Benefits And Components Of A Business Plan Essay.

Benefits of Having a Business Plan

It can be understood that before the starting of a business it is very much required to have a business plan. This is because without having the business plan one cannot start a business plan because  everything  will  be  jeopardized like the business  target,  the  finances  for  the company,  the  performance  measures and  finally  the  reputation  of  the  company.  This report is about the  benefits  of  a  business plan, components of  the  business  plan,   business,  vision,  balanced scorecard (Brinckmann & Kim, 2015). 

 A business plan is very necessary for all the business may be it is small or large.  A business plan is a ‘living document’ upon which the growth of the business depends.  A business should be scrutinized in every meeting. In a new business the business plan should be at least quarterly reviewed so that the targets .  There are certain benefits of business planning.  

The first  is along with the  aims and  targets  of  the  business, it  helps to understand the  time  needed  to  meet the targets. It also  enables to know  the fact that for what reason  the person has initiated his or her business for example to  get  a  livelihood,  moreover  to earn money  for maintaining a  luxurious  lifestyle, or to have a self identity for this reason.  

The second is the business plan helps to assimilate all the notions and research of the business initiator so that he or she can predict that the plan can be financed or not and also help to assume the potential risk of the business.   

The third point is to make a marketing strategy so that  the  business can  be  taken  forward and  also  to  set  the  aims  and  objectives of the business which is inclusive of sales and financial targets so that the business can be  supervised properly.

The major five components of a business plan are as follows: -

The first  is  executive summary.  First  of  all  there  is  a  summary  consisting  of  table of contents,  history  of  the  company, scope in market,  viewpoints  of  the  management.  The  competitive  advantage  of the company  and  the  economic  condition  of  the  company  should be  there  in  the executive summary.   So, finally combining these points an executive summary must be written.   

Then there must be detailed description and framework of the business.  This  section  deals  with  the  fact  that  in  what  ways  the  products, will  be  manufactured and  also  about  having  the raw materials  to  finish  producing the  product.  

Components of a Business Plan

Another  thing  every  business  requires  innovation ,  so  a  research  team  must  be  hired  for this. A businessperson must  also  have  analyzed about  the  value proposition  providing  services  to  the  customers  of  the  company.   Other  things  such  as strategic  relationships,  administrative elements and  also  about  the  judicial  structure  of  the  company.  

The third is market strategies and research of the company.   At first the condition of the market must be surveyed and analyzed.  After  that  marketing  strategy inclusive  of  sales and advertisement ,  forecasts, deadlines,    and  benchmarks  must  be set up.   

Then  the  company  must  have  proper  management  and  personnel  who  are  basically  the  leaders of the company .  The  leaders  must  be  like  that  who  will  mobilize  the  whole human resources of the company  and  the  business  goal  would  be  reached.   Investors  of  the  company  will  all  observe  these  things  before  investing  in the  company.

 At the end the  financial  document is  the document  which  has the  statement of  profit and loss  of  the company, balance sheet and  the  cash  flow  statements  for  some  consecutive  years. These  will  only  include the financial  situation  which  will  move  the  company  forward.

  The Business Planning Process is about judging   the environment in which the business will be operated.   There are different things which are associated with it such as  its suppliers of  raw  materials ,  the  industry’s  competitors and  the  customers  associated  with  it. The  strength and  weakness  of  the  business  must  be  known  properly  by  the entrepreneur. Every  business  needs  innovation  and  creation  for  creating  new  products  and  services  for  the  customers. Hence, a businessperson must have a team of Research & Development ( R & D). The  assessment  stage  is  mainly  about  having farsightedness for  the  market  demand, financial  projections  and  ultimately  the  milestone set  for  the  business  to be achieved (Dumas et al., 2013).

      In  order  to execute  the  business  plan  properly  there  are  certain  steps  needed to  be followed.  The  first  thing  is sorting  out  the  person  who  will write  out  the business  plan .  Then  a  proper  understanding  of  the  business  should  be  provided  to  the  person  who  will  formulate  the  business  plan.   Then  the  decision  comes  in  which  way  the  plan  would  be  written  whether  by  using software or the Business  Plan  Pro.   It  must  be  looked  after  by  the  entrepreneur the  business process  writer  must  include   the  various  topics  needed  for  formulating  the  business  plan (Jeston & Nelis, 2014).     The  Business  plan  must  be  developed  in  a  very   rationalistic  and  precise  way. Then the business plan must be reviewed and  evaluated and finally a power presentation should be made.   

