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Every planning process goes through a series of stages. In essence the aim is to complete
each of the following steps:
Effective business planning has to begin with an honest and realistic appraisal of the
current position of the business. The formal term for this is situational analysis and there
are several planning tools and methods which are helpful in putting the analysis together.
The true purpose of situational analysis is to determine which opportunities to pursue:
Having determined the current position, the next step is to determine the direction of the
business by answering the question where are we going? The outputs from asking this
question are:
Vision: the non-specific directional and motivational guidance for the entire
business. What will the business be like in five years time?
Mission statement: a statement of the businesss reason for being. The mission
statement is concerned with the scope of the business and what distinguishes it
from similar businesses
Objectives: SMART objectives set out what the business aims to achieve
Goals: specific statements of anticipated results
Environmental Analysis
Business leaders can control aspects of the internal environment that can positively or negatively
affect a company's operating and financial results. For example, leaders shape their company's
culture, establish the company's organizational structure and create policies that guide employee
behavior. However, the greatest challenges to business success may be a consequence of the external
environment over which a company has little, if any, control. To address these challenges, business
leaders conduct an environmental analysis and develop policies and processes that adapt company
operations and products to this environment.
External Environment
The external environment consists of a general environment and an operating environment. The
general environment consists of the economic, political, cultural, technological, natural and
international environments in which a company operates. The operating environment consists of a
company's suppliers, customers, market intermediaries who link the company to its customers,
competitors and the public. Both the general and operating environments provide business
opportunities, harbor uncertainties and generate risks to which a business must adapt. For example,
countries with large populations may coincide with a large market size for particular products.
However, to offer its products in these markets, a company may be required to contend with a
government that erects obstacles to trade in the form of tariffs, product standards and customs
procedures.
SCANNING MONITORING
FORECASTING ASSESSING
Successful environmental scanning draws attention to possible changes and events before their occurrence ,
allowing time for suitable action.
MONITORING : It entail perspective followup and a more indepth analysis of the relevant environmental
trends identified at the scanning stage. The purpose of monitoring is to assemble sufficient data to
discern(makeout) whether certain patterns are emerging.
FORECASTING : Forecasting is concerned with the development of plausible directions of directions, scope,
speed and intensity of environmental change to layout the evolutionary path of anticipatory change.
ASSESSMENT (Appraisal and evaluation) : Assessment involves drawing up implications/ possible impacts. In
assessment, the frame of reference moves from understanding the environment of the focus of Scanning,
Monitoring and Forecasting-to indentifying what that understanding of environment means for the
organization.
In short, It involves drawing of possible impacts of the environmental changes on the organization.
Stages in starting the new venture.
It takes time, commitment, a good idea, the right personality, and business skills to start and run
a small business successfully. The following websites will help evaluate your suitability and the
viability of your new business venture.
3.Research: Arguably this should have begun before defining your raison detre, however if you
havent already, make sure you have solid primary and secondary research showing that a need
or gap exists and your product or service fills it. Also show that demand is such that your venture
will be profitable or self-sustaining. Do not forget to research competitors and potential
competitors as well as government regulations.
A business plan is a written document that details what your business will do and how it will
operate. Financial institutions may review your business plan and make lending decisions based
on the information you provide. A business plan also helps ensure that you are ready to launch
your new business, even if you do not need financing. The following websites will help you
develop a business plan.
Financing - If you cannot raise enough money to cover your business start-up costs through
family, friends, loans or lines of credit, click here for information on small business financing, or
visit the following websites for information on Federal and Provincial funding options.
If you want to use a business name that is anything other than your personal name, you need to
have the name approved by, and then registered online with BC Registry Services or OneStop
Business Registry.
7. e-Business & Internet Marketing
If you plan to use the Internet to sell or market your goods or services, you will need to create a
website and secure a domain name. You can research availability of domain names and buy the
rights to a name online. There are many web design companies to assist in your website
development and maintenance. Visit e-Business Connection for information on how to develop a
web presence and strategy.
Business Records - Whether you are hiring employees or working on your own, you are
required by law to keep complete records of your new business income and expenses. Click here
to view the Canada Revenue Agencys list of all business records you must keep. It is
recommended you contact a qualified accountant to help you set up and maintain proper business
records. It is also a good idea to talk to a lawyer for advice about legal issues that may affect
your small business.
Employment Standards Branch, Ministry of Labour - The Employment Standards Act and
Employment Standards Regulation apply to most workplaces in British Columbia and cover such
important issues as required wage rates, vacations and overtime rules. If you are planning to hire
employees, you should be familiar with this information.
Industry Training Authority - The Industry Training Authority (ITA) is a provincial government
agency responsible for governing and developing the industry training system in British
Columbia. If you are planning to hire apprentices, you will need to be registered with the ITA. E-
mail: customerservice@itabc.ca