Kazoo: Purpose Of A Business Plan And Its Elements (Term Paper Sample)

By Name
Course
Instructor
Institution
Location
Date
1 Purpose of a business plan and its elements
Introduction
A business plan is a written document or a statement that states the goals of the companies and the progress of how the goals are going to be accomplished. Plan of activities includes the why, what and when questions to come up with a solid plan that will turn into a business (Salman, 2008).
Plan of activities serves the following purpose: (1) it acts a directive, plan of activities helps in identifying how far you want to take the business and you achievement at the end, (2) business plan gives principles and structures to your idea, which ensures that all the components are included in the business,(3) it helps one to have perspective of the future, a business plan helps one to know what to do, when the business has picked up and how to deal with the competitors, therefore, it develops a long term idea and (4) plan of activities aid you communication to sponsors, clients, staff and suppliers, a well-structured business plan will enable your business to reach out to many clients from any place in the world and the feedback can help you develop an outstanding business ( Salman, 2008 and Yashio, 2012).
Elements of business plan
Description of a business
This element covers the description of the name of the firm; the mission of the business which is the feature in your business, the services of the company is it a wholesaler, retailer or a shop for providing services. The legal structure of the business is it a partnership kind of business, single owned or group of companies. Provides the illustration of full address of the company, the licenses obtained, the history of the company is it a new business venture or a continuity of existing business and the services it will provide to the clients (Yashio, 2012).
Market analysis
Describe your target clients and market. Illustrate on how you will enter the market and ways of setting prices of your services to generate favorable profit and remain competitive (Yashio, 2012).
Marketing plan
Describe you commodities and services, its benefits to target consumers, the pricing strategy of your services and products, distribution channels and ways of promoting your products to influence consumers (Yashio2012).
Operational plan
Explain how the business is owned and managed on day to day running. Describe how you hire employees, how goods are produced or where you get you products, the facilities, equipment and type of technology you apply in your business, how you deal with legal issues and adherence to rules and regulation set ( Salman, 2008).
The financial plan
Describe the recent financial status and how your business adapts with the dollar change, the future projection of financial statements. Have a record of the initial set up cost including insurance, the cost of rent, license and renovation cost. Develop future prediction of the income for the next three or four years, monthly cash flows, business financial statement and a breakdown of financial for the years of predicted (Salman, 2008).
Summary of your business
This is a summary of all the elements included in the business plan (Salman, 2008).
2 Understanding business dynamic and how it helps to develop a long term business
Diana Nelson had a little understanding of the dynamics that exist in Toy industry. A well-established business plan is important to any startup business but to have long term serving business one must have a clear understanding of the dynamics that exist in the business that they tend to establish. Understanding the following dynamics that exist in Toy industry would have help Diana Nelson to enjoy a long lasting business operational and remains in the competitive market:
The changing technology. Consumers expect a change in the make of products with the changing technology. Currently, children between the ages of four to twelve years prefer iPad and tablets to toys., this poses major challenge to the Toy industries especially Kazoo. Finding out ways to improve the products with changing technology would guarantee Kazoo's store serving a long term and would exist as a competitive store. Diana would have developed applications for iPad and tablets to keep the clients and adapt with the changing technology and serve the need of the customers that were attracted to their products and would make them outstanding over other stores such as Walmart ( Rajagopal, 2012).
Analysis of the competition. Competition is one factor that limits many business ventures from long term serving. Kazoo is facing stiff competition from Walmart and other big Toy stores; competition ranges from products offered to buyers demand. Quaddus and Woodside( 2015), argue that the ability of the consumers to purchase products is influenced by the popularity of the company; many customers prefer to buy products from a well-known and stores that have been in existence for a long term. Diana would have looked at this dynamic and find the best way to overcome this challenge, for example, develop a unique channel of advertisement that would help sell her business or carrying out research on how Walmart manage to compete with other Toy stores.