Effective Business Plan Development for Start-Up Success

This assignment provides a comprehensive guide to developing an effective business plan for start-ups. It emphasizes the importance of analyzing internal and external factors that may impact business activities, including HRM roles and responsibilities. A risk assessment plan is also discussed to identify potential issues and develop strategies to mitigate them.

REPORT

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
Proposed business idea covering key details..........................................................................1
TASK 2............................................................................................................................................2
Opportunities available to ShareIt for the proposed business idea in context to internal and
external environment..............................................................................................................2
TASK 3 ...........................................................................................................................................5
Human resource requirements by the ShareIt and different strategies used by the venture from
different human resource functions........................................................................................5
TASK 4............................................................................................................................................8
Risk assessment with the identification of potential risks for the ShareIt and proposed actions
for risk elimination / mitigation..............................................................................................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Entrepreneurs are regarded as the key drivers of a business. It should be recognise that
there exist different functions that are played by the concerned business person in order to
implemented a new start-up (Phan and Lamine, 2016). The most significant requirement of
starting a new business is to have an impelling idea that shares the beliefs of good base of people.
This report will cover the proposed business thought along with key description of the market
such as target customers, location, business features, etc. In addition to this, the study will shed
lights on the various internal and external environmental factors associated with the proposed
business idea. Further, the undertaking report will pay attention on the
TASK 1
Proposed business idea covering key details.
In order to start a new business, the idea taken is to develop a common platform where
consumers can buy and sell their products. The name of this idea is given ShareIt depending on
the function it plays. This complete package of commerce is unique in its own. It is actually a
mediator that will maker the shopping process more easier and interesting. There exist one more
reason for undergoing selection of such business concept and it is sustainable development. The
products which are waste to a person can be utilised by the other assisting in saving resource
required for the production (Decker and et. al., 2014). In addition to this, it should be further
recognised that the platform decided for running this business is online. In the present era of
digital advancements, mobile applications have become an effective platform to launch the
business. Further, below exist some major factors associated with the development of ShareIt-
Products and services: The proposed idea of selling and buying products online will start to
include various products. The major among them are electronics, furniture, household goods,
vehicles, etc. These products will be serviced online to the buyers/sellers. The services included
in the business are home delivery, easy payment modes, etc.
Target Customers: The present idea of buying and selling products online will mainly
emphasise on the people who uses internet for the daily life operations. As the selected business
idea is a 2-way process of buying and selling thus, a large consumer base can be developed. All
those who want to sell their unusable products will be targetted through advertisements on social
media sites, posters, pamphlets, etc. On the other hand, people who are interested in buying
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products at comparatively low prices will be targetted (Chari and Dixit, 2015). On addition to
this, groups which believes in sustainable development will also be targetted by the concept of
ShareIt.
Special features: There are different features of the proposed business start-up idea that makes it
a special and valuable option to invest in. Firstly, it helps those people who are least bothered
with the unusable things they have. The selling on site options assist them in getting relived from
the extra space covered at their place. Secondly, it helps those people who are interested in
buying services at low prices as compared to the market. The second hand purchasing will allow
users to ensure the low pricing structure. In addition to this, ShareIt promotes the importance of
maintaining sustainability in the business operations.
Location: The app will serve the people sitting at different countries of the world where the
application will be registered. The online presence of the business will allow users of antithetic
geographical locations to buy the services.
Scale of business: Initially with the starting of the business, there will be less products to display
to the buyers. This will affect the business scale. However, with the assistance of effective
marketing strategies, the buyers of the app can be increased which will help in fostering the scale
of ShareIt.
TASK 2
Opportunities available to ShareIt for the proposed business idea in context to internal and
external environment.
There are various factors either existing internal or external to the organisation that
impacts on the business operations. Similarly, the proposed idea of ShareIt also have influence
because of some micro and macro environmental factors. Relevant models that can be used to
analyse these forces are discussed below:
Micro environment: The factors which are internal to the businesses are covered in this
environment. The most reliable tool that ShareIt can use to analyse the influence of micro
environment factors is SWOT analysis. This model does not only helps in assessing the strengths
and weakness of the firm but also, it helps in analysing the upcoming opportunities and threats to
the establishment (Henrekson and Sanandaji, 2014). For the selected business ShareIt, SWOT
analysis is performed below:
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Strengths Weaknesses
The idea proposed is unique in its own and
very helpful for a large group of people.
