A business plan is essential to a given company in that it dictates the financial and strategic position that a particular venture occupies in an individual market. As such, the various crucial aspects on a business plan, according to Burns & Dewhurst (2016), are the financial projections, executive summary, marketing and sales strategies, the management of operations, leadership structure and the sources of funding that will initialize the business.
The business plan for P'Kolino tells a coherent and compelling story. The business plan has been arranged in a clear and concise manner, which makes it easier for a reader or analyst to go through it. The income statement explains how the sale of particular items leads to the purchase of the other items and vice versa. P'Kolino business plan also describes how the company will sell its products to potential customers, that is online and through the specialty retailers. The business plan of the company becomes coherent over time with the explanations based on the revenue of the company, including the forecasted growth in the revenue in the coming financial periods. The outlining of the economic and marketing aspects of the document enables it to compel the financial analysts and the researchers to go through the company's financial performance.
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There are various parts of a business plan, especially in the financial statements part, that are relevant to the coherence of a given business plan. One of the essential components of the financial plan that Antonio and JB have learned is the income statement (McKeever, 2016). The plan has a detailed and clear income statement that describes the expenses incurred by the company against the income that it generates from the various projects that it undertakes. The other crucial part is the balance sheet (McKeever, 2016). The balance sheet of P'Kolino has multiple assumptions that are in line with what Antonio and JB have learned regarding the business plans, their essentiality and how relevant they are to the investment process. The other part is the cash flow statement that has been clearly outlined in the business plan (McKeever, 2016). The various components of the cash flow help Antonio and JB in deciding how to invest their money.
Before launching the venture, Antonio and JB need to consider some of the critical aspects of establishing a business. One of the things they need to consider is the availability of the capital that can be used as startup funds. The partners need to identify the various sources of capital at their disposal including contributions and debts, for example (Bygrave & Zacharakis, 2008). The other important question that Antonio and JB need to address is how to identify and adequately target the potential market of their business. With their major marketing ideas being online and through specialty retailers, the partners have to make sure they understand the nature of the market and its patterns. The last question that they need to address regards the allocation of the budget to the various projects they have planned. With the budget allocated to the various projects, it will be more convenient to trace the usage of money at P'Kolino.
One of the strongest aspects of the business plan is the comprehensiveness of the outline. From the indicated aspects of the financial plan to the concise but clear marketing plan, the business plan of the company, the aspect of being understood can be seen at the various levels of explanations given. The other strong aspect of the business plan is the financial projections that the company has both in short and in the long term. The clarity that can be observed in the financial projections enables both the partners and the potential funders of the project to identify the strengths and the weaknesses of the business plan that can be addressed ( Bygrave & Zacharakis, 2008). The other substantial part of the business plan is the strategies that are used in the sales. The sales strategy given for P'Kolino is relevant to the marketing operations that the company wishes to have.
One of the areas of the business plan that needs improvement is the elaboration of the marketing and sales strategies in the plan of P'Kolino (Volker & Phillips, 2018). In as much as the strategies for the sale of the products at the company have been mentioned, the plan needs to detail them concerning the best course of action that can be taken to implement them, with their advantages and disadvantages to both the consumers and the company. The business plan needs to have an executive summary that wraps up the main points that have been discussed in the plan to make it easier for the readers of the business plan (Volker & Phillips, 2018). The vision and mission statements of the company need to be part of the business plan to provide the direction of where the company will be headed both in short and in the long term.
The business plan prepared for P'Kolino is coherent and compelling, mostly when it comes to the financial projections part. The income statement, balance sheet, and the cash flow statement have been articulated in a way that portrays the financial direction that the company expects to take after its inception. The business partners need to seek the sources of the startup capital, establish a proper and reliable market and ensure they develop a budget that they follow to the letter to minimize any losses of money. Some of the areas of the plan that need improvement are the marketing and sales strategies that require to be more elaborated.
References
Burns, P., & Dewhurst, J. (Eds.). (2016). Small Business and Entrepreneurship . Macmillan
International Higher Education.
Bygrave, W., & Zacharakis, A. (2008). Entrepreneurship . John Wiley and sons
McKeever, M. (2016). How to Write a Business Plan . Nolo.
Volker, J., & Phillips, M. (2018). Six Points: A Plan for Success. Journal of Management Policy
& Practice , 19 (1).
