...A business plan is defined as “a detailed written statement that describes the nature of the business, the target market, the advantages the business will have over competition, and the resources and qualifications of the owner(s).” (McHugh J., McHugh S., Nickels W., 2010) A business plan is important to potential business owners for quite a few reasons. First off, it ensures that a new business owner is very specific in the details of the business they intend on starting. Anyone can come up with an idea, but without the planning and solid foundation the business will crumble. Writing a business plan makes the new owner think about all those details that often get skipped over, the ones that are not necessarily fun, but absolutely necessary. It keeps your business on a clear course. Without spelling out these things, you could hit rocky times when questions come up about how the financing is handled, how the management structure works, etc. You should forecast marketing strategies, things like what location would be best for your product, who your target customers are, how to appeal to them, and what your company’s goals are. Additionally, when you are looking for startup funds, investors and lenders are going to require a business plan. If you plan on selling your business at any point, or should you need to, the business plan is very important for helping buyers understanding what your companies goals are, and the strategy with which you plan to attain them. It is clear, when...
Words: 269 - Pages: 2
...What does the term entrepreneur mean to you? What characteristics do you think make a person a successful entrepreneur? Why is strategic planning important to a small company? What business strategies are available to small businesses? week 3 Preparing a Financial Plan Why is preparing a financial plan so important? How do financial ratios fit into the preparation of a financial plan? Cash Management Why is cash management so important to a small business? How can a small company avoid a cash crunch?weekn 5Describe a source of equity financing, and discuss when this type of financing would be appropriate for a small business. Dq2 Describe a source of debt financing, and discuss when this type of financing would be appropriate for a small business. week 7 Risk and Legal Issues (graded) In your opinion, what is the greatest risk in owning and operating a small business? Explain. Insurance (graded) Insurance can be a costly expense, especially for a company that isn’t profitable. Explain the different types of insurance that a small business can obtain, and identify which ones you think are crucial, which are not, and why.week 6week 6 Supply Chain Management (graded) A purchasing plan can mean the difference between success and failure of a small business. Why is it important to develop a purchasing plan? What should be...
Words: 475 - Pages: 2
...The Important of Creating a Business Plan By Kannitha, BBU student, Aug 2013 Table of Contents Table of Contents 2 Executive Summary 3 1. Introduction 4 2. Findings 4 2.1 Business plan definition 4 2.2 The important of business plan 5 2.3 Business plan writing technique 7 2.4 Major aspects of the business plan 7 2.4.1 Introduction Page 8 2.2.2 Executive Summary 8 2.4.3 Business Description 9 2.4.4 Products and Services 10 2.4.5 Marketing Plan 11 2.4.6 Competition 13 2.4.7 The Management Plan 13 2.4.8 The Financial Management Plan 14 2.4.9 Risk Assessment 15 2.5 Readers of the business plan 15 2.6 Failure of business plan: 15 3. Lesson learnt 16 4. Conclusion 17 5. Recommendations 18 6. References 18 Executive Summary Business plan is considered as an important and it actually serves as a compass for the direction of business for the future. Having a plan will also help business people to achieve the things they want to achieve. A business plan is not just a document, but it is a holistic analysis of a company, the environment it operates in, and a road map to achieving success. Business planning is an essential element of running any successful business. Business plan formulation would need to consider on many aspects and ensure that business would be success. Those include introduction, executive summary, description of business, management and organization...
Words: 5983 - Pages: 24
...Developing A Business Plan Overview The importance of planning should never be overlooked. For a business to be successful and profitable, the owners and the managing directors must have a clear understanding of the firm's customers, strengths and competition. They must also have the foresight to plan for future expansion. Whether yours is a new business or an existing business in the process of expanding, money is often an issue. Taking time to create an extensive business plan provides you with insight into your business. This document can serve as a powerful financing proposal. This article will take you through the step-by-step process of developing a business plan. A business plan is very specific to each particular business. However, while each business needs a unique plan, the basic elements are the same in all business plans. To complete an effective business plan you must dedicate time to complete the plan. It requires you to be objective, critical and focused. The finished project is an operating tool to help manage your business and enable you to achieve greater success. The plan also serves as an effective communication tool for financing proposals. At the completion of this exercise, you should be able to: Describe the importance of a business plan Identify the elements of an effective business plan Write a business plan Outline: Why Write a Business Plan? Who Should Write the Business Plan? Business Plan Components Executive Summary The...
