Business Plan Analysis For Impacting The Business Planning

A Brief Description for Plan 1: 2MBA Inc.

Discuss about the Business Plan Analysis for Impacting the Business Planning.

Planning is an imperative and integral part of business throughout the existence of the business. Every success story of an organization is based on the effective plan of activities and to make sure that it continues to do so, it is important that it is reviewed from time to time. The business plan also helps in evaluating the performance on the regular interval and also recognize right strategies for the growth and development (Brinckmann et al., 2010). After consideration of the progress and identifying key areas of growth and development that the company wants to target, the business can quickly revisit the strategies and make a right route for achieving the next stage for the business (Brinckmann et al., 2010). The business plan is the compass of the organization since it helps in mapping out a new course and at the same time also assists in navigating through different territories for the growth of the business.

Plan one discusses company which specializes in developing an innovative solution in the form of beverage equipment. The company is known as 2MBA Inc. and is led by a management team which is highly committed to providing the best services. The board holds sixty percent of equity and two positions on the board (Brinckmann et al., 2010). The primary investors will achieve two seats on the board and in addition to this a coordinator position.  

The product of the company is La Barista which in technical terms is patented espresso machine. The machine guarantees not just good but great tasting coffee every time it is served to the customers. The product La Barista specializes in coffee making from soluble coffee powder (Hillier et al., 2011). This all can be done through the touch of a button. The company has employed a significant and breakthrough technology which resembles an espresso machine. The company specializes in following points: –  

1. The company specializes in delivering consistent quality and best taste every time it is served to the customers.
2. The company completely removes the need for the Barista or other expensive managers (Hillier et al., 2011).
3. The company responds to different changes that suit consumer tastes in a more different and distinct way and also provides premium coffees to elite customers.
4. The machines can produce cappuccino in four seconds and ten times the speed of an espresso machine (Hillier et al., 2011).
5. The machines can also reduce the bench space and it requires due to few foot print.
6. The company can serve up to four unique coffees at the same time.
7. The machines have low maintenance needs, and this is why costs are also reduced.

Another business plan presents company called SanaSana which provides B2B2C answers that give an efficient, a partnership which is mutually beneficial for Hispanic customers and the organizations, suppliers and providers that are related to health service and on- health companies and can serve them in an effective manner (Hillier et al., 2011). The company got established in the US, SanaSana is also planning to expand on a global platform with the desire to access Spanish-speakers to access to medical information. The company follows five trends in marketplace: –  

1. The segment in Hispanic is growing at a very fast rate and there need for health differ from those of another kind of ethnicities.
2. Hispanics are also becoming savvy as far as technology is concerned and want more information for Hispanic needs (Hillier et al., 2011).
3. The company also provides data which internet based in the most general way and specifically for health care, and it also lacks quality control.
4. Internet-based information for health data is available in abundant and at the same time also lacks currency, personalization and overall impact (Hillier et al., 2011).
5. There are some companies that are trying to understand and also reach out to Hispanic people.

A Brief Description of Plan 2: SanaSana

The customer gains a convenient way to become more informed consumer for varied health services and at the same time protecting the overall confidentiality by providing four characteristics: –  

1. Health Capsules: it provides updates for customization through proprietary email.
2. On- line and off- line community: these features consist of email responders, support groups, partnerships, and chat rooms with a community like libraries, churches and hospitals (Burke et al., 2010).
3. Privacy protection plan: the company considers it as a cornerstone through important information among the partners.
4. The company also provides referrals where consumer recommendations for health care services and products (Smith et al., 2010).

Strongest Components of 2MBA Inc..

1. The plan has provided specific information making it a compact yet meaningful business plan. In addition to this, the plan has covered all important information for the investor (Burke et al., 2010).
2. The strongest components of the company are its product which is style espresso machine. The machine which company uses for coffee making is largely connected with the high quality and with the help of the best quality product that it provides.  
3. The company has a Mobile Vending Unit which is also known as MVU that can easily give an edge to the company over other competitors. This MVU can provide an innovative platform to the customer (Burke et al., 2010).
4. The company has been started by highly motivated and a group of the very experienced team that has introduced a breakthrough product to the customers.

Strongest Points of SanaSana

1. The plan has provided detailed information for every aspect of the business.
2. The company is started by a bunch of friends who are experienced and started this organization with the motive to give back to the community (Smith et al., 2010).

Weakest Components of 2MBA Inc..