Importance of Business Planning

There  is  a diagram of theBusiness Planning Process :- 

There are certain aims of a business vision. The main visions of the business are as follows.  For example, the  first is  financing for  sustaining  the  living  of  the  entrepreneur  and  his  or her  family.   The second is about developing reputation among the customers of the company, among the employees and competitors of the company.   Another  thing  is  to  look after  the  customer’s needs  are  met and  their  interests  are  prioritized  in  the company. Then  the  launching  of  new  products and  also  increased  the number  of  branches  of the  company.   It  is  very  important  for  the  businessperson  and  his  or  her  employees  to be  enjoyed  by  the  company (Speklé,  & Verbeeten, 2014).    The  most  important  thing  is  the  sustainable corporate  culture  of  the  company and  it  should  be  also  environmentally sustainable.

There are certain elements of the business planning process.

The first is the situation analysis.  It  includes  the company  summary,  strengths and  weakness  of  the  company and  the  competitive  environment  surrounding the company  and the competitive  advantages  surrounding it (Cooper,  Ezzamel  & Qu, 2016).   

 Then  comes  the ‘mission, vision, goals and objectives’  of  the  company .  The  third  is  strategic and  action  plans  which  helps  the  company to  achieve  the  goal.   This  comprises of  the  creative  direction,  marketing, finance and  accounting, productions and  operations,  facilities and  studios and  the  management  and  organization.

Finally,  in  order  to  reach  the  goals of  the  track  progress, measuring  programmes and  its  initiatives and  finally  monitoring  the  financial  results.

SWOT analysis basically identifies the four critical elements of the analysis. They are strengths, weaknesses, opportunities and threats.  

Strength and  Weakness  is  it  enables  the  business  firm to understand  the core  market advantages and  the things  for  which the  competitors  can  criticize or appreciate   the  company. Strengths include the competitive advantage of the company.  The  potentialities  of  the  company  which includes the  resources, assets and the  human  resources  of  the  company. Finally it encompasses about the marketing and advertising of the product.

Weaknesses are not having any competitive advantage.  Certain  vulnerabilities of  the  company  which  includes  not  meeting  the needs of the customer and  also inefficient  in  meeting the work pressure of the company.   Companies also be well aware  of the weaknesses so that it can improve on basis of it (Barney & Hesterly, 2015). 

The opportunities of the company must be explored so that the leaders  can  find  the  path  to  help  in  growth  of  the  company. The reputed companies generally sort to grow each day so that they can retain their position otherwise the competitors will find the opportunity against it. Opportunities  is  about new and emerging markets, new  business and  also  strategic  business  collaborators which  will  create  more  sales and  profits.  

SWOT Analysis

The final thing is the threat of the company. The external  threat  of  the  company  is  about the  external  threats  of the  company, for example – changing in the legislations of the company. This  will  enable  the  company  to  be aware  and prepare themselves  to  face the  situation.   Environmental transformation sometimes  also  affect  the companies  in  which  they  use  natural  resources  for  the  business. In  today’s  world  technology  is  also  changing daily wise  which   hampers  the  growth  of  the  company (Li et al., 2016) .   

There  is a diagram of SWOT analysis. 

Performance measure  is  about  the methods of  gathering , evaluating and  reporting facts  about  the  performance  of an  individual,  group, organization, or  the  business  elements.   Hence performance measurement process  is important because the  performance  measures  qualitatively to deliver information about the  products,  processes and  services which  are  manufactured in a company (Lichfield, Kettle & Whitbread, 2016).  . The  measurement  of  the  performance is  a  daily phenomenon which  is  about supervising the performance against  the  criterion  which  needs  to  be  fixed. It helps in comparing the actual performance with the established criterion. A leader also   requires supervising, observing and controlling the activities of the employees of the organization while and  also  needs  to read about summaries and  reports so that he may manage the work in an effectual way while getting the things done  meeting  the  established standard. The importance of performance measurement system is that it not only upgrades the performance, but also the productivity of a business entity by curtailing the expenses. It is It provides necessary feedback that the activities may be guided accordingly by allowing managers to implement best practices.

