Businesses are an intrinsic part of any nation’s economy, and businesses serve a complex set of functions in providing goods and services, job opportunities as well as generating foreign exchange. The engagement of businesses across a wide cross-section of industries, makes business planning a multifaceted, yet intricate process. MOD001093 Entrepreneurship And Innovation
An important component of the business development process is the creation of a business plan. A business plan is a document that describes a new business, its products or services, how it will earn money, leadership/management and staffing, financing, operations model, and other details that are essential to both operation and success (Pinson, 2005).
Entrepreneurs create business plans as part of the start-up process but they are also beneficial to existing businesses wishing to change direction or adapt their strategy.
The timeline on most business plans, according to Kuratko and Hodgetts (2001) covers the company’s first three to five years. It was further noted that while a business plan is required by anyone seeking funding, whether from financial institutions or investors, it is recommended for all start-ups because it serves as the business roadmap. The business-plan-writing-process can also help an entrepreneur uncover concept weaknesses, market misperceptions, or other specifics that might cause a shift in how the business is to be positioned or built.
The PEST analysis as defined by Lynch (2015) is a checklist of the political, economic socio cultural and technological factors which may impact upon the success off the new business venture. In an extended version of this framework environmental and legal factors are considered. Due to significance of the environmental implications of this business the author has also included these factors in the PESTLE analysis shown below. The author has also assessed these factors to determine whether they present opportunities or threats to the business venture.
MOD001093 Entrepreneurship And Innovation