Types of businesses and developing a business plan are some crucial elements needing comprehension in growing companies. A business is a venture that inputs its resources producing products for customers in exchange for money. There are various types of business ventures and forms of ownership. The categorization of the types is in four modes. The first is a service business. It provides services that are intangible products such as consulting firms, schools, hospitals, and salons. Secondly, merchandising businesses known as buy and sell business. They acquire products at wholesale prices and sale at retail prices. Thirdly, a manufacturing business transforms raw materials into finished products. Lastly, hybrid businesses are a combination of any of the three. There exist various challenges in business development.
types of businesses and developing a business plan
TYPES OF BUSINESSES AND THE PROCESS OF DEVELOPING A BUSINESS PLAN
After a thorough analysis of the types of business ventures, deciding the appropriate business for products is simpler. Other factors, such as the availability of capital and market, also contribute to reaching the decision. Developing a business plan is the foundation for starting a business. It also has other benefits, such as use for loan applications and attracting investors. There are ten sections in the business plan. Some of these sections are background, executive summary, marketing plan, goals and objectives, and financial plan. The elements of a business are vital for the daily decisions in a company. Therefore, it should address the challenges in business development. Moreover, set out plans for dealing with the problems.
the process of developing a business plan
THE CHALLENGES INCURRED IN THE BUSINESS DEVELOPMENT PROCESS
There are several challenges in setting up various types of business ventures. As firms grow, new problems, opportunities, and solutions arise. Additionally, the solutions keep changing over time. For instance, a method of solving problems in the past doesn’t necessarily apply now. The challenges in business development include the following. One, the challenge of keeping up with the current market. The market is dynamic hence keeps changing regularly. Secondly, insufficient forecasting techniques result in massive losses for the business. Also, managing cash flows and finances is another recurrent problem. Developing a business plan before commencing business aids in solving some of the arising challenges.
challenges incurred in the business development process
Additional attachments
