Starting a Business Venture on an Action Plan

Overview

Focus on transforming a business plan into an action plan for starting a business.
Importance of utilizing resources from Western Cape Education Department.
Ensures preparation for upcoming term tests.

Strategy:
- Development of vision, mission, goals, and objectives.
- Systems and processes must align with the action plan.
Operations:
- Identifies operational plans and timelines.
- Involves staff training, employment, and resource management.
- Requires continuous monitoring and evaluation.
Productivity:
- Budget and financial planning are essential.
- Aim to decrease costs and increase outputs for improved profits.
Size of the Business:
- Management and staff quality is crucial.
- Larger businesses face more management challenges.
- Bigger businesses have higher costs and profits, but manageability is an issue.
Culture, Training, and Quality of Staff:
- Establish organizational culture early.
- Ensure staff receive appropriate training and understand dress codes.
Risk and Change:
- Businesses must adapt to changes in technology and market conditions.
- Action plans may need frequent revisions.
Customer Service:
- Focus on meeting customer expectations.
- Example: KFC's meal swap ensures quality and satisfaction.
Market Research:
- Continuous research helps identify profitable markets.
Business Cycles:
- Businesses experience both profits and losses.
- Constant adjustments are necessary to reduce costs.

Organizational Culture:
- Establish and enforce a code of conduct.
Environmental Changes:
- Plan for risks and minimize impact from business environment changes.
Customer Service:
- Adapt action plans to meet customer needs.
- Foster strong customer relationships.
Business Growth:
- Use solid strategies for controlled growth.
Cost Saving:
- Control unnecessary expenses.
Risk and Change:
- Be flexible to adapt to market changes.

Reasons for Funding:
- Cover startup costs, pay employees, and expand business.
Sources of Funding:
- Equity Capital: Owner's investment.
- Issuing of Shares: Raising capital by offering shares.
- Debt Capital: Borrowing funds through loans and credits.
  - Bank loans, trade credit, and bank overdrafts.
- Leasing and Hire Purchase: Leasing assets instead of buying.
- Grants: Government or organization support.
- Venture Capital: Investment in exchange for business shares.
- Angel Financing: High-risk investment by wealthy entrepreneurs (e.g., Shark Tank).
Factors Influencing Funding Choice:
- Nature of financing, amount needed, risks, cost of finance, period of financing, availability, and tax considerations.