Words: 2959 - Pages: 12
...Do not copy the answers wordforword; they must be in your own words. However, when it will strengthen your answer, you may quote or paraphrase relevant facts, ideas, and theories from your course reading materials; be sure to cite these references in an appropriate manner by using footnotes or endnotes. Part 1: The time to write a business plan is midway through the the stage of the entrepreneurial process titled "Developing Successful Business Ideas". It is a mistake to write a business plan too early. The business plan must be substantive enough and have sufficient details about the merits of the new venture to convince the reader that the new business is exciting and should receive support. Much of the detail is accumulated in the feasibility analysis stage of investigating the merits of a potential new venture. With this mind, please answer the following questions: 1. What are the two primary reasons for writing a business plan? A business plan is utilized by a firm internally, and also externally by investors, bankers, etc. Formulating a proper business plan will allow the firm’s founder(s) to produce an extensive feasibility analysis, and help define how the business plans to startup; along with its subsequent operation. Moreover, an eventual operation...
Words: 2892 - Pages: 12
...formal business plan. Writing a complete business plan forces the entrepreneurs to crystallize key business issues in their minds. There are many ways to structure a business plan, with various references, structures, and templates available. The business plan process focuses on the venture’s key success factors by posing questions that must be addressed for an idea to become a true opportunity. See chapters 2 and 19 for a discussion of the business story and concept. Additional references to other chapters are shown in this table. Executive Summary The executive summary is the most important part of the business plan. Many investors make their decision to proceed with further discussions (e.g., due diligence) based on this single section. The executive summary should encapsulate the key positioning and reasoning found in the rest of the business plan. Both the vision and mission statements should assist in succinctly communicating a compelling opportunity. • • • • • Why is this a big problem and why are customers willing to pay for solutions? How does the venture plan on solving the customer problem or need? Why is this venture uniquely positioned to do this? How attractive are the economics? Why is this an exciting growth opportunity? Who is the team, and what key partnerships are in place? I. Opportunity and Market Analysis Investors like funding big problems representing large opportunities. Start strong by demonstrating a solid understanding of the customer and why this...
Words: 1435 - Pages: 6
...LaB #6 – aSSESSmENt WORKSHEEt Perform Business Continuity Implementation Planning Course Name and Number: Student Name: Instructor Name: lab due date: 6 Perform Business Continuity Implementation Planning Overview In this lab, you were asked to begin the business continuity planning process for an e-commerce company, Online Goodies. You reviewed the key business functions and a prioritized list of impacted IT systems, applications, and data provided by your supervisor. You also compared the components of the major documentation required by the business continuity planning process: risk analysis, business impact analysis, business continuity plan, disaster recovery plan, and the business continuity implementation plan. Lab Assessment Questions & Answers 1. What is the difference between a risk analysis (RA) and a business impact analysis (BIA)? Risk analysis is often identifying the potential threats and the associated vulnerabilities to the organizations .Risk analysis doesn’t view the organization from the mission critical Business Process point of view. BIA the organization from the impact that is going to occur for an organization if the critical business processes are interrupted or tampered 2. What is the difference between a disaster recovery plan (DRP) and a business continuity plan (BCP)? Disaster recovery plan is have a full access to recover any lost data or essentials after a disaster while the business continuity is having what ever bare bones...
Words: 681 - Pages: 3
...How to Write an Executive Summary: Why Write It? Investors, lenders, executives, managers and CEOs are busy. Always. That means that the executive summary is an essential gateway for your business plan to get read. Think about it this way: if you had an endless list of things to do, and someone handed you an 80-page document and said "read this! you'd probably first want to know why. "The most important reason to include an executive summary is that in many cases, it is the only thing the reader will read," says Pablo Bonjour, founder & CEO of Katy, Texas-based SMG Business Plans, a company that offers entrepreneurs assistance in writing business plans. According to Bonjour, investors will read the executive summary to decide if they will even bother reading the rest of the business plan. It's rare for an investor or lender to read an entire business plan, at least in the initial stages of analysis and consideration for funding, so having a strong executive summary is key. When you're writing your business plan, your goal is to get your foot in the door and face-time with the investor. "Assuming that your business is a good fit for the investor, a strong executive summary will get you invited in for a meeting," Hirai says. "A poor executive summary will leave you standing in the cold." Dig Deeper: How to Write a Great Business Plan How to Write an Executive Summary: The First Paragraph Just like a movie might begin with a fight scene or a magazine article opens...
