Business Venture Planning Experience - Essay Example

How has this business venture planning experience influenced your understanding of one of the key themes in entrepreneurship research Entrepreneurial research is key to development and has always led to progress in the World economy. Major world economies like USA, Canada, and UK among others have in the past risen to greater levels through such ventures. This has enhanced entry of new products through inventions, better ways of managing risks have been sort for and this has also resulted into growth and sustainability. Every single business venture in existence today actually came up as a result of exploits and risk taking (Ucbasaran, Westhead and Wright M, 2001). A Business plan is mandatory before entrepreneurial venture can be undertaken. This is a very important document which provides a roadmap into the much anticipated destiny of wealth creation. A person may enter into business because of many reasons. These are summarised under themes of Entrepreneurial venture. Some of the themes include: Creation of a new (better) product, bringing in a product with more economic value than others, a vision for growth, desire to foster continuity to a family business and willingness to take uncertainty. ICEVED (2006) explained that research into entrepreneurial behaviour should consider contextual issues and identify the processes that give explicit explanation rather than just describing this phenomenon, and thus leaving the venture vulnerable to ambiguity Economics of value creation is the theme being addressed, and its relevance to the business plan. This heavy duty focus was picked because it is the chief reason for any business venture. This is a basic framework for evaluating and optimizing profits in a business operation. As a matter of emphasis, any business person desires to grow economically. The growth of one individual will automatically overlap into the country's economy. This theme enables a person to make a choice between the infinite business options, and what customers to target and further still how to manage the organisation. A business person is further faced with a forecast of whether there shall be an expansion in his or her venture or not and this is challenging. The road to prosperity is not always easy. Tough decisions have to be made. Such is the case when cornered with many business options to choose from. To support decision making process, a semi-quantitative dimension is added. This consists of general seven step evaluation process as below (Zero million.com, 2008). 1. The starting point is a list of strategic options, as they may have been identified during conventional strategic planning 2. The next step are to identify who will influence the value creation process 3. Find out what value drivers each of them use to influence it. 4. For customers representative of different segments, we can evaluate the value to the customer, the risk to the customer and the relative market power between buyer and seller. 5. The following step is to analyze the cost structure and understand how it scales with market size. 6. By combining the results from the two previous steps it is possible to find the optimal profit as a function of volume, value drivers and the other parameters. 7. In the final step the strategic implications of the various options are integrated with other knowledge to form the basis for selecting a winning business strategy. From a policy perspective, economics of value development; which the main theme of discussion, can be defined as efforts that seek to improve the economic well-being and quality of life for a community by creating Jobs, goods and services which override the former ones. Economic development is an area which pushes a country into progress, and in touches all aspects of an economy. This includes Financial, population, agricultural, technological and acquisition sector (Lupke, 2001). Of major interest is the expansion of the business plan named: White Lion Enterprise ltd. Analysing this business plan will bring to light various aspects, all of which preach the same message of economic value increase. The introduction of electronic cash payment cards greatly adds development in the country's technological levels. The business plan outlines that London is the pioneering town of installation. It's confirmed that further expansions will then follow after this initial setup. Technological expansion is on avenue of analysing the economic growth level of a country. Technological security gives a country an added advantage than others. Considering individual basis of analysis, the individual who implements this business plan will end up in finance stability. Any business venture with such a potential must automatically succeed. Success however depends on several other factors which a business person must be familiar with. Such an opportunity may only fail to bring economic development on condition that proper evaluation was never done before start up (Art Man, 2008). A second item of analysis is the growth of the business itself. A good business plan should be one that will enable realization of great profits at time advances in the venture. The value of the business above is bound to increase. Harper (2003) examines that ventures are always exploited in pursuit for greater things. The White Lion enterprise has great capacity to expand. This is a very healthy step towards economic development. White Lion is a business to business opportunity their target market will be the high street UK banks like Barclays, Natwest, Lloyds and HSBC. The belief is that if successfully managed to get one on board, others will follow too. These pay by touch debit cards will be a great value for bank's customers as it takes away the painful part of payment, and does so almost everywhere. Starting from London, White Lion will be looking