Business Solutions for Todays Travelers - Example

Executive Summary The report examines the business plan of Grounded based on the different needs of the entrepreneurial business plan where the different sections has been checked based on the basis of strengths, weakness, clarity, appreciation and preparedness. The section provides complete details regarding the business plan of Grounded and shows the different areas and directions where the business plan is strong and weak. This helps to evaluate the business plan and identifies the different facets and aspects which need to be covered so that the business operational effectiveness is achieved. This will thereby help to understand whether the entrepreneurial business plan is realistic and the manner the overall efficiency and effectiveness will be multiplied. This will thereby help to improve the overall relevance of the entrepreneurial business plan and will help to understand the different areas which need to be covered. The analysis thereby brings a complete change and ensure transformation through which business plans will be developed Table of Contents Introduction 3 Executive Summary 3 Business Description 3 Marketing 5 Operations 6 Management 7 Critical Risk 8 Financial Forecast 9 Harvest or long term strategy 9 Implementation and milestone schedule for 3 – 5 years 10 Appendices & Bibliography References 11 References 12 Introduction This report looks to evaluate the entrepreneurial business plan titled “Business Solutions for Today’s Travelers” based on the different needs of the entrepreneurial business plan. The report will evaluate the different sections on the basis of strengths, weakness, clarity, appreciation and preparedness. This will thereby help to understand whether the entrepreneurial business plan is realistic and the manner the overall efficiency and effectiveness will be multiplied. This will thereby help to improve the overall relevance of the entrepreneurial business plan and will help to understand the different areas which need to be covered. The analysis will thereby bring a complete change and ensure transformation through which business plans will be developed. Executive Summary The executive summary provides a complete description regarding the business, the manner in which the finances will be raised where $80,000 will be raised from the four investors and the remaining will be through a bank loan of $50,000. The company which will be named Grounded also expects to have a contribution margin of $31,000. The executive summary also provides information regarding the business, the financial projections and the marketing strategy. The information provided is very concise but looks to provide information for the different users. The problem with the executive summary is that it is divided into smaller sections which limits the amount of content and makes it difficult for the readers as it is not able to provide a complete picture of the business plan. Business Description The business description aspect provides technical details regarding the innovation which the business is looking forward to. The section provides information pertaining to space, internet connection, equipments which will be required, manner of operation, and the manner customer services will be provided. Complete information about the industry has been provided which helps to understand the current situation of the market and provides information where Grounded will look to enter the market. The business also looks at creating a niche market for its services and the mechanism through which the business will use the business opportunity that internet will provide. This has been supported by empirical results which help to improve the overall relevance of the business plan. The overall effectiveness of the research regarding the industry could have been improved if generalized information which is provided wasn’t provided (Bridge, O'Neill and Cromie, 1998). The detail regarding the manner in the working of Indiana International Airport is not clear and vague. The value would have been improved if more empirical figures could have been provided for Indiana Airport. The figures provided are for a global situation but the details in Indiana Airport could be different and is as aspect which is required. The use of internet at airports doesn’t necessarily provides an opportunity to create a niche market because the people using it might have been having their own gadgets and the business plan might not provide the expected result. On the other hand the business looks to ensure that people are able to utilize their extra time to earn their money. The manner in which services will be provided through the use of quality personnel, trained professional and assistants have been discussed and will help to increase the chances of satisfying the customers. The project clearly highlights the manner in which it is unique as it looks to ensure that the business is able to capture the opportunity that the market provides. The statement of sustainability has been clearly provided as the manner the business will use the different opportunity to expand their business has been spoken about as the business looks to expand their business globally once it is able to carry out the business effectively in Indianapolis International Airport which will also increase the risk due to the presence of global players. Marketing The marketing section provides information regarding the target market and clearly shows that Grounded will look to attract the business travelers who depend on the use of internet heavily. Grounded through the process wants to ensure that the leisure time is used by the business traveler. This has been supported by the market size and income that people within the age of 25 to 54 years earn as Grounded looks to tap those sections of the society. Further information regarding the income, internet use, and other details have been provided with regard to the business plan. The marketing aspect also looks to provide complete information regarding the target customer and the section of the market size which will be tapped. The surveys which were not used which would help to understand the manner in which the different legal requirements will be met while working in the airport. This thereby makes it difficult to gauge the actual market potential. The details were gathered from the airport which provided the different type of passengers and their characteristics but the use