business plan
CASE STUDY ANALYSIS 1&2
Part one: A literature review concerning the purpose and content of business plans
Supervisor: Paul Grant
A business plan is so important in the business environment especially for a start-up business that normally needs to persuade third party for more money. Business might not grow according to plan along the way but without a plan, business will never be successful. Business Portal of India [n.d] states that business requires finance to start up its operation, to maintain its operation and for its growth and expansion. A good business plan will help firm achieve a certain amount of money invested by financiers. Not only help you get your money, federation of small business (2012) points out that a good business plan also help you build a stronger base for your business. It can clarify your business purpose to yourself, communicate to your partners as well as your staff, forecast future scenarios and address them before they threaten the success of your business; and set targets and objectives so that you can control your performance well. Alsbury (2001) at the same time suggests that the reasons for business producing a formal plan are to track business performance and viability, to secure finance, to expand and to formalize strategies. Investors will look at business to decide whether they give a firm money or not but what a business plan contains and how to make a good business plan is the objectives of many studies.
First, to understand how to make a business plan, firms must know how can they gain their external funds. There are two ways of funding a business, either business owner provide personal self-own money into the business or gather the amount of money needed from outsider known as raising external finance. As stated by Harris (2006, p93) winning of grants, taking on debt and sale of equity are the three basic sources of funds for start-up businesses. Grants are money that does not need to be repaid but with
Part one: A literature review concerning the purpose and content of business plans
Supervisor: Paul Grant
A business plan is so important in the business environment especially for a start-up business that normally needs to persuade third party for more money. Business might not grow according to plan along the way but without a plan, business will never be successful. Business Portal of India [n.d] states that business requires finance to start up its operation, to maintain its operation and for its growth and expansion. A good business plan will help firm achieve a certain amount of money invested by financiers. Not only help you get your money, federation of small business (2012) points out that a good business plan also help you build a stronger base for your business. It can clarify your business purpose to yourself, communicate to your partners as well as your staff, forecast future scenarios and address them before they threaten the success of your business; and set targets and objectives so that you can control your performance well. Alsbury (2001) at the same time suggests that the reasons for business producing a formal plan are to track business performance and viability, to secure finance, to expand and to formalize strategies. Investors will look at business to decide whether they give a firm money or not but what a business plan contains and how to make a good business plan is the objectives of many studies.
First, to understand how to make a business plan, firms must know how can they gain their external funds. There are two ways of funding a business, either business owner provide personal self-own money into the business or gather the amount of money needed from outsider known as raising external finance. As stated by Harris (2006, p93) winning of grants, taking on debt and sale of equity are the three basic sources of funds for start-up businesses. Grants are money that does not need to be repaid but with
References: Alsbury, A. (2001) Quick answer to small business questions. Great Britain: Pearson Education Limited. Barrow, C. (1986) Routes to success: case studies of 40 UK small business ventures, London: Kogan Page Ltd. Blackwell, E. (2004) How to prepare a business plan. Revised 4th edition. London: Kogan Page Ltd. Business Portal of India [n.d] Starting a business: Financing a start up business [online] [Accessed 10 October 2013] David Butler, (2000) ‘Business planning: a guide to business start-up’ Federation of small business (2012) Good small business guide 2012: How to start and grow your own business. 6th edition. London: Bloomsbury Publishing Plc Hall Business, p71. Harris, T. (2006) ‘Start-up’, Verlag Berlin Heidelberg: Springer, p93. HSBC bank plc (1999) cited in A. Alsbury (2001) Quick answer to small business questions. Great Britain: Pearson Education Limited. Jones, G. (1953) Starting up: how to launch and grow new business. Natwest business handbooks. Leach, R, Dore, J & Steward, C. (2000) Running your own business. 4th edition. Gloucestershire: Management Books 2000 Ltd. Mason, C. & Harrison, R. (1996) Why “Business angels” say no: A Case Study of Opportunities Rejected by an Informal Investor Syndicate, Sage Publications.