Planning a Start-up Business
Introduction
Starting a business can be scary; especially if you do not know what you are doing, or if you are doing it by yourself. It can also be an exciting experience if you have done the research, established a business plan, and stay committed. There are facilities where start-up business can go for help, advice, and services to help them in getting started. These are called business incubators. Business incubators can be located in a rural or urban location, and provide skilled services, technology such as internet, or phone lines, and minor assembly of products (Schermerhorn, 2013).
Discussion Content
The importance of a feasibility study and a business plan.
When thinking about a feasibility study and a business plan, one may think that they are the same thing. They are not. A feasibility study is a study that determines whether a potential business will be able to operate successfully. A business plan formulates how and where the business will go and how it will be financed. Usually, one would execute a feasibility study, and then prepare a business plan.
A feasibility study can be very helpful initially. It assists the entrepreneur in addressing an important question, “should we proceed with the proposed project idea?” (Hofstrand & Holz-Clause, 2009). By researching and contemplating different ideas in the study, a person can determine which course of action will be the best to adapt. A feasibility study develops into the foundation of a business plans (Hofstrand & Holz-Clause, 2009). Business plans are also important. They provide the entrepreneur with a “road map” with details on how the business will be started. Business plans can help potential business owners in obtaining the financial background needed to start the business. There is a TV show, on ABC, called Shark Tank where budding entrepreneurs pitch their ideas to four or five investors. If the investors like their ideas, they make an offer and the entrepreneur can make a deal on the spot. However, the investors ask a lot of questions before they decide if it is worth the investment. Having done a feasibility study and a business plan can certainly help in answering these questions, as well as show that you have done your research and are serious in starting your own business.
Where can an entrepreneur go for funding? Starting a business takes money. Some possible entrepreneurs use their savings while others use their credit cards or home equity, but somewhere down the road, if they have exhausted all of their personal resources, they end up in a situation where they need more money in order for the business to succeed or grow. There are several things an entrepreneur can do to obtain funding for their business. They can take out a loan or a government-guaranteed loan via credit unions and other financial institutions. They can find a private investor (or group of) who can back the entrepreneur in lieu of equity in the invested company. As well as looking in local governmental business development programs (Robbins & Coulter, 2007).
Short and long range planning. Planning is the groundwork or act of setting a goal to accomplish. Effective planning assists you in maintaining and reaching that objective. Two ways to effective plan are to have short range and long range plans. Short range planning. Short range planning is considered to be one year or less. When thinking about short range planning success, a business owner should take into account the maintenance of the equipment, or training for employees. As well as ensuring their short range goals are attainable, timely, and sensible. Long range planning. Long range planning is considered to be five years or more. For a business to be successful when planning their long range goals they should look into their employee relationships, making sure that there is retention, incentives, and promotions in place, to maintain employee loyalty. Customer relations are also important for long range planning. Another prospect businesses need to do is to confirm their overall target.
Successful; starting with humble beginnings. “To do a common thing uncommonly well brings success. – Henry J. Heinz,” Founder of the H.J. Heinz Company (Moloney & Cadamore, 2009). In 1869, Henry J. Heinz was a horseradish producer before he started the Heinz 57 business. With the help of five family members, the Heinz 57 company grew to become a $10 billion Fortune 500 corporation. Mr. Heinz initially partnered with L.C. Noble in manufacturing bricks, which was his father’s company. He soon realized that the food processing business would be more successful; he and Mr. Noble changed their business into Heinz, Noble & Company, a small business that produced products such as celery sauce, pickled cucumbers, and vinegar. In 1875, the company went into bankruptcy as a result of the Financial Panic of 1873 (Moloney & Cadamore, 2009). In 1876, it is said that Mr. Heinz proposed a business plan with a few of his family members and together they created the Heinz 57 Varieties that is well known today. Their first and most successful product as the F. & J. Heinz Company was tomato ketchup.
Conclusion
When planning a start-up business, in order for their business to be successful, there are many techniques a would-be entrepreneur can use. First, they can begin with a feasibility study to ensure their idea is realistic and is needed in the particular environment. They can then take the feasibility study and turn it into a business plan. The business plan, if done thoroughly, can help you find funding or investors. An entrepreneur should also include long range and short range planning into their business plan process. Finally, would-be entrepreneurs can talk with other successful entrepreneurs for recommendations and ideas to grow their business. Following these simple guidelines will ensure a successful and long running business.

References

Hofstrand, D., & Holz-Clause, M. (2009, October). What is a feasibility study? In Iowa state university: Extension and outreach. Retrieved November 18, 2013, from http://www.extension.iastate.edu/agdm/wholefarm/html/c5-65.html
Maloney, S., & Cadamore, W. (2009). Success in every bottle: The H.J. Heinz company. Retrieved November 19, 2013, from http://pabook.libraries.psu.edu/palitmap/Heinz_Company.html
Robbins, S. P., & Coulter, M. (2007). Management (9th ed.). Upper Saddle River, NJ: Prentice Hall.
Schermerhorn, J. R. (2013). Management (12th ed.). Hoboken, NJ: John Wiley & Sons, Inc.