1. Entrepreneurial Planning Considerations
Entrepreneurship 1
Section 2.09 A

2. Types of Entrepreneurial Planning
A. Strategic Planning and Operational Planning
Both are formal plans implemented in the early stages of business growth, and both can be re-evaluated and re- designed at later stages

3. Entrepreneurial Planning (cont.)
1. Strategic
taking an inventory of company strengths and weaknesses, monitoring opportunities and threats in the marketplace and matching company strengths with marketplace opportunities to gain competitive advantages.
2. Operational
provides a solid foundation for company operations by laying out the physical grouping of employees and the managerial hierarchies within an organization.
Managers put strategic plans in place to achieve financial goals such as revenue growth and cost reduction, marketing goals such as brand recognition or market share, operational goals such as waste reduction and efficiency, and human resources goals such as workplace diversity.
Organizational design essentially provides a guide for the way in which work is to be completed within the organization by determining how tasks, decisions and information flow in the company.

4. Focus during Entrepreneurial Planning
B. Operations - Map the process of production depicting each stage of operations.
Where will the business be located?
• What are the methods of production and the different stages?
• Who is responsible for each stage of operations?
• How does work get transferred from one stage to another?
• Is any part of your operations outsourced
(contracted to another business or individual)?

5. Focus of planning (continued)
C. Financial - a written set of goals, strategies and timelines for accomplishing these goals: buying your first home, funding or managing a retirement nest egg, funding your children's education, paying off debts, and so on.
Find out the cost of any business licenses and other legal documents you will need to operate your business.
Research what your operating costs will be.
Do not use all of your funds in starting up your business. Make sure you have additional funds set aside for unexpected costs that could arise.
It's a good idea to evaluate how things are going in regards to your financial plan on a monthly basis for the first year of operating your business.
One time start up cost (i.e., cost of incorporation) WRITE THIS IN NOTES

6. Focus on planning (continued)
D. Laws and Regulations
Contracts (bill of sale, warranty, partnership agreement, leases)
Employment and Labor laws (employment agreement, contractor agreements, confidentiality agreement)
Intellectual Property (patents, trademarks, copyrights, trade secrets)
Environmental Regulations (clean air permits, endangered species, handling of hazardous waste)
Zoning Laws
Permits and Licenses
Permit-is a legal document giving official permission to run a business
License-a certificate that shows you have the necessary education and training to do a job

7. Focus of planning (continued)
E. Time Commitment planning
One of the most common mistakes of start-up is underestimating the amount of money and time it takes to start a business.
The amount of time depends on the type of business you're starting and whether you plan to start the business full time or on the side.
A key factor in time management is organization.

8. Focus of planning (continued)
F. Product Considerations when planning
Timing of your product – economy, competitors
Introductory Price – competitive prices
Is your product relevant? Do people need and want your product at this time?
Product life-cycle – How do you plan to handle different life-cycles of your product?

9. Focus of planning (continued)
G. Planning for the size of your Business
Depending on the amount you can financially put up at the beginning will determine whether you start very small or quite large. (i.e., work from home or do you need a location with lots of equipment and staff)
The nature and complexity of your business is another important factor. Better to start off small and grow then to overstretch yourself and struggle.

10. Focus of planning (continued)
H. External Factors to Consider when planning a new business venture
Customers - Your business plan should outline how you will monitor and measure your customers' satisfaction. It should also outline how you will continuously develop and improve your products or services.
Competition - Understanding your competition can help you develop new ways of conducting business that could lead to a greater market share and better financial performance.
Industry & Market - A business must plan for the ever-changing laws and regulations placed by the government and other bodies.

11. Focus of planning (continued)
I. Importance of Flexibility in Planning
Plans provide us with the backbone of how we want things to be accomplished. Our flexibility on the other hand provides us the chance to modify it as it is needed.
What is essential is our deep understanding of our goals. Knowing the objective and keeping our focus on it will help us maneuver around obstacles no matter how daunting it may be. The objective is always above the plan.
Our flexibility and our openness will help us push forward closer to our goals if we truly commit ourselves to achieving it and not simply plan for it.