Managing in the Service Industry Essay
A business plan is a written document stating the aims, mission, vision, objectives, and the general management, cost incurred and planning how you will achieve what you want. It’s a very important document for it will underline guidelines for future purpose of the organization and start to establish baselines for success (Bruhn & Georgi, 2006). A well written business plan should contain a three to five-year cash flow projection. This cash flow will aid the investors in deciding wisely about the business and make you to realize how much capital is required to start the running of the business.
It should deeply define the business operation which include; marketing strategies, and procedures to be followed to attract the customers. It might also project various strategies that display the leadership styles to be portrayed by the leaders which should be transparent and flexible. Business plans are established for various objectives for example an organization might be searching for finances from investors; a group would be in need of bank loan while others will want to plan organizations strategy to be sure the organization is successful.
No matter the purpose all types of business requires a business plan (Bruhn & Georgi, 2006). Steps in
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The business needs should be highly considered especially its aim, vision and mission statement (Boella & Goss-Turner, 2005). • It should be realistic. A business plan should have great ideas which can be implemented for example an excellent, well researched and perfectly written business plan explaining about a commodity that cannot be established has no meaning. Conversely, a plan that calls for millions of money just for investment but lacks management group that can be able to get such investment is a bad plan.
• It should be direct to the point. The entire business plan should be specific in nature that is it should state out duties, expiring dates, forecasts and metric. An excellent planning relies more on the subject, the concerned party, the day and the finances (Boella & Goss-Turner, 2005). • It should underline duties and responsibilities. One must be able to point out the duties for individuals. Any duty without an individual seems difficult to be implemented. • It points out assumptions.
Its very vital for most of the business plans appears to be wrong, they are written by people who deal with guess work and they might be wrong, hence every plan should display assumption up front for altered assumptions ought to direct to revised plans (Bruhn & Georgi, 2006). • It should restrict people to be committed. Apart from planning, the plan should specify the various duties and responsibilities of an individual then the management should follow up so as to get the duties done by the concerned party, this will enforce commitment and a smooth running of the business.
• A good business plan should be kept moving by follow up and planning process. Every business plan must carry the planning procedures with it, which means often check up and course amendment. There’s no business plan that is excellent if it’s inflexible. Planning doesn’t future predict only annually its steering and management that takes a process to often counter check and rectify the course. Contents of a business plan • Business plan should always elaborate the following contents • Executive summary • Business description • Market strategy
• Operation and organization structure • Financial projections Executive summary This summarizes the whole business plan in short form as it shows the decision to be taken and why should it be passed through. The main content will rely on the purpose, target group and the goals of the business. In some circumstances information at hand may overlap a good example is a loan issue, the main reason as to why the loan is most likely to be repaid could be used as a justification for the type of unusual return as desired by capitalist.
While in some issues the information presented is the same. Organizational background In an established plan, information might be in different section or missed out in a business plan. A short synopsis may be included in the executive summary if only the business plan deals with employees outside the organization. This part of business plan also describes the current status, history and the group of management in the organization. Market strategy This section covers the sales techniques, demand flow, distribution and supply and promotion of the goods (Johnston & Clark, 2008).
Concerning the new commodities which are being introduced in the market its advisable to; explain the product features and why it’s the best, vary the selling price and define the desired role immediately the market picks-up. Operational plan; this explains the procedures to service the customers cost effectively which includes, producing/deployment process, effective communication and information technology that is training sessions, needs of the staffs, acquisition steps and intellectual property plan (Saaksvuori & Immonen, 2008). Financial plan
This is a cash flow projection displaying the total cost incurred in running the business such as loan and interest repayment modes, rent, electricity, salaries, material cost etc. It can be used as a budget or an investment plan that sets savings to different assets or program’s desired to bring future income like opening new branches to other areas, introducing brand products and expanding the business. In any business the money plan can be the common financial statement which is the balance sheet, cash flow statement and income statement developed in a business plan (Johnston & Clark, 2008).
The financial planning is the major drive in every business which helps in decision making of how to raise the expected amount and once the money is at hand how will it be distributed to balance the needs of each department. Therefore this section should be keenly checked out and revised well to avoid inconveniences in the business. Chad Frank and Kyle Carson as they present this business plan to the bank they should be convinced and be able to convince the bank managers that their business will be competitive and penetrate in the market place smoothly.
References Bruhn, M. & Georgi, D. 2006. Services marketing: managing the service value chain. New York: Financial Times/Prentice Hall. Boella, M. & Goss-Turner, S. 2005. Human resource management in the hospitality industry: an introductory guide, 8th Ed. London: Butterworth-Heinemann. Johnston, R. & Clark, G. 2008. Service operations management: improving service delivery, 3rd Ed. London: Financial Times/Prentice Hall. Saaksvuori, A. & Immonen, A. 2008. Product Lifecycle Management, 3rd Ed. New York: Springer Publishers.