Opportunity Assessment Essay

Explain the purpose and value of a craft jut come to the fore to a impertinent or existing telephone line. There is a whole host of reasons to justify the preparation of a channel contrive, non just for task start-up enterprises, but as a toughie of good practice for established organizations. First, the process of producing a barter plan acts as a very efficient method of focal point the ideas of entrepreneurs in terms of defining their objectives and assessing their own abilities to organize and run the business.A business plan also acts as a agent of testing the viability of the business proposal before actually committing its proposers to every substantial expenditure or investment. As there atomic number 18 relatively few entrepreneurs who lease the resources to be alone self-financing, well-nigh are faced at nearly point in duration with the take up to raise external finance.The possession of a business plan is crucial to the business future an appointment with the financier or bank manager who is a voltage investor or source of loan to discuss a proposal is a bit like an audition in a Hollywood film if they blow their lines, they blow their chances, or at least, they reduce their prospects of acquiring the part they want. Written business plans are essential to guide bankers, lenders or investors in understanding and monitoring the fiscal strength of the business entity. So the more or less authorized thing is to prepare the plan thoroughly and to present it in a professional and competent manner.The elements of a business plan is primarily for the acquire of the bring institution and should not be confused with the strategic or detailed operating plans the business whitethorn use for internal circumspection purposes. The harming of business plan any banker, lender or investor looks for should provide broad-based financial and organizational information. It should be made available upon submission of the initial credit pred ication and updated periodically thereafter. Financial statements, together with managements analysis of financial performance, for the past three-year period are especially essential.In addition, the banker, lender or investor forget want to see financial performance projections for the coming two or three years. Define the term small business and outline the contribution micro business make to the Australian economy. The term micro business tends to better describe the smallest niche within the small business world. A micro business is, in general, fewer than ten people and includes some unique needs to that space. It typically requires less than US$15,000 in start-up dandy, which means that it does not have gateway to the commercial banking sector because initial loan needs are usually less than US$15,000.In most micro-enterprises, the owner is the sole operator and manoeuverer. The capital needs of micro-businesses are too small to be of interest to formal financial grocer y stores, yet too large to be covered by the own(prenominal) means of business starters particularly if they come out of precarious situations. In more cases than not, micro business owners mix personal expenses with business expenses, clouding the gilds intimacyal cost relationships and making ratio analysis very difficult. Typical micro business operators only keep specie records during the year.They present a shoe-box of records to their accountants at year end. They only use their accountant to generate a tax return and set of accounts, which might be received six months after the year end. Market niches tend to be outlined geographically. Typically, competitive businesses turn over very rapidly, with frequent new entrants to the market, many ownership changes, and a utmost percentage of bankruptcies and liquidations. Micro business is a separate niche to keep in mind in todays economy and a plain stitch that is quickly starting to gain enterprise attention.The economic s ignifi hatfulce of micro-businesses to the economy of Australia as well as to the global economy is highly acknowledged. This is for the reason that the thing that micro-businesses create for both employment and the income it produces. Micro-businesses put in $20,193 million to the Australian industrys GNP and provide work for more than 1/3 of micro-business workers (Khosrowpour 525). Briefly explain the office staff market research plays in the evaluation of a business fortune.An entrepreneur must make a commitment to act a business opportunity long before the outcome of that decision is known. How can he know whether the opportunities he is pursuing have a undefiled fit with the marketplace, need to be expedited on a rush basis, and are the right decisions to go ahead with? Market research is the answer. Market research is the compiling and examination of any trustworthy information that improves managerial decisions. An entrepreneur needs to do market research to identify a nd assess an opportunity.Intuition, personal expertise, and passion can take businessmen only so far. Both traditional and nontraditional marketing research can be used to assess opportunity. Research is racy in strategic evaluation if new ideas for diversifying the business are evaluated or tested out. A corporation entering a new market with a new crop is unlikely to know much about that market, and is going to be dependent on good information for decision making for create sales of the new product and go.The research is likely to reduce the uncertainty about pursuing the diversification opportunity, and to help managers to plan, based on known and defined customer needs. In all practical terms, the application of market research to identify problems and opportunities and to evaluate programs of activity is as important as in early(a) areas of marketing communications. It is the methodical and objective recognition, compilation, study and distribution of information for the intention of relievering business decision-making activities connected to the detection and resolution of business troubles and prospects.Certainly market research plays an important role in business decision making, but ultimate success in markets is determined by many other factors, not least the commitment of the team, the size and mix of marketing budget, and the ability to react to unforeseen problems. Briefly describe the process by which the total cost expense of a product or service is established. Pricing, as a process, can simply be defined as setting or gear uping a price charged to a customer in exchange for a good or service. The need for correct pricing decisions has become even more important as global competition has become more intense.Organizations that have been successful in making profitable pricing decisions have been able to raise prices successfully or reduce prices without competitive retaliation. Pricing policy cannot be established in a vacuum. The sel ling price of the product or service should be consistent with the entrepreneurs marketing goals, the image he or she is attempting to project, and the perceptions and expectations of the target market. Also, the