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Small Business Planning

Starting a small business is essential towards establishing financial independence for the

entrepreneur. Identifying a viable business opportunity is vital towards ensuring the success of

the business enterprise. The proper understanding of the necessary targets is critical towards

meeting the objectives of the business enterprise. The startups play an important role in the

creation of employment opportunities (John, Jarmin, and Miranda 348). One of the main things

that the entrepreneur needs to acknowledge is the role of the market dynamics that come into

play when the decision to start a small enterprise is made. The target should be made in the

process of creating an environment that favors the growth and development of the company. The

paper will, therefore, explore the circumstances of building a small and viable business

enterprise.

Small businesses are located everywhere in the environment. It is however not all the

enterprises become successful. Most of the small business enterprises do not cross the threshold

of two years. The aspiring entrepreneur should always be prepared for any challenge that may

arise from the process of starting a business.

Several steps need to be followed for ensuring that the success of the business enterprise

is provided. The appropriate following of the steps is the bedrock for the success of the business

enterprise. Ten steps have been identified as the basis for the development of a successful

business enterprise. The entrepreneur should take each action at a time.

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They should ensure the full implementation of the preceding step before proceeding to

the next one. Satisfying the goals of a single stage is vital towards eliminating all the errors that

may arise when all the steps are implemented at the same time. The success of the business

enterprise is based on following the steps. The following steps are vital towards ensuring a

successful enterprise.

Doing Research

Identifying a business idea is the first step that is implemented towards starting a small

enterprise. Research helps the entrepreneur to have a touch of reality to the idea. The

entrepreneur should be able to balance the idea with the reality on the ground. The entrepreneur

should be in the position of establishing whether the business idea possesses a potential for

success. The validation process is essential in testing the concept.

The validation step is the most important at this particular point. The threshold for the

validation is whether the idea aims at providing a solution to a problem, whether it intends at

meeting a specific need or whether it is poised to offer something that the market wants. Several

methods can be implemented in ensuring that the demand is identified appropriately. The

methods include research, the use of focus groups and the process of trial and error.

The process of exploring the market involves the provision of answers to some crucial

questions. The entrepreneur should be in the position of establishing the need for the anticipated

products or services. He should also be in the place of establishing the particular segment of the

population that needs the identified products or services. The entrepreneur should even be in the

position of determining other enterprises that are offering similar products or services. He should

also be in the place of identifying how the competition looks like. That can inspire the new

values that the enterprise can add to the products or services to beat the competition.
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Making a Plan

Planning is key to ensuring that the business idea becomes a reality. The business plan

offers a blueprint that can be used to guide the enterprise through the starting up, establishment

and the eventual growth. All new businesses depend on this particular plan for their success.

Different business plans exist with the aim of meeting the targets of various needs of selected

enterprises. The plan offers clarity to the objectives and the goals that the enterprise aims to

satisfy. The plan identifies the way the purposes of the enterprise can be achieved. The business

plan can also be improved over time. The enterprise should be able to withstand the waves that

emanate from the new entry of firms in the market (Sarasvathy, Menon, and Kuechle 419). The

capability to withstand is key towards its survival.

Planning the Finances

The initial investment is vital towards starting a small enterprise. The enterprise needs to

be in the position of covering the expenses that the business might incur. The capability to meet

the costs of the business is essential in the early stages of the establishment before the business

can get in the profit-making ways. Starting the business might not require a large sum of money

to start. Access to funding is however important for the general growth of the business enterprise

(Krishnan, Nandy, and Puri 1768).

The small financial investment is however crucial to meeting the goals of the enterprise.

Recording the estimates is vital in identifying the costs of staring the new business enterprise.

The entrepreneur should be in the position of defining the expenses that are required to keep the

business running. The numbers located in the records form the basis for the initial investment

needed for the enterprise. The entrepreneur can then start to find the ways of funding the startup.
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The entrepreneur can explore the existing options for financing the enterprise in meeting the

desired goals of the organization.

Business Structure

The business enterprise can take a different structure depending on the choice of the

entrepreneur. The business can be a sole proprietorship, partnership or a limited liability

company. The entrepreneur has the option of selecting a structure that best suits the needs of the

business enterprise. The complexity of the business may require that the entrepreneur invests in

the consultation of a legal expert to meet all the legal needs of the organization. The discussion

can also foster the decision making process.

Picking and Registering a Business Name

The business name is as important as the business itself. The title should be able to stand

out as a process in the marketing strategy. The selected name should then be subjected to search

to establish if other enterprises have trademarked them. The name is key to creating a brand for

the business enterprise. The process can be conjoined with the other that is aimed at completing

the paperwork of the business enterprise.

The entrepreneur should strive to acquire the necessary permits and licenses that are

aimed at keeping the business moving. The paperwork varies from one location to another and is

dependent on the type of business that the enterprise seeks to undertake. It is therefore vital for

the entrepreneur to ensure that all the efforts are exerted towards creating the necessary

environment for a startup.

The identification of a proper accounting system is paramount to the success of a small

business enterprise. The system is critical in the process of managing the budget and cash flow
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within the organization. An accounting software can be the cheapest bet for a small business that

is starting up.

The selection of the business location is also a decision that can only be made by the

entrepreneur. The site is vital to the operation process of the business. The place should be close

to the raw material or the market to eliminate the extra costs. The entrepreneur is also expected

to decide between either renting or buying a commercial space for the business. The site should

also be able to ensure that the enterprise implements differentiation to the clients (Lechner and

Gudmundsson 39). The services such as the after sale services are important towards attracting

more clients to the business.

Conclusion

Assembling a team is another step that is crucial to the success of a business enterprise.

The team should be assigned responsibilities that are aimed at meeting the desired goals of the

enterprise. The team is critical in supporting the entrepreneur towards the success of the small

business. The team also plays an essential role in promoting the enterprise. The promotion helps

in attracting clients as well as customers. Effective marketing is key to ensuring that the business

grows to meet the desired needs of the person that set it up. The entrepreneur should be in the

position of exploring all the necessary steps that are aimed at ensuring the smooth operation of

the enterprise. The processes are essential in eliminating the difficulties that may arise in the

process of setting up the enterprise.

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Works Cited

Haltiwanger, John, Ron S. Jarmin, and Javier Miranda. "Who creates jobs? Small versus large

versus young." Review of Economics and Statistics 95.2 (2013): 347-361.

Krishnan, Karthik, Debarshi K. Nandy, and Manju Puri. "Does financing spur small business

productivity? Evidence from a natural experiment." The Review of Financial Studies 28.6

(2014): 1768-1809.

Lechner, Christian, and Sveinn Vidar Gudmundsson. "Entrepreneurial orientation, firm strategy

and small firm performance." International Small Business Journal 32.1 (2014): 36-60.

Sarasvathy, Saras D., Anil R. Menon, and Graciela Kuechle. "Failing firms and successful

entrepreneurs: Serial entrepreneurship as a temporal portfolio." Small business

economics 40.2 (2013): 417-434.