TOPIC 3: BUSINESS PLANNING
Small to medium enterprises
- definition
- role
- economic contribution
- success and/or failure
Influences in establishing an SME
- personal qualities - qualifications, skills, motivation, entrepreneurship, cultural background, gender
- sources of information
- the business idea - competition
- establishment options - new, existing, franchise
- market - goods and/or services, price, location
- finance - source, cost
- legal - business name, zoning, health and other regulations
- human resources - skills, costs (wage and non-wage)
- taxation - federal and state taxes, local rates and charges
The business planning process
Sources of planning ideas
- situational analysis
- vision
- business goals
- long-term growth
- operations
- marketing
- finance
- human resources
- total revenue, total cost
- break-even analysis
- cost flow projections
- sales
- budgets
- profits
Critical issues in business success and failure
- importance of a business plan
- management - staffing and teams
- trend analysis
- identifying and sustaining competitive advantage
- avoiding over-extension of finance and other resources
- using technology
- economic conditions
