Unit 4: Planning the Next Steps in Your Venture

4a. Determine a viable opportunity based on tools such as the Eisenhower Matrix

  • What are the stages of the entrepreneurial process?
  • What are SMART goals?
  • How can you apply the planning phase as an entrepreneur? 

Research has shown that part of assessing an opportunity is done through a business plan. So, while entrepreneurs spend a lot of time determining the feasibility of an idea, writing the business plan after performing the necessary feasibility analysis is important.

There are four main stages of the entrepreneurial process. Stage one is the identification and evaluation of business opportunities. Stage two is the writing of the business plan. Stage three is focused on gathering and having the resources needed to start the business. Stage four is the actual creation and management of the business.

Before starting in stage two, most entrepreneurs will consider market size as a major factor; cash flow management, personal relationships, and passion are also factors when deciding to move forward with one particular opportunity. In addition to these factors, an entrepreneur should be sure the business idea aligns with their goals and values. Part of this process is the determination of short-term goals, many of which are meant to align with long-term goals. The SMART goal framework is a tool that can ensure you meet all criteria for good goal setting. Goals should be SMART, that is, specific, measurable, achievable, realistic, and time-bound.

When entrepreneurs consider moving forward with the opportunity, they look at the planning cycle, which consists of setting goals, designing a plan, implementing it, and reviewing the results. Coordination between time, ideas, resources, and goals must be considered. Strategic planning is high-level planning. Tactical planning identifies things that need to be done to meet strategic plans, and operational plans are front-line activities that employees do to meet tactical goals.

A SWOT analysis is often used as the entrepreneur transitions from identifying a good opportunity to building the business plan.

To review, see:

 

4b. Plan an opportunity while considering other factors, such as product planning processes, product life cycles, and personal values and goals

  • What tools do you think are most important to an entrepreneur when taking the next step to move forward to creating their business?
  • When producing a product, what might an entrepreneur want to think about?
  • How can the BCG Matrix be applied and used even for a new start-up business?

Personally speaking, entrepreneurs can use a model for them personally to focus on their business. This model involves conceptualizing your business, organizing your business, systemizing your business, and maximizing the business. 

Many entrepreneurs produce products (as opposed to services). Therefore, some considerations include material sourcing and understanding documents like specifications packages, purchase orders, and contracts. Contracting with a manufacturer is another consideration as well. Entrepreneurs also consider the product life cycle: introduction, growth, maturity, and decline phases. The BCG Matrix is a tool that enables companies to look at different business units regarding market share and growth. This matrix can help entrepreneurs choose a direction or an established company to determine where to put resources.

The Eisenhower Matrix is a method entrepreneurs use to plan their time. The Eisenhower Matrix looks at the importance and urgency of a task and helps the entrepreneur determine how to prioritize tasks.

To review, see:

 

Unit 4 Vocabulary

This vocabulary list includes terms you will need to know to successfully complete the final exam.

  • BCG Matrix
  • Eisenhower Matrix
  • operational plans
  • SMART goal
  • strategic planning
  • tactical planning
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