Why bother with a business plan? –MGT 401

Entrepreneurs need to develop a business plan for several important reasons. The most important reason is that the business plan gives focus for the intended business. This allows for the entrepreneur to plan how the business will operate and give a preliminary view of what will be needed to open the business. There are several key components that must be included in a well-written business plan. These components include:

The company-

  1. Company description
  2. Vision
  3. Mission
  4. Objectives
  5. Background

The product and industry- ecommerce

  1. Description of product
  2. Industry description
  3. Organization
  4. Legal and organizational structure
  5. Key personnel
  6. Related service providers
  7. location details

e. Planned usage of location

Participation

I think being an entrepreneur is something that is intrinsic to people. Not everyone desires to take on responsibility for an organization and its people. I believe that there are certain traits which people must have in order to build businesses and these might include level headedness, tolerance to risk, and ambition. The entrepreneur will not be happy or content in a 9-5 job because they will have their ambition stifled and will not be able to be creative.
Participation

I think an important are of planning is having the ability to change. Specifically, I believe that in order to achieve the objectives of an organization it must be able to adapt to changes or opportunities that arise unexpectedly. This can sometimes be the “make or break” of a good organization. One can see this in the manner in which products change with the market forces. Similarly, companies need to be able to adapt their culture as well as their processes to the changes.
Participation

Starting a business can be very difficult.  There is a lot of room for failure, and it’s easy to psych yourself out when you contemplate all the risks.  Your emotional and financial well-being are tied up in a project that you hope succeeds, and that can be a very scary thought.  There are other factors to consider as well, such as being able to support a family, how to get the money to start, what is the backup plan in case the business fails….it’s an endless list of concerns for most people.  I’m not worried about education or experience in my case, which is what gives me a confidence boost to take the risk.  I’m more or less looking for the right opportunity to get my foot in the door.  My biggest concern is financially supporting my business, and being able to find a unique niche that will set it apart from similar establishments.  I feel that finding a niche is becoming increasingly difficult nowadays because information and knowledge exchange is fast and cheap, making it hard to find a new idea before someone else, somewhere else in the world does.  On the other hand, fast and cheap info exchange is a huge benefit when marketing your business.  I think the most important thing to succeed is to be prepared.  You need to do the research, know the risks and responsibilities, and make a plan.  Going into anything unprepared you have a higher chance of failing.