“What is a Business Plan? What purpose does it serve?” is the question of SMU MBA MB0036. The MBA assignment question is related to Strategic Management & Business Policy of Sikkim Manipal University.
What is Business Plan?
A good business plan will help attract necessary financing by demonstrating the feasibility of your venture and the level of thought and professionalism you bring to the task.
The first step in planning a new business venture is to establish goals that you seek to achieve with the business. You can establish these goals in a number of ways, but an inclusive and ordered process like an organizational strategic planning session or a comprehensive neighborhood planning process may be best. The board of directors of your organization should review and approve the goals, because these goals will influence the direction of the organization and require the allocation of valuable staff and financial resources.
Your goals will serve as a filter to screen a wide range of possible business opportunities. If you fail to establish clear goals early in the process, your organization may spend substantial time and resources pursuing potential business ventures that may be financially viable but do not serve the mission of your organization in other important ways. A liquor store on the corner may be a clear money-maker; however, it may not be the retail to assistant your community desires.
The following are examples of goals you may seek to achieve through the creation of a new business venture:
What purpose does it serve?
Revenue Generation – Your organization may hope to create a business that will generate sufficient net income or profit to finance other programs, activities or services provided by your organization.
Employment Creation - A new business venture may create job opportunities for community residents or the constituency served by your organization.
Neighborhood Development Strategy – A new business venture might serve as an anchor to a deteriorating neighborhood commercial area, attract additional business to the area and fill a gap in existing retail services. You may need to find a use for a vacant commercial property that blights a strategic area of your neighborhood. Or your business might focus on the rehabilitation of dilapidated single family homes in the community.
What is Business Plan?
A good business plan will help attract necessary financing by demonstrating the feasibility of your venture and the level of thought and professionalism you bring to the task.
The first step in planning a new business venture is to establish goals that you seek to achieve with the business. You can establish these goals in a number of ways, but an inclusive and ordered process like an organizational strategic planning session or a comprehensive neighborhood planning process may be best. The board of directors of your organization should review and approve the goals, because these goals will influence the direction of the organization and require the allocation of valuable staff and financial resources.
Your goals will serve as a filter to screen a wide range of possible business opportunities. If you fail to establish clear goals early in the process, your organization may spend substantial time and resources pursuing potential business ventures that may be financially viable but do not serve the mission of your organization in other important ways. A liquor store on the corner may be a clear money-maker; however, it may not be the retail to assistant your community desires.
The following are examples of goals you may seek to achieve through the creation of a new business venture:
What purpose does it serve?
Revenue Generation – Your organization may hope to create a business that will generate sufficient net income or profit to finance other programs, activities or services provided by your organization.
Employment Creation - A new business venture may create job opportunities for community residents or the constituency served by your organization.
Neighborhood Development Strategy – A new business venture might serve as an anchor to a deteriorating neighborhood commercial area, attract additional business to the area and fill a gap in existing retail services. You may need to find a use for a vacant commercial property that blights a strategic area of your neighborhood. Or your business might focus on the rehabilitation of dilapidated single family homes in the community.
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