Discussion: Small Business Plans-Market Driven or Market Driving?
The basic function of a business plan is to provide a clear picture of a business's goals and directions. Yet, there are many other reasons why an entrepreneur would spend time and effort on developing and perfecting a business plan. For a new business venture, a business plan can be used to gain investors and cultivate funding and to identify appropriate start-up strategies. For a business that is already well-established, a business plan provides information on the best options for growth and expansion and analyzes future trends and innovations that may affect operations.
While business plans may be used in unique ways by different businesses, the most successful business plans share a common theme: They are rooted in current market trends and consumer interest. Without this foundation, a business plan is irrelevant-businesses exist and thrive because of their ability to effectively identify and meet the demands of the market. However, there are two different approaches for including market considerations in the business plan. First, a market driven business plan is based on an understanding of the current marketplace and evaluates how a new product or service would fit into that market. The second approach, a market driving business plan, seeks to position the business at the cutting edge of the market and actually be a force that drives the market and influences the decisions of others.
In this Discussion, you will consider the importance of market knowledge when developing a business plan for an entrepreneurial venture. You will also explore the purpose of continuously revising a business plan to ensure that its provisions are up-to-date.
For this Discussion, research both market driven and market driving business plans. Also review the article "The Role of Corporate Branding in a Market Driving Strategy" found in this resources.
Post a cohesive and scholarly response based on your readings and research this week that addresses the following:
• Considering your Course Project business idea, would it be more appropriate to have a market driven plan or a market driving plan? Why? What are the advantages and disadvantages of each approach for your particular idea?
Respond to two or more of your colleagues' postings in one or more of the following ways:
• Ask a probing question, substantiated with additional background information, evidence, or research.
• Share an insight from having read your colleagues' postings, synthesizing the information to provide new perspectives.
• Offer and support an alternative perspective using readings from the classroom or from your own research in the Walden Library.
• Validate an idea with your own experience and additional research.
• Make a suggestion based on additional evidence drawn from readings or after synthesizing multiple postings.
• Expand on your colleagues' postings by providing additional insights or contrasting perspectives based on readings and evidence.
Return to this Discussion in a few days to read the responses to your initial posting. Note what you learned and/or any insights you gained as a result of your colleagues' comments.