VENTURE PLANNING

INTRODUCTION

Venture Planning is a personal assessment of your feelings and the feasibility of a venture.
Venture Planning answers the question, should I be doing this and why? The Venture Feasibility
process examines seven key factors in any venture.

7 Steps to Do a Feasibility Study

 Conduct a Preliminary Analysis.

 Prepare a Projected Income Statement.
 Conduct a Market Survey, or Perform Market Research.
 Plan Business Organization and Operations.
 Prepare an Opening Day Balance Sheet.
 Review and Analyze All Data.
 Make a Go/No-Go Decision.

MEANING OF VENTURE
Venture refers to a risky start-up or enterprise company

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DEFINITION-
Planning:
 Planning is a process of determining the objectives of administrative effort and devising the
means calculated to achieve them.
– Millet.
 Planning means to decide in advance what is to be done.
Venture:
 Venture refers to a risky start-up or enterprise company.
 New ventures are business plans that gives an opportunity or chance to set up a company/
business on the basis of innovative ideas. It is built upon customer driven ideas or
technology.
Venture Planning:

  Venture Plan is a tool you can use to communicate with potential investors, bankers,
partners, and employees.

 A Venture Plan is a road map for running a venture- a written summary of what the venture
can accomplish and how.
 Plan written by an entrepreneur showing how they manage and direct a new business to get
to certain goals.
 It is a personal assessment of feelings & the feasibility about venture development by pre-
determining the facts and resources to throughput ideas. It is a tool you can use to
communicate with potential investors, bankers, partners, and employees.
PRINCIPLES OF VENTURE PLANNING
1. Planning must focus on purposes. It should always be based on clearly defined objective.
2. Planning is the continuous and repeat process which includes series of steps, so continuity
and flexibility should be maintained in planning cycle.
3. Planning should be simple and there should be provision for proper analysis and
classification of actions.
4. In planning, there should be a good environmental, political as well as economical harmony
within organization.

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5. Planning is hierarchical in nature and must have an organizational identification.
6. Planning should be pervasive activity covering the entire organization with all its
departments, sectors, and different levels of administration, and it should be balanced.
7. Planning must be precise in its objectives, scope and nature. It should be realistic in its scope
and pinpoint the expected results.
8. In planning the provision should be made to use all available resources.
9. Planning should be always documented so that all the concerned are carefully committed to
the implementation of the program.
IMPORTANT OF PLANNING
1) Planning is the first function of management. It proceeds all other functions. Therefore, the
success of the organizational activities depends majorly upon its planning skills.
2) Planning leads to success. Remember the proverb “when you fail to plan, you are planning to
fail”.
3) It focuses attention on the objectives or goals of the organization and their achievements.
4) It leads to economy in operation through the selection of the best possible course of action.
5) It helps in controlling the activities by providing measures against which performance can be
evaluated.
6) It helps in coordinating the operations of an organizations as well as consider plan embraces
and unifies all the divisions in the organization.
7) Planning helps management to clarify, focus, and research their business’s or project’s
development and prospects.
8) Planning provides a considered and logical framework within which a business can develop
and pursue business strategies over the next three to five years.
9) Planning offers a benchmark against which actual performance can be measured and
reviewed
KEY FACTORS IN VENTURE CONCEPT PLANNING-
1. Which venture concept produces the most sales, the best margins, the highest net profit and
the lowest breakeven?
2. Which model requires the least investment by entrepreneurs and others?
3. Which concept requires equity as opposed to debt financing?
4. Which produces the highest "Return on Investment" and the best liquidity?

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5. Which model requires the entrepreneur to give up the least equity?

FACTORS IN VENTURE PLANNING
 Entrepreneurial mindset & skills
 Possible risks & dangers
 Speculations on investment yields
 Reputation status of the firm
 Possible refutation
PROCESS OF
VENTURE PLANNING -
 Idea
 Concept Development
 Venture Development
 Monitoring Progress
 Initiating New Changes
 Venture Feasibility Analysis
 Business or Operational Plan
 Budget vs. Actual/New Plans.

HIGH GROWTH BUSINESS DEVELOPMENT-

 Start up
 Initial growth
 Rapid growth
 Continues growth

FOUR KEYS TO GOOD VENTURE PLANNING

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 Focus on one venture at a time in one business area at a time.
 Discover the opportunity first, and then evaluate how to exploit it.
 Develop three cases good, bad & likely for each scenario of a venture concept.
 Identify what type of venture you want. Each type has an entirely different model,
implementation and end result. Each demands a different entrepreneurial approach and each
requires different management and style.
11 KEYS TO A GOOD FIRST VENTURE
 Founder's alignment with the mission
 Available product
 Guaranteed or qualified customers
 Advantageous Cash Flow
 Equity Control
 Lifestyle of High Profit smaller
business
 Supportive local environment
 Relevant Experience
 Routine concept
 Neutral State and Federal
Environment
 Low Overhead

VENTURE PROPOSAL CHECKLIST

 Proposals functions as an important tool in avoiding any future problems in any ventures
They help to prevent
 Acting on impulses
 Proceeding with half-baked idea
 Disastrous outcomes Exposing the fear that certain facts could spoil what may seem to be
great idea
There are 2 versions
Short version

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 Long version
Items in the Venture proposal checklist
 Framework of the plan
 Appendices, attachment etc
 Main issues under the key section
 Work program assignments based on the framework & lists
 Key sections in a logical order
 Critiques from the advisor
 Summary & conclusion
 Evaluation strategies
AREAS FOR VP IN NURSING SERVICE-
 Institution based care
 Process oriented
 Procedure driven
 Based on mechanical & manual intervention
 Provider driven
 Treatment based
 Reflective of late stage intervention
 Based on vertical clinical relationships
RISKS IN NEW VENTURES
 Market risks – Market strength to support the venture – Trends in the market – Structure and
distribution of the market competition
 Operational risk – Problems related to delivering the quality products on customer-
satisfaction
 Financial risk – Changes in the financial projections/predictions
CONCLUSIONS
Venture planning is strengths designed to convince the reader of the company's success. Because
companies typically create business plans to get funding or investors, the conclusion should
focus on how the organization makes money and why it is a good investment.

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