There are various groups that can be
segmented to target under the concept of
ShareIt.
The proposed start-up idea ensures sustainable
development.
Highly skilled employees will be required for
the technical roles.
Implementation of reliant software is
demanded to maintain the confidentiality.
Opportunities Threats
ShareIt should adopt relevant market growth
strategy to increase the business roots.
More variety of buying/selling of products can
be added.
There is intense threat of new entrants in the
business as less investment is needed (Phan
and Lamine, 2016)
Data breaching by hackers can raise ethical and
legal issues in front of ShareIt.
Thus, these are the major strengths, weaknesses, opportunities and threats that are existing
in the ShareIt. In order to achieve the organisational goals, the establishment is required to
analyse all the strengths so that opportunities can be grabbed while addressing the threats.
Further, assessment for weakness will help in developing appropriate business strategies that can
help in resolving them.
Industry environment: There are different elements lying in industry that can influence the
business operations. This analysis can be performed by making use of Porter's five force generic
model. This examination is as follows:
Porter's five force generic mode: Threat of substitutes: The idea proposed for the business is very different. Further, the
concept of buying and selling that is C2C commerce is effective and there are very low
chances of it getting substitutes by the new business start-ups (Ghezzi and et. al., 2015,
April).
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 Threat of new entrants: The whole business runs online with a very less amount of
investment in website development and managing tools. This characteristics of the
selected businesses will create threat of new entrants for the ShareIt. There exits a high
level of threat with the day to day modifications in the digital tools. Bargaining power of customers: There is low bargaining power of consumers as it is a
C2C market where all the commerce activities are taking charge by the customers only. Bargaining power of suppliers: It is also very low in context to the selected business start-
up idea. It is because of the fact that suppliers are actually the sellers too which aims on
selling more number of products. Hence, the bargaining power of suppliers is low
(Decker and et. al., 2014).
 Industrial rivalry: There are a few number of organisations that are rendering services
based on the similar concept. Thus, the competition in the industry is comparatively low.
The major competitor of ShareIt is OLX.
Macro environment: There exist some external environment factors too that impacts on the
business structure and framed policies (What is PESTLE analysis?, 2017). This can be analysed
by making use of PESTLE analysis. For ShareIt, PESTLE Model applied is as follows:
 Political Factors: The political factor that impacts the idea of ShareIt is Brexit voting.
This will decrease the number of customers which will harm the business effectiveness.
Also, the variations in political policies after this change will influence business activities.
 Economical Factors: The economical condition of people leaving in nation is good which
will support the business operations of ShareIt. In addition to this, the UK market is sound
in term of finances which will support the operations of ShareIt.
 Social Factors: The increased societal influence and modernisation will assist in
increasing the business value. The modern world is highly addicted to the internet and
thus, online business is a good option to select.
 Technological Factors: The present era of digital achievement demands for the automated
tools. The designed business idea is developed by considering same in the mind and
hence, the force of technological factor is not much (Chari and Dixit, 2015).
 Legal Factors: The legislation of UK, Data protect act, demands that in the overall
business procedure no breaching of personal information should be there.
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 Ecological Factors: There are various concepts that supports the ecology are promoted by
the selected business idea such as recycling, reuse, sustainable development, etc. All these
abilities of the platform results in no negative impact of environmental factors on it
(Ghezzi and et. al., 2015, April).
TASK 3
Human resource requirements by the ShareIt and different strategies used by the venture from
different human resource functions.
Human resource management is the key department of the venture which decides that
how many people are required in the organisation when they are starting up their business. Other
than that human resources are the people who are working for the venture in order to attain the
aim and objectives of the business. Employees or human resource are the one who are
responsible for the different roles and responsibilities of the venture. n the past, these people, also
known as employees, staff members, co-workers, colleagues, team members, or workers in
organizations and workplaces, were called personnel. There are different strategies that are being
selected by the top level management, that strategies are being implemented by the employees
and that workers are known as human resource (Burrows, R. ed., 2015).These people plays very
significant role in the venture as they are responsible for the different activities of the business
and catering the needs and want of the customers.
