Table of Contents
Strategic Goals for Idea Generation Market Research and Analysis Competitor Knowledge Cash Flow and Profit and Loss Projection Balance Sheet Project Scenario Analysis The Essence of Entrepreneurship Bibliography
Business Plan is an important document for entrepreneurs. Essentially, this is an examination of their business plan. In this paper, entrepreneurs evaluate the likelihood of failure and failure of their business ideas and business models, since it analyzes extensively all the essential parts of a business. The process of writing a business plan begins with the invention of a concept and includes discussions of other crucial components, such as financial statistics, cash flow, and industry analysis. A new business model is evaluated using both empirical data and forecasts.
Idea Production
Ideation is another name for Idea Generation. It is the process of creating and communicating market-unique, original concepts. It is the foundation of any business strategy, around which the rest of the company plan revolves. In this section, new ideas are recorded and analyzed to ensure that they are practical and can be implemented in real-world business scenarios. Since it is the most crucial step in business planning, it needs the greatest time and work. Many entrepreneurs try to commit as much time as possible to idea generation because they know that if their ideas are good, their business will be successful and they will have a greater chance of achieving success if they produce strong ideas. Nonetheless, at this point, business blueprints are established and written down on paper or a white board. Before determining which ideas to adopt and which to reject, considerable critical thought and cross-checking are required. (Harford 2006)
Regarding the function of idea generation in the entire entrepreneurial ecosystem, there have been numerous discussions. Many individuals equate innovative ideas with corporate success. Nonetheless, if we examine this element objectively, we will notice that there may or may not be a correlation between corporate performance and the production of new ideas. Due to the fact that this procedure is a blueprint for a company plan, we cannot say with absolute certainty that a good idea will be successful in the actual world. When things become practical, the majority of the theory becomes irrelevant. Since concept generation is based on theories and past experiences, things may turn out very differently once the entrepreneur enters the real practical environments; therefore, the function of idea generation has been overemphasized, and there is far less to it than entrepreneurs believe.
Strategic Purposes
When a firm is founded, its manifesto includes particular financial and strategic objectives. If a company lacks a manifesto or has no stated aims, it lacks a sense of direction. It can err and fail without affecting the market it operates in significantly. Many business owners equate a company without objectives to a "rat in a maze." Without well defined and documented objectives, the organization cannot function properly. As a result, numerous business owners articulate their strategic objectives openly in their vision or mission statements.
Strategic Objectives do provide the business with a feeling of direction, but they limit the business's capacity for growth or other accomplishments. It is essentially a limit on the business's productive capacity or growth. This is because stating that a business wants to develop by a given percentage implies that entrepreneurs are not considering expansion beyond that proportion. They are impeding the expansion of the business. In other words, it restricts the expansion of business and diminishes its potential by capping its competencies. (Ashton 2007)
Market Research and Analysis
In the past, numerous study techniques were utilized. However, there was a large question mark over the validity of these studies, as the methodologies employed were rarely correct and the entire research was defective due to the researcher's or respondent's prejudices. Many strategies have been developed in recent years to avoid these biases and ensure the quality of research. But first, let's define the term validity in the context of scientific inquiry. Valid research procedures are those that allow the researcher to make accurate inferences from the data collected, or those that supply the correct data to enable the researcher to make accurate inferences.
There are two fundamental research methods: observational and experimental. In observational research, no planning is done in advance; rather, the question is asked spontaneously, and the respondent's response is observed. In this form of research, not only his spoken or written words are observed, but also his body language and gestures. This enables the researcher to determine whether the respondent is avoiding offending the researcher by phrasing his in a certain way, or whether he is answering truthfully. Consequently, observational research decreases responder bias in the research. This type of research technique demands excellent observational and analytical skills, and can only be successful if the researcher possesses them. (Branson 2010)
One-time project research is the second form of research. This form of research takes into account both observational and experimental research. It encourages the researcher to carefully arrange his investigation. It also necessitates a great deal of fieldwork and other research-related abilities, such as data collecting and collation. In this form of investigation, multiple questions are posed and must be answered over time. For the research, a specific hypothesis is formulated and then tested over a period of time. This form of research is very helpful for establishing a point, but its scope is insufficient to assure its concreteness. It also disregards the fact that changes in fashion will render their research obsolete, necessitating new investigation. Although it is superior to solitary observational research since it incorporates previously acquired literature, it is not as substantial as extended research.
Again, the significance of research is overemphasized. The product or service quality and Customer relationship management have the greatest impact on the success or failure of a firm. Many firms fail to meet expectations not due to a lack of research, but due to their inability to provide clients with enough quality and service. (Deakins 2005)
Recognizing the competition
It is of highest importance to comprehend your competitors. Numerous firms fail because they operate without considering the behaviors of their competitors and attempt to function independently of their market competition. Therefore, a successful entrepreneur is one who considers the behaviors of their competitors prior to deciding on their own policies.
