps them retain their customers for a long time of time because their costs are favorable. Otherwise, the use of other intermediaries only acts as barriers, and they make the cost of the services extremely high such that not many of the organization’s clients would afford. Direct sales model is where the organization focuses on direct sales of services to clients, and all this is done far away from fixed retail persons (Wilson, 2010). In order to ensure that all these business models are appropriately applied in the organization, some strategies are adapted in order to foresee the organization’s success. On the other hand, the strategies that the organization has adapted are such strategies as, identifying the market segment. This is where the organization identifies the service for each client and find out how the service is helping it generate its revenue. There is also a strategy of articulating value proposition. This is where the value created by the client after using the services for a certain period. The other crucial strategy is defining the value chain. This is a strategy used by the association in order to help in the sequence of information and activities, which are needed in order to produce, support, market, design, and deliver its services for an estimated period. Additionally, the strategy of the organization identifies or describes the value of the organization; it enables the company to link up with its suppliers, competitors, and customers. There is also a strategy on formulating a competitive strategy, which shows how the organization will be able to hold its competitive advantage over new entrants into the market, and the competitors. There is also a strategy on finding out the organization’s potential threat identifying the seriousness of a risk from a new applicant into the market and identifying the barriers and the reactions, which may be obtained from other existing companies. Critical Issues in the Business Plan When the organization identifies the service innovation and come up with the business models and strategies to assist in the running of the organization, the next step is to identify and analyze any critical issues and risks, which should also include any financial or operational issues. It is pertinent to note that running an organization is not a straightforward thing, and it is not easier when that the organization has to identify various innovative services or products and try to succeed or grow. Therefore, an organization has to come up with a well laid out plan that can assist them in coming up or joining a venture that can eventually be extremely successful. However, there are those risks and issues that always come up with the organization’s business plan. They include planning for the service demand. In this case, for instance, it would be extremely difficult for the organization to i8dentify which entrepreneurship or small and medium enterprises would be willing to work with the organization as the organization tries to assist them with crucial information that can boost their businesses. Whenever the organization approaches an entrepreneurship business or a small and medium enterprise and provides them with the proposal, these small businesses might decline and diminish the idea of doing business with a large organization (Shepherd, 2010). Additionally, this is also a risk in that when it comes to a service or a product need: it should be such that it can assist in the generation of revenue for an organization. In the end, it would help in the formation of a solid business model. The other issue or risk is the ability to identify and overcome market saturation. An organization should highly consider this factor before it engages in any activity with any other business or organization. For instance, in this case, the organization should try to identify those small businesses that are ready and willing to work with them and even in situations where there is market saturation of many products, the businesses are still willing to combine efforts with the organization and seek its services. Building of a solid business plan is another issue or risk that has highly affected this organization. This is because for an union, to come up with a solid business plan it means that it will have to do more than just dotting the I’s and the T’s. Additionally, in order for the business plan to have its maximum impact on the organization, it has to lay down the defined day-to-day operations and illustrate the revenue streams in action. The other high risk or issue that may arise is the courting of investors. Here, obtaining of startup capital requires that the entrepreneur bring his business plan to the potential investor. Therefore, this means that all the small and medium businesses should always have their own business plan that the organization should see before it provides its service to the business. This is in order to find out whether these small and medium enterprises and the entrepreneurship have a vision of expanding so that helping them may not end up futile (Shaw, 2009). In addition, this business plan will help the service innovative organization to find answers to questions it has and secure their final interest in the small business. However, it is recommended that when the small business does not have a business plan, it should have, or it should conduct a small presentation of its goals and objectives, which it should present to the service innovative organization in order to have a chance of working with the organization. In addition to these issues and risks, the organization may also face other risks such as financial or operational issues. Financial issues are such that then organization may also lack enough finances to finance the whole of the innovation process. This may happen especially in cases where the small and medium enterprises and other entrepreneurship businesses may come out more than the organization expected. This makes it difficult for the organization to raise enough finances to fund the innovation for the small businesses. This may be brought about by the need to employ qualified personnel to work with these small businesses. This requires more capital including more capital for funding this innovation so that every client would be served with the same standards (Chesbrough, 2006). Structure and Presentation of a Business Plan After an organization has successfully come up with a business plan, the business should then have an extremely structured business plan. This is because, many businesses or organizations want to be associated with those organizations that have a clear mission’s visions, values, objectives, and goals and have clearly stated them in the business plan. Therefore, it becomes remarkably easy for other organizations, which may be interested in working, with the organization to do so with immediate effect. Additionally, the small organizations should have well-structured business plan in order to qualify working or have information services by the senior organization. In situations where a business or an organization is trying to convince another business, company, corporation, person, or organization of its attractiveness. It is crucial for the company to have a well thought story that present the business in an extremely exciting and compelling way. No other company would be interested in joining an organization that is not providing adequate information. Other organizations should spend their time and resources to