to expand the business after first three years to other cities in the UK and then to other countries. As the business expands, more profit will be the result and this automatically leads to economic development. Increase in the number of branches will call for greater work force. Each branch of the business will require a couple of management, accounting, technical and other officials to enhance proper functioning of the branch. Many jobs will be created through this means and the general economic base of many families will be re- enforced. It's so amazing how a single business venture can balloon up into many great opportunities and jobs. The stimulation of entrepreneurship through the formation and development of new commercial businesses and social enterprises can play a key role in employing underused resources in the distressed areas of our cities and metropolitan areas. By all means this results into economic development. Time is a key commodity and resource that economists are always keen at. The auto cash system is a commodity which thrives well in proper time. This is greatly true since the clients using it will be rarely caught up in queues. The many electronic card terminals are distributed to many places: Banks, Petrol stations, restaurants, Airports etc. Expansion of the enterprise to countries which neighbour London will result to income of foreign exchange. Foreign currency is a great sign of economic expansion of a country. The original country can also expand its economic base in the rest of the countries through investing in these said countries. Any economic growth must be accompanied by good living standards. This results to better health care. For these reasons the expenditure on other things like medicine is reduced, and can so be redirected to other areas of economic development. The main driving force towards investment therefore is tied lock- to -key towards Economic development. Evaluate how likely your venture is to succeed as it currently stands, and identify the key actions required now in order to make our venture happen As much as entrepreneurship is about opportunity recognition, a lot of emphasis is also put on valuation of the options. This is because entrepreneurs make undertake only calculated risks. This process gives a guarantee of success to the business man Business ideas should be analysed. This is like the first exam that it must pass through. It is good to do this and be able to pass them through a test to determine if they truly are valid opportunities. All of your ideas must have a demonstrated need, ready market, and ability to provide a solid return on investment (Venture Quest Limited, 2006) Some of the questions which help in this analysis include: Is the idea feasible in the marketplace Is there demand Can it be done Some of the questions look crazy but they help sharpen the iron before war. More are: Are you able to pull together the persons and resources to pull it off before the window of opportunity closes These questions must be considered and answered. Opportunity-focused entrepreneurs start with the customer and the market in mind. They analyze the market to determine industry issues, market structure, market size, growth rate, market capacity, attainable market share, cost structure, the core economics, exit strategy issues, time to breakeven, opportunity costs, and barriers to entry. The White Lion enterprise as a business opportunity must be scrutinised before it can be implemented. The item to be sold is an electronic card. This is a good product for the market because of its many advantages. Just to mansion a few, people always were products which will help them save on time. Such a card comes in handy. It will therefore make a lot of sales. The target Market is very specific. The electronic card targets automobile drivers, tourists, banks, and supermarkets. This is a very rich market and the product has a very great chance of performing well. The high rate of thugs furthermore makes to many to resort to this since nobody desires to carry liquid cash. The starting capital is available and sufficient. The original owners have promised to donate some money as capital. The starting employees are also available. Their services are enough for the beginning although many more may be required as the firm expands. The business plan outlines accurately the various activities to be undertaken. This is a very good business plan. When the vision is followed to the later, greater results are bound to come. Problems of management always raise their ugly head in businesses. This has been the main cause of failure in such ventures. However, proper follow-up and implementation of the plan results to prosperity. REFENCES. Art Man (2008). Business Opportunity. Last retrieved from the World Wide Web on 24th April, 2008 from http://artmam.net/Business_Oportunity-2.htm Harper A. (2003). Foundations of Entrepreneurship and economic development. New York: Routledge. ICEVED (2006). Evaluating Business Opportunities. Last retrieved from the World Wide Web on 24th April, 2008 from http://www.iceved.com/ICEVED3/Information.nsf/vbasicstep/B19D738B905D8CC841256CF600436684/$file/EVALUATING%20BUSINESS%20OPPORTUNITIES.pdf Lupke, D. (2001). Organisation for Economic Corporation. Rome: Italy journal. Ralph. D. (1997). Entrepreneurship Centred economic development. New York: TVA Rural studies. Ucbasaran D., Westhead P. and Wright M. (2001). Entrepreneurship: Theory and Practice. Venture Quest Limited (2006). Opportunity evaluation. Last retrieved from the World Wide Web on 24th April, 2008 from http://www.venturequestltd.com/media/downloads/Opportunity_Evaluation.pdf Zero million.com (2008). Business Opportunity and Idea generation. Last retrieved from the World Wide Web on 24th April, 2008 from http://www.zeromillion.com/entrepreneurship/business-idea-evaluation.html Read More