Assignment 2 Setting Up A New Business

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Assignment 2: Setting Up a New Business Introduction to Entrepreneurship BUS 313 Instructor Paul Brower April 29, 2012.
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Preface A marketing plan is a business document written for the purpose of describing the current market position of a business and its marketing strategy for the period covered by the marketing plan. Marketing plans usually have a life of from one to five years (Kennedy, 2011). The marketing plan contains strategies, and considers many environment aspects that work together to affect the success of the product or service being marketed. In a marketing plan, objectives are created that can be used to gauge progress. The marketing plan is essential to any successful business. It is the heart of the business, the basis from which all other operational and management plans are derived. Marketing offers the business a wealth of information that if applied correctly virtually can ensure the success of the business. A business plan is a document that summarizes the operational and financial objectives of a business. The business plan is a twenty-five to forty-five-page document that describes where a business is heading, how it hopes to achieve its goals and objectives, who is involved with the venture, why the products and services are needed in the market place, and what it will take to accomplish the business aims (Jack M. Kaplan, 2010). The business plan helps the entrepreneur, employees, partner, managers, vendors, management, lenders as well as suppliers gain a better insight into the direction a business might be. There are numerous advantages a business can extract from the marketplace and the marketing plan and a business plan are excellent tools for identifying and developing strategies for extracting these advantages as well as implementing these advantages as will be discussed in this paper.
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A solid marketing plan will let the business identify its customer's needs and wants. The business can determine the demand for its product and aid in the design of a product that will satisfy and fulfill its consumer needs and wants. It also helps the business identify its competitors and make it analyze what advantages the competition has over it or what advantages it has over them and focus on those things. The business will know if its marketing strategies are working or not and maybe can switch to another one. In addition, the business will be able to identify new product areas and new or potential customers. A marketing plan prepares a business to be proactive in what the market does. Without one, the business will end up reacting to changes and to competition, which means it is always a step behind those who are already prepared. So, then, a marketing plan is crucial to being ready to deal with the ebbs and flows of the market. It's always better to anticipate and plan for a market change well ahead of time rather than find out about it later on. A business needs to be in the leading edge and not on the following edge. A marketing plan is also necessary for any company seeking to enter new markets. The marketing process must be presented in detail including short term, medium and long term objectives as well as ways of measuring their progress and performance in sales, profits and brand awareness. Any effective marketing plan must also include a current situation analysis for better evaluation of the competition in any new markets. Before a business proceeds with penetration of a new market, they should also consider a market segmentation plan, which can prove vital for the success of a new product or service. A recommended strategy for each segment should follow as they must be treated differently according to their specifications.
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One of the key benefits to having a business plan is that you will know what you need to do to get your business up and running. For example, if you know what type of customers you will be targeting and how, you have a better chance of success. In a way, a business plan for a startup business (or one that is looking to expand) is essentially a to-do list (Kennedy, 2011). A business plan will force the entrepreneur to think about the steps you need to take to get your business up and running; it ensures you get your planning as accurate as possible. A business plan is a great guide, especially if this is your first time starting your own business. Business plans are useful to a new business for helping clarify the venture's vision and mission. Original vision and mission statements are an important element in planning the entrepreneurial venture. When included in the business plan, these statements describe and explain to others what entrepreneurial venture is about. Again, the founders are "forced" to carefully consider their organizational purpose, values and expectations. Business plans define the planning and evaluation guidelines for managing the ongoing entrepreneurial venture. The business plan is a working document that should be used beyond the start-up phase. It should guide decision makers on planning and evaluating issues throughout the life of the business. It also should help clarify what the goals and plans are, and it should help to define how goal attainment is going to be measured. However, much as a business plan attempts to define a desirable future path for the venture, unexpected factors can alter that path. Non-the less, not having some type of plan would make managing the uncertainties even more challenging for an entrepreneur. Business plans are also an effective tool and requirement to attract capital to invest in the business venture. Venture capitalists are individuals or a company that can provide the business
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with the necessary capital required to start a business. Business loans are used to finance new business startups or give a boost to an existing business for growth and improvement (Kennedy, 2011). These loans are tailored according to the business requirements. In addition, a business plan is really the only way to convince a financial lender or investor that their money will be put to good use. In conclusion, there should be no length requirements for the business plan or the marketing plan. However, both plans should be long enough to provide concise and detailed information. The information within the plans should be well-researched and include supporting evidence for facts presented in order to allow for a successful business plan.
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References Jack M. Kaplan, A. W. (2010). Patterns of Entrepreneurship Management . Wiley. Kennedy, D. S. (2011). The Ultimate Marketing Plan: Target Your Audience! Get Out Your Message! Build Your Brand! . Adams Media.

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