Discuss About The Management Plan Section Of Business Plan

Entrepreneurial business plan

Discuss About The Management Plan Section Of Business Plan.

Australia is well known for having a stable economy rate as compared to other countries of the world. The country is facing challenges for the stability of small businesses and also the new entrants in the market. The most famous small businesses include retailing, travel & tourism, IT services, healthcare centers and many more (Armstrong, Kotler, Harker and Brennan, 2015). This report is going to discuss the existence of new business ventures in the market. A market analysis will be done and accordingly different types of business plans will be discussed in this report. Importance of a business plan and how these are implemented for the given product will be discussed in detail in this report.

It is a kind of written document that describes the business activities that is performed by a small business venture. It demonstrates which type of plan you want to work on and how you will be going to achieve it. It includes the planning of business strategies in collaboration with the other team members of a company (Abam, 2018). Group meetings are organized by the senior managers to proceed with the decision-making process. Entrepreneurial business plan entrepreneurs deal with the investors of a going project. Deals with the company’s suppliers are also managed effectively using such a business plan. Entrepreneurs have to visualize the concept of the market trend that they want to accomplish for their business. This type of plan is required to analyze the potential risks that are occurring in the market. It helps the entrepreneurs to effectively collaborate with the investors

• Business Concept: in this discussion about an industry, business structure, product/service, and the planning for business success is done. All these things are necessary to be considered when determining the business concept.
• Marketplace Section: in this part, the potential customers of the business are identified, buyer’s journey and buyer’s persona is created. Also, the competitor analysis is also done for the business to identify the potential risks and to plan out their mitigation strategies.
• Financial Section: this section is most important for the accounts department in an organization. It consists of the cash flow statements, break-even analysis, and other finance-related spread-sheets. It enables the account manager to create an effective record of data or information that is transferred on a daily basis.

Business planning is the step by step process which describes the flow of business activities in an organization. It formally states the business goals that are necessary for a company to achieve. Profits in business do not occur by simply starting it up, rather, it requires business planning, resource planning, development of effective strategies etc. (Arrawatia, 2018). Business planning is done to achieve targets like satisfying customer needs, analyzing market requirement and many more. Prosthetic limb electronically operated is a new product and it will take minimum of 1-2 years to earn profits for the development cost applied. There is a main role of investors when starting a new business management venture. Investors ensure the companies that financial resources will be provided to the company whenever required. Business plans are created to focus on the internal and external environment of a company. Business plans are the decision-making tools that are required by the company to attain competitive advantage in the market.

Primary parts of the Entrepreneurial business plan

Example: business planning is done for the non-profit organizations according to the requirement and no much focusing on receiving financial profits (Baker and Saren, 2016). But a business plan that is made to attract the number of customers in the market, it is made to receive expected benefits.

Developing a business plan requires knowledge in the different functional areas of an organization like accounts, sales/marketing, human resources etc. The business disciplines that are followed by a business plan include supply chain management, intellectual property and many more.

A business plan allows companies to gather the useful information which is necessary to manage cost, find out business opportunities and evaluate overall business success (Brand and Rolland, 2018). It ensures to the companies that their information and other resources which helps in consuming less time and money.

• Determine the interoperability of the business
• Discuss the business concept
• Feasibility study for the business
• Mention details of the overall cost applied for a business start-up
• Prepare a proper schedule for achieving business goals

• Business Profile- Prosthetic limb is an artificial and electronic limb that is considered as replacement to the natural limbs or a substitute for the loss of limb. The product has been designed for aiding the handicapped individuals.
• Market research- This type of research is executed by the business organization for developing data or generating information about the marketing trends, fluctuations and perceptions of the customers. This research will aid in developing the strategies and plans while promoting and selling the product. When the annual cost or budget is cleared by the company, it becomes easier to recognize market value of the company. Deals with contractors on a certain product or service are a part of marketing research. Requirements of customers, opportunities, etc.
• Operational strategy- These types of strategies are important for a business plan as it examines the short-term and long-term objectives of a company (Dorosh, 2017). An efficient management team always prefer to develop an operational strategy for their business. Some of the operational strategy that can be followed by the business firm are-
• Corporate strategy- It promotes cross-functional communication between the management team members to take effective decisions for a business.
• Customer-driven strategy- This ensures that the customer’s requirements are fulfilled and within the given time duration (Edwards and Wilson, 2017).
• Developing core competencies- It ensures that the company has a workforce of efficient employees who are skilled in different fields of the industry (Galiano, Rodríguez and Saco, 2018)
• Competitive Priorities- When the market analysis is done the opportunities, threats, strengths, and weaknesses, political and legal factors are considered. This is helpful in creating the best possible strategy for the company.
• Product and Service Development- In this type of strategy opinions from customers are collected to ensure that the reliable and good quality products will be launched in the market (Haight, 2017). If the customers will be satisfied with the product, it will indirectly increase sales of products for the company.
• Products/Services- proper description of the product should be given so that customers can understand as to why they should that particular product. Product idea should be unique to attract customers (Haque and Anastase, 2017). Customers should be to differentiate the product from the other products.
• Marketing Plan: this is kind of document that is used to portray the information regarding the basics of advertising and marketing strategy for a business. A marketing plan is a roadmap for the marketers to know the demands of customers and the effectiveness of their product in the targeted marketplace. The marketing plan is created before one year of launching the new product in the market to attract more number of customers. A company’s marketing plan keeps on changing along with the change in market trends. It is a type of blueprint that consists of all the necessary information about the target audience, cost, resources required, stakeholders involved in the project and many more under one document (Lane and Dieterlen, 2018). The marketing strategy of a company can be created appropriately analyzing the strengths and opportunities.
• Financial Strategy- a financial strategy is developed keeping the achievement of long-term goals for a company. It includes all the information regarding the company’s finances. It is used to decide which type of action can be taken for the company to enhance the business operations.