Following are the weakest components in business plan of 2MBA Inc.: –

1. It is important that every business plans that consist of all the important documents that are needed to analyze from time to time and also measure the cash flow, expenses, and income projections. The business plan of 2MBA Inc. does not include proper financial statements and operating budget for the future (Smith et al., 2010). When a company is looking for investors for funding, the income and expense projections should make sense.
2. The business plan must contain complete detail related to the competition, and it is obvious that every business must face competition. 2MBA Inc. has not mentioned much about competition in the business plan. When a plan does not discuss any competition is the indication of major weakness in understanding the industry (Smith et al., 2010). It is important to provide detailed data regarding every competitor which is related to the position of the market, strength, offerings and weaknesses. 

Following are weakest components in business plan of SanaSana: –

1. A marketing plan is very important, and the business plan of SanaSana does not discuss sales and marketing strategies for the company. Organizations must not feel scared to list down exact functions that they plan to utilize like advertising in the newspaper (Barney and Hesterly, 2015).
2. It is important to have a strong analysis of the potential customers and market and it is critical for the strong business plan. The plan must explain the features of the market and at the same time, it should suggest how the market will be captured. The business plan lacks a strong marketing analysis section where it is clearly mentioned what customers wants to buy and what is a company offering (Barney and Hesterly, 2015).

Potential investors these days focus on seeing the business plan before considering funding and investment in the business. Although there are different companies that are tempted to utilize the business plan completely for the same reason and a good and effective plan helps in setting the course of the business over its lifespan (Barney and Hesterly, 2015).

A business plan plays a very important role while allocating different resources in the business and this works like a tool that assists the business to attract new investors and customers. An effective business plan helps in revealing how the bank loan and other investment can be utilized efficiently (Kubr et al., 2013).  

Business planning these days means that managers can easily monitor the achievements and future goals of the business. As discussed, it works like a tool that helps in recognizing the current position of the company and future direction for the business for growth.  Regular businesses’ planning at regular interval increases the chances of success by continuously improving and also keeps the pan up-to-date (Kubr et al., 2013). This also happens to include regular planning and meeting to strategize that include important people from the companies.

When company regularly assess the performance by aligning it with plans and set targets, the company can easily meet the goals. Following is the detailed discussion of the factors that can improve the business plan: –  

1. Planning and allocating resources in an effective manner. The business plan plays a very crucial role by allocating right resources throughout the business so that these aims can be set and then met (Kubr et al., 2013). After reviewing the progress and also identifying the strategy for growth and your present business plan should remain updated and it should not reflect on the position of the business and achieve future directions.  It is important to be very clear with how someone should review the business by clearly allocating the resources to make the strategy work. Like for example, when a specific category in the business are given some targets and the business plan should allocate resources to achieve it (Kubr et al., 2013).  
2. Utilization of targets for implementing the business plan: – a business plan will be effective when the targets and objectives are incorporated. The complete plan helps in setting the strategic goals, and the goals are unlikely to be achieved when the company uses SMART targets (Williams, 2013). Targets assist everyone in the company to understand what needs to achieve and when the company wants to achieve them in an efficient manner.  

The company can analysis the performance of each and every employee, teams or a new service or product by utilising right performance indicators. These indicators can be: –

1. Profit figures and sales over a specific period
2. New product development and different milestone.
3. Benchmarks for productivity for specific team member
4. Statistics for market share

A target makes it clear for employees to understand where it needs to fit within the organization and also what is need to help the business to meet the set goals. It is important to set clear aims and also targets and closely test the delivery and how it can help in the development process to make it more effective (Williams, 2013). Objectives should be used as a key part of appraisal and promotion of the employees and also as a means of addressing all the progress in an objective manner.    

Identification of the three Strongest Components of Each Plan

Following are some easy methods in order to overcome these challenges and also ensure that businesses stay on the right direction.

1. Scaling and staffing: as a business starts growing, there is nothing more unique or crucial that finding and hiring right staff. Staffing in the company should be planned, and business plan helps in recruiting the dedicated talent (Williams, 2013). Another important challenge for the companies these days are scaling the business by ensuring the plan for next one year as well as for next five-year plan that focuses on specific growth objectives.
2. Competitive: to stay competitive, the companies must generate a more customer-centric plan for marketing, and it is also continuously solidifying the relationships with the right target market. One of best methods to do this is through content marketing with company’s different vertical response (Williams, 2013).
3. Management of money: another crucial aspect of running a business means keeping all the track of money and how it is spent. It also focuses on cash flow in the company. Once the company grows management of finance on a spread-sheet is something very difficult to achieve (Jones and Jones, 2011).

