Small Business Management - Setting up a Business Plan

Small Business Management

Setting up a Business Plan

The modern business companies are concerned with a complex set of corporate and business objectives. The strategic management literature refers to this as the "stakeholder theory" of objectives. This theory claims that the objectives of the enterprise are maintained by balancing the various claims of the stakeholders in the firm: managers, workers, stockholders, suppliers, vendors, and even local communities. (Walls, 1995)

When someone decides to start a business they should set up a business plan, the purpose of this plan is to have a goal, vision and to analyze the support needed for that potential business. And of course, to measure the process and ensure that everyone in the team is on the same track to achieve the goal. It is important to set a future plan to maintain the growth and to check the progress from time to time. It is still important to write out ideas and to create a business plan. Otherwise, the company could have lacked direction and structure. (Costa, 1994)

Business Plans:

If you read about business theories you will find a lot of theories from decades till now. But in general there are some tips that new business starters should consider about writing a business plan: The first tip to be precise and to the point do not write a lot of unused details, the second advice is to be realistic, be honest to yourself and others. Number three is the use of visuals as much as you can, like charts, tables, pictures that make you understand the plan better and help your team work to get the point easier. Another tip is to include creative elements to your plan; those elements help any business to be unique.

Always try to be special, find out why your business is different from others’. Set your budget and find out who is supporting you .check all the resources around you who is supporting you and in which way. Remember your business is your dream and future, so do your best to make it real.

Defining a Corporate Structure

The corporate structure is not only the taxes and the legal issues, but it goes beyond that. It is important to design the company structure even if you decide to start as a single man shop. The responsibility of the executive chairman, the CEO, the financial team and the advisory boards, Document the various roles and duties for the company. Be specific, you should have job descriptions for various positions even if those positions don’t yet exist or one person is handling a number of positions. Think like a bigger company and act like a bigger company so that you can grow to become a bigger company. Figure1 shows a traditional hierarchical structure to an offline business:

Figuer1

a traditional