How Was Writing A Business Plan And Preparing For A Business ✓ Solved
How Was Writing A Business Plan And Preparing For A Business Plan Comp
How was writing a business plan and preparing for a business plan competition helpful to Katie Beauchamp and Hayley Barna while Birchbox was still in the planning, testing, and prototyping stage? From your reading of the case, explain whether you think the business plan they created was most useful internally (for the founding team) or was most useful externally (for outside investors). How effectively do you think Katie Beauchamp and Hayley Barna used their time in college to advance their business idea? Provide give examples. (Optional) If you have your own business or are thinking about starting your own business, did you get any ideas about things you can do while in college to help advance your business?
Sample Paper For Above instruction
Introduction
The process of writing a business plan and preparing for a business plan competition can be instrumental for startup entrepreneurs, especially during the early stages of product development and market testing. For Katie Beauchamp and Hayley Barna, the founders of Birchbox, this process played a critical role in shaping their business strategy, securing funding, and refining their product offerings while their venture was still in the planning and prototyping phases. This paper explores how these activities benefited the founders both internally and externally, evaluates the utilization of college time to advance their business, and provides insights into how college students interested in entrepreneurship can leverage their resources.
Benefits of Business Planning During the Startup Phase
For Beauchamp and Barna, developing a comprehensive business plan was essential not only as a strategic roadmap but also as a tool to attract investors and partners. The act of preparing for the business plan competition compelled them to rigorously analyze and articulate their value proposition, target customer segments, revenue model, and go-to-market strategy (McKinsey & Company, 2015). This process helped them clarify their vision and identify potential obstacles early on, reducing uncertainties during product testing.
The business plan was most useful externally, as it served to communicate the uniqueness of Birchbox and persuade potential investors of its market viability (Huey & Burke, 2016). Securing initial funding and mentorships depended heavily on the strength of their business plan, which demonstrated their professionalism and commitment. For example, the detailed financial projections and customer acquisition strategies outlined in their plan were critical in attracting early-stage investments, which fueled product development and marketing efforts.
Internal Value of Business Planning
Internally, the planning process fostered a disciplined approach to business development. It encouraged the founders to think critically about their core competencies, competitive advantages, and operational challenges. This internal focus was crucial for refining their product—an innovative subscription box service—allowing them to test hypotheses around customer preferences and product-market fit. Furthermore, the planning process helped them structure their testing phases, set milestones, and allocate resources efficiently (Shane, 2008).
Utilization of College Resources and Time
Beauchamp and Barna effectively leveraged their college environment and time to prop up their startup. They initially developed their idea during college courses, utilizing university resources such as entrepreneurship clubs, mentorship programs, and networking events (Kuratko & Hodgetts, 2004). For instance, participating in business plan competitions provided them with critical feedback, exposure, and credibility. Their college experience also enabled them to build a network of peers and faculty who offered guidance and potential partnerships.
Their focus on academic projects and coursework related to entrepreneurship allowed them to continuously refine their business concept. For example, they might have utilized marketing classes to develop customer acquisition strategies or finance courses to model revenue streams. These academic activities complemented their practical startup efforts, making their college years highly productive in terms of advancing Birchbox.
Implications for Aspiring Entrepreneurs
Students contemplating their ventures can learn from Beauchamp and Barna’s experience by actively engaging in business plan competitions, internships, and university resources. These activities offer real-world feedback, mentorship, and funding opportunities that are invaluable during the formative stages of a business. Moreover, integrating academic coursework with entrepreneurial pursuits allows students to acquire relevant skills and knowledge, reducing the gap between theory and practice.
In addition, cultivating a network of mentors and peers in college can open doors to strategic partnerships, funding, and valuable advice. For example, participating in startup incubators or entrepreneurship accelerators often provides access to seed funding and business development support, which can be pivotal in the early stages.
Conclusion
Writing a business plan and preparing for competitions provided tangible benefits to Beauchamp and Barna by clarifying their business concept, attracting external funding, and guiding internal decision-making. Their strategic use of college resources and time significantly contributed to the development and refinement of Birchbox. For aspiring entrepreneurs, these experiences underscore the value of leveraging academic environments, engaging in competitions, and rigorously planning as essential steps toward building successful startups.