ENTREPRENEURSHIP FOR PROFESSIONALS Essay Example
The three selected business plans are from a travel planning company, chicken farm business plan and a retail bike shop business plan. Common factors in the business plans include comprehensive market plan analyses and operation plans for growth and expansion. The financing, locations, sales strategies, and implementation are different for the three plans (Sample Business Plans , 2013). The chicken farm business is, however, well planned with a lot of details regarding the market and its operating dynamics. It has a detailed financial blueprint backed up by cash flows and comprehensive financial statements
Often entrepreneurs are faced with the decision on whether to directly implement their selling strategies without engaging a comprehensive business plan. The possibility of failure without a plan is higher compared to operating with one. A business plan acts as guidance or a blueprint upon which all activities are based. It helps the entrepreneur to determine key focus points and work on them appropriately. A plan is also a significant tool in determining the current business position and aspirations based on specific timelines. This way, deficits can be easily identified and corrective measures implemented accordingly (Finch, 2013, p. 38). With a plan, the decision making process is also simplified, since all matters of considerations are laid out in the plan. Without a plan, critical omissions may occur, causing business failure. A business plan is therefore, very significant when operating a business.
Selected industry – Fast foods industry
The fast food industry is one of the fastest growing industries in the word today. Even with hard economic times, the industry as been able to maintain steady growth throughout the world. The reason for this is that with increasing financial constraints, the convenience and fair pricing has gained high momentum, especially among the middle class (Gabriel, 2011, p. 5415). When other industries have financial problems fast foods have experienced continued growth despite world economic setbacks (Waldman, 2008, p. 66). This information is crucial when coming up with a fast food business plan.
Often, marketing strategies applied by entrepreneurs do not always work as expected. . To evaluate the effectiveness of a marketing plan, leads generated from the strategy are critical. If there is no change in the number of leads generated, then the strategy is not working. Many entrepreneurs are using a lot of money on internet marketing and promotion. The internet marketing platform has a lot of potential and has worked for businesses. However, the strategy is likely to fail in some business due to lack of support mechanisms and aggressive follow ups (Ivanov, 2012, p. 537). Internet marketing should be backed up by physical marketing follow up strategies
Sometimes, entrepreneurs decide to have proprietorship ventures instead of forming limited companies. Proprietorships, whether sole or partnerships, expose them to financial losses, risk and vulnerability. Forming companies is much better than engaging in proprietorship. The reason why entrepreneurs prefer proprietorships is because the processes and requirements needed to form companies are very intensive and involving. It calls for a substantial amount of resources which may not be forthcoming for many individual. Initial costs are prohibitive for many entrepreneurs. They also have lesser restriction as compared to companies. Hence, entrepreneurs prefer to take the risks of unlimited liability.
The cost of setting up a company varies from industry to industry. There are many underlying factors that determine initial costs. On of the main factors I the size, magnitude of operations. Companies with smaller scopes are easier to start than those with bigger ones .some locations are also more expensive than others when setting up businesses.
Retrieved September 30, 2013, from Sample Business Plans < http://samplesofbusinessplans.net/>
Finch, B,2013, How to Write a Business Plan, Kogan Page PublishersLondon.
Gabriel, Y, 2011, ‘Fast Food Enterprises’,International Encyclopedia of the Social & Behavioral Sciences, pp. 5415-5418.
Ivanov, A, 2012, ‘The Internet‘s Impact on Integrated Marketing Communication’,Procedia Economics and Finance, vol 3, pp. 536-542.
Peterson, D, 1996, «Limited liability companies: A viable alternative?», The Bottom Line, vol. 11, no. 2, pp. 20.
Waldman, J, 2008, ‘Making it big in the fast-food industry’, Business Horizons, vol 21 no. 3, pp. 65-72.
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