contribute in the actions of other organizations (Cook, 2009). The most crucial thing in communicating a business plan story is to provide adequate information; other organizations or businesses to spend time with the organization and learn more about your business. This presentation should have adequate and crucial content starting with a clear description of the opportunities the organization is going after, and also provide adequate details of why investors, prospective employees, or potential partners should join the organization (Covello, 2010). In order to make everything easy, there at least ten key areas, which require to be covered in order to communicate the fundamentals of your business. First is the opportunity hereby each and every appropriate business should be founded under a compelling need that is currently not being successfully filled. This need should then be described and ways in which the problems could be solved provided. This is what most businesses call the pain that buyers or purchasers have to feel, and it is the part that validates the demand for the organization’s solution. Secondly, there is the solution whereby the organization should explain its service or product, focusing on how it satisfies the purchaser’s requirement from his or her own personal perspective. Additionally, it should highlight the values and benefits that the solution provides the buyer (Debelak, 2006). The two most crucial parts in which an organization can break or make its audience interest is at these two first, crucial parts. There is also the market, and in this case, because the organization has already gained the audience’s interest, the organization can now start talking about the business in a more deep way. This should be done by explaining some of the most crucial aspects of the market segment that one will target including information, which depicts the characteristics and the market opportunity size. Competition shows that each business organization has its competitors. Therefore, it would be extremely crucial for organizations to keep in mind that the status quo that you are up against or an internal solution that has its own sponsors. Therefore, it is obvious many competitors address the purchaser’s needs in a number of ways. Additionally, the organization should also address how it will win as compared to its competitors. Product or Service Description In a brief way, an organization should try to describe its product or service in the business plan. Aspects to be discussed should include some of the product or services salient features and their benefits to the purchasers. It also highlights some of those ideas that differentiate the organization from its competitors and also provide valid examples. While concluding the description, summarize all the barriers at the entry level (Funk, 2009). Marketing plan It is also extremely salient for an organization to have in mind or its business plan some of marketing plans helpful during the marketing of products or services. Time should be taken to explain the value of a product or service to the buyer or any other person who may be interested in these products or services. This helps in giving confidence to the organization’s clients that this organization can be able to provide excellent and extremely valuable services. Marketing plan is all about generating high sales that are leading sales. Therefore, the organization should not be hung up in brand managements issues, corporation communication, and public relations. The plan should identify ways in which the organization will be able to identify its buyers and deliver appropriate marketing messages. Then, it is also extremely crucial for the company or organization to describe its revenue model in the marketing plan (Hile, 2007). Sales Plan The organization should also describe its sales process and model, for instance whether direct or indirect sales. It is also importance to have a description of the near term sales status and objectives, and this includes the readiness of the product. Additionally, if it is possible, explain what the pipeline of prospect customers is such that the organization is getting market traction. Management Team It is also extremely crucial for the organization to show its clients and any other potential investors or suppliers or employees that it is excellent in management team. The management should be trusted to the extent that it can take the organization forward. Financials The organization should also provide a key forecast of the key financial results: gross profit, cash flow, revenue, net profit, position of the cash flow, and significant capital needs. The organization should also explain its present financial status and show when the organization will be profitable and positive in terms of cash flows. Timelines for the key businesses should also be highlighted in the business plan. However, the most crucial part is demonstrating that the organization has a clear view of the dynamics of how profit and revenue should be made. Investor Summary Structure the company’s audience in such a way they will always hear positive things about the organization. Investors will also be highly motivated to invest in the organization while at the same time invite their friends to invest in the organization. Conclusion In conclusion to this business plan, it is pertinent to note that for any organization to succeed, it has to have a well structured business plan that clearly outline all the company’s objectives, goals and obligations. Additionally, all the steps of this business plan should be well followed up to the last point, which is the implementation of the business plan (Lathrop, 2003). References Altmann, J., & Veit, D. (2007). Grid economics and business models 4th international workshop, GECON 2007, Rennes, France, August 28, 2007 : proceedings. Berlin: Springer. Blyth, M. (2009). Business continuity management building an effective incident management plan. Hoboken, N.J.: J. Wiley & Sons. Bouwman, H., Vos, H. d., & Haaker, T. (2008). Mobile service innovation and business models. Berlin: Springer. Chesbrough, H. W. (2006). Open business models: how to thrive in the new innovation landscape. Boston, Mass.: Harvard Business School Press. Cook, K. J. (2009). AMA complete guide to strategic planning for small business. Lincolnwood, Ill., USA: NTC Business Books. Covello, J. A., & Hazelgren, B. J. (2010). The complete book of business plans: [simple steps to writing a powerful business plan. Naperville, Ill.: Sourcebooks Trade. Debelak, D. (2006). Business models made easy. Irvine, CA: Entrepreneur Press. Funk, T. (2009). Web 2.0 and beyond: understanding the new online business models, trends, and technologies. Westport, Conn.: Praeger. Hiles, A., & Barnes, P. (2007). The definitive handbook of business continuity management. Chichester: Wiley. Lathrop, T., & Pettigrew, J. (2003). This business of music marketing & promotion (Rev. & updated ed.). New York: Billboard Books. Shaw, M. (2009). E-business management integration of Web technologies with business models. Boston: Kluwer Academic. Shepherd, D. A., & Douglas, E. J. (2010). Attracting equity investors: positioning, preparing, and presenting the business plan. Thousand Oaks, Calif.: Sage Publications. Wilson, K., & Wauson, J. (2010). The AMA handbook of business writing: the ultimate guide to style, grammar, usage, punctuation, construction, and formatting. New York: AMACOM/American Management Association. Read More