To achieve success in a business, it is important to determine the goals and objectives. Business goals are defined as to the point and specific for the company (Lopez, 2017). The targets have been set up by the higher authorities of a company to make decisions while determining the company’s goals and objectives. Some of the business goals that need to achieve are as follows-

• Profitability- company has to focus on the regular expenses and the profit statistics annually so that company’s profitability can be enhanced.
• Customer Service- The requests of customers will be accepted and the highly skilled employees of the company will be made responsible to handle the customers efficiently.
• Retention- Improvements in company’s retention is mandatory to satisfy the demands made by the customers (Peck, 2017).
• Efficiency- In order to improve the productivity of the company, managers has decided to provide staff training to the employees working in the organization.
• Growth- The business organization wants to expand their business to different cities and even overseas. For this, a company is continuously analyzing the market risks and finding their appropriate solutions.

This is a part of a business plan that contributes to managing all the project related activities like project scheduling, planning and strategic planning (Plekhanov, 2018). Management plan helps the companies to analyze the functional areas which need to be improved and also to understand the clarity of company’s goals and objectives. A management plan can be developed by following simple steps-

• Assess your situation: It is important for the companies to collect information about their current situation in the market. Identification of what our company can achieve considering their strengths and opportunities available in the market (Pratama, 2018).
• Set Priorities: When expecting reliable outcomes for a business plan, managers of the company should set their priorities before constructing a business strategy.
• Set Goals: For an effective management plan, goals should be described before implementing the business strategy.
• Create accountability System: The team members of the firm have to collaborate together in managing the accounting operations of the company. As the data is very crucial each staff members should be assigned a responsibility so that work can be managed fastly and efficiently (Shinohara and Saika, 2018).
• Evaluate and Review: Employees should work on different projects and then later assess the benefits and losses that are achieved by the company. Reviews can also be taken from customers by receiving their feedbacks for a particular product or service.

Market Research and Analysis can be used in tracking the business activities performed by the competitors of the company. Market research is done to know what are the trending policies going on in the market, activities of the competitors and the value of the company as compared to their competitors in the market (Shorrick, Aspinall and Serpis, 2017). Marketers gather the information regarding the market size, market value, competitor’s strength, and the other related information required for a business success. Market research also allows companies to understand the requirements of customers and provide information as to how a product can be marketed.

1. Primary Research- Primary research is further categorized into two sub-categories quantitative and qualitative research.
2. Secondary Research- This type of research is conducted by contact with the external stakeholders of the company like suppliers or investors.

Focus Groups: This is completely based on observation of the people participated in focus groups. in this market research, a group of people is asked certain questions about the business and they have to make a discussion on that. This helps to know about the taste of customers for a particular product or service. 

Business Planning

One-on-one interviews: this is a time-consuming process but detailed knowledge about the views of customers.

Phone Surveys: The data is collected for a product by calling the customer who purchased that product. Then, the data is sorted and an average result is counted about the marketing of a product.

This provides an overview of the effectiveness of the marketing strategies that are developed by the company. In this type of plan, all the related functional areas of a company are associated. Marketers need to understand the current position of the company in the market to plan for better ideas and approaches. A marketing plan is important for a business as it provides all the necessary details of a customer, sponsor, supplier, investor and other external stakeholders of the company. It provides risk management strategies for the businesses to overcome the challenges faced by the company. Besides that, management of resources is done, budgets are improved and other business processes are enhanced. A marketing plan will be helpful for the product to analyse marketing strategies, to manage budgets, to know about the needs of the market and to maintain project success within the given time duration. 

