Final Synthesis Paper on Entrepreneurship (500 words)
Student 601
McSwain_SB3.docxMADM 751: Entrepreneurship, Innovation & Creativity
Louisiana State University Shreveport – Dr. Michael D. Meeks
Socratic Skill Builder #3: Entrepreneurial Mindset: Business Plans vs Business Models [100 points]
Due Date: Sunday August 4th by 11pm
Student Name: Tia McSwain
Question #1:
1. Executive Summary: This is a one-page executive summary which states the mission statement of the organization. Furthermore, the background information pertaining to the founding of the firm and by whom is also essential at this point. The products to be dealt with are also described. The key features of an executive summary include business concept, financial features, financial requirements, current business position, and major business achievements.
2. Company description: the element describes what the business wants to engage in including the products and services to be offered. The type of potential customers as well as competitors and what the business does differently from competitors.
3. Market Analysis: this involves a deep analysis of the market industry. The element describes the target market including its size and growth rates. The element help define how customers will be created through defining sales and marketing strategies.
4. Competitive analysis: this is an important element that focuses on the competitive landscape in the target market. Perhaps the information includes their strengths and weaknesses. The factors to overcome in order to compete favorably with them. The element helps the company identify its competitive advantage to the market.
5. Management and Operations: This includes the organizational structure of the company, management profiles and the number of employees to hire.
Question #2:
Creating a one-page business model is faster as compared to a business plan which can take to almost months to complete. Perhaps intensive research shows that a business model is portable and hence easy to share with others when compared to a business plan. This gives allowance for adjustments. When people frequently read the business model it will be easy to identify any mistakes and therefore ensuring frequent update. Despite containing all the elements of a business plan, a business model allows for working visualization of all fragments and how they fit together. A business model emphasizes on operational aspects of the company business. Furthermore, it incorporates both short- and long-term strategic positions of the business. A business model has been identified to be more effective than a business plan with far much less cumbersome and more detailed as compared to a business plan. As with a business model, it gives priority to the operational aspects of the business thus allowing strategic decision making and business development assessment. According to the readings of this week, it can be established that a business plan is more detailed and cumbersome with a mass of calculations. Thus, a change in one section of the business plan can alter the effectiveness of the entire business plan. The effectiveness of the business model, however, has made them more popular replacing business plans.
Question #3:
The Business Model Canvas is a shared model for visualizing, describing, assessing and changing the model of a business. The BMC outlines various prescriptions that form the fundamental blocks for business activities. The model allows both the new and existing business operations to focus on the strategic management, operational and marketing plans. Thus, BMC is more of the operational and management activities of the business activity. Perhaps the business model canvas describes the reasons of how a business creates and delivers value.
The difference between BMC and Lean Canvas.
The Business Model Canvas is much focused on the strategic management, operational and marketing plans of the business while on the other hand Lean Canvas uses a problem approach where a focus problem is outlined. The Lean Canvas majorly targets startup businesses and entrepreneurs while BMC targets both the startup and existing businesses. As the BMC focuses on a value proposition as a competitive element, the Lean Canvas asses the unfair advantage over others and how to major on it for better performance. According to my view, the Lean Canvas model is more convenient to use for a new venture. This is because the Lean Canvas takes into account the business model management as well as a performance measurement of the business which are the vital elements of a business.
Lean Canvas Format.
Question #4:
Empathy refers to the feeling and ability of understanding and sharing experiences and emotions of another person. Many people have experienced empathy at different times of their lives such as helping out a colleague acquire a job after having lost his car. Empathy is a business operation is an important tool for achieving sustainable development, especially for entrepreneurs. Experts feel that empathy is an essential skill for entrepreneurs developing a business model because entrepreneurs are ever surrounded by people ranging from employees to customers and investors who they need to understand. Personally, I agree with the argument. Entrepreneurs operate in an environment where people have different needs. Therefore, understanding each one of them is an essential tool for business success. When an entrepreneur develops a model that will effectively put into considerations the needs of these different parties addressed above, a new business will be strengthened and thus achieve success. This, therefore, means empathy allows entrepreneurs to get the insight to optimally run the business. It’s important for customers, investors and other stakeholders to know that their voice is important. Thus, through empathy, an entrepreneur describes that the main goal of the business is not all about making profits but rather satisfying the needs of all parties.
Question #5:
Entrepreneurs create plans and models to arrive at their general objectives, and they ordinarily think that it’s valuable to separate arranging into stages. This enables you to follow quick enhancements while assessing progress toward inevitable objectives and targets.it is important that business models, business plans, and pitches be succinct because the diverse time spans of the arranging procedure place the attention on time-touchy parts of the organization's structure and condition. You can separate arranging dependent on the time spans of the sources of info and anticipated results. Being succinct takes a gander at the attributes of the organization in the present and creates systems for improving them.
Models are the abilities of the representatives and their demeanors. The state of creation gear or item quality issues is likewise momentary concerns. One-page business plans are requested because the document gives an approach to tell representatives a few things they'd never been told expressly: what the organization was about, what their work was helping manufacture and what was in it for them. Organization pioneers made an inner framework to perceive and remunerate workers for grasping organization esteems. One page should be preferred when you're seeking an effective development so as to have the option to impart your objectives to the general population who will get you there.
Question #6:
The video on Macro changes that increase new venture opportunities is the most resonated in business founding. This is because it gives an explanation how New Venture Creation is committed to helping understudies create convincing business thoughts. This is put together not just with respect to the creators' notable research in item and administration advancement, yet additionally on their broad experience as fruitful business visionaries and financial specialists. Organized new venture is at the center of fruitful enterprise, this quick guide by Meyer and Crane sets up development as an important initial step before composing a marketable strategy or building up a money related model. With an attention on logical techniques for picking up industry and client knowledge and making an interpretation of this understanding into creative item and administration arrangement. The video gives entrepreneurs the structure with powerful plans of action, money related projections, field-tested strategies, and financial specialist introductions. It also focuses around various kinds of speculators and the procedure for raising capital, making sensible money related projections, composing a succinct yet amazing marketable strategy, sorting out the endeavor group, and making a convincing pitch that addresses the requirements and worries of financial specialists. The video likewise incorporates various free contextual investigations that emphasis on item, administration, and plan of action advancement which are from ongoing business venture.
Question #7:
