sm2_rpl

Please read and respond to the attachment(s).

Note: Only up to 20% of the written response content can be quotes from third parties.

Assignment Details:

1. What questions do you have about the last assignment?

 

What are your initial thoughts about how you will approach this assignment? Explain.  

2. What are the most important elements of a Business Plan? Why?

3.

What other elements should be added to the Business Plan to encourage potential investors? 

4.

How important is accurate financial data to the Business Plan? Why?

· Please reply to the presented statement(s) below.

Deliverable Length: 250 words (minimum) per reply

ONE:

There are not many questions I have. If any of us have done an individual project the group project is the same platform. The assignment will cover important fundamentals in this case it is the final paper which all the fundamentals and impact points covered throughout the course. Unlike any individual project this project will be with a group, I have 3 other classmates in my group which I am sure all of you do. My only question like any group project is the division of labor. As far as my approach for the assignment, I will treat it like every other project. I will start and finish early, I try to use only peer reviewed resources, I will apply my real world experience to help me articulate the assignment parameters, and most importantly I will use time management to accomplish everything needed.

So off to the second part, important elements of a business plan. What a open ended question, as we could all have different opinions as long as we support them with objective evidence we should be good. In my opinion the most important part of a good business plan, is a well defined structure for processes. These processes should include regulatory requirements, role responsibility, inter-departmental interactions, resources, inputs, outputs, and last but not least at all communication guidelines. As an internal auditor for the last 8 years to often I have seen failure caused by poor management and even worse communication. It may not be a one-size fits all but I have learned that if you efficiently define processes and communicate them then performance objectives are reach more frequently. 

When trying to acquire new investors it is important to find that nitch in the system that sets you apart from all the rest. This could be a new product or service no one else has. A upgrade to a technology platform that increases user accessibility. The demand for services or products is out there with todays markets and industry the world is changing and consumerism is growing. However if you can create the demand and and provide the supply your organization can stand alone as a leader in the industry. In order to do this a business plan must take into account the types of consumers they are going after whether or not it is the local community or global  investors. 

Financial data is extremely important in a business plan, one example for this is a budget. If you are thinking in terms of specific projects a budget is established when the project is outline that way each stakeholder, department leader, or team member knows the financial parameters they must follow. This is important so process owners can properly plan for performance and in parallels efficiently manage resources to support the organization. 

TWO:

1.  At this time I do not have any questions.  I am sure as we move through the course and begin to work as a group to put a product together, I may have to reach out for clarity, and ensure what I have completed meets all the requirements.  I know something of this magnitude cannot be done overnight.  It will take research from creditable resources and my interpretation to complete.

2.  What are the most important elements of a Business Plan? Why?

I was able to locate 8 elements of a Business Plan.  I have broken them down below:

The first important element of a Business Plan is the Executive Summary.  This gives those are who are considering to put money into your business an idea of your business as a whole.  This one page should briefly identify what you are planning to produce and sell.

The second important element is a Company Description.  This will tell what your company is doing differently than your competitors.  Here you can identify the number of personnel working for your company, while giving some descriptions of those who are in a strategic position that will help boost your company.

The third element is a Market Analysis.  Before a company can say they are going to jump into market, they have to know everything about that market.  Who are the small and big competitors, where are they located,  how has the market faired for them, and what were some of the problems they encountered along the way.

The fourth element is the Organization and Management.  Meaning is your company owned by one person, or multiple, and is this a corporation.  

The fifth element is what is your Service or Market Line.  Meaning what are you selling to your customers, and identify ways this will help your customers.  You can also include an estimated timeline for how long your product will last, is it 3 years, 5, or 20?

The sixth element is Marketing and Sales.    What techniques are you going to let your customers know what you are selling.  Advertisement will be a big key.  Plus, you can include any discounts you will be offering, and what the duration will be.

The seventh element is Funding Request.  Here you will tell how much money you will need to get your business off of the ground.  You can discuss payment options for paying back the money you borrowed.

The eighth element is Financial Projections.  Here you will have to show just how realistic your numbers are based off of your forecast.  Financial statements can be used to show how much money coming in compared to the amount of money being spent each month.  If you have more money going out than coming in, this should tell the company they need to adjust their spending, or be forced to shut down the operation before they lose their footing in that market.

