Entrpereneurship The Importance of Business Planning for a Venture

“A goal without a plan is just a wish”

The Importance of Business Planning for a Venture When you decide on a brilliant business idea, the challenge is to provide a clear plan to get the idea executed. It requires more than one person and people with different skills to plan well. You can start writing your business plan (or drafts of it) while planning.

The Importance of Business Planning for a Venture From each ten new startups, only one survive within the first two years (the rest fail to continue or go bankrupt). If you start your business with no clear plan, you do not know the future of your business.

The Importance of Business Planning for a Venture You can set yourself aside from competition and gain a competitive advantage by planning well. The business plan documents the plan your team is achieving.

How to Set a Good Plan for My Business? Creating a business plan may seem boring, but you should not neglect it. This is the plan that will guide your company and attract investors!

How to Start Planning? Gather and provide documentation about your business Every member in the organization should contribute to, read, and understand these documents

The Documentation you need Vision statementMission statementSWOT analysis

What is SWOT analysis S.W.O.T. is an acronym that stands for Strengths, Weaknesses, Opportunities, and Threats. A SWOT analysis is an organized list of your business’s greatest strengths, weaknesses, opportunities, and threats. (See End of Class activity about SWOT analysis)

What is SWOT analysis Strengths and weaknesses are internal to the company (such as reputation, patents, employees’ experience, location). You can change them over time Opportunities and threats are external (suppliers, competitors, current prices of raw materials); they are out there in the market and you cannot change them

What Should Be Included in a Business Plan? Executive summary Market analysis Company description ProductFinancial

How to Draft a Business Plan Activity: Refer to the “Writing a Business Plan: The Basics” document in the handouts on pages 2 to 4. Focus on your niche Use clear language Rewrite frequently

Group Activity In a team, select an industry and a company within this industry; then provide a SWOT analysis Refer and use the sheet of SWOT analysis in the (Business Modelling Workbook) document in the handouts. Two teams will be asked to explain their analysis to the class at the end of session