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Class Discussion: Business Plan 1. Given the difficulties in accurately predicting the future, a good business plan is definitely one of the greatest core inventions necessary for starting a successful business. The business plan is necessary because it is a kind of a guideline that you are going to follow step by step in making your actions and decisions concerning the issue of creating and maintaining a successful business. Developing a written plan determines the objectives and perspectives. A written plan will also help to attain clarification on the goals to achieve. 2. There are many considerations that an entrepreneur must decide such as: type of business, legal structure, permits and licenses, market planning, business plan, location, organization management planning, business telephone line, mission statement, and a business checking account.
The first decision that the entrepreneur must make is what type of business he / she wants to start. The decision should be based on the amount of knowledge and skill that they have in the field that they are considering. The better that they know the industry, the stronger there likelihood they will have a successful business, and the better base they will have for the rest of the decisions that will have to be made in the time to come. The next important decision in the business planning process is the legal structure of the company. The three legal structures are Sole-proprietorship, Partnership and a Corporation. Each one of these legal structures has its advantages and disadvantages. 3.
An entrepreneur would be much better of spending time on a good and professional business plan as an alternative to selling product because the business plan is a whole strategy of the company for several future years and this is much more important than current sales of some amount of product. Having a good thoroughly developed business plan will help the organization to maintain its activities on a planned day to day manner, having future prospective and current issues and abilities at hand. 4. Business plans are often used to raise capital in order to implement some new invention or solution for increasing profits or to start a whole new business, having initially no capital. The purpose of such business plan is to raise capital and thus it is necessary to state all the risks and ventures concerning what you are planning to do in order for the prospective investor to see all the pros and cons of the venture. It is also important to see it in a business plan for your own purposes, to have a clear vision of risks and not to forget about them conducting business.
A good business plan that is updated periodically makes the most powerful financing proposal a small business can have. A logically arranged and reasonably complete business plan is essential for operating and growing a business in well controlled way. A good plan serves your needs for business analysis, provides a financial forecast based on your rational assumptions about the future. Budgeting guidelines, including a working capital budget and a break-even analysis, help determine the amount and kinds of financing most appropriate for your business. A good plan also helps you present your needs to financing sources. 5. The purposes of the business plan for various audiences are different but it has the same business and the same issues centered on it but I think that for different audiences it is necessary to make slight adjustments in the business plan for it to be more effective.
If the audience is entrepreneur it is necessary to provide the business plan focusing on returns on investment and opportunities. For investor it is better to have a business plan centered on financial effectiveness in shorter periods of time. For supplier it is better to present a business plan focusing on the enlargement of your business and increasing the amount of prospective customers that potential will be able to purchase greater amounts of product supplied by the supplier. Also for all of the audiences it is important to provide a business plan that is clearly expressing that you plan to maintain your business for long period of time and thus will be able to set a good company image.
Free research essays on topics related to: planning, business plan, good business, legal structure, successful business
Research essay sample on Business Plan Legal Structure