The first performance measure is the NET Promoter Score (NPS).  NPS is a measure of the quantity of customers for example the recommendation of the brands to the others.   If  people don’t promote the business than do, then  the  company  must  find out another  way  of advertisement  to  promote  the  business. The percent of customers who rate their experience with the company brand such as “extremely” or “very” satisfied which is another good measuring criterion of the business. If one can determine the elements of the satisfaction  of the  , then  that  things  can  be  applied  to  other  customers.   Then  external benchmarking survey  data is  to  understand  the  fact  that  where  one’s  brand  data  stands  in  comparison to  the  other  brands. Even the highest-rated companies only get it ‘right’ about 88 percent of the time, so everybody has many things to be improved.  The third is Brand Attributes.  This means the startup company must have something unique  within it.  The Brand Attributes Survey helps the customers to get a sense about the opinion of the customers regarding the uniqueness of the company. Therefore, the company must work more sincerely to meet the demands of the customer.   

Market Strategies and Research

 The balanced scorecard approach helps in betterment of   organizational performance by measuring the important factors in the company.  It helps to be more concentrated on the strategy and the results. The organization strategy would be looked after on a daily basis. The entrepreneurs must also the future performance. It also enables to upgrade the communication of the company’s vision  and strategy.  It is about the strategized management, which will monitor performance against the strategic aims (Simons, 2013).   

Smart is a mnemonic acronym which gives the standard to support in the setting of objectives and it enables to measure the performance of over all employees. S means specific, M means measurable, A means attainable, R means Relevant and T means Timely.   Specific goal has more expectance of getting accomplished rather than general goals. Measurable means establishing concrete standard for measuring the progress of reaching the goal.  Attainable  helps  in recognizing  the  goals and  also  developing the attitudes, abilities, skills and  the  financial  ability  to  gain  them (Huston, Rahimzad & Parsa, 2015).  .  Then the realistic means that the goal must be practical to achieve. It  can  be  said  that a  lower goal   is  tougher  to  reach  because  it  has a  low  motivational force whereas  a higher   goal is  comparatively  easy  to  gain  due to  high  motivational  force. Timely  is  about that  the  business  goal  must  be  gained  at  a  proper  time.

Conclusion

 Finally it  can  be  said  that    planning  only  a  business  vision    is  not enough  to  meet  the  criteria.   Value proposition, performance measures, SWOT analysis, balanced scorecard is much significant to meet the business goal.   Performance  measures  is  one  of  the  important  to  motivate, develop efficiency and   focus  so  that  the  business  goal  can be  met.

Mission of the New Business Plan 

Ozhouse Clean  is  much  loyal  for  delivering  high  quality  of  services  to the clients  in  context  to  residential  and  commercial  complexes. The  main  mission  is  to  cross  the  limit  of  the  providing  best services  and  expand  it  to  the  residential  and  commercial  services   .

The company  daily  works   earnestly  so  that  it  can  make  their  company  as  the  most  recognizing  one  and    introduce  the cleaning facility  in  Melbourne  and  become  successful  in  other  cleaning  services  such commercial  services  in  corporate  offices and other work places. Residential  complexes here defines   a  complex   comprising  of  several  apartments  and  houses with  other  modern  facilities.

The first is the respect to the clients. The company must try to look after the variegated and  give  importance  to  the  choice and  wishes  of  each  and  every   clients of  the  company.   

Business Vision

Then  comes  the  fact  of  responsibility.  Responsibility and care is  mainly  dealing  with  the  Corporate  Social  Responsibility,  that  is  supervising  and  keeping  peace  and  order  among  the  employees  of  the  company.   It  is  about  using  things  which  does  not  hampers  the  environmental balance.   This  should  be  also  reflect  in caring  of  the customers and  also  listening  about  the  customer complaints  and implement  changes  accordingly.   

   Excellence in work is also very important in   the   business.  Excellence  is providing  the  best  quality  of  products and  services in  terms  of  both  commercial  and  residential  services.  

Then the element is the integrity. Integrity is like working with honesty, broadmindedness and others.  These are also important elements to develop proper business ethics.  

Another   is the innovation.  It  is  much  important  for  any  company  to  innovate  and  create products (Butler, 2014). Innovation is mainly done by the motivation of the leaders.  Leaders   are the most inspirational force of the company. If they have a high spirit then obviously  the  company  will  move  much  ahead  than  the  other  companies.

The  key  objectives  of  the  company  is  delivering  the  customers  with  both  professional and  friendly services.  Another  thing  is  to increase  the  number  of  clients by 20 percent  in  the  first  year  by    implementing  efficiency  in the  commercial  cleaning  services.   Then finally, to use things which are environmentally sustainable (Rese et al., 2013).  