In recent years, however, we have witnessed the rise of numerous organizations that have survived and thrived despite having different policies than their competitors. The emphasis has switched from competitor understanding to the emergence of differentiation. Customers in virtually every market value product differentiation, and hence, competition is diminishing.
Forecasts of Cash Flow and Profit and Loss
It is a well-established reality that many firms fail due to inadequate cash flow management, despite their published financial statements showing a profit from their commercial activity. This is mostly because they do not closely monitor their cash flow and because the cash outflow from the business exceeds the cash influx into the business.
Cash outflows exceed cash inflows for a variety of reasons that demand a detailed examination of the business's operations. Most firms only discover they have a cash flow problem when the situation has deteriorated to the point where they cannot pay their bills and credits. However, many firms can survive with the same sales and profit if they are managed appropriately. (1988)
Balance Sheet Task
As the term implies, these are projections or forecasts. These are forecasts on a company's future financial health. It discusses the changes that a firm can anticipate throughout time. This document is required for all financial analyses of a firm because all businesses seek to generate profits.
However, this paper cannot be relied upon solely when making financial decisions. Due to the fact that this material is predicated on speculation, it may possibly out to be incorrect. In order to make a well-rounded decision regarding their future investments, entrepreneurs must take into account additional factors such as industry evaluations and SWOT analyses.
However, this is merely an estimate, and the actual outcome could be very different. Consequently, a firm cannot rely solely on these estimated figures; rather, it should attempt to cope with reality by dealing with events as they occur, rather than attempting to foresee them and then suffering a setback if they do not go its way. (Handy 1995)
Strategic Planning
Scenario planning is a method of anticipating or evaluating future issues or problems in order to solve them in advance. Managers utilize scenario planning as a component of contingency planning or to develop backup plans if the business plan or action plan deviates from preset plans. For instance, suppose a company doubles its production in response to a surge in demand, only to discover that the emergence of new competitors will force the majority of the additional output to be warehoused while the company's market share declines. In this situation, strategic managers must plan ahead, anticipate future issues, and devise solutions. To ensure that its market share remains high, a business could, for instance, implement a variety of marketing and selling activities. (Kevinlane Keller and Kotler, 2000)
However, scenario planning is a difficult discipline. Again, it is based on projection, so things could turn out to be vastly different than predicted. As a result, excellent entrepreneurs cannot rely on it totally, lest they fall behind entrepreneurs and businesses that are more grounded in reality. (Jones-Evans & Carter 2006)
The Fundamentals of Entrepreneurship
An entrepreneur is someone who is willing and able to coordinate resources into a single location, as well as someone who is willing to take chances and bear responsibility for their failure. There are numerous abilities and characteristics that make an entrepreneur's job simpler. Some of these skills and characteristics are innate, while others are acquired over time. Several personality categories were discussed in the literature. We explored extraversion, receptivity to experience, self-efficacy, and conscientiousness, among others. All of these characteristics make for a successful entrepreneur, but it is quite uncommon to discover them all in one individual. It is quite difficult for a person to possess all of these abilities or characteristics because they often compete with one another. We encounter tens of thousands of distinct personalities on a daily basis. We admire certain individuals and detest others. However, little consideration is given to the origins of these personalities or the reasons why people have excellent or terrible personalities. If humans had the ability to choose and control their personalities, we would all have chosen the most desirable ones. This is impossible since multiple factors influence the formation of an individual's personality.
As an entrepreneur, you must have a comprehensive understanding of your consumers and staff. You must successfully manage them if you wish to attain success. Failure to effectively manage them might result in the loss of consumers and valued staff. As an entrepreneur, there are numerous activities and skills that must be proven in order to earn the trust of team members. By demonstrating your competence on the job, you can gain the trust of your customers and coworkers. This will ensure that others recognize your expertise and that your teammates know they can rely on you and that you are not a freeloader. Likewise, if your clients are aware that you are an expert in your field, they will seek your guidance and be certain that they are purchasing from someone who will give them an honest view.
Likewise, establishing boundaries between yourself and others is another effective method. This does not mean that you should become a complete introvert, but you should not break some boundaries, especially where you are unfamiliar with the emotions and culture of others. This will improve your standing inside the group, and others will begin to trust you. Similarly, it is highly beneficial to practice harsh love and accept people as they are. This will develop a mutually trusting relationship between you and others. Giving and valuing one's viewpoint is a further method for establishing trust. You should avoid being a person with a closed mind; instead, you should not only share your ideas on various topics, but also respect the opinions of others. This will help develop your reputation, and others will seek your assistance more frequently if they know you are eager to assist them, give them honest ideas, and are really willing to listen to and comprehend them. (Kotler & Kotler 2006)
He emphasized two major disciplines: the judging function and the perspective function. He believed that thinking and feeling are judging activities, whereas sensing and feeling are perceptual functions. This is how Carl Jung described the psychological method to determining the personalities of various individuals.
