Entrepreneurs discover an entrepreneurial opportunity when they find a compelling solution to an unsolved problem or unsatisfied need. http://www.dukeven.com/Home
The first step in an entrepreneurial venture is to identify a real opportunity. Second step is to create a plan to address that opportunity. Third step is to execute that plan.
Business planning is the process of setting goals, explaining the objectives and then mapping out a document to achieve these goals and objectives. Effective business planning is critical to long-term success and the ability to raise capital and grow successfully.
Effective business planning requires a considerable amount of time
Effective entrepreneurial planning consists of: Tactical planning Contains the details of executing your strategies Describe “how” you plan to meet the objectives Strategic planning Setting and enforcement of goals Road map of strategies on “what” the business intends to do to meet the goals and objectives
Strategy is the thinking process required to plan a change, course of action, or organization. Strategic planning defines, or outlines, the desired goals and why you should go about achieving them. The strategic planning phase involves business thinkers (namely– the small business owner) determining why, and in a global sense what, you will achieve in your stated goals.
When doing strategic planning, you need to determine, specifically, what outcome you want to achieve (These are your Objectives) and how you will measure the results.
Tactical planning requires the understanding and deciphering of the strategic goals; then identifying the courses of action needed to achieve those strategic objectives. Tactical planning is developed by those who deal with getting the work done, day by day. The main question for them is: “How can the strategic goals be accomplished within the designated limits of resources and authority?” Tactical planning is actions taken day-to-day, whose results will move the company forward to achieve the objectives in the strategic plan.
Business Plan A proposal that describes a new business. It is presented to potential investors and lenders. A well-written Business Plan lays out the best growth path & strategy, as well as the rationale for the selection of the strategy over other alternatives.
A Business Plan is the explanation of: why the plan for building the company makes sense, what resources it will need to implement the vision, who the team will be that will have the skills and leadership to execute the vision, and what path they will follow to get there.
The components of a business plan Executive summary Product/service plan Management team plan Industry/market analysis Operational plan Organizational plan Marketing plan Financial plan Growth plan
Brief recounting (summarizing) of the key points contained in a business plan. Investors & lenders rely on this to decide if the concept interests them Should be no longer than two pages. Include the most important information from each section of the plan. Written last
Mission Statement Presentation of the product or service you’re offering. Nature of your business Unique features of your product/service Any possible spin-offs Additional products or services that might be offered once the business is established
Describe any advisory board members/Board of Directors that will assist in getting the business started Present entrepreneur’s qualifications & those of any partners involved in the business venture. Analyze expertise you’re missing & how you will solve that problem
Convince the reader that an explosive market opportunity exists Presents research into the industry & market Analyze customers, competition, & industry Information about the prospective geographic location, economic, & demographic data
Includes all processes involved in producing and/or delivering the product or service to the customer. Status of product development Equipment, inventory, production Time & money needed Distribution plans (Channels of Distribution) Direct channel – delivery directly to the customer Indirect channel – product sold to someone before it reaches the customer (wholesaler)
People aspects of the business. Includes: Management philosophy Legal form of the company Key management personnel Key employment policies
How your company makes its customers aware of its products or services Market segment Pricing policy Company image Marketing strategies Promotional plan Marketing budget
Presents the forecasts for the future of the business Includes assumptions made when calculating your forecast figures Usually in the form of financial statements
Looks at how the business will expand in the future. Investors & lenders look to see if the business has the potential & the plans to grow over its life