Here the new business idea is to create a website and application with the name of
ShareIt. It is e-commerce application and website where both buying and selling activities take
places. The company will be operating in the different countries. The application is being
classified into two categories that is buying and selling of goods. The categories are as follows:
For Sellers: This part of the application where people used to sell the different goods, these
people post they advertisement of their product which they want to sell. The advertisement
consist picture of the product, price and specification of the product.
For Buyers: This part of the application will consist of different buyers who are going to
purchase the product. Once they find the advertisement, then they contact with the seller with the
help of contact number and message. In this part, negotiation takes place where seller and buyer
fix the particular rate.
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ShareIt is to offer payment services to sellers who want to be featured, on top of their
results etc. There are different department in the organisation such as finance, human resource,
marketing, research and development etc. Every department of the venture need people who can
able to fulfil the different operations and activities of that department. In this entrepreneur
business, there are different department, with that ShareIt need different employees when they
are starting up their business. People required in the venture are as follows:
Production: In this start-up business, development of the application and website is task of
production department. This department will need different people who are good at building
different software. The production department need to purchase the Hosting space and domain
name, then WordPress or PHP Script need to be brought. After they need to purchase the theme
which is related to the e-commerce with that different plug-ins need to purchase time to time so
that they can develop their application and website according to the needs and wants of the
customers. Each WordPress theme or plug-in or script will come with some setting so they have
to optimize their website like purchasing and selling of products.
Employees for creating high quality content on website: It is significant to have focus on
effective development of high quality content so that practice measures can be advanced in
desired manner. ShareIt is also needed to focus on same practice so that traffic can be advanced.
It allows attracting customers more effectively and ensure that profit margin has been advanced.
Along with this, improvement in content also makes website more attractive. With an assistance
of this, competitive advantage can be advanced by business entity.
Marketing: Marketing is also referred as most critical practice for every business. New
businesses like ShareIt need to focus on creating better awareness within market. It allows
attracting more customers and lead business firm to impressive level of success. It is essential for
marketing team to ensure that standards of campaigning and other promotional methods are being
followed properly. It assists in effective advertising so that business entity can have better
opportunities in the competitive market. Sales promotion is also a method which assist in make
sure that products and services are being purchased effectively from the target customers (Baum,
Frese and Baron, 2014).
There are number of functional values which are essential for startup and other
businesses. In this, consideration of human resource practice is necessary. By having a reference
of human resource practice the activities like recruitment and selection, training and
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development, performance management, compensation and reward management can be
accomplished. It allows ensuring that strategic values are also being referred in order to meet the
goals and objectives. Such kind of practice also provides number of benefits to organisation and
assist in gaining competitive value. If business entity is not having an focus on the functional
values the issues can be raised which might affect operational values.
Strategic recruitment and selection
The centre duty of enlistment and choice procedures is distinguishing the correct pool of
ability for building up the correct applicants (Storey, 2016). In past time the association used to
discover the hopeful who is individual employment fit yet now they are choosing on the premise
of Person-association fit. The competitor is being chosen on the premise of association qualities
as opposed to work fit. Key enlistment and determination can be characterized as key
incorporating of choice and enrolment with long haul wander goals so vital needs and requests of
the wander can be converted into a suitable enrolment and choice particular.
Strategic training and development
Expanding the aptitudes and capacities of the labourers is likewise another critical
undertaking of the human asset administration. The ShareIt should personality the preparation
needs and needs of the representatives and afterwards compose diverse preparing and
advancement program with the goal that worker can have powerful learning and understanding
the work. Key preparing and situating helps in advancing the ShareIt destinations and objectives.
Strategic performance management
When it is worried about the convention approach of execution administration framework,
they association used to neglects to convey the goals of wander, this is on account of
correspondence which happens from top level administration to bring down level, at that point
confound occurred. So the ShareIt should utilize present day and key execution administration
approach (Kuratko, 2016). The ShareIt ought not utilize the skills to for preparing and
advancement yet additionally utilize legitimate techniques for breaking down the execution of
representatives.
Strategic compensation, motivation and reward management
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The key target of the remuneration is to serve the correct prizes to the representative
according to their execution, capacity, abilities and capabilities. Workers learning and experience
is the key elements which encourages them to pull in and hold. Other than that inspiration is the
key factor which is being associated with the pay and rewards. In the event that the worker is
working in extremely viable way and serve appropriate outcomes then ShareIt should serve
legitimate pay and rewards to them so they can be propelled to work in compelling way and put
their most extreme endeavours.
