Assignment 4: Final Business Plan
Now its time to pull everything together and create your final business plan. Make sure to review all the feedback you received for Assignments 1, 2, and 3, and make the necessary corrections. Then copy and paste it all into one document, and add an executive summary and an exit strategy. The executive summary is a snapshot of your business plan as a whole and should touch on your company profile and goals. Additionally, the most successful exits in business require considerable planning. You will need to discuss two key factors to consider when planning your exit strategy.
Write a five (5) page paper in which you:
Write a one page executive summary that includes your company profile and goals.
Revise and insert the business models section you developed for Assignment 1.
Revise and insert the target market section you developed for Assignment 2.
Revise and insert the startup funds section you developed for Assignment 3.
Write a one page exit strategy where you discuss two key factors you would consider when planning an exit strategy. Provide explanation to support your reasoning.
Format your assignment according to the following formatting requirements:
This course requires use of new Strayer Writing Standards (SWS). The format is different than other Strayer University courses. Please take a moment to review the SWS documentation for details.
Typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides.
Include a cover page containing the title of the assignment, the students name, the professors name, the course title, and the date. The cover page is not included in the required page length.
The specific course learning outcomes associated with this assignment are:
Examine the process of innovating and developing ideas and business opportunities.
Analyze different innovative business models to determine the best model for a specific venture.
Analyze the management of a successful innovative company.
Examine the process of developing a business plan and setting up the company.
Analyze the market, customers, and competition of entrepreneurs.
Analyze money sources for finding and managing funds.
Determine the most effective communication process to present the business to investors.
Analyze methods for exiting the venture.
Use technology and information resources to research issues in entrepreneurship.
Write clearly and concisely about entrepreneurship using proper writing mechanics.
Running Head: BUSSINESS MODEL 1
BUSSINESS MODEL 1
The best business models
Opening a new small business is a significant and challenging step. It is because it involves one leaving a more secure job with a specific salary to an uncertain future. However, starting a business can be very fulfilling as I can earn a living while still pursuing a business in which I have a great passion. Considering starting a new business will also lead to flexibility in my lifestyle (Machado et al., 2016). I do not need to work on a fixed schedule. The three business models I have in mind are Affiliate marketing, Store retailing, and Agency-based.
The availability of social media has led to people connecting from different parts of the world hence making marketing more acceptable. Starting an affiliate marketing business model will allow me to earn a commission from companies in which I will be promoting their products and services. In this, I will help companies sell their products and earn a profit from each sale I make.
A lot of people buy products in small bits as buying in bulk can be wasteful and very expensive. Starting a retail business is a good idea for me because by buying products from distributors, I will be able to sell them in bits to the public. Also, this business is essential as I will be able to reach many customers, hence more profit.
An agency acts as a companys partner and helps in handling non-core businesses such as advertising and network marketing. Considering starting an agency-based model will help companies to delegate non-core business to the partner and focus on their core businesses. Also, companies look for agencies that are responsible and can maintain efficiency as well as privacy.
From the three models, I wish to start a store retailing business. Most people need a store where they will buy products for consumption in small bits to avoid wastage and also that is less expensive. Customers need a place they will buy goods every time they need to; hence, the stores are designed to attract a lot of walk-in customers as they operate in fixed locations. Also, marketing online is easier as almost everyone is connected to social media (Chen, Li, & Pun, 2018). Additionally, a store retailing business serves a lot of customers, including the general public, businesses, and even institutional clients.
References
Chen, J., Pun, H., & Li, W. (2018). Using online channel to defer the launch of discount retailing store.Transportation Research Part E: Logistics and Transportation Review,120, 96-115.
Machado, H. P. V., Gazola, S., Fabricio, J. D. S., & Anez, M. E. M. (2016). Women entrepreneurs: Reasons and difficulties for starting in business.RAM. Revista de Administrao Mackenzie,17(3), 15-38. Running Head: STARTUP FUNDS 1
STARTUP FUNDS 1
Startup Funds
Startup funding is the amount of money needed to start up a new business. Working capital is the difference between existing business assets and liabilities. Business assets include cash, raw materials, and finished products. Business liabilities can be said to be money that the business is supposed to pay off. When a company has enough working capital can sustain its activities and make a profit. Research has shown that 94% of new businesses fail in their first year of venturing into a business (Cavallo et al., 2019). This happens because they lack money to fund and sustain their business activities. This paper discusses methods of obtaining business funds, what it takes to have the best business plan, and the best way to communicate to sell the business.
