The business plan is made up of at least four essential components: the marketing, organizational, operational, and financial plans. Each of these has its own unique characteristics, and each is further subdivided into specific areas. Likewise, each component poses various options for the corporate entrepreneur.
It is important that entrepreneurs investigate these four essential components as they begin planning for a new venture. This requires careful analysis of the relationship among the four components, as well as what particular role each one plays within the overall business plan.
With these thoughts in mind, and based on your reading for this week:
What is the purpose of each business plan component, and how is each applied within the overall plan? In what ways can the four components be aligned with each other? Is each plan equally important within the overall business plan? Explain.
Hisrich, R. D., Peters, M. P., & Shepherd, D. A. (2010). Entrepreneurship (8th ed.). New York, NY: McGraw-Hill Irwin.
Chapter 7, "The Business Plan: Creating and Starting the Venture"
This chapter defines what a business plan is, who prepares it, who reads it, and how it is evaluated. It is important to understand the scope and value of such plans for all stakeholders. You will explore how to identify information needs and sources for each section of the business plan, while appreciating the value of the Internet as a source of information and a marketing tool. Finally, you will preview examples of business plans and step-by-step explanations on how to create such a plan.
Focus on the definitions provided throughout the chapter. Review and think about the examples and anecdotes that illustrate the major ideas being conveyed. Consider the amount of time and resources that must be used to develop a business plan. Given these factors, as well as the difficulties of predicting the future, is a business plan useful? What do you believe constitutes an excellent business plan?
Chapter 8, "The Marketing Plan"
In this chapter, you will be introduced to the concept of developing a marketing plan. You will investigate the necessity of conducting research through industry and competitive analysis to effectively market the product being produced. You will follow the steps in preparing the marketing plan and generate ideas for creatively marketing a product to achieve differentiation.
Focus on the definitions provided throughout the chapter. Review and think about the examples and anecdotes that illustrate the major ideas being conveyed. Think about clever marketing strategies that have caught your attention in the past. What makes them stand out in your mind, and how might you generate such creativity for another venture?
Chapter 9, "The Organizational Plan"
In this chapter, you will be introduced to the importance of a strong management team when developing a new venture. Although the idea for a new venture may be held by one individual, preparing a team to launch the venture is necessary to its success. You will explore how the informal organizational plan is as important as the formal one. You will also examine the advantages and disadvantages of the alternative legal forms for organizing a new business venture. Finally, you will review how a board of directors or advisors can lend an objective eye in supporting a new venture management team.
Focus on the definitions provided throughout the chapter. Review and think about the examples and anecdotes that illustrate the major ideas being conveyed. Consider your past experiences in working with or playing on a team. Generally, are you more successful when working as part of a team, or individually?
Chapter 10, "The Financial Plan"
In this chapter, you will examine the sources and uses of fund statements as well as the importance of creating budgets and generating accurate cash flow. Balanced budgets can either make or break an organization. You will explore how positive profits can lead to negative cash flow as you investigate solutions to this type of situation. When studying the financial viability of an organization, you must look at the breakeven point to decide cost values for the product. Lastly, this chapter will examine software packages that can ease the stress of creating the necessary financial documents.
Focus on the definitions provided throughout the chapter. Review and think about the examples and anecdotes that illustrate the major ideas being conveyed. Consider your own need for a financial budget. How does the budget drive your spending and saving habits?