The Role of a Business Plan in the Success of an Enterprise
Chapter One
Objective of the study
The objectives of the study are;
- To identify important of business plan to a business entity
- To identify why business owner should prepare a business plan
- To determine whether a business plan contribute positively to the success of a business
CHAPTER TWO
REVIEW OF RELATED LITERATURE
Business Plan
In a nutshell, business planning is all about finding, describing and refining the competitive advantage of a particular operation to assist in achieving its goals and objectives (production, financial, transitional, family, etc.). Jack Welch, former CEO of General Electric is often quoted as saying, “If you don’t have a competitive advantage, don’t compete.” So, just what is a competitive advantage? In an industry where there are many participants, such as agricultural production, a competitive advantage is something that you, as a single producer, can do better than anyone else. It may be producing the best genetic cattle, the tastiest vegetables, or it may be producing these things cheaper than anyone else. Business planning is about finding, describing and refining your competitive advantage and moving your business in a direction so that the goals and objectives of the business can be fulfilled. This material will help answer some of the key questions regarding the planning process. Business planning is not a new concept. Planning relies on components that have been used by managers for many years. The plan should serve as a mechanism to connect the production, marketing and financial aspects of the operation, while at the same time considering retirement and business transition needs, etc. In a very general sense, the plan is a statement of how you intend to react to the constant changes in the business environment in which you operate, and how to achieve the goals and objectives that you have set. Most importantly, the process can help to identify the competitive advantage (or advantages) of your individual operation, and help you to devise specific strategies and tactics to capitalize on those advantages
Business plan is the blue print of the step-by-step procedure that would be followed to convert a business idea into a successful business venture. A business plan first of all identifies an innovative idea, researches the external environment to list the opportunities and threats, identifies internal strengths and weakness, assesses feasibility of idea and then arranges resources (production/ operation, finance, human resources) in the best possible manner to make the plan successful. The objectives of business plan are:
- To give directions to the vision formulated by entrepreneur.
- To objectively evaluate the prospects of business
- To monitor the progress after implementing the plan.
- To persuade others to join the business.
- To seek loans from financial institution
- To visualize the concept in terms of market availability, organizational, operational and financial feasibility.
- To guide the entrepreneur in actual implementation of the plan.
- To identify strengths and weakness of the plan.
- To identify challenges in terms of opportunities and threats from the external markets.
Who should do the planning?
While the function of owners and/or managers is to plan, implement and evaluate, the planning process should involve everybody that is involved in the operation. In this way, individual goals are expressed and it can be determined if an individual goal helps to fulfill the overall goals of the operation.
CHAPTER THREE
RESEARCH METHODOLOGY
INTRODUCTION
In this chapter, we described the research procedure for this study. A research methodology is a research process adopted or employed to systematically and scientifically present the results of a study to the research audience viz. a vis, the study beneficiaries.
RESEARCH DESIGN
Research designs are perceived to be an overall strategy adopted by the researcher whereby different components of the study are integrated in a logical manner to effectively address a research problem. In this study, the researcher employed the survey research design. This is due to the nature of the study whereby the opinion and views of people are sampled. According to Singleton & Straits, (2009), Survey research can use quantitative research strategies (e.g., using questionnaires with numerically rated items), qualitative research strategies (e.g., using open-ended questions), or both strategies (i.e., mixed methods). As it is often used to describe and explore human behaviour, surveys are therefore frequently used in social and psychological research.
POPULATION OF THE STUDY
According to Udoyen (2019), a study population is a group of elements or individuals as the case may be, who share similar characteristics. These similar features can include location, gender, age, sex or specific interest. The emphasis on study population is that it constitutes of individuals or elements that are homogeneous in description.
This study was carried to examine the role of a business plan in the success of an enterprise. Selected business owner in Uyo form the population of the study.
CHAPTER FOUR
DATA PRESENTATION AND ANALYSIS
INTRODUCTION
This chapter presents the analysis of data derived through the questionnaire and key informant interview administered on the respondents in the study area. The analysis and interpretation were derived from the findings of the study. The data analysis depicts the simple frequency and percentage of the respondents as well as interpretation of the information gathered. A total of eighty (80) questionnaires were administered to respondents of which only seventy-seven (77) were returned and validated. This was due to irregular, incomplete and inappropriate responses to some questionnaire. For this study a total of 77 was validated for the analysis.
CHAPTER FIVE
SUMMARY, CONCLUSION AND RECOMMENDATION
Introduction
It is important to ascertain that the objective of this study was to ascertain the role of a business plan in the success of an enterprise. In the preceding chapter, the relevant data collected for this study were presented, critically analyzed and appropriate interpretation given. In this chapter, certain recommendations made which in the opinion of the researcher will be of benefits in addressing the challenges of the role of a business plan in the success of an enterprise.
Summary
This study was on the role of a business plan in the success of an enterprise.. Three objectives were raised which included: To identify important of business plan to a business entity, to identify why business owner should prepare a business plan and to determine whether a business plan contribute positively to the success of a business. The study adopted a survey research design and conveniently enrolled 80 participants in the study. A total of 77 responses were received and validated from the enrolled participants where all respondents were drawn from selected business owners in Uyo. Hypothesis was tested using Chi-Square statistical tool (SPSS).
Conclusion
It is important for business owner to prepare for business plan for the success of their businesses. With good business plan , an entrepreneur can figure the success of the business easily
Recommendation
It is important for all business before they start their businesses should have a business plan to figure out the success of the business
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