Words: 1409 - Pages: 6
...Business Plan What is a business plan and why is it an essential first step for a start-up firm? I found what I think are two very good definitions of a business plan and its purpose. These definitions can be found on the web and in several books. An excellent example of one of these books is “The Complete Idiots Guide to Starting Your Own Business.” The United States Small Business Association is an excellent beginning source website. This website states “A business plan precisely defines your business, identifies your goals, and serves as your firms resume” (“Business Plan Basics”, 2003 ¶ 1). The Complete Idiots Guide to Starting Your Own Business, Fourth Edition states, “A business plan is just a simulation. It is a way of predicting the future success of a business idea” (Paulson, 2003). Why is it an important first step for a start up-up firm? A business plan serves several important functions to someone who is thinking of starting a business. A business plan will make you look at several things you might not have thought of if you try to start a business without one (Paulson, 2003 p. 35). They are as follows: 1. Why do I want to go into business? (Paulson, 2003 p. 25) a. Is it because I want to be my own boss? b. Is it for my own financial independence because I do not want to work for others? c. Is it because I want to follow my own direction and utilize my own ideas. d. Is it because I want to use my own skills and knowledge and not just follow the rules and operating...
Words: 359 - Pages: 2
...Business Strategy Review Questions Chapter 1 The Nature of Strategic Management 1. Distinguish between long-range planning and strategic planning. Long-range planning is used to optimize for tomorrow the trends of today, whereas strategic planning is used to exploit and create new and different opportunities for tomorrow. 2. Compare a company’s strategic plan with a football team’s game plan. A strategic plan is, in essence, a company’s game plan. Just as a football team needs a good game plan to have a chance for success, a company must have a good strategic plan to compete successfully. 3. Describe the three activities that comprise strategy evaluation. The three fundamental strategy-evaluation activities are (1) reviewing external and internal factors that are the bases for current strategies, (2) measuring performance, and (3) taking corrective actions 4. How important do you feel “being adept at adapting” is for business firms? Explain. The strategic-management process is based on the belief that organizations should continually monitor internal and external events and trends so that timely changes can be made as needed. 5. Compare the opossum and turtle to the woolly mammoth and saber tooth tiger in terms of being adept at adapting. Students’ answers will vary, but students are likely to make the argument that those species that are adept at adapting are able to survive, while those that are unable to adapt are more likely to perish...
Words: 2978 - Pages: 12
...Strategies of a Marketing Plan Tanza Edwards February 15, 2011 MKTG305-1101A-02 In order to have a successful business every company needs to have a marketing plan. A marketing plan is defined as a layout of particular activities that a business intends to carry out to arouse potential customers and persuading them to buy their product/services (Business Planning, 2011). A marketing plan will contain factors, such as, which customers to target and how to reach them, and then how to gain their business and continue keeping them happy, as well as ways to improve the company’s product/services and staying ahead of their competition (Practical advice for business, 2011). In order to have a successful business, a marketing plan plays a very important part. Many businesses understand that you must first have a good relationship with your customers. Each and every business realized that they must be able to work out a way to reach and win new customerss. In reaching their customers, many businesses well research and layout a clear and precise objective of explaining ways at how they would go about doing so. Many businesses invest in a lot of time and money in advertising their products/services in various ways. For example, some may promote their business by having their own personal website, creating flyers and business cards, designing a television or radio ad and etc. They also willing to cope with the changes in the economy and take advantage of opportunities that...
