Business planning is an important pre-startup activity that visionary entrepreneurs should undertake. Business plans are one of the most important business documents since they provide a clear direction to a systematic implementation of a company’s vision. Moreover, business plans are crucial as they are an effective way of articulating the company’s potential objectives that might attract stakeholders. The planning process is also an opportunity for entrepreneurs to learn and acquire an in-depth understanding of future ventures. The essay will analyze the P’kolino business plan to identify both its strong and weak points.
Does the business plan tell a coherent and compelling story?
If a businessman wants to formulate a solid business plan, they should present it in the form of a compelling story. For instance, the P’kolino business plan conveys a thoroughly researched and intelligently articulated compilation of ideas. It makes readers believe that the toy and furniture industry offers a viable investment opportunity. Moreover, these two growing industries influence a 1.2 billion dollar market (Bygrave & Zacharakis, 2011). Highlighting the trends that have an impact on the playroom market, such as educated parents and grandparents with more disposable income, increasing birth rates, and play campaigns, attract readers’ attention and make them interested in the ideas that the authors outline in their business plan. The story is also coherent as it includes a systematic presentation of topical information with a number of supporting facts. J. B and Antonio use existing market information to validate the company’s future visions (Bygrave & Zacharakis, 2011). The P’kolino plan is also persuasive as it shows a clear understanding of the competitors and its target market. Additionally, the authors professionally present a list of actions they intend to take to beat the existing competition. They are willing to design products that are popular among particular age groups, functional, beautiful, and multi-purpose to gain an advantage over their rivals.
Does the plan capture all the learning that Antonio and J.B have accumulated?
P’kolino’s plan definitely captures the learning that the founders have accumulated. Antonio and J.B’s business planning process is didactic as it entails a basic explanation of all concepts that concern the playroom market, an area they intend to explore. The business plan is, therefore, a documentation of what the entrepreneurs learn about business opportunities. P’kolino’s business planning process involved undergoing a feasibility test to determine the economic value of toy and furniture market. Moreover, it presupposed conducting market research to identify existing market gaps, consumer preferences, strengths and weaknesses of competitors as well as strategies of exploiting the opportunities (Evans, 2014). P’kolino’s plan shows that its authors have done extensive research regarding the potential clientele, consumer preferences, competitors, and the competitive edge, marketing, and communication strategies. They use the actual, objective data and information regarding the playroom market to make future projections.
What three questions do you think Antonio and JB need to answer through further planning before they launch the venture?
Antonio and J.B need to answer several questions to avoid potential pitfalls of start-ups. First, what core competencies will the organization need to develop to be successful? To effectively exploit new opportunities, businesses must leverage core competencies and skills to fulfill business goals. Second, what the managers should do to give the company a sustainable competitive advantage? Since the competitive advantages they have identified are easy to gain, it is crucial to formulate a strategy that offers sustained competitiveness (U.S Small Business Administration, n.d.). Third, what is the compelling value proposition (CVP)? In particular, t Antonio and J. B. need to answer how to make benefits influence customers switch from competitor products to P’kolino’s products. They also need to quantify the CVP of their offerings. This calculation involves identifying the solutions that the new products could offer clients that existing ones do not provide (U.S Small Business Administration, n.d.).
What are the three strongest aspects of the plan?
The P’kolino business plan is a suitable example of a well-organized business plan. First, it clearly conveys the company’s mission at the beginning of the text (Bygrave & Zacharakis, 2011). The mission statement sets the tone for the business objectives. Moreover, it summarizes the main goal of the company that is ready to invest all efforts in its achievement. Second, to make the plan attention-grabbing, J.B and Antonio incorporate pictures, graphs, and tables. The images provide supporting information regarding the various sections of the plan, whereas the pictures of products help the reader imagine their final look. Third, it shows an insightful and thorough understanding of the target customers. An opportunity is economically viable if customers are willing to pay for the product (Abrams, 2003). P’kolino’s target market is the high-end mass market and mid-segment market at the same time. There is an elaborate plan for satisfying the needs of the market segments and ways of penetrating the three market niches. Understanding consumer preferences guarantee that products are aligned with clients’ needs.
What areas need improvement?
Although Antonio and J. B have invented conceivably viable business ideas, parts of the P’kolino business plan require several amendments. Firstly, the executive plan should contain a hook that would capture the reader’s attention. Since the business will require outside funding, they must adopt a plan that facilitates spot reading. Investors are usually busy people, who cannot afford to read a forty-page business plan. Therefore, expansion of the executive summary ensures that readers have the most important information at a glance. Secondly, Antonio and J. B. should provide a more detailed development of the plan. They need to elaborate on the aspects that are necessary for efficient performance as well as on the potential risk they could encounter. Additionally, P’kolino’s business plan should include a list of clearly outlined actions necessary for the successful promotion of products and ways of eliminating risks that could occur in the course of the company’s expansion (Abrams, 2003). As a result, such a straightforward development strategy will minimize the occurrence of pitfalls and provide a smooth transition at every stage of the company’s functioning.
In conclusion, the business plan plays a crucial role in the success of a business, because it provides a reliable framework for the operating system of the company. Having prepared a compelling business plan, Antonio and J.B demonstrate impressive knowledge about playroom and children’s furniture products. While this plan might seem to cover all necessary aspects, there are a few areas that need improvement. For instance, the authors should answer the above-mentioned additional questions to eliminate information gaps that could lead to potential pitfalls. Entrepreneurs should also research the offerings of their competitors as well as their own target market to tailor their goods to the preferences of consumers.
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