Enterprise and Enterprenerual Management - Essay Example

There are many reasons that businesses fail, some of them fail because they are unable to recognize the threats that exist in the outside world and as well as the dynamics of the business world. Before starting a business it is very important that a business man tries best possible ways to make his business a success. For making a business a success it is extremely necessary that the business man has studied the environment of the probable business environment so that he does not delve into risks without any preliminary investigations (CAN?

AS, SONDAK, 2011). When starting a business it is extremely necessary for the person who is starting a business to know whether the business he is starting is actually the one that is near to him and he can understand the essence of it. If a person starts a business related to things that is of no interest to him he will end up losing interest in it and ultimately closing down the business, without any further exploitation of opportunities. To start a business it is necessary that everything has been worked out properly and the person starting the business should have the whole layout of the business in front of him so that he can understand what are the pros and cons of the business that he plans to start.

It is very important that the business has been thought out in its fullness before being started by a person. If a person fails to account for all the minute details then the business will never be a success as many important factors will be missed out. A business plan is a very important stepping stone for any business, without a business plan if you want to start your business then you will never be able to take it forward, as you will never have much idea as to what path has to be taken to guide your business in the right direction.

A designed business plan will help and guide the businessman as to what is best for the business (COVELLO, HAZELGREN, 2006). A business plan is really very important to take the business forward as it gives the blue print of the business. A complete business plan is designed in a way that it will take into account all the profits and loss and then give the results of the impact of any kind of transaction on the bottom line of the business. It is a reflection of the possible expenses and the revenue generation of the business.

It helps the new business man decide what are the possible costs that have the possibility of being incurred by him while doing the business that he plans to start and how should he work and prioritize the arrangements so that he can minimize the costs that he might incur for the business. Also, when he has designed a complete business plan then he can look for ways and methods that will also help him in looking for alternates of the possible cost incurring units of the business. When a person starts a business the main thing that he has in his mind is to earn money from it and to make profits.

The only reason that he looks for new ventures is that he wants to have greener pastures to graze and better results than he is getting in the current job that he is doing. Designing a complete business plan will always give him an idea as to what is the best thing that can be done to overcome the possible hurdles that might come up once he starts the business. It