Entrepreneurial Planning Considerations

1. Entrepreneurial Planning Considerations Entrepreneurship 1 Section 2.09 A

2. Types of Entrepreneurial Planning • Strategic Planning and Operational Planning • Both are formal plans implemented in the early stages of business growth, and both can be re-evaluated and re-designed at later stages

3. Entrepreneurial Planning (cont.) 1. Strategic • taking an inventory of company strengths and weaknesses, monitoring opportunities and threats in the marketplace and matching company strengths with marketplace opportunities to gain competitive advantages. 2. Operational • provides a solid foundation for company operations by laying out the physical grouping of employees and the managerial hierarchies within an organization.

4. Focus of planning (continued) 3. Financial- a written set of goals, strategies and timelines for accomplishing these goals: buying your first home, funding or managing a retirement nest egg, funding your children's education, paying off debts, and so on. • Find out the cost of any business licenses and other legal documents you will need to operate your business. • Research what your operating costs will be. • Do not use all of your funds in starting up your business. Make sure you have additional funds set aside for unexpected costs that could arise. • It's a good idea to evaluate how things are going in regards to your financial plan on a monthly basis for the first year of operating your business.

5. Focus on planning (continued) 4. Laws and Regulations • Contracts • Employment and Labor laws • Intellectual Property • Environmental Regulations • Zoning Laws • Permits and Licenses • Permit-is a legal document giving official permission to run a business • License-a certificate that shows you have the necessary education and training to do a job

6. Focus on planning 5. Time Commitment planning • One of the most common mistakes of start-up is underestimating the amount of money and time it takes to start a business. • The amount of time depends on the type of business you're starting and whether you plan to start the business full time or on the side. • A key factor in time management is organization.

7. Focus on planning 6. Product Considerations when planning • Timing of your product – economy, competitors • Introductory Price – competitively prices • Is your product relevant? Do people need and want your product at this time? • Product life-cycle – How do you plan to handle different life-cycles of your product?

8. Focus on planning 7. Planning for the size of your Business • Depending on the amount you can financially put up at the beginning will determine whether you start off very small or quite large. (i.e., work from home or do you need a location with lots of equipment and staff) • The nature and complexity of your business is another important factor. Better to start off small and grow then to overstretch yourself and struggle.

9. Focus on planning 8. External Factors to Consider when planning a new business venture • Customers - Your business plan should outline how you will monitor and measure your customers' satisfaction. It should also outline how you will continuously develop and improve your products or services. • Competition - Understanding your competition can help you develop new ways of conducting business that could lead to a greater market share and better financial performance. • Industry & Market - A business must plan for the ever-changing laws and regulations placed by the government and other bodies.

10. Focus on planning 9. Importance of Flexibility in Planning • Plans provide us with the backbone of how we want things to be accomplished. Our flexibility on the other hand provides us the chance to modify it as it is needed. • What is essential is our deep understanding of our goals. Knowing the objective and keeping our focus on it will help us maneuver around obstacles no matter how daunting it may be. The objective is always above the plan. • Our flexibility and our openness will help us push forward closer to our goals if we truly commit ourselves to achieving it and not simply plan for it.