Business Tool

 Entrepreneurs create a firm to fulfil a meaningful purpose for themselves. The business becomes a tool for the entrepreneur to do what he or she wants. Your business strategy explains what you want your company to do. It must include the following components:

A. Planning - This section of the business plan begins with a description of your Business Definition: Vision, Mission, Values, and Business Opportunity. Your company plan should begin with a one or two-paragraph summary of your vision statement. It should clearly describe your vision for the company and the direction you intend to take it. The vision statement provides a response to the question "Where are we going?" The mission statement defines your goal and provides a solution to the question, "Why are we here?" Your value statement responds to the inquiry, "What matters to us?" Values are the items or situations that you desire to represent on a consistent basis. The last component of your Business Definition is an answer to the question, "What is the business opportunity?"

After you've articulated your Business Definition, you'll go on to creating objectives. An objective is a definite, measurable result that must be achieved within a specific timeframe. Typically, revenue and profitability are included in the targets, and the first step in defining objectives is to determine your three year major objectives. Then you work backward to determine your one-year goals. The final step is to assess where you are now. This is referred to as a SWOT Analysis (Strengths, Weaknesses, Opportunities and Threats). Strengths and weaknesses are internal elements that affect the firm's viability, whereas opportunities and threats are external factors that affect the firm's viability.

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