Do entrepreneurs need a business plan to be successful?

Do entrepreneurs need a business plan to be successful?

Starting a business can be a very difficult, and I this economic crisis near impossible task even to the most entrepreneurial minded person out there. Businesses are mainly hard to maintain in the first year of the business as it is said the first 12 months are the hardest to survive and It is said that if the business can survive the first year than they are likely to be able to survive, in fact Up to one fifth of the 400,000 businesses that start up each year fail within the first 12 months of operation.

This gives an approximate figure of 80,000 businesses failing annually. This is according to the Department of Trade and Industry (DTI) revelations during the Startup Awards.

There are many ways businesses can be successful and not slip into the category of failure businesses can make sure they have a good idea this may be a product or a service but whatever it is it needs to be good or the product or service will not sell and therefor the business will fail also to be successful you need to know your customer market so you have a big customer base to buy your products also you need to know your competition if you don’t know your completion then you ay become a failure for example if you were to open a soap shop next to the body shop as it won’t sell properly and to its full potential as the customers will choose to buy the product from the body shop as they know the product or they know they can trust the product and people are reluctant to try new things in fear that it might not be worth it so they stay safe and buy from what they trust. Another thing that helps make the business is by having a good business plan.

Business plans can be used in some cases but a lot of people do not use them and in my opinion they are crucial to aking a business successful a business plan may be frowned upon by a lot of entrepreneurs as they are thought to be a useless waste of time and people think are they worth doing in my opinion I think that a business plan can hugely increase the chance of success of the business as a plan hugely helps you in the first year, as the first year a lot of entrepreneurs struggle as they are trying to plan on their feet as they go but they quickly find they are not capable of doing this hence why one fifth of businesses fail in the first year of opening.

A business plan can be quite easy to do nd can be done by anybody that’s starting a business but is not done enough I think that a business plan only needs to have eight different stages to it market analysis, company description, organization and management, marketing and sales strategies, product line, financials, funding requirements and a summary that might seem a lot but if you put the effort in at the beginning you are only going to have more chance of success in the future of the business. Subway is a massive fast food franchise globally that has done very well and is hugely successful the founder Fred De Luca. In 965, Fred DeLuca borrowed $1,000 from friend Peter Buck to start “Pete’s Super Submarines” in Bridgeport, Connecticut, and in the following year they formed Doctor’s Associates Inc to oversee operations of the restaurants as the franchise expanded.

The holding company derives its name from Fred DeLuca’s goal to earn enough from the business to pay tuition for medical school, as well as Peter Buck’s having a doctorate in physics. Doctor’s Associates is not affiliated with, nor endorsed by, any medical organization. In 1968, the sandwich shop began using the name “Subway” for the first time. Fred De Luca had to plan what he was doing he would of not of been successful especially considering he had a very low start-up cost of only $1000 which was not even his so he could not even think he could waste it and then carry on living as it was his uncles money he was investing so having a business plan was crucial so he only spent what he had to even though when the business was started $1000 was worth a lot more than it is now but he still had to be sensible.

Subway is ranked #2 in the top 500 franchises and also ranked #2 in the fastest growing and Frank De Luca would of not done that without a business plan. Although Hollister Co. as founded in 2000, Abercrombie & Fitch has created a fictional history surrounding its ugliness. According to this history, John Hollister, Sr. emigrated from New York to the Dutch East Indies, and established the company bearing his name upon returning to the United States and settling in California in 1922. HCO’s rapid success led Abercrombie & Fitch Co. to notice that the HCO. Brand then surpassed the Abercrombie & Fitch brand. In order to properly distinguish A&F from HCO.

Higher-grade materials and construction were introduced strictly in the production of A&F clothing and goods, thus raising the prices of the merchandise. Hollister primarily targets the 14 to 18 year old demographic. But they ended up selling to people from 12 to 27. They used this as a business plan and successfully. Not only has John Hollister started his business well he has boosted the popularity of Abercrombie and Fitch also allowing them to sell higher produce goods so that the consumer can differ between the two. Goods are given names from SoCal beaches, something which Gilly Hicks does similarly with Australian beaches. The labels proclaim Hollister Co. as “pacific merchants” established in 1922.

A&F Corporate keeps HCO price points affordable to its targeted high school consumers. Being said, HCO price points are about 20% lower than its parent Abercrombie & Fitch. This would have been all planned in his business plan and has been very successful and I think this is because he has stuck to his business plan and only targeted high school students. In conclusion I believe that a business plan is crucial toa good business and if the two main examples I had given did not use business plans I don’t think they would off done well at all and would off possibly failed in the first year and know may not be a Hollister or a subway even if that is not a bad thing after all.