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Business ventures - as
determined from experience of venture developer - have
three development
stages. The Startup Stage when in fact the venture begins the
process of transforming a dormant corporation also called corporate
shell into an operating corporation, includes a phase,
The Execution
Phase, when the venture passes through a pure dynamic state of
evolution: beginning from a static inertia state into a
"steady-state" of dynamic equilibrium. The phase of pure
dynamic
needs to be effectively managed and maneuvered, and usually is
better so handled if a Business Plan prepared specifically for that
period of venture development adopted as a guide. Such is business
plan necessarily implements the
Growth Tactics
Business Plan, which is commonly referred just as Business Plan.
The plan for guiding the implementation of the Business plan is
aptly a Growth Tactics Implementation Plan, such as is being
presented. This plan effectively is also one of numerous schedules
for performance.
The entrepreneur however,
must recognize that this Growth Tactics Implementation Plan is
Extremely Confidential, be marked as such and must not and can not
be revealed to anybody who is not an officer of the corporation. For
the purposes of financial negotiations the funding sources may be
given the opportunity to view the Plan, but only in the presence of
the entrepreneur; and the entrepreneur must also leave the environ
with the Plan.
Developing a Business plan is
essentially documentation of the Growth
Tactical Plan of a company. Effectively all the business
processes as under the Operations Plan of the Growth Tactics
Business Plan are defined for the routine operation of the
business, and as such the processes are conceptualized for a sort of
"steady state operation" of the business, better
described as a dynamic equilibrium state, while the starting phase
is in essence a static inertia state.
However, developing the
corresponding Growth Tactics Implementation Plan involves a redesign
of all contents of the Business Plan into dynamic task, effectively
time-dependent tasks. Moreover, these tasks also have to be designed
to be evolving expansively in accommodation of employment of more
staff as the venture grows. Designing the business processes to be
both time-dependent and of evolving scope is very crucial and is one
of the main tasks of the Growth Tactics Implementation Plans: Every
venture development plan must define the critical mass of the
venture, and begin with the support level essential for sustained
operations of the critical mass; however, as the venture stabilizes
and begins to employ more staff, the processes should by flexibility of
design grow in scope and absorb the additional staff, and should
also by flexibility of design be divisible into sub-tasks that
foster Division of Labor. So in addition to having the Growth
Tactics Business Plan designed into dynamic tasks, the Growth
Tactics Implementation Plan must embody two plans, the critical mass
venture plan and the growth stage venture plan.
The most important task of
preparing this Growth Tactics Implementation Plan is
constructing a well-crafted Sales Cycle, based on which Sales
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Projections on which the Execution Phase activities are developed. The Sales Projection is
also crucial because even
the
Pro Forma Financial Statements and Financial Planning are all
based on its contents. Of course, every
product generally defines its Sales Cycle, and the entrepreneur
should define the sales cycle from the study of the product,
rather than the often suggested approach of most off-the-shelf books of
using of a form of market correlation functions or formula based on such
empirical marketing data of the product that a new venture does not
usually have, as there is just no history of performance on which to
base the evaluation of the coefficients of the empirical
formula.
The sales cycle should be
devolved into appropriate tasks, and from the tasks construct such
product marketing tasks as product advertisement, telemarketing
campaigns, mail marketing, product-literature mailing and customers
visits and all the available marketing tactics. Of course, the manner of association of specific marketing activity
with the tasks of the sales cycle of
course depends on several factors such as being of Minor Sales or Major sales, whether or not
the product fills a need or just a want, whether or not the product
is a consumer product or a non-consumer product, and whether the
prospective customers of the target market or sales territory are
homogeneously dispersed or heterogeneously dispersed, which are
generally addressed as
marketing product characterization. Most importantly, the
devolving of the Sales Cycle into Marketing tasks and performance
schedules should also determine more precisely the number of times
each task should be performed before it is terminated. This means
that each task should have a defined number times it should be
performed in order that the scheduled subsequent task is either
initiated, or abandoned with the possibility of the entire target
market segment being abandoned, depending on the realization or not
of the expected object of current activity; or further marketing
communication with the target customer be terminated.
Of course, the
information of these schedules should be used to better define the
Market Entry Plan. Schedules for market penetration must be developed as this schedules
helps defines the financial needs of the venture with time. The
scheduling of the business processes such as employment schedules,
production schedules and their inceptions should all be derived from
the sales Projection schedules. The projections should then be used
to developed the schedules for Advertisement Plan, Promotion Plan,
Market Penetration Plan. There must also be developed schedules for
the inception of all the corporate operations processes, and the
respective inception plans for each and every one of those process.
In particular there must be schedules for Operations Inception Plan,
Production Inception Plan.
Besides modifying the
Business Plan for the purposes of implementation, some other
contents not otherwise included in the plan must be analyzed
and documented in the Growth Tactics Implementation Plan; and these
plans being
Shadow Organization
Design, Corporate Culture Design, Financial System. Besides the
designs of contents under conditions of
dynamic equilibrium, |
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the pure dynamic evolution of the supporting
processes must also be developed for each
of them. Performance schedules must be developed for the institution
of these features.
in particular there must be schedules
Corporate Culture Plan,
Staff Employment Schedule,
Employee Benefits Plan and
Salary and Wages Payment Plan. Two other plans which can
only be included here are the Research and Development Plan for
ventures development plans that have
Embryonic Stage as a state of
evolution, and the Corporate Policy Plan. There can be no
over-emphasizing that these two Plans are Extremely Confidential and
handled as such. Generally, the Research and Development Plan must
address such issues in relation to the product technology as the
Research Plan, Product Technology Science Basis, and R&D Divisions
required to support the research needs. The Corporate Policy Plan
among other aspects of the corporate management should address Corporate Bylaws,
Corporate Policies and
Employee Rules and Regulations.
Every entrepreneur is
strongly advised to prepare a copy of this Business Plan for private
use. In fact when a venture is to be started, the entrepreneur
should make it a point to prepare this plan, and follow it as
the guide for daily schedule of tasks for performance. The business
which is otherwise static in the starting phase must be passed
through a dynamic state during which it must evolve into the routine
operating state - admittedly another steady state, but already described as
more of an dynamic equilibrium state. |