• Return on Investment: This is used to ensure whether the applied development cost for the business will provide desired results or not. It provides the investments records to the company and state issues (if any). Each investment can be broken down into smaller fragments to analyze the outcomes.
• Sales Numbers: it helps in analyzing the current position of sales procedure in the market and what strategies can be used to manage the sales for the company.
• Customer Response: After implementing a marketing plan, next step is to analyze whether the customers are affected by it or not. It means that positive or negative responses have to be taken from the customers to have an effective growth in the business.
• Market Expansion: If the number of sales of products or services starts to increase at an expected rate then the company must notify a change in their market expansion value. This will essentially state that the products are liked by the customers and there is a scope for the company to have a growth in their business.

It is the detailed overview of the contribution that the staff members make in order to achieve organizational goals. The regular business operations are tracked and their reliability is analyzed. The four questions who, when, what and how much is answered in an operational plan.

• What- The information regarding the business activities that need to be performed regularly is collected.
• Who- The person responsible for handling the business operations of the company are considered
• When- Task scheduling is done for the small and large projects of the company
• How much- It describes the status of finances for the company

Financial Plan: A Financial plan is related to the accounting details of the company measuring the current account statistics and what can be the profits achieved by the company in coming years. Companies need to maintain their budgets so that they can analyze where the expenses are going on in the company. Record of profits, sales record, employee salary, etc. is all counted when developing a financial plan. Cash flow statement, balance sheet, and income statements are the three main components of a financial plan for a business. It describes the profits or losses that the company has achieved annually.

• Knowing about investment: A company must ensure that some percentage of their profits will be spent and the other part will be moved on to the savings. This will help the prosthetic limb that is the product to make effective decisions to invest money in their business.
• Identification of Goals: When the document is created which consists of objectives that need to be achieved by the company then it makes easier for the company managers to evaluate success for their business (gov 2018).
• Prioritise the Goals: Once the document is created representing goals and objectives of the company, set priorities for each of the planned goal. This will help the company to analyze the profits or losses that it will have within few years.
• Calculate future costs: For the applied development costs on the improvement for the company’s business activities, it is important to determine the costs that the company has to pay in future.
• Choose investment option: the company can decided what kind of goals they are planning to achieve such as short-term, long-term or medium-term

Action plan- it is a detailed plan that is used by the companies to take relevant actions for achieving success in the market. It details about the risk mitigation strategies and the tools/techniques used to perform business activities. An action plan is created by the company so that the step by step procedure can be followed to achieve the targeted goals in their business. An action plan is helpful for the project managers to monitor about the project activities like whether the scheduled activity is performed on the given time duration or not. It is quite sure that a structured plan allows companies to construct better strategies as compared to the raw data. An action plan provides individual responsibilities to the team members so that tasks can be accomplished within the limited time duration. Considering these advantages of an action plan, Shippit can implement an action plan for their business so that the daily routine activities can be managed properly (Smallbusiness 2018). This will allow companies to evaluate the potential risks associated with their business and can find the appropriate feasible solution for the identified risks.

Questionnaires for a business plan

Team collaboration is mandatory. Each team member has to give his individual contribution to achieving a project activities based task. If any of the team members fail to accomplish his it might lead to project failure which is one of the issues related to action planning. Insufficient guidance to the staff members is also an issue. If the staff members are not able to understand the activities of an action plan then it will create the loss of the company. 

The above sections have discussed the different plans that can be used by an organization to evaluate risks and to mitigate them. An entrepreneurial business plan will help the entrepreneurs in deciding to choose reliable suppliers for their business. Also, entrepreneurs can deal with the different investors so that they can get sufficient amount of financial resources for running their business. As the business of the product is required to be expanded, therefore, marketing planning will be beneficial in managing the marketing strategies developed to increase the sales of products (Duermyer 2017). The marketing investments can also be made reliable to use as this plan will help the firm to manage the overall development cost applied to their business. Besides this, an action plan, operational plan, financial plan and other plans are advantageous for the company to achieve their targeted goals and expand their business (Ward 2017). These plans will be useful for the managers of the entity to take an opportunity for increasing economic value of the company in the market.

Conclusion

This is to conclude from this detailed report that business plan for Prostethetic Limb is required to have an effective marketing plan to have a sustainable growth in the business environment. The report has discussed various business plans that can be implemented by business organization to attain competitive success in the market. The product is successfully running its business to different cities to Australia and now wanted to make expansions outside Australia. Therefore, business plans were studied to analyze the effectiveness and advantages it can provide to the company. It can also be concluded that the discussed business plans will prove to be useful as a company can understand the requirements of customers by using competitor analysis and market research method. Customer requirements are the basic and most important thing a company has to understand which can be easily done by using activities performed in business plans.

Business Plan for Prosthetic limb

References

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