Enterprise and Entrepreneurial Management Essay

Enterprise and Entrepreneurial Management - Essay Example It is the detailed report of how, when, where, who and why of a business. â€Å"In most cases, a business plan is created to explain and illustrate the vision you have for your business, and to persuade others to help you achieve that vision.† (Bellissim, 2003) Topfer (2011) states that starting a business without enough planning is like setting a journey without deciding on the destination. In most cases, small businesses simply ignore the process of business planning. Time is one of the main restricting factors that make them do so. But irrespective of the size of the business, it is always beneficial to have a clearly charted out plan. Business plans are required not only for planning the future of the business but also for the availing financing options. All financial institutions assist with the capital requirement of the company only after a careful study of the prospects of the business. Such an analysis is possible only with the help of a detailed business plan.  "The great thing about a  business  plan  is that it can provide a reference point for you to return to at any point during the project.† (Topfer, 2011) This paper will critically analyse the steps involved in a business plan. Each stage is critically analysed in terms of what should be included in each step. Also, the contribution of each step to the overall plan is dealt in detail. The intention of the assignment is to develop a clear understanding of the requirements for setting up and running a successful business venture. Charting out the plan may sound easier but it requires a proper understanding of the prospective business and the prevailing market conditions. Elements Idea Generation: Idea generation is the first and foremost step in a business plan. Idea generation can be defined as â€Å"the  process  of creating, developing, and communicating ideas  which are  abstract,  concrete, or visual. The process includes the process of constructing through the idea, innovating the  concept, developing the process, and bringing the concept to reality.† (Business Dictionary, 2011) Idea generation is in fact a raw process. The process involves generation of multiple ideas in the minds of the prospective entrepreneur. The person may screen and reach at a more favourable idea. Such ideas are generally in a raw format without much technical analysis being done on it. Idea generation is very important because idea is the stone that is being polished at the various stages of a business plan. An idea arises mostly from the personal interests of the entrepreneur. It will be something that is related to the behavioural and professional nature of the entrepreneur. For instance a medical professional might develop an idea for surgical equipment retailing, a good cook might think of opening a restaurant and the like. It is always better to carry out an idea that interests us most. It is as good as a business firm diversifying into a related product line. If we are familiar with the idea, it is easier for us to manage it. Therefore, the first question an aspiring entrepreneur should ask is what interests them most and is there an opportunity lying in the market for the same. This thought can give rise to more specific ideas. Strategic Objectives: Strategic objectives or just objectives refer to the purposes of carrying out the business. It is the major goals of the business. It is the focal point of all the activities of the business. The strategic objectives of a business are usually encompassed in the terms Vision and Mission. Vision is the purpose and Mission is the action to be taken to achieve the purpose. â€Å"Most of strategic objectives are directed toward generating greater profits and returns for the owners of the business, others are directed at customers