Assignment Task
Aims
Students are required to construct a business plan using relevant theory, research and analysis to start a feasible micro or small business. Completing a business plan forces students to assess all aspects of a business, especially the difficulties in resource availability to start a micro or small business. Each student will have the opportunity to pursue an idea and create a business using that idea. Ultimately, after the completion of this assessment students would have a professional document that could be presented to funding agencies.
NOTES
Each student is tasked with identifying an idea and building a business plan around it. Please follow the guide below, including the Microsoft Excel Financial Spreadsheet. All information pertaining to the Business Plan can be found in your Kortextbook:
- New Venture Creation: A Framework for Entrepreneurial Start-ups (Paul Burns)
Please submit on Turnitin (Module Page):
- Business plan in Microsoft Word
- Financial Template in MS Excel Spreadsheet
BUSINESS DETAILS
- What kind of entrepreneur are you? Innovator? Lifestyle? Income-replacement
- What kind of business are you?
- Disruptive Innovation? New-to-the-world Industries? Incremental Product/Service? Innovation? Copy-cat? Market Development Market Paradigm Shift?
- Sole Proprietorship? Partnership? Corporation? S-Corporation? Non-Profit?
- Is your business part-time or full-time work?
- Why do you want to start this business?
- Have you not added your entrepreneurial characteristics quizzes to talk about/discuss yourself in the business details? Remember you are your business, and the business identity is shaped in YOUR
INDUSTRY AND MARKET ANALYSIS
There is no analysis of the market or display of understanding the market.
- Market/Industry Lifecycle: New Market? Emerging? Growing? Mature? Declining?
- Market/Industry Concentration: Fragmented? Consolidated?
- Market/Industry Geographic Extent: Local, regional or national? Global?
- Competitors: Direct? Indirect? Future Competitors?
- Market Size: Potential Market? Total Available Market? Served Available Market? Penetrated Market?
- Market Analysis Techniques/Tools: Brainstorming; Mind Maps; Industry Futures: PESTEL Analysis; Attribute Analysis; Gap Analysis; SWOT Analysis;
- Identifying gaps in the market: Value Chain: Porter’s 5 Forces – inbound logistics; operations; outbound logistics; marketing and sales; after-sales service; procurement; human resource management; technology development; firm infrastructure.
- Page 97: The screening process ahead of the go/no-go decision.
- Why do you think this will work? What opportunity do you recognise? Is there a gap in the market? Are you bringing a totally new innovation?
CUSTOMERS AND VALUE PROPOSITION
- Business Model: Low price (low cost); high differentiation; high customer focus or intimacy; Internet-based model?
- How are you ensuring that your business has a competitive advantage?
- What IS your competitive advantage?
- CHARACTERISTICS OF A GOOD BUSINESS MODEL
- VALUE PROPOSITION SHOULD STATE THREE THINGS
- How your product or service will solve a problem for your target customers.
- The benefits they can expect – tangible and intangible.
- Why they should buy from you rather than from your competitors.
- CREATE VALUE BY
- Establish an identity
- Help build a reputation
- Help develop a relationship
RISK ASSESSMENT
- Identified Risks;
- Pre-launch activities; Post-launch Operations.
- Risk Monitoring and Mitigation;
- Pre-launch Delays; Competitors; Competitive Advantage; Market; Customer Value Proposition; Product/Service quality; Customer Service; Cash Flow; Sales; Profits; Operations; Productivity; Administration; Brand Identity; IP; Technology; Investment; Stocks/Inventory; Merchandising; Debtors/Receivables; Interest rates; Exchange Rates; Management.
- Critical Success Factors;
- Things that are essential to get right if the business is to achieve its mission.
- Assessing Risk: Impact; Probability; Control;
- Strategic Options
- Affordable loss and lean start-up; Borrowing and bootstrapping; Compartmentalizing risk; High margins and low fixed costs;