Words: 1073 - Pages: 5
...Chapter 01 What Is Strategy and Why Is It Important? Multiple Choice Questions 1. | Managers in all types of businesses must address the central strategic question A. | Where are we now? | B. | Where do we want to go from here? | C. | How are we going to get there? | D. | When will we know we are there? | E. | All of these | | 2. | A company's strategy consists of A. | actions to develop a more appealing business model than rivals. | B. | plans involving alignment of organizational activities and strategic objectives. | C. | offensive and defensive moves to generate revenues and increase profit margins. | D. | competitive moves and approaches that managers have developed to grow the business, attract and please customers, conduct operations, and achieve targeted objectives. | E. | its strategic vision, its strategic objectives, and its strategic intent. | | 3. | The competitive moves and business approaches a company's management is using to grow the business, compete successfully, attract and please customers, conduct operations, respond to changing economic and market conditions, and achieve organizational objectives is referred to as its A. | strategy. | B. | mission statement. | C. | strategic intent. | D. | business model. | E. | strategic vision. | | 4. | A company's strategy is most accurately defined as A. | management's approaches to building revenues, controlling costs, and...
Words: 7127 - Pages: 29
...Paper Introduction In this Strategy and Planning Paper we will explain the three types of goals that are very important to the strategy of any organization. Also will explain why the many different types of planning and organizing are very important to any business and or organization. Also we will thoroughly examine all of the elements and or factors that are involved in creating an effective strategy for an organization. Hopefully all questions will be answered. Explain why the three types of goals are important to the strategy of an organization. Strategic goals are set by and for top management and on objective for the organization as a whole. (Pg., 143) Strategic goals and planning would be important to any business or organization because it gives the organization or business a direction and what goals are reachable in the set amount of time and which ones are not reachable in that time period and why they are not. But as any business or organization they to give thought about the outlines and are they realistic? There are many steps that need to be set out and followed like they are supposed to be followed. If not followed correctly something major could go wrong. Also when you are working on a strategic goal for your business or organization make sure are financially ready for this and make sure all of your employees are well aware ahead of time of what will be going on. Tactical goals are next...
Words: 978 - Pages: 4
...Assessment Worksheet Perform Business Continuity Plan Implementation Planning Course Name & Number: ______________________________________________________________ Student Name: _______________________________________________________________________ Instructor Name: _____________________________________________________________________ Lab Due Date: _______________________________________________________________________ Overview The instructor will lead the class in discussions pertaining to a business continuity plan. Key elements of a business continuity plan starting with a risk analysis, business impact analysis, and alignment of critical business functions and processes will be discussed. Students will craft a business continuity implementation plan outline as part of this lab’s deliverables. Lab #6 Assessment Questions & Answers 1. What is the different between a risk analysis (RA) and a business impact analysis (BIA)? 2. What is the difference between a Disaster Recovery Plan and a Business Continuity Plan? Copyright © 2013 Jones & Bartlett Learning, LLC, an Ascend Learning Company www.jblearning.com -58All Rights Reserved. Current Version Date: 02/11/2012 Student Lab Manual 3. Typically, a business continuity plan is also a compilation or collection of other plans. What other plans might a BCP and all supporting documents include? 4. What is the main difference between a Disaster Recovery Plan (DRP) and a Business Continuity Plan (BCP)? 5. What is the...
Words: 380 - Pages: 2
...Unit Two Assignment – Why is Strategy Important to Business? John Rapier Kaplan University School of Business and Management MT460-01 Management Policy and Strategy Dr. Carrie A. O’Hare July 11, 2012 Unit Two Assignment – Why is Strategy Important to Business? While it could be argued that as students while we may not view the path we are following as a strategy, in truth we are, even if we haven’t codified it as such and if asked if we were ever involved strategic planning, may very well say no. In reality though we have, even though it may not be on a grand scale, it is the plan for our direction and future. This action is at the core of strategic management and strategy. It is this planning for the future of a business, its growth, development and direction which are the very core of growing a successful business over time, just as the selections we make for ourselves will determine our direction in the future and indeed contribute to our eventual development and success. What is Strategic Management? Although a variety of considerations are involved in Strategic Management, it can be summed up simply as preparing for the future and following a planned path to a goal rather than leaving things to chance and just taking things as they come. Strategic Management provides a comprehensive picture of where a company is, what it hopes to achieve and how it is going to reach its goals. Before we can make plans for the future, we need...
Words: 957 - Pages: 4