of random sampling method might not provide the true and complete information. This will thereby have an impact on the overall profitability and requires analyzing the market in details so that better perspective can be developed for the future. Grounded looks to have a marketing strategy where cost plus mark up strategy will be used and provides different instruments like printing, photocopying and other activities which will be carried out. The rate for different services has been provided along with the cost involved. The business also aims to provide special offers and discounts to customers based on the different services undertaken by them. Grounded also provides the different advertising and promotion strategy that the business will use. The cost of advertising has been kept low as the business will be carried out in the airport itself. Despite the different services which the business looks to provide there is lack of information as customers will not be able to learn about Grounded due to paucity of time which customers experience in airports. Grounded thereby doesn’t look towards using advertising as a medium of attracting customers but instead will look at attracting customers based on services. In addition to it the details regarding the long term promotional strategy hasn’t been provided along with the fact that Grounded needs to look at using aggressive marketing and advertising strategy given the competition that the market has. Operations Grounded has provided details regarding the manner in which it will operate and use the software and hardware details have been provided as the business will use Gateway GP7-550 as their computer. The different machines which the business will require will be taken on lease. Complete details regarding the specification of each product have been provided along with software specification has been provided. The business further looks towards continuous quality improvement through better service monitors so that continuous improvement can be made and better services can be provided to the customers (Storey, 1995). In addition to it the code for employees their appearance and other details have been completely highlighted. The business provides details regarding the working hour as employees will work from 5:30 AM to 9 PM from Monday to Friday and 5:30 AM to 8:30 Am on weekends. The organization has further ensured towards ensuring that legal fees is paid and the business operates as a limited liability organization. The business looks to use its location so that proximity with customers will improve and will thereby help to maximize the gains for the business. The business plan however fails to provide information regarding the number of employees, insurance, security, suppliers, licensing authority, tax, legal aspect and so on. The different aspect related to intellectual property has not been clearly explained in the business plan. The different aspect in relation to the business plan has not been clearly highlighted and lacks complete details regarding the manner in which the business will operate. Management The business plan provides details regarding the manner in which employees will be hired as details regarding Mr. O’Neil who is the manager has been clearly highlighted. Complete details regarding the manager, his abilities, qualifications, experience, knowledge has been provided. This is supported by the different assistants who will help the manager to carry out the different functions and are nine in total. The details regarding the compensation which will be paid to the assistant along with the manager has been identified and will thereby ensure that the business is able to identify the different expenses which the business will have to pay. Despite the description regarding the different roles and responsibilities which the manager Mr. O’ Neil will undertake hasn’t been clearly identified. This requires proper identification of the roles and responsibilities so that better decisions can be taken. The business plan also states the legal structure and the person who will provide legal advice to the business (Chell, 2001). Complete details regarding the manner in which management will work has been identified and will ensure better fixation of responsibilities. An aspect which is lacking is the qualification, experience, education and other aspects which will be needed in an assistant hasn’t been identified and explained. This could have an impact on choosing an incorrect employee and will limit the flexibility that the business is able to demonstrate. The business plan lacks information regarding the manner human resource policy. The lack of proper management to oversee the business will increase the risk as a sole proprietor will have to carry out different roles and will thereby increase the overall load for the business (Timmons, 1999). The ethical aspect hasn’t been clearly identified and since the decisions will be taken solely by the proprietor it will the process to be unclear. The decision process require complete and deliberate elaboration so that better decisions are taken and the business is able to identify the different directions through which business effectiveness will take place. Critical Risk The business plan of Grounded provides the different critical risk which the business will have to undertake. This provides details and different risk like hiring of employees, experience, legal aspect, media solutions, changing technology and so on. Details regarding the different risk have been appropriately identified but the business plan is silent and doesn’t provide details regarding the manner in which the different risk will be dealt (Bhidé, 2000). This requires proper development of the strategies for the risk which has been identified so that plan can be chalked out through which business is able to perform better. The business plan further needs to be descriptive regarding the different financial risk so that the business is able to plan for their risk. This will also help the investors to understand the different risk and will ensure that a framework through which better decisions can be taken will be ensured. This requires proper development of the strategies for the risk which has been identified so that plan can be chalked out through which business is able to perform better Financial Forecast The financial viability of the business has been discussed in length and provides detailed information. To find out the financial viability