HCA 620 Assignment Introduction to Business Planning Paper
HCA 620 Assignment Introduction to Business Planning Paper
Business plans have for a long period played an integral role when it comes to new businesses. They provide information regarding the future direction of a company by revealing the company operations as well as its visions for future success. Indeed, a business plan demonstrates the requisite undertakings by a business to make it take off as well as the necessary effort to maintain it. As such, a business plan has become indispensable in the contemporary business environment. Different models of business plans exist out of which one can choose depended upon the nature of their business. According to Kidambi (2017), these models vary slightly since they share a lot of commonalities. Thus, when preparing to write a business plan, one will have to research on the multifarious models and choose the one that best fits their business. The choice of an appropriate business model will occur due to a comparison of the identified business models. However, no set rules exist regarding the information that any business plan must contain since they are subject to tweaking to conform the present reality of a business. The present paper seeks to discuss four business plan models, elucidate the limitations and strengths of the same, compare the models to business plan models in Microsoft Project, and use the above information to make an informed choice concerning the best mode for the CLC project.
Business Plan Models
Operations Business Plan
Operations business plan as an important model of business plans since it gives the company a framework within which it is going to achieve its success. The plan is based on internal operations of a company since it comprises aspects associated with company operations. More fundamentally, this business plan makes certain the implementation markers as well as deadlines as regards the upcoming year (Henderson, Goldring, & Simeon-Dubach, 2019). Significantly, the operations plan also outlines the roles and responsibilities that each company employee will play in achieving the forecast success. Moreover, the operations business plan comprehensively addresses operations aspects such as product distribution, inventory and production. This business plan provides a framework concerning the manner in which a business will operate and the challenges when it is fully operational.
Start-Up Business Plan
A start up business plan is a document that details information regarding a new enterprise that is just starting its operations in the market. Apart from the many recorded advantages associated with documenting a business plan, one core role of the plan is to aid an entrepreneur in accomplishing their vision of persuading potential investors. While the financiers may be lenders or even investors, they all need a business plan to evaluate the potential of the business. Business financiers will invest their funds based on the quality of the plan. As noted by McKeever (2016), a business plan is a ticket of admission that provides an entrepreneur an opportunity to impress potential financiers with the given quality of work. A start up business plan will also provide a comprehensive detail on how the business is going to commence, a detailed description of the business model, the products or services being offered, market strategies as well as a projected management plan. Another important aspect that should not be left out is the financial analysis detailing the projected profits based on the invested capital (Watson & McGowan, 2019). The business plan will hence change over time based on the emerging new trends in the market such as emergence of new competitors, price dynamics, and political effects among other unforeseen factors.
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Internal Business Plan
This is a business plan with a target audience of those within the business operations. This business plan is mainly employed when the business needs to introduce, analyze and evaluate operations of the business. For example, this type of business plan may target the marketing team with a proposed project. This plan will include the current status of the business, while focusing on other cost of operations as well as the profitability. The plan will then document how the business intends to pay back the capital invested (O’Donnell, R., & Dahl-Popolizio, 2018). Other important aspects of an internal business plan include information on the marketing of the project, the process and costs of hiring. Also, this document will detail the markets survey results with the various dynamics, market size, as well as the positive effects of the market with regards to the projected income to the business.
Growth Business Plan
The growth and expansion business plan is similarly important as it offer insights into proposed growth and expansion plans of a business. These plans may target both internal and external stakeholders. If the intention of the company is growth as relates to profits, the location, the size and more, the growth business model will fit perfectly. The plan will entail the description of the firm, its officers and management (Ekanem, 2017). The plan comprises all the details of a company so as to satisfy the prospective investors. The model has all the financial and expense projections even when company descriptions may be foregone should the need for capital cease to exist.
Feasibility Business Plan
A feasibility business plan could also be used by health care organizations. This plan answers the questions of who will be interested in the product or service by buying them and the profitability of a venture. This model comprises sections that are descriptive of the necessity for the service or product, the necessary capital as well as the target demographics. At the end of the plan, recommendations related to the future of the project or business are made.
Strengths and Weaknesses
The four models discussed have varied strengths and weaknesses, which will inform the choice that a business will make. The operations business plan offers specific route through which a business will achieve its success. Further, the operations business plan can be applied to any business as it is not limited. This ensures that all businesses may have a way of streamlining their operations based on the components of the model (Henderson, Goldring, & Simeon-Dubach, 2019). However, the business plan does not place an emphasis on the financial operations of a company. Its principal focus is on the employees, which means that the financial markers of a business will not be used to gauge its success. This exposes it to lack of support from prospective investors.
Start-up business plan is comprehensive in the sense that it outlines all the important aspects of a company from the management team to the financials. It clearly creates a picture as to how the new company will achieve its objectives by analyzing the market, the competition, and the services that a company will offer (Watson & McGowan, 2019). However, a start-up business plan does not have the benefit of experience as it is solely based on projections. The absence of basing some of the projections on market realities may negatively impact support for a business from investors while it may also mislead on managerial projections.
Internal business plan has a strength in the sense that it offers specific information to a specific team within a business, which makes its implementation easier. The document does not only reveal the status of the company; it also analyzes the positive impact of a market on a company (O’Donnell, R., & Dahl-Popolizio, 2018). Nevertheless, its focus on the positives of a market means that the company using the document will be unprepared in case of eventualities. As such, the document is not comprehensive enough.
Growth business pan also provides comprehensive information concerning a company’s prospects. It targets both the internal and external stakeholders of a company, meaning that it addresses all the pertinent matters affecting it (Ekanem, 2017). However, the flexibility that it has in terms of leaving out some details may not offer a complete view of a company, which may affect its objectives.
Comparison to Business Plan in Microsoft Project
The above business plans have components that align to the provisions of the Microsoft Project management software. The MS Project software has the capacity to supervise projects both in full and partially via the formulation of project plans. The MS Project can help with task and resources assignment as well as identifying the dependencies of varied tasks. As such, the software is useful for varied projects, which may suit the above models.
Model for the CLC Program
Out of the four models discussed, the internal business plan. The main focus of the business plan for the CLC project is the construction of additional outpatient surgery center outside the hospital. As such, the internal business plan will target the senior leadership who will evaluate it. It will thus reveal the operational costs for the project and the hiring costs for numerous aspects that will make the realization of the project possible.
In summary, a business plan is the backbone of any entrepreneurial practice. Some entrepreneurs find difficulties in expressing themselves to potential investors, as such, a business plan becomes an integral and effective means of communicating their ideas. On the contrary, the business plan will not automatically guarantee success of the business without the necessary skills and the determination by the entrepreneur to make it through the market. Also, it is noted that a business plan that best suits an open economy may not be appropriate for a closed door economy; hence, it is the responsibility of the entrepreneur to determine the type of plan most suitable for their case.
Ekanem, I. (2017). Writing a business plan: a practical guide. Abingdon, UK: Routledge.
Henderson, M. K., Goldring, K., & Simeon-Dubach, D. (2019). Advancing professionalization of biobank business operations: Performance and utilization. Biopreservation and biobanking, 17(3), 213-218.
Kidambi, S. (2017). WeCare Home Healthcare Support Services Business Plan. California State University, Long Beach.
O’Donnell, R., & Dahl-Popolizio, S. (2018). Business Entrepreneurship: The Integrated Behavioral Health Business Plan. In Training to Deliver Integrated Care (pp. 143-159). Springer, Cham.
Watson, K., & McGowan, P. (2019). Emergent perspectives toward the business plan among nascent entrepreneur start-up competition participants. Journal of Small Business and Enterprise Development, 26(3), 421-440.