March 25, 2011

Personal essay on humans (maybe even business) creativity...





“I dream my painting and then paint my dream”
 Vincent Van Gogh.

     Creativity...so many meanings in one word. It goes without saying that creativity might be understood in a slightly various ways. Basically, creativity refers to a phenomenon whereby person creates something new (a product, a solution, an art, etc.). As I am quite interested in business I would like to speak here about business creativity and its features. I would identify business creativity as an ability of entrepreneur to create and to poses a new and unique idea and bring it to a market then as a business. In my work I would like to speak about usage of creativity in our life.
     Firstly, I would like to say that creativity is very unique and individual for every person and of course it might be used in various spheres of life.  You can use it almost everywhere. When you are studying it might be sometimes tricky to find a good answer to a teachers question and you can use your creativity or imagination to develop some idea and bring it as a final product. Creativity as an extraordinary way of thinking helps a lot when writing various projects or assignments it makes your feelings, emotions to fly and to be unique somehow by having personal view on things going around you. Such quality also helps you to come up with a new idea when you work or start your own venture. To be creative means to have an opportunity to bring something new to a market and take an opportunity gap, which might bring you successful profitability. It makes you stronger when you apply it in your everyday life.
     When you start your venture you are taking lots of stress as a human being. In order to be successful you have to use your imagination and creativity. But sometimes you face many risks when trying to be creative and bring it to your business. You should be always ready to come up with new ideas which might be even tricky sometimes. You might face such difficulties as: using somebody’s own and protected idea, you have a risk not to enter the market with your extraordinary product, you may also lose your old customers and by this comes another risks of losing money and image. Also it is sometimes not easy to bring your idea into real life, it might be even impossible and you have to check up everything before trying to be creative. Another risk comes from environment which is around you. Changes in political systems, economy and so on might also be a risk for you uniqueness.
     Secondly, I would like to say here that strong motivation might help you to use your creativity in varicose spheres such as studies, work, etc. You should always try to find ways to use your uniqueness and may be show it to other parties to look different from them. Sometimes it’s good to be a white bird in a mass of black’s. I always try to apply my characteristics and skills to my studies. For example I try to write projects in unique way or I may call it in my own style of writing. I suppose that I am quite good at it and it is very helpful for me now. May be creativity helps me also to handle my own problems which are inside me as I always solve them in various ways not to repeat the same mistakes. It’s my personal advice if you are looking “inside the wall” to use your personal qualities as much as possible. Be opened to yourself! Write down new ideas and apply them to your life. I am sure that it will help you a lot.      
     Coming to a conclusion I would like to say a few words to sum up everything. So, as we identified, creativity is a starting point for person to create something new and bring it to a world then. Every person might have this quality but not everyone has it as developed and mutual as others. It might vary from every person and is quite individual thing. Creativity covers all our success. When you are enough created-you are stronger than others. You can poses your new and fresh ideas and be unique person somehow. It is possible to develop this quality in your character but to do so, you have to find yourself in some specific area and grow as much as possible. Don’t be shy. It’s my advice. Cry as loud as possible that everything could hear you well. Be unique and bring to everyone your idea. I am sure, creativity will help you everywhere, it doesn’t matter who you are a student or a businessman. Be risky sometimes and don’t afraid to be the best, that is my point!

Plan of a business plan...


There are 8 videos showing briefly how to write a business plan. Quite nice to have a short picture of it. Enjoy!

The importance of a business plan...



     It is well-known fact for every person who starts his or her own venture that business plan plays an important role in a decision-making process and gives a starting point for creating your own business. Basically, business plan is a formal statement or document, whatever that reflects your business goals and shows your vision on a future venture. It also contains a background information of person starting business and various financial and managerial statements. Why is it so important? How to create it? What is the starting point for creation a business plan and what should be included into there? This kind of questions have several meanings and answering them will take an enormous amount of time, but I assume that I can answer them in brief in case to poses a short picture of it in your minds. So, here we go.
     Firstly, let's discuss the importance of a business plan. Actually, it is created to reflect what is inside you, what is in your mind. It is necessary for several parties such us: investors, bank managers, you and management team. Also, some other parties are involved into the process of reading your business plan but it is not that important now. Their decisions making process will be based on your plan. Also, by making a business plan you provide for yourself an overview and a clear picture of your future business and then decide what to do with it. Making financial data and accounting and different researches (when measuring market) you will see if your venture will be profitable in future or not. More to the point you reflect thee your business idea which is the most important thing when creating a business.
     The creation of a business plan is a long process which requires a lot of efficiency from you and hard work. You collect all the data concerning your future business and then put it into a strict plan which then after various changes will become a real business plan, your engine for a future success or might be failure. I want explain the whole picture of a business plan, just only content of it as it will take lots of time to describe every point of it. There are enough information on writing business plans in the Internet. You can visit Bplans.com which seems to be a good resource where you might read everything in details and find lots of examples or samples of a real business plan. Anyway, concerning the contents of your business plan. It shouldn't be too long almost 20-40 pages, otherwise your investor wouldn't be so happy to read it. The longest plan doesn't say that it is the best one. You idea and clear accountings might be a core principle of success. Here comes the content:

