New Venture Planning
A new business venture could be an off-shoot of an existing business to enter a new area of business or development of a new plant, or it could be a totally new business venture being set up by an individual or a group of people.
The entrepreneur has to start with a Business Plan incorporating all the relevant aspects for consideration. What are they?
- Financial Planning: Funding sources, cash flow forecasts, sales, costs, etc.
- Marketing: To study the market forces and to plan the market strategy to move the products/services in the market.
- Legal frame-work: To make sure that all legal formalities relating to regulatory bodies are followed for establishing the new venture.
- Operational Planning: To take care of day-to-day procedural and production processes – securing supplies of raw materials, hiring of staff, deciding on manufacturing/production processes, etc.
- Self-Development Planning: The entrepreneur has to equip himself in terms of education and skills to run his business successfully.
- Net-working: Building up the network of contacts which are crucial for running the business well and how to get to know them for the business to take off.
The following tasks are imperative for an entrepreneur to be prepared with:-
Task 1: To be familiar with the range of details required of a Business Plan.
Task 2: To consider key points like –
- type of product/service on offer to customers,
- the needs the product/service is likely to fulfill to the customers,
- potential customers to the product,
- amount of financial resources needed and how to get hold of the funds for the project,
- how to make the product/service known to the potential customers.
Task 3: Financial Planning:-
- costs and prices
- cash flow monitoring,
- record keeping,
- setting up financial resources and contingency plans,
- availability of long term or emergency funds.
- Pricing strategy that is appropriate,
- What prices to charge and why?
Task 5: To study the type and extent of market.
Task 6: Legal Frame-work:
- legal requirements (health/employment/ legislation, etc.
- type of business ownership,
- tax liabilities,
- planning legislation,
Task 7: Operational Planning:-
- supplies and raw material sources
- reliability of supplies and suppliers
- to sell online or not,
- security arrangements,
- plans to expand the business.
Task 8: Self-development planning:
- Skill sets that are necessary and additional training or development required.
Task 9: Networking:
- Chambers of Commerce and Federation of Small Businesses.
The complete Business Plan, production of presentation outlining the business plan, evaluation of viability of business using evidence from the investigation in support are the necessary tools for an entrepreneur to use to make his business a success.
- What are the six aspects of Business Plan?
- Explain the points in legal frame-work and operational planning.