pricing decision must be viewed as in interactional process in that there is a strong need for cross-functional interaction.It should be clear that effective pricing decisions involve considerations of many factors, and no single model give fit all pricing decisions. While all pricing decisions cannot be made strictly on the general model to be presented in the next paragraph, it does break pricing strategy into a set of manageable stages that are integrated into the overall marketing strategy. Given a product or service designed for a specific target market, the pricing process begins with a clear statement of the pricing objectives.These objectives guide the pricing strategy and should be designed to support the overall marketing strategy. The evaluation of the relation ship of product or service to pricing with respect to the distinctiveness, perishability and stage of the life cycle a product/service is in all affect pricing. In addition, marketers need to consider what value the product/service has for customers and how price will influence product/service positioning. The other components of the marketing mix need to be also examined in relation to the pricing component, in order to arrive at a total price.Although the main basis should be the product or service cost, marketers should combine various criteria in setting prices rather than considering only the costs. What is the difference in the midst of a communicate Profit and Loss Statement and a Projected Cash Flow? Why do you need both? There are several distinctions between projected g sexagenarian flow and projected profit and loss statement. Although both are only estimates, one difference is that the projected cash flow statement will record budgeted cash receipts from customers, wh ile the projected income statement will show forecast revenue for the period.Further, the projected cash flow statement will record budgeted cash payments to suppliers, while the projected income statement will show forecast of sales, which will reflect opening inventory, increase purchases, less closing inventory. Furthermore, the projected cash flow statement shows the budgeted cash payments for the expenses such as wages, electricity and rates while the projected income statement will record the expenditure expected to be consumed in the period, reflecting any accounts or prepayments.Lastly, the projected cash flow will reflect the cost of purchasing a non-current asset at the expected date of purchase and the proceeds at the date of sale, while the projected income statement will record a depreciation charge for the consumption of the asset and a profit or loss on disposal. The business needs both of these projected statements because they are important tools of financial anal ysis. Projected cash flow statement, for instance, is a point of comparison for actual cash flow statement so that the firm can find out the variation and take necessary remedial measures.It also helps in overcoming the problem of meeting deficit cash or investment of surplus cash because projected cash flow is usually prepared on the basis of the past years experience. Using the cash flow forecast enhances the business versatility and allows it to adjust its planning horizon as the business grows. A projected income statement is likewise an invaluable tool. It will help the business estimate its approximate income and expenses in the short term, from months to a few years. It will give a gauge to judge the financial progress of the company.Outline the legal avenues available to an individual to protect intellectual property. Even though it is an intangible term for a theoretical concept, intellectual property is nevertheless completely well-known to practically everybody. While th e underpinnings of somatic property rights are clear, those of intellectual property rights appear clouded. Intellectual property rights have seen perceptible, indeed substantial extensions in the last decade alone. Copyrights, service marks, trademarks and patents are all types of intellectual property, and are avenues for individuals in the United States to protect their intellectual property.The examination of intellectual property law is significant since intellectual property is attract an escalating implication worldwide. Copyright and trademarks are at one time related to the Web, patents less so except if the thing being procure is a new type of applied science that affects how the Web is actually used. Trademarks and service marks are used to protect logos, unique elements, phrases, services and official names that have sufficient distinctive part by which the government recognizes the concept as being unique and wholly owned by the individual.At common law, the indiv idual who utilized a figure or mark to classify a company or manufactured good was sheltered in the employment of the trademark. Service marks protect services rather than products, which is its main difference with trademark, in where the later protects products. Copyright protects everything that goes into a website or in print. It provides the inventor of a work the right to the restricted function of that said work for a certain time. Copyright infringement is all too common, often resulting in lawsuits in which individuals receive handsome compensation for having their work ripped off.A patent is a government endowment that bestows an inventor the private right to produce, utilize and put up for sale the invention for a time of twenty years since the time of filing a request for a patent. If a firm produces, utilize and put up for sale a patented blueprint, produce or procedure without the consent of the owner of the patent, it is obligated with the tort of patent infringemen t. What are the main advantages of operating your business as a company rather than as a sole trader or confederation? Are there any disadvantages?The primary advantage of operating the business as a corporation is protection against liability. The corporation can protect ones personal assets in the event of a judgment against the business. This is because the corporations assets (cash, real estate, securities, accounts payable, etc. ) do not include ones personal property and assets such as car, house, bank account, and other personal property. matchlesss personal property is considered separate from the property and assets of the corporation. A import advantage over sole proprietorship or partnership is organization and efficiency.No matter what form the business takes, keeping ones personal and business finances and assets separate is crucial to the survival of the business. If ones business and personal finances are intertwined, it will prove difficult and eventually impossib le to sort them out to the satisfaction of say, banks and other financial institutions where one may be applying for business loans. A third advantage is savings. There are myriad instances where, as a corporation, one may be able to that on business costs savings that might otherwise be unavailable to one as a sole proprietor or partnership business.For instance, business equipment amortization