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Constraints that can impact on the successful implementation of a business plan

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Introduction

Constraints that can impact on the successful implementation of a business plan There are several constraints that can affect how well a business plan is implemented. The constraints that may affect the implantation of a successful business plan are; * Legal * Financial * Social * Environmental * Technological * Competitive Legal When a business is setting up a business plan it has to abide by laws to ensure that the business will not face any legal action against it. Legal changes can happen all the time over the course of a business's running. Legal changes can force the business to change the way a business operates and can have an impact on how employees have to set up rules to ensure the safety of its employees. Changes to tax laws and minimum wage can have an impact on the finance of a business. The categories that legislation changes fall into are Health and safety Health and safety can look at aspects of how the business is protected against fire and precautions that are taken for various dangers. Examples of laws that may affect these rules are food hygiene, environmental health - weights and measures. Employment law Employment laws can change the way that businesses are allowed to hire employees and regulations that they must follow to ensure that employees are chosen fairly. ...read more.

Middle

Reputation and costs will change with this judgement in choosing suppliers. Business's will often have to look at they way they market their products in accordance with the publics financial constraints. A business may wish to sell their product as being economically sound or as a luxury product as they have discovered that members of the public have the wealth to purchase them. Financial To implement a business plan with success having enough money to back up the business plans is essential in order to get your business off the ground. There are many things that can be considered as collateral, assets such as your house and car can be used as the backup strength behind your loan. Banks are more likely to provide loan services to someone who has a good credit history. Funding may not just come from external sources, funding could also come from your own savings and inheritance, this type of finance providing may be a lot safer than taking out a loan as you do not stand to lose personal assets, as you are not in debt to a bank. As part of a successful business plan, considering financial implications is vital. Looking at finance required for the start-up cost will enable you to judge how much money you are going to need for start up and running costs, a business should then consider the profit it could potentially make and then decide accurately well they are likely to succeed. ...read more.

Conclusion

Technological advances are also changing the way custom is made, many customers now opt to use the internet to buy any products as it is an easier and more convenient way to shop, in many cases the internet is also cheaper. Business's have adapted to this change by creating websites to visit and purchase items from. Competitive When setting up a business it is unlikely that you are going to have a product or service that does not already exist. When there are existing similar products to your own this is called competition. Competitors will always have an effect on how much profit your business makes. When marketing your product you must ensure that you are showing how it is better than competitors in the sense of value for money and quality. Force Entry of competitors How easy it is to enter your market? Do any barriers exist eg. Technology or expertise. Threat of substitutes How easy is it to get a similar product to ours? Are there any cheaper? Bargaining powers of suppliers How powerful are the buyers? Can they work together to buy in bulk and benefit from economies of scale? Bargaining powers of suppliers How powerful are the sellers? Are there lots of suppliers or is there a virtual monopoly? Rivalry Is there a lot of rivalry between existing businesses in this market? Is any one company dominating force or is everyone equal? ...read more.

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