Following are the five lessons for the business planning: –

1. The plan should not be poorly written which means, organizations while making the business plan should focus on spelling, grammar and punctuation tests. This also means it is important when a company gets down planning the business on papers; it must be done in a careful manner (Jones and Jones, 2011). When investors analyze a plan, they are not looking for clues about the business and the plan should be persuasive for them which need good communication.
2. Presentation of the plan should not be sloppy: while writing should be the main focus point, the presentation for the same should match with the writing. Application of business plan will be effective when it is presented in the right manner. The business plan must have a proper proof reading session when it is planned to show it to investor or bankers (Jones and Jones, 2011).
3. The plan should be finished in an effective manner, and every business has consumers, services, products, marketing and sales and competitors and much more. The plan must cover every point and area that requires it to be effective. The whole plan must include a discussion of the industry specifically different trends for an industry like if the market is growing or shrinking (Jones and Jones, 2011). In the end, the plan should also include all the projections as far as finances are concerned like cash flow on monthly basis and income statements.
4. The plans should not be too vague. The information in the business plan should have a clear focus and the information mentioned should not vague by nature since the information involves confidential data and different technologies (Jones and Jones, 2011).
5. Business plans should not be too detailed. The main aim is to have a clear focus on the key points. One method to do this by breaking the plan in some parts like forming an executive summary, than the business plan and in the end appendix that consists of many pages as needed to make it clear points.
6. The business plan should not focus on unrealistic assumptions and business plan should not be based on different assumptions. The effective business plan should highlight critical assumptions and give some rationalization for people (Saunders and Lewis, 2014). The worst plan for business buries these assumptions throughout the plan so that no one can explain where these assumptions will end, and facts can begin.
7. Organizations must obtain feedback from colleagues and other potential investors or any other lenders. The opinion of every one will impact and will open up the mind to new directions and new perspectives (Saunders and Lewis, 2014). Feedback process can be annoying, however; it raises some relevant questions that can later change the way people will look at the company and its products.
8. It is important to hire a professional since it will help in filling the knowledge gaps and be able to provide an unbiased opinion, additional information and a package that is attractive enough for customers (Saunders and Lewis, 2014).

The competencies demonstrated in the report are knowledge and skill based. The elements discussed are comprehensive and completely theory based. It also covers the in depth discussion of the various points by keeping, knowledge, application ability of the company and professional and personal features (Chang and Lee, 2013).

Conclusion

Businesses these days think of a business plan as a rocket ship which directly takes them to the target. Despite focusing on creating a rocket ship business plans, companies these days must look more like an experience of driving the car. When an individual drives the car, he or she constantly focuses on making small changes and corrections (Chang and Lee, 2013). At the same time, the company will constantly adjust the speed of the care and at the same time also paying attention to different signs on the road. To fix business plans and also create an effective plan that helps in attracting more investors and later it should help in attracting more customers (Chang and Lee, 2013). The business plan should focus on making right assumptions and also create plans for validating those assumptions by proper testing.

Reference

Brinckmann, J., Grichnik, D. and Kapsa, D., 2010. Should entrepreneurs plan or just storm the castle? A meta-analysis on contextual factors impacting the business planning–performance relationship in small firms.Journal of Business Venturing, 25(1), pp.24-40.

Hillier, D., Grinblatt, M. and Titman, S., 2011. Financial markets and corporate strategy. McGraw Hill.

Burke, A., Fraser, S. and Greene, F.J., 2010. The multiple effects of business planning on new venture performance. Journal of management studies, 47(3), pp.391-415.

Smith, L., Andraski, J.C. and Fawcett, S.E., 2010. Integrated business planning: a roadmap to linking S&OP and CPFR. The Journal of Business Forecasting, 29(4), p.4.

Barney, J.B. and Hesterly, W., 2015. Strategic management and competitive advantage concepts and cases. Pearson.

Kubr, T., Marchesi, H., Ilar, D. and Kienhuis, H., 2013. Starting Up: achieving success with professional business planning. McKinsey.

Williams, C., 2013. Principles of management. South-Western Cengage Learning.

Jones, A. and Jones, P., 2011. “Making an impact”: a profile of a business planning competition in a university. Education+ Training, 53(8/9), pp.704-721.

Saunders, M.N. and Lewis, P., 2014. Doing research in business and management: An essential guide to planning your project. Pearson Higher Ed.

Chang, W.L. and Lee, C.Y., 2013. Trust as a learning facilitator that affects students’ learning performance in the Facebook community: An investigation in a business planning writing course. Computers & Education, 62, pp.320-327.