Jung identified eight distinct personality types into which an individual can fall. He felt that a person falls into each of these categories based on how he processes and makes judgments with information. These judgments are made and supported by a dominant function, which receives additional assistance from an auxiliary function. He added that even secondary or subordinate duties must be supported by tertiary functions. He felt that every human has either an introverted or an extroverted dominant function. (2009) According to (Southon)
I would characterize my personality as sociable and agreeable. I believe this personality type is advantageous for entrepreneurs. As an entrepreneur, you must meet numerous individuals. The list of individuals that an entrepreneur must meet is lengthy. An entrepreneur must interact with clients, employees, government authorities, tax officers, potential customers, potential employees, suppliers, debtors, and creditors. Therefore, I believe that an extroverted personality is essential for an entrepreneur. I, too, am an extrovert. This will assist me in maintaining cordial ties, which are extremely advantageous for a business. I am able to interact warmly with consumers and clients in order to generate a favorable impression and establish long-lasting, mutually beneficial business partnerships.
Likewise, I also possess a pleasant and diligent disposition. I am agreeable and receptive to the opinions of others. If I find the other person's idea to be a good one, I tend to follow it. This is an excellent attribute for an entrepreneur to possess. People not only enjoy democratic leadership, but it can also drive a firm to success by generating numerous ideas from which the finest can be selected. However, if an entrepreneur is very amiable, I believe there are disadvantages to possessing this personality type. If an entrepreneur is overly accommodating, he severely damages his credibility as a leader. Numerous individuals could mistake me for a person who cannot make sound decisions or who is indecisive. In this manner, I may lose people's trust, and they will not rely on me to make decisions in the event of a dilemma. This conversation demonstrates that an individual must strike a balance between being polite and slightly authoritarian. The optimal combination involves intermittent personality transitions from autocratic to agreeable. This will not hinder an entrepreneur's rapport, and people will perceive him as understanding, someone who listens to them and assists them in commercial and interpersonal circumstances. I recognize that I must shape my personality and strike a balance between being nice and authoritative. (Wickham 2006)
People who meet me believe that I am likewise a conscientious individual. I strive to achieve goals by working diligently. Even if they are impossible or require double the effort, I make every effort to attain them. There are several benefits for an entrepreneur who possesses such a personality. This instills a sense of hard work in others, and when they witness their leader giving his all, they also strive to do their best and achieve their goals. This phenomenon is known as leading by example, and all effective leaders and business owners use it to instill diligence in their personnel. It is also advantageous for consumers and prospective clients to observe that a person in a position of responsibility works diligently for the firm's clients. This instills confidence and attracts a large number of potential customers. Having a conscientious disposition has disadvantages, however. It frequently causes stress. Stress arises when a person attempts to work too hard or exceeds his mental and physical limits. Long-term stress might result in diminished overall performance. Short-term aims can be accomplished, but long-term effects may be more detrimental than beneficial. (Jones-Evans & Carter 2006)
In light of the preceding debate, it is acceptable to say that an entrepreneur is a leader. If someone wants to be a successful entrepreneur and lead his business to success, he must have good leadership abilities. An entrepreneur's personality must be well-balanced in order for him to attain success. He should have a personality that falls somewhere in the middle of the two extremes. A good entrepreneur, for instance, is neither overly agreeable nor too domineering. He falls somewhere in the middle of these two extremes. On occasion, he becomes autocratic, yet on other occasions, he is democratic and amicable. Similarly, a successful entrepreneur alters his demeanor periodically to prevent his employees or subordinates from becoming too complacent. He also ensures that his subordinates are under excessive stress. By changing his personality sporadically, a successful entrepreneur seeks to strike the proper balance and ensure that he leads his business to success and enjoys market leadership. Likewise, a good leader or entrepreneur strives to be polite and approachable. He is forthright and outspoken, with a warm and exuberant demeanor. (Timmons & Spinelli 2008)
Reference List
The Entrepreneur's Book of Checklists was published by Ashton, R. in 2007 by New York:Prentice Hall.
R. Branson. 2010. Screw it, Let's do it. Virgin Books, New York.
2005. Entrepreneurship and Small Businesses. New York: McGraw-Hills.
The Streetwise Guide to Being an Entrepreneur. New York: Oak Tree Press, 2008.
Handy, C., The Empty Raincoat, Random House, London, 1995.
The Undercover Economist by T. Harford. New York:Abascus, 2006.
Jones-Evans, D., and S. Carter. 2006. Enterprise and Small Business: Principles, Policy, and Practice.
Kay, J. (2010). Obliquity. Profile Books, New York.
Kotler, K., and P. Kotler, Marketing Management, New York:Prentice Hall, 2006.
Southon, M. (2009). The Beermat Entrepreneur. New York: Pearson.
Timmons, J., and Spinelli, S. (2008). New Venture Creation: Entrepreneurship for the Twenty-First Century.
A. Wickham, Strategic Entrepreneurship, New York: Pearson, 2006.
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