Tools used by Entrepreneurs for Venture Planning

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Tools used by Entrepreneurs for Venture Planning

• Entrepreneurship 1
• 2.09 B

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Uses of Business Plans

• Help attain business goals
• Target changes in perception and branding by the
  customer, client, or larger community.
• Enables investors to make knowledgeable
  decisions.

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Importance of a Mission statement

• The Mission Statement is best described as the
  intended strategy and business philosophy for
  making the entrepreneur's vision a reality.
• Examples
• Google's mission is to organize the world's
  information and make it universally accessible
  and useful.

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Mission Statement examples

• To make, distribute sell the finest quality all
  natural ice cream euphoric concoctions with a
  continued commitment to incorporating wholesome,
  natural ingredients and promoting business
  practices that respect the Earth and the
  Environment.
• Snap-on's mission is to delight our customers -
  professional tool and equipment users worldwide -
  by creating innovative, productivity-enhancing
  products, services and solutions.

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Financial Forecasting and Budgeting

• What is Financial Forecasting? The process of
  estimating future business performance (sales
  forecasting, costs, earnings)
• Why is it important?
• To determine future financial needs
• Forecasting also is important for production
  planning, human resource planning, etc.
• Used by outsiders to value companies and their
  securities.
• Give overall perspective of the whole firm,
  rather than looking at individual projects.
• Sales Forecasting used to project sales for a
  new business venture.

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Financial Forecasting and Budgeting (cont.)

• After financial forecasting has been completed it
  is easier to Budget money
• What is Budgeting? A budget represents a detailed
  plan of how a company expects to spend money in
  future time periods. Many companies create
  budgets on an annual basis. Examples Creating a
  promotional budget for advertising your
  product/service.
• Why Budgeting is important?
• limits how much money is spent on certain
  operations
• plan for future business growth and expansion

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Internal and External tools used for Venture
Planning

• SWOT analysis
• Strengths (inside the business)
• examples patent, strong brand name, good
  reputation with customers.
• Weaknesses (inside the business)
• examples lack of marketing expertise,
  location, poor quality goods
• Opportunities (outside the business)
• examples availability of expanding using
  the Internet, selling to new markets,
  competitor goes out of business
• Threats (outside the business)
• examples new regulations, new substitute
  product, more competitors.

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Internal and External tools used for Venture
Planning

• Market Analysis It identifies every relevant
  aspect of the market in which you will market
  your product or service. A good market analysis
  summary is rooted in careful, thorough research.
• A market analysis must include an industry
  description and outlook, information about your
  company's target market, market test results, and
  a competitive comparison

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Internal and External tools used for Venture
Planning

• Environmental Scan an environmental scan
  involves considering the factors that will
  influence the direction and goals of your
  organization.
• Examples
• an environmental scan might project that in the
  next ten years, the number of people (potential
  customers) between the ages of 18-24 will
  increase from 30 to 40.
• looking at the present capabilities of the
  organization (infrastructure, hardware,
  personnel, abilities, structure, etc) and that
  information can be compared to what the
  organization WILL need in the future to achieve
  its strategic goals.

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Internal and External tools used for Venture
Planning

• Competitive analysis a process of gathering and
  analyzing information about your competitors,
  their practices, products, strengths and
  weaknesses and business trends.
• Use to
• know what your competitors are doing and what to
  do to stay ahead of the competition.
• have reliable information showing how customers
  perceive their product or how it compares to the
  competition.

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Internal and External tools used for Venture
Planning

• Sensitivity Analysis A what-if analysis. What
  if analysis is often used to compare different
  scenarios and their potential outcomes based on
  changing conditions.

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Types of Planning Approaches

• Opportunity Management Approach
   - (OMS) A system that stores sales opportunities 
  and related information. Each sales leadcan be tra
  cked with information such as source, type, worth,
   status, likelihood of closure etc.
• Includes ideas, recognizing opportunities, and
  driving opportunities

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Milestone planning Approach

• Milestones are the small steps that lead to the
  ultimate goal whether it be developing of new
  product or service or advancing the exploration
  of space to the far reaches of the universe.
• A milestone is an important event marked on a
  timeline and recognized when successfully
  reached.

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Entrepreneurial Strategy Matrix

• Strategy Matrix - A model appropriate for both
  entrepreneurial ventures involving high
  innovation and often corresponding high risk, and
  traditional small business ventures, which are
  generally low in innovation

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Multistage Contingency Approach

• The contingency approach believes that it is
  impossible to select one way of managing that
  works best in all situations
• An example of this is the never ending problem of
  increasing productivity. There may be several
  different ways to handle and look at that
  situation.

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Technology used for Venture Planning

• Business Planning software
• Bookkeeping software
• Budgeting software
• Financial Analysis software