Planning a Startup Company Essay Examples & Outline
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Planning a Startup Company
In order for the business to be launched in the most successful manner, there are six steps that have to be adhered to. The first thing that the business ought to do is to move beyond the tenets or boundaries set out in the business plan. The constrained imposed on the business by the plan are insufficient in the development of the successful business. The planning models that can be used is the apprentice model whereby one has to get the experience of the business environment from the industry (Robbins & Coulter, 2005).
The second approach of getting the perspective of the market is the hired gun approach, which relies on the expert advice from the management. The third approach used in gaining perspective on the management approach is the ultra-lean school of the hard knocks. The method espouses the need of rapidly testing the alternatives and adjusting to the environment and new market requirements. Therefore, the business pan offer the road map while the above tactics are the sources of direction and action for the business (Schermerhorn, 2005).
Rapid testing and refining of the methods leads to the removal of the associated costs that would otherwise affect the mode of operation and the associated viability of the approaches and interventions.
The second step focuses on the testing of the idea in the market in order to understand the ways of ensuring that the market is satisfied. The idea could be novice or too new in the market, premature ideas ought to be left until the times when it is viable to implement them. The third steps calls for adept understanding of the market and associated dynamics. Understanding of the market enables the business managers to come up with the right planning approaches and interventions (Robbins & Coulter, 2005).
Adept understanding of the market also leads to the development of perspective on the interventions that would be best suited to give the company the competitive advantage. Feasibility of the idea ought to be tested according to the market dynamics. The business has to understand the customer in terms of the needs and the preferences. This aspect makes it possible for the management to come up with the right interventions of fulfilling the needs of the market.
The fourth step entails the allocation of the right cash resources to the business to ensure that it is successful (Robbins & Coulter, 2005). Allocation of the resources ought to be done by looking for the investors and trade credit where applicable (Schermerhorn, 2005). Loans and venture capital investments are also viable sources of funding. Sure sources of the business funding are important in that the business can operate without the hitches that arise from the shortages of funds. The final step calls for the selection of the right business structure that will lead to the quickest attainment of the business objectives as outlined in the business plan.
A business ought to operate on a clear plan (Hellriegel & Slocum, 1982). The feasibility study and business plan act as the main sources of the direction for the business. Feasibility study is important in that it will outline what is attainable in the business and what is unrealistic. It also sets out the limitations of the business growth and development given the market in which it operates (Schermerhorn, 2005).
The business plan offers the direction for the organization. The direction offered by the business plan is also a control for the business actions. An action undertaken by the officials in the organization ought to be contributing directly to the attainment of the business plan. If the case is the opposite, the action is not justified and it ought to be neglected.
Entrepreneurs can seek out funds from different people. The main sources of the business funding for the new ventures is the loans from the banks and other financial institutions, angel investors, venture capitalists, savings and donations from the family and friends (Hellriegel & Slocum, 1982). This means that the sources of funding can be either officially sourced or sought out from the network of social interactions that the business owner has.
The goodwill of the entrepreneur and the potential of the venture is one of the main foundations used in the assent of the decision to offer the finances for the new venture or not (Hellriegel & Slocum, 1982). Therefore, the ability to find the funding is directly related to the goodwill and reputation of the entrepreneur.
Planning for the business startup often assumes two phases. In one phase, short terms plank are developed and they are concerned with the normal daily operations. The short terms plans include the daily sales volume, the need for temporary labor and improvements on the customer relations (Hellriegel & Slocum, 1982). The long-term plans are concerned with the future development of the business. It may include the expansion strategy and the development of the capacity of the employees.
The planning of the company is the main determinant of success. This aspect manifests in the story of the development of Walmart whereby what started out, as a small family business is now the largest company in the world by the virtue of sales and workforce (Schermerhorn, 2005).
Hellriegel, D., & Slocum, J. (1982). Management. Reading, Mass.: Addison-Wesley Pub. Co.
Robbins, S., & Coulter, M. (2005). Management. Upper Saddle River, NJ: Pearson Prentice Hall.
Schermerhorn, J. (2005). Management. New York: J. Wiley.