of the business plan collection, analysis and presentation of data has been provided in such a manner that complete information is ensured. It has been clearly identified that the business will need $171000 as capital where $80000 will be contributed by the four investors, $31,000 will be through self financing which will be provided by the proprietor and the remaining $50,000 will be financed through bank loan. Based on the marker condition and business requirements the estimated future sales and expenses have been identified for 4 years from 2000 to 2003. The financial analysis covers the different financial statement requirements like income statement, balance sheet and cash flow statement. This thereby ensures that the business is able to develop and find out the financial needs of the business. The financial analysis despite providing the different information lacks details regarding the comprehensive analysis of the financial data (Burns, 2001). The financial analysis also doesn’t provide information pertaining to the different financial ratios, methods to control cost and the breakeven point which will help to ensure that the business doesn’t incur a loss. This will thereby increase the challenges for the investors and requires development and identification of strategies which will help to improve the financial viability and will provide dimensions through which better decisions will be taken and the overall business plan efficiency will improve. Harvest or long term strategy The business plan looks to provide information regarding the long term strategy as the business expects to perform and deliver better results in the future. The growth for the business has been pegged on the growth that the tourism industry witnesses. Increase in the tourism would mean more and more travelers which will provide an opportunity through which Grounded will be able to improve their business in the future. This can be supported and backed by the fact that Indianapolis International Airport is the largest airport in USA and the growth in the tourism industry would mean an increase in travelers in the airport which would thereby contribute positively towards the growth of the business. The aspect which hasn’t been clearly identified is the manner in which growth will take place and the expected growth hasn’t been developed on proper lines. Further, the future growth strategy is unclear regarding the manner in which the global expansion will have the same effect on their long term growth potential and the impact it will have on the long term potential of the business (Allen, 2006). The fact that the area is untapped and unique provides an opportunity through which the business will grow but the manner in which it will create positive impact on the business of Grounded is unclear. Since, the business looks to tap business travelers so the growth in tourism industry would not mean an increase in the business travelers which will thereby have an impact on the future growth potential and requires further discussion and identification of different areas through which business future potential is determined. Implementation and milestone schedule for 3 – 5 years The business plan of Grounded provides a complete details regarding the manner in which the business will be implemented and the design which will be followed to carry out the business. The business will look to start its operation from September 2000. The business will look to provide the required training, acquire the required resources like equipments, installation and other operational aspect by October 2000. This will thereby ensure that the business starts its operations by November 2000. The overall financial analysis further highlights that the business will be able to achieve its breakeven by January 2002. From then on the business plan provides details regarding the manner in which the future income will be ensured and the manner in which the business will look to carry out its different functions (Stevenson, Roberts and Grousbeck, 1994) The details regarding the future plan is not clear because the changes in the business environment, competitors, inflation and other aspect have not been considered. The details regarding the manner in which IPO will be issued has not been provided as it will help to ensure future expansion and will provide an opportunity to grow. The long term sustainability at this juncture thereby is not clear and sufficient as the four investors will not be enough to carry out the functions effectively. The business plan also doesn’t provide details regarding the retained earnings and the manner they will use the retained earnings. This is an aspect which has been ignored and needs to be evaluated so that adjustments can be made and the future dimensions can be developed. Working and providing information with this regard will help to provide complete and better details regarding the long term prospect of the organization. Appendices & Bibliography References The business plan provides a lot of graphs and pictures through which complete details and information regarding the financial and other plan has been provided. The business plan however lacks a list of references and appendices which are required in a business plan so that the business plan gets further support. The business plan provides a lot of empirical data regarding the long term prospect, market share, competitors, and so on but hasn’t been properly referenced. It is important that the information is properly referenced so that the user can look at the different potential sources and through it are able to find out the manner in which business decisions can be taken. References Allen, K.R. (2006), Launching New Ventures: An Entrepreneurial Approach, Fourth Edition, Boston: Houghton Mifflin, Bhidé, A. V. (2000), The Origin and Evolution of New Businesses, Oxford: Oxford University Press Bridge, S., O'Neill and Cromie S. (1998) Understanding Enterprise, Entrepreneurship and Small Business, London: Macmillan Burns, P. (2001) Entrepreneurship and Small Business, Basingstoke: Palgrave Macmillan Chell, E. (2001), Entrepreneurship: Globalization, Innovation and Development, London: Thomson Learning Stevenson, H.H., Roberts, M.J. and Grousbeck, H.I. (1994), New Business Ventures and the Entrepreneur, Fourth edition, Burr Ridge Ill.: Irwin Storey, D. (1995) Understanding the Small Firm Sector, Thomson Timmons, J.A. (1999), New Venture Creation, Fifth edition, Chicago: Irwin Read More