Reference:

Chopra, S. (2016). Supply Chain Management. [American Intercontinental University]. Retrieved from https://aiu.vitalsource.com/#/books/9781323417041/ 

Jones, M.  (2016).  Success.  8 Elements of a Successful Business Plan.  Retrieved from 

https://www.success.com/8-elements-of-a-business-plan

 

THREE:

When looking at the assignment, there are many different moving parts.  I think that there will be some struggles in working with a  group is essentially a remote environment to not only get the information but to have each of our parts flow together and seem complete.  I think the best way to approach a large project like this is to break it down into smaller sections and is working and researching sooner rather than later.  I think once the project gets going the information should fall in place and as a group, we should be able to see the company vision to not only plan the 1 year but begin seeing the 5 year and 10 year plans to ensure the success of our company.

I think when it comes to a business plan it is important to provide enough details about the company, but be brief enough to not overwhelm the reader with details.  When it comes to a business plan, the Executive Summary is the most viewed piece of the plan, as potential investors and other board members may not spend the time reviewing the complete business plan due to the time commitment as well as the detailed information in regards to the plan.  Once you dive into the business plan, it should include the major components of the operations like the market analysis, which would show the strengths of the market and product being offered, as well as other financial information.  When it comes to the business plan the financial information is something important to ensure is accurate and detailed.  Investors and companies need to understand the cost of the plan, as well as the opportunity to change the expense to profit in the shortest period of time.  If the document does not contain accurate information it may be glanced over and not something that others would feel as a viable option for the company or investment.  

FOUR:

I do not have any questions about the assignments. Our objective is clear, and the information provided in the instructions clearly defines what we must do as a group. I will approach the assignment by first conversing with my colleagues and planning how we will distribute the load. From there, depending on my responsibilities, I will successfully convey deliverables that align with the groups overarching business plan.   

The executive summary is the most important part of the business plan. This is the first thing that investors go over when assessing a proposal and will ultimately determine if it is worth their time.  It is also important to include a section that describes how this idea will bring value to your respected market, so investors can know how your company will stand out amongst others. Including a list of your management team is important so investors can know who is spear-heading the company’s operations. A market analysis is also important so investors can see how you will stack up against competitors. And lastly, financial statements and projections are needed so investors can know what the bottom line is and will be.

Other key elements include a mission and vision statement, SWOT analysis, and logistics and operations.

Accurate financial data in a business plan is extremely important because it not only builds trust with investors, but it also gives you an accurate depiction of how your business is doing and provides more room for expansion.  

Sources: 

Ahmed, A. (2020, August 10). What are the 4 important parts of a business plan? Retrieved February 13, 2021, from https://smallbusiness.chron.com/4-important-parts-business-plan-2669.html

How accurate financial reporting helps businesses. (2018, February 14). Retrieved February 13, 2021, from https://fbc.ca/blog/how-accurate-financial-reporting-helps-businesses/#:~:text=Having%20accurate%20financial%20statements%20gives,business%20opportunities%20for%20future%20growth.

FIVE:

  At the current moment, I don’t have any questions in regards to the Unit 5 Assignment. I normally begin gathering information about two weeks before the due date. I have so many moving parts going on now with this deployment. I don’t want to add anything else that may halt my moving parts that are already in motion. I will add more loads when other loads have been completed and moved off my conveyer belt. lol

What are the most important elements of a Business Plan? Why? 

 

     Having a business plan is like a blueprint; you can build a house without a blueprint, but the outcome may not be what you envisioned. Business plans normally are compromised of comprehensive data that can assist in improving your company’s probabilities of achievement, such as market investigation, competitive study, customer breakdown, logistics, marketing, and operations strategies, growth in your company as well as your projected cash flow. It may seem time-consuming and maybe even tedious but a business plan is critical for the success of any business. So, it is imperative to build that blueprint.

What other elements should be added to the Business Plan to encourage potential investors? 

To encourage potential investors your portfolio should include a 
cover page
 that gives basic information about your company.  The 
background

, as well as the opportunity,
 should be summarized. Investors like to know the background of your company as well as its value.  You should also include your main focus i.e., your 
market, competition, customers, and strategies on marketing and sales
. You should also include what you have to offer such as services and products. When describing include tangible items such as photos, or even a prototype. It is good to include what 
investors
 that you already have backed your company. However, be wary of this strategy. It is best to get approval from your investors before you use them as advertisements. Include your 
funding sources
 as well as any debt that you may have, principles of investments, and the use of 
proceeds
.  Include any 
milestones
 that you may have accomplished. It is not a bad idea to include an 
appendix
 that will give pertinent information such as the founders’ bio as well as vital management, testimonials, etc.

How important is accurate financial data to the Business Plan? Why?

Having accurate financial data provides you with a strong perception of how a company is doing. Accurate financial data can assist in making critical business decisions. Accurate financial data also create trust. Before your lenders, vendors, and especially your Investors invest in your vision; they would first want to know if your company is successful. Having accurate financial data will helping distinguish any doubts in your company.