Tools used by Entrepreneurs for Venture Planning - PowerPoint PPT Presentation

1 / 16
About This Presentation
Title:

Tools used by Entrepreneurs for Venture Planning

Description:

Internal and External tools used for Venture Planning. SWOT analysis. Strengths (inside the business) examples: patent, strong brand name, good reputation with customers. – PowerPoint PPT presentation

Number of Views:185
Avg rating:3.0/5.0
Slides: 17
Provided by: pbwo293
Category:

less

Transcript and Presenter's Notes

Title: Tools used by Entrepreneurs for Venture Planning


1
Tools used by Entrepreneurs for Venture Planning
  • Entrepreneurship 1
  • 2.09 B

2
Uses of Business Plans
  • Help attain business goals
  • Target changes in perception and branding by the
    customer, client, or larger community.
  • Enables investors to make knowledgeable
    decisions.

3
Importance of a Mission statement
  • The Mission Statement is best described as the
    intended strategy and business philosophy for
    making the entrepreneur's vision a reality.
  • Examples
  • Google's mission is to organize the world's
    information and make it universally accessible
    and useful.

4
Mission Statement examples
  • To make, distribute sell the finest quality all
    natural ice cream euphoric concoctions with a
    continued commitment to incorporating wholesome,
    natural ingredients and promoting business
    practices that respect the Earth and the
    Environment.
  • Snap-on's mission is to delight our customers -
    professional tool and equipment users worldwide -
    by creating innovative, productivity-enhancing
    products, services and solutions.

5
Financial Forecasting and Budgeting
  • What is Financial Forecasting? The process of
    estimating future business performance (sales
    forecasting, costs, earnings)
  • Why is it important?
  • To determine future financial needs
  • Forecasting also is important for production
    planning, human resource planning, etc.
  • Used by outsiders to value companies and their
    securities.
  • Give overall perspective of the whole firm,
    rather than looking at individual projects.
  • Sales Forecasting used to project sales for a
    new business venture.

6
Financial Forecasting and Budgeting (cont.)
  • After financial forecasting has been completed it
    is easier to Budget money
  • What is Budgeting? A budget represents a detailed
    plan of how a company expects to spend money in
    future time periods. Many companies create
    budgets on an annual basis. Examples Creating a
    promotional budget for advertising your
    product/service.
  • Why Budgeting is important?
  • limits how much money is spent on certain
    operations
  • plan for future business growth and expansion

7
Internal and External tools used for Venture
Planning
  • SWOT analysis
  • Strengths (inside the business)
  • examples patent, strong brand name, good
    reputation with customers.
  • Weaknesses (inside the business)
  • examples lack of marketing expertise,
    location, poor quality goods
  • Opportunities (outside the business)
  • examples availability of expanding using
    the Internet, selling to new markets,
    competitor goes out of business
  • Threats (outside the business)
  • examples new regulations, new substitute
    product, more competitors.

8
Internal and External tools used for Venture
Planning
  • Market Analysis It identifies every relevant
    aspect of the market in which you will market
    your product or service. A good market analysis
    summary is rooted in careful, thorough research.
  • A market analysis must include an industry
    description and outlook, information about your
    company's target market, market test results, and
    a competitive comparison

9
Internal and External tools used for Venture
Planning
  • Environmental Scan an environmental scan
    involves considering the factors that will
    influence the direction and goals of your
    organization.
  • Examples
  • an environmental scan might project that in the
    next ten years, the number of people (potential
    customers) between the ages of 18-24 will
    increase from 30 to 40.
  • looking at the present capabilities of the
    organization (infrastructure, hardware,
    personnel, abilities, structure, etc) and that
    information can be compared to what the
    organization WILL need in the future to achieve
    its strategic goals.

10
Internal and External tools used for Venture
Planning
  • Competitive analysis a process of gathering and
    analyzing information about your competitors,
    their practices, products, strengths and
    weaknesses and business trends.
  • Use to
  • know what your competitors are doing and what to
    do to stay ahead of the competition.
  • have reliable information showing how customers
    perceive their product or how it compares to the
    competition.

11
Internal and External tools used for Venture
Planning
  • Sensitivity Analysis A what-if analysis. What
    if analysis is often used to compare different
    scenarios and their potential outcomes based on
    changing conditions.

12
Types of Planning Approaches
  • Opportunity Management Approach
     - (OMS) A system that stores sales opportunities 
    and related information. Each sales leadcan be tra
    cked with information such as source, type, worth,
     status, likelihood of closure etc.
  • Includes ideas, recognizing opportunities, and
    driving opportunities

13
Milestone planning Approach
  • Milestones are the small steps that lead to the
    ultimate goal whether it be developing of new
    product or service or advancing the exploration
    of space to the far reaches of the universe.
  • A milestone is an important event marked on a
    timeline and recognized when successfully
    reached.

14
Entrepreneurial Strategy Matrix
  • Strategy Matrix - A model appropriate for both
    entrepreneurial ventures involving high
    innovation and often corresponding high risk, and
    traditional small business ventures, which are
    generally low in innovation

15
Multistage Contingency Approach
  • The contingency approach believes that it is
    impossible to select one way of managing that
    works best in all situations
  • An example of this is the never ending problem of
    increasing productivity. There may be several
    different ways to handle and look at that
    situation.

16
Technology used for Venture Planning
  • Business Planning software
  • Bookkeeping software
  • Budgeting software
  • Financial Analysis software
Write a Comment
User Comments (0)
About PowerShow.com