Critical Appraisal of Business Plan Process Towards the creation of a Essay

Critical Appraisal of Business Plan Process Towards the creation of a flourishing entrepreneurial venture - Essay ExampleBecause it is contained in a tangible document, it is open to critical mental testing by important third parties such as possible co-investors, creditors, venture capitalists, or banks which may be considering extending a loan towards the business (BC Ministry of Small Business, 2011, p.2). Elements The business plan is comprised of several elements, which may be depict as follows Idea generation, while not a tangible part of the business plan proper, is a vital phase of the planning process. It is the germination of the business intention, the idea that combines a perceived need in the environment with a recognized capability in the business proponent. Idea generation is the most touchy stage of developing a new product or service, whether it be for a new or existing business (Crane, 2010, p. 104). This is because it involves the creative process and is not de fined according to any established procedure, and often occurs as a flash of inspiration or unique insight as to how a particular need may be fulfilled. When an idea is first generated, there is usually no singularity as to whether it will be successful or even feasible, thus embarking on a mannequin of action on the bases of new ideas always involves a great deal of conviction and a climb up of faith. Strategic objectives are set subsequent to the generation of the idea. Strategic objectives provide the overall mission or purpose of the business (i.e., a philosophical purpose, according to Piotrowski, 2011, p. 174), as against the operational objectives. Strategic objectives relate to the definition of four elements of the business profile, namely products, customer groups, grocery segments, and geographic markets (Robert, 1998, p. 234). As with all statements of intention, however, the statement of strategical objectives is always couched in general terms that may admit of m any varied interpretations. As a guide, therefore, the strategic objectives are at best advisory, but cannot be held as definitive as promises or commitments for which the business may be held answerable. Therefore, the effectiveness of strategic objectives will only be as important as the best intentions of the business proponents may hold them to be. Market analysis and research is the process of fabrication information about the prospective market of the business and drawing important insights and observations about future prospects. entropy about the markets size, its location, its history, the competitive profile, and likely profitability, as well as its general fortissimo and health, are described and assessed. The information gathered during this stage provides the foundation for forecasting sales volumes and revenues, for determining the cogency of the business, and consequently the amount of financing required (Ehmke & Akridge, 2005, p.3). Market research analysis has its limitations. Ideally, accurate knowledge of markets is really important, but such knowledge does not serve to reduce knowledge of the business into a angiotensin converting enzyme solution that solves all possible problems. It is a myth that a business cannot fail if it completely knows its market this is because the market is just one aspect of the business, the others being the financial, technical operations, accounting control, and human resources aspects (Brown, 2008, p. 464). Furthermore, the market has alike many factors that could not be forecast with certainty, that any feeling of possessing complete knowledge of the market is a certain