Ozhouse  cleaning   is  basically  very  committed  to  the  cleaning  purpose in  the  Local  market  of  Melbourne in  professional  places, residential  cleaning  areas , which  is inclusive of day to day  cleaning of homes or  other occasion.    But  the  company  has  the  trend  to  provide best  services  in  the Melbourne, including  looking  after  the  needs  of  the staffs  and  the  customers.  Hence  it  can  be said  that  the  cleaning  service  can  be  spread  to  other  parts  of Australia.  It was established in 2005  and   the  founder  of  the  company   was  James and  Nancy Anderson.   They  are  the directors and  their daughters Amanda  and Sarah  are  also  engaged  in  this  company.  So, it   can be said  that  the  family  of  the  founder  of  this  company  is  much  dedicated  to  this company  to  make  it  successful.  The  company  aims  in   introducing  residential  and  commercial  cleaning  services  (Reim, Parida  & Örtqvist, 2015). 

Competitors in the market

It  can  be  said  that  the  founder  of  this  company always   thinks  it as  a  small  family business  mainly  concentrating  on  the happiness  of  the  staffs  and customers and  also  on  focusing  the  quality  of  the  customers (Preble & Hoffman, 2013). .  So,  in  this  context  the  company  has  the competitive  advantage  of  the  other  companies.  But  the  manager  is  well aware  that  as  the  competitive  market is changing , it has to  change  to  compete  well  in the  business  market if  it  has  to  extend  it  services  in  residential  and  commercial  services.

Elements of the Business Planning Process

Consumer needed for Environment Friendly Cleaning Services

It  can  be said that  the  company  is  also  conscious  about the corporate ethics which  includes  the environment sustainability  of the  products  utilized  by  the  company for cleaning purposes  .  The company  generally  uses cleaning  materials  from  the Total  Cleaning Supplies  in Melbourne.  But  the  manager has been  well aware  of the  fact  that  the  cleaning  suppliers  are not  environment  healthy.  In that case, the company needs to change its cleaning suppliers to maintain the environmental balance.  This    is required more in residential and  commercial cleaning  services.

Various alternative pricing online Services

.   There  are  sales  strategies  which  attracts  various  types  of  customers and  clients.  The company appoints 15 cleaners or  whom  are  part-time  contract employee  who  works 10-15 hours a  week. There are 70 customers in the inner cities of Melbourne.   These clients  needs  cleaning may be for weekly or  once a  week  with  some  specific   hours necessary  for  the  work.   Hence  these  strategies  of  availability  of different services  according  to  the  needs of  the  customers.   These  types  of  offers  must  be  also  applied  to the  residential  and  commercial  services.

The marketing  strategies of  the  company for  providing  residential, commercial,  services  and  others mainly .  The  possible  marketing strategies  of  the  company  are mainly  by  website  and by  word  of  mouth  by  the  customers.  

However, the company requires following other   marketing strategies.  They are   like paid advertisement, which is pay per click.  Then  the  cause  marketing is  the  connection between  the services and  products  of  the company which  has  some  social  cause .  

Relationship marketing  is  about sustaining  the  customers  by  being  committed  to  them (Christopher,  Payne & Ballantyne, 2013).

Then  comes  the  internet  marketing  which  is  a  cloud  marketing,  one  can  observe  the  advertisement  on  various  websites.   Social media is also very appropriate for this type of marketing.

Permission or license for Commercial Cleaning and Environmental Cleaning Services

 The  company  has  to  go through  the local  zoning  laws which  regulates  the location  of  various businesses  like ‘commercial’ ,  ‘retail’,  and ‘ light  industries’.   So  the  directors, operational  managers   and  managers  have  to   go  through all  the  clause  for  it.  Moreover,  it   has  to  develop  a  new  business  plan  for  this.

 The  managers and  the  human  resources  of  the company must  recruit  considerable  staffs  and  employees   of  the  company.  This  is  because  employees  play  a  significant  role  in   the  company, because  the  service  and  production  of  the company  is  depended  upon  them.  The leaders must    encourage the employees to do the work sincerely and joyfully.

Financial Documents

 Performance  measure is  required  in  order  to  reach  the  goals  within  the stipulated  time  and  the  company  can  provide   quality  services  to  the clients. Performance measure  is  about  the methods of  gathering ,  assessing and  reporting facts  about  the  performance  of an  individual,  group, organization, or  the  business  

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