Developing a business plan is the most crucial part of starting up a business. A business plan is necessary because potential investors and money lenders will demand to see before loaning out money. There are five steps followed when formulating a business plan (Lee, 2011). First is researching the industry and the behavior of customers using sources such as articles, interviews, databases, and document the findings. The next step is to strategize on how to start and run the business. Make all the calculations on the costs to incur in the business set up and draft every section of the business plan. The last step in the business planning process is revising the plan by proofreading and makes corrections where necessary.
There are different funding sources when planning to start up a business. The best source of money that is used to start a business is the self-funding source or rather the bootstrapping. For business starters, it is always hard for them to get funds without showing their potential ability to succeed. Using personal savings and family support is the best way to fund business because it ties one to the business. Other entrepreneurs’ sort to acquire business funds by taking a loan from a bank or any other financial institution (Dos Santos, Patel, & D’Souza, 2011).
The communication process with the investors is very paramount because it determines the progress and success of the business. As a business owner, one should communicate effectively to convince the investors to fund the business. While addressing the whole process, it should be clear regardless of the mode of communication used (Lev, 2012). Show the investors that you have a clear goal and let them know how you value them as much as the business idea.
References
Cavallo, A., Ghezzi, A., Dell’Era, C., & Pellizzoni, E. (2019). Fostering digital entrepreneurship from startup to scaleup: The role of venture capital funds and angel groups.Technological Forecasting and Social Change,145, 24-35.
Dos Santos, B. L., Patel, P. C., & D’Souza, R. R. (2011). Venture capital funding for information technology businesses.Journal of the Association for Information Systems,12(1), 2.
Lee, J. (2011).The Right-Brain Business Plan: A Creative, Visual Map for Success. New World Library.
Lev, B. (2012).Winning investors over: Surprising truths about honesty, earnings guidance, and other ways to boost your stock price. Harvard Business Press. Running Head: TARGET MARKET SECTION 1
TARGET MARKET SECTION 1
Target market section
A target market for a small business is a group of people that the business is targeting to sell their products. These people are the customers who are likely to buy the goods of the business. A target market segment is a group of people that share one or more characteristics that a business is targeting to sell its products (Wasilewska et al., 2019). For a store retail business, there is a primary and secondary target market segment.
Walk-in customers are the primary target market segment for store retail. Most of these customers are fast and furious; therefore, they want to do their shopping as fast as possible. Also, the majority of the walk-in customers are budget conscious who are fixed to a specific budget. They, therefore, look for products with low prices and discounted items. Additionally, they are habitual customers. The walk-in customers are mostly royal to the store as they buy products from the stores whenever they want them.
Online shoppers are the secondary target market segment. It is because they are smart shoppers. They consider their ability to shop as they think they can spot bargain very easily. They also are not budget conscious and are therefore looking for products with the best value. Also, online shoppers are always looking for quality, and they tend to equate value with quality. They also prefer high-status brands and are willing to spend a lot of money only to get high quality. Additionally, online shoppers are a variety of seekers, and most are people under the age of fifty years (Liao et al., 2017). They enjoy trying different tastes and also trying new products.
Therefore, when considering starting a business, one needs first to identify the target market. A better understanding of different types of target markets leads to better marketing strategies. Hence, for a business to be successful, the store retail owner needs to identify the preferences of each market segment
References
Liao, C., Lin, H. N., Luo, M. M., & Chea, S. (2017). Factors influencing online shoppers repurchase intentions: The roles of satisfaction and regret.Information & Management,54(5), 651-668.
Wasilewska, N., Bludova, T., Kudenko, O., & Tokar, V. (2019). Evaluation of target market segments for enterprises.Scientific Journal of Warsaw University of Life Sciences-SGGW-European Policies, Finance and Marketing, (22 (71)).