Introduction

Executive summary

What is the business?
What is the market?
What is the potential for the business?
Forecast profit figures
Funding requirements
Prospects for the investor/ lender

Description of the business

What is the business?
A brief description of the business idea and why it should be a success
History of the enterprise and its ownership
Information about the entrepreneur’s qualifications, experience and financial status
Location

Products and services

A description of the product and what it does
An explanation of ways in which the product is distinctive and unique
Analysis of the competition
How the product will be developed and what new products are being considered as replacements
Intangible assets & protection (e.g. copyright, trade marks)

The market

Size and expected growth of the market
Analysis of market by segments
Identification of target segments
Competitors - who they are, ownership, size, market share, likely response to the challenge
Customers (existing & potential) - who they are, how they buy, why they buy
Distribution channels

Situational audit (where are we now?)

This involves data collection and analysis


Purpose of data collection and analysis:
Determine which opportunities to pursue
Identify SWOT
Identify competitive advantages
Provide a background for the formulation of strategy

Main analytical techniques:

PEST/ PESTLE analysis
SWOT analysis
Competitor analysis
Marketing audit

Statement of aims and objectives (where do we want to go?) 

A statement of what the business should achieve over a five year period
Aims should be expressed in terms of hierarchy of objectives becoming progressively more detailed and specific
Vision - what the organisation will be like in the future
Mission statement - a statement of the overall purpose and aims
SMART Objectives - quantitative goals.
Functional objectives - objectives for the functional areas

Strategy and tactics

How are we to get there?
Strategy is the broad approach to the achievement of objectives
Summarises how to fulfil the objectives
Tactics refer to the details of the strategy e.g. the promotional mix
The detail will be contained in programmes and budgets

Marketing: key questions to be answered

Who are our customers?
Who are our competitors?
What is the size and growth rate of the market?
How is the market segmented?
What is special about our product or service?
What are our competitive advantages?
What is our marketing strategy?

Marketing plan

Market research
Segmentation and targeting
Detailed outline of the product or service
Unique selling points
Chosen pricing strategy
Promotional plans
Distribution strategy (including online)
Customer service strategy

Operations plan

Physical location
The production process
Facilities
Equipment
Scale & location of operations
Capacity - potential and effective
ICT strategy
Engineering and design support
Materials required
Inventory levels and stock control plans
Purchasing arrangements
Sources of supply of key resources
Quality control plans
Staffing requirements

Management and organisation

Organisational chart
Details of senior management
Corporate governance
Staffing requirements
Key personnel
Recruitment and selection
Training
Rewards (financial & non-financial)
Labour relations
Employment and related costs

Forecasts in the business plan

Sales forecast
Forecast profit and loss account (income statement)
Cash flow forecast (cash budget)
In each case this should be a month by month forecast for a minimum of two years
Forecast balance sheet for each of the first two years
The assumptions behind the forecast should also be included

Financial data

Investment appraisal - payback and discounted cash flow
Break even analysis
Evaluation criteria for performance review
Ratio analysis: net profit margin, Gross profit margin, return on capital employed, liquidity and solvency analysis

Financing required

Details of capital required and uses
The plan must include details of the external finance required
This will be equal to the finance required less finance raise internally from existing owners and from operations
The plan will outline how it is proposed to raise the finance
Sources of finance: Short, medium and long term; Debt v equity

     I suppose, that you can learn more about business plan in the Internet and also I would recommend you to read a wonderful book written by Richard Stutely "The definitive business plan". You can enjoy every moment of it and it might be the best helping tool when writing your own business plan. You can buy it in Amazon followed by this link.

     Coming to a conclusion I would like to say, that you have to study business plan writing in order to be competitive in future and poses yourself as a mutual entrepreneur. Study it and share it with your friends. It requires lot's of time and energy but it costs itself! Believe me...