TASK 4
Risk assessment with the identification of potential risks for the ShareIt and proposed actions for
risk elimination / mitigation.
The report communication that risk assessment have the important aspect in the various
identification such as internal and external risk which can be the adverse productivity and
improvements. There are stages involved in the risk assessment such as follows:
Step 1 Identify risk:
it is important from the report that primary stage is to identify the risk and try to fins the
various types of risks that are are associated with while introducing the new business Kirzner, I.
M., 2015
Cost of broadband
Manipulation of data and information: in each and every visit on the e commerce website uses
give the large amount of the data which is important to give more security because more risk
associated with it and information manipulation of data and information can be leak.
Trust factors of customers: The business of e-commerce have been set up at high level but the
customer still not able to trust in some of the factors such as payment frauds and low quality
products.
Step 2: Decide who may be harmed, and how
ShareIt going to open a business which is web based, so there are diverse hazard which
they can confront. As the hazard is recognized (Drucker, 2014). The organisation need to break
down and assess those hazard that how might they influence the venture and to what degree they
can influence.
Step 3: Assess the risks and take action
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It is the second most critical phase of hazard appraisal after distinguishing proof of
hazard, the firm actualize distinctive systems keeping in mind the end goal to lessen the hazard,
the techniques can be:
 Utilization of various apparatus to secure the information
 Appropriate utilization of data
 Make confide in the eye of clients so more exchange can be occurred
Step 4: Make a record of the findings
As the diverse methodologies have been recognized, chance have been evaluated and
techniques have been executed. Wander need to break down the discoveries that how does
diverse systems have been affected on the association. With that the firm should make
appropriate record so they can additionally actualize those systems and discover positive
outcomes.
Step 5: Review the risk assessment
This is the last phase of the evaluation of the hazard where association used to consider
that sheltered working practices should be possible and the systems are executed on the
consistently premise so hazard can not hurt the association and hamper the execution of wander
later on (Phan and Lamine, 2016).
CONCLUSION
From the present report, it can be concluded that an effective plan is required for bringing
new business start-up in the market. It is essential to analyse all the internal and external factors
that may impact the business activities. This assessment is necessary to achieve the desired
business objectives and goals. In addition to this, the present undertaking also pays attention on
the different HRM roles and responsibilities so that work can be accomplished in an appropriate
manner. The plan developed for the risk assessment will help in analysing the different missuses
that can be faced by the selected business start-up idea so that effective strategies can be
developed.
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REFERENCES
Books and Journals
Baum, J. R., Frese, M. and Baron, R. A. eds., 2014. The psychology of entrepreneurship.
Psychology Press.
Burrows, R. ed., 2015. Deciphering the Enterprise Culture (Routledge Revivals):
Entrepreneurship, Petty Capitalism and the Restructuring of Britain. Routledge.
Chari, M.D. and Dixit, J., 2015. Business groups and entrepreneurship in developing countries
after reforms. Journal of Business Research. 68(6). pp.1359-1366.
Decker, R. and et. al., 2014. The role of entrepreneurship in US job creation and economic
dynamism. The Journal of Economic Perspectives. 28(3). pp.3-24
Drucker, P., 2014. Innovation and entrepreneurship. Routledge.
Ghezzi, A., and et. al., 2015, April. A Comparative Study on the Impact of Business Model
Design & Lean Startup Approach versus Traditional Business Plan on Mobile Startups
Performance. In ICEIS (3) (pp. 196-203).
Henrekson, M. and Sanandaji, T., 2014. Small business activity does not measure
entrepreneurship. Proceedings of the National Academy of Sciences. 111(5). pp.1760-
1765.
Kirzner, I. M., 2015. Competition and entrepreneurship. University of Chicago press.
Kuratko, D. F., 2016. Entrepreneurship: Theory, process, and practice. Cengage Learning.
Phan, P.H. and Lamine, S.A.M. eds., 2016. Technology entrepreneurship and business
incubation: Theory, practice, lessons learned. World Scientific.
Storey, D.J. ed., 2016. Entrepreneurship and new firm. Routledge.
Online
What is PESTLE analysis?, 2017. [Online]. Available through: <http://bpmgeek.com/blog/what-
pestle-analysis>
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