IRS allowance and schedules are generally more favorable for corporations than for individuals and partners. Also, financial institutions tend t give more favorable credit and lending rates to corporations as opposed to individuals and partners. The primary disadvantages, on the other hand, are the record-keeping that is required and the fact that corporations are subject to double taxation the corporation pays taxes on its profits, and if one receives some of those profits as dividends, he/she will be taxed, too.Moreover, the business has to maintain minimal corporate formalities that wi ll take some time and effort, including government regulation of the creation of the corporation, issuance of stock and operations of the organization. The lack of management skills is the cause of 92% of business failure. Does a successful business operator have to be expert or competent in all facets of business management? Long ago in business literature, experts have researched the role of the entrepreneur in firm failure.Managerial deficiencies, inexperience, and inefficiency are consistent themes in the literature explaining business failure. Researchers ensnare that many firm characteristics particularly decision-based ones were directly related to the entrepreneurial characteristics. These included lack of insight, inflexibility, and emphasis on technical skills. Additionally, managerial deficiencies and the financial shortcomings of the entrepreneur also contributed to failure.Other researchers have further found support for the case that lack of management expertise alo ng with financial matters was the most common causes of business failure. Some of these researchers pointed to poor management skills as the most frequently identified common theme in business failure. The significance that is placed on management deficiencies as a cause has therefore warranted a closer examination of the specific areas where these deficiencies are greatest. Although this is the case, it is often unfeasible for a business operator to be an expert on all facets of business management.This is the role of consultants experts that business owners hire too assist in the facilitation of business management processes. The business operator may not possess the expert comprehension of the specializer (such as technology specialist) but it is the business operator who is familiar with the worth and the prospect of expert knowledge. Thus the management expert has specialized knowledge and the business operator has knowledge breadth and it is through the organization that the two kinds of knowledge are united to create wealth.The proven formula for success involves leveraging moderate human and financial resources. For example, most business operators lack at least one critical management function, such as a controller or a sales manager. An outside accounting firm, a part-time employee, a channel partner, or a retired person could perform these functions. You have been approached by a person who has identified a business opportunity and who needs some assistance to evaluate it. Outline the advice you would give to such a person?An opportunity is not just an idea. A business opportunity must grow an idea with the potential to develop with the enterprise that has a reasonable chance to succeed. This means that all of the pieces of the puzzle must come together, and in the right order. There should first be the evaluation of external and internal factors that may influence the potential of the business opportunity. External analysis should consider both t he general environment, and big picture, and the industry setting in which the venture might do business.Identifying potential affecters in the external environment is definitely worth the effort, but business concepts make sense only if they fit well with the internal potentials of the business. In other words, the entrepreneurs understanding of potential business opportunities should be combined with insights into what the entrepreneur is able to do. With respect to the chosen sector/industry, learners need to know how to perform a systematic search for new business opportunities as well as how to analyze and evaluate them.There are many different tools identifying opportunities to determine ideas that are worthy of further development, like Druckers Seven Sources of Innovative Opportunity, Boston Consulting Group Matrix, GE Planning Grid, 7-S Model and Competitive Strength vs. Market draw Model. Assessment can be more real world if the task of evaluation relates to an idea, plan or proposal with which an individual can identify personally. find out whether an opportunity is possibly right for a company is not the same as deciding to enter a business, nor is evaluating an opportunity the same as evaluating a business plan.Grabbing a business opportunity is appropriate only after it has been determined that the opportunity itself is both valid and right for the company and the company has a business strategy and plan to which it is prepared to commit. Once a business has become established, it requires sound management systems to operate efficiently. Describe the system you would put in place to operate and control a small business. If the strategic objectives of the business are to be successfully implemented, then first, it is critical to identify the systems that will need to be in place in order to achieve them.The key management systems will typically be those that actively contribute towards the primary goals or profitability of the business. This inc ludes the production functions that manufacture goods for sale and the sales and marketing that sell those goods to the customers. This is all about having the right resources in place to achieve the desired objectives of the business. Without these key systems in place, the strategic development of the business will not work, which is precisely why they must be right before anything can be started.The second stage is to ensure that the support systems are in place. These are the functions that enable the key systems to operate smoothly, such as the purchasing, stores, administration and distribution functions, not forgetting the management systems to organize and coordinate these. The third stage is to ensure that adequate monitoring and control systems are in place both to monitor the expansion of old or the implementation of new systems, and to monitor the efficacy of the whole strategic process and its component parts.In order to implement both the key systems and support system s, it will be necessary to produce an action plan which identifies the critical dates by which each one of these systems must be in place. The action plan should be regarded as a means to an end, as opposed to something that, once set, cannot be changed. Although it sets the guidelines and targets for the process, it must be flexible enough to account for, and respond to, any factors that are beyond the control of the process. The planning procedures must be, like the workings of each of the systems, subject to the same planning and review cycle if they are to function efficiently.