#AGEC17 Featured Submission

#AGEC17 Featured Submission

CHALLENGE OVERVIEW:

80% of the value of a task comes from 20% of the effort. Focus your effort on the critical 20% and do not overdo the less important 80%.

CHALLENGE TASK:

The Pareto Principle is a well known phenomena. (1 minute video).

It reminds us to focus on the most important things first. What do you think is THE one most important thing to focus on when starting up a new business. Why do you say so?

FEATURED ANSWER:

Learner: Maria Lichtenberg
School: Reddam House
Featured Submission: Focus on the Business Plan

THE most important thing to focus on when starting up a new business is your business plan, as it gives you an opportunity to finalise your decisions and have a plan on how to reach business goals. It shows what you intend doing, how you intend doing it and when. It also shows why you think your venture is worthwhile and profitable. It forces you to put your thoughts is a logical order and to think about possible problems along the way and solutions to those problems. This enables the business to confront these problems more productively if and when they do arise, as solutions have already been put forward. It also ensures that fatal faults in your business idea can be easily identified and eliminated.

A business plan is essential when applying for funding. No organisation will lend you money without seeing a detailed business plan that includes what goods and/or services will be offered, how the loan will be used, the projected incomes and expenses and the plans for repaying the loan. This is important as no business can get anywhere without funding.

The business plan also includes the business long term and short term goals. This forces you to think about where you want the business to go and the strategies you need to implement in order to achieve those goals. In the business plan, one also looks at the production and staffing plan: how many staff you need and what needs to take place in order for the goods or services to be made available to customers.

The marketing plan is also included. It researches the market by asking questions such as: what is my target market, how much are they willing to pay, what quantity will we be able to sell and where is the best place to offer my goods and services from? The business plan includes details of the startup costs and projected incomes and expenses over a period of twelve months.

A business that has a detailed business plan is much more likely to succeed than one that does not, as it has a plan of action of how to go about reaching its business goals and a structured plan of how to successfully provide its goods and services.