Preface
Preface
Preface
Much of the contents of this book are based on empirical experience – been there, done it, got the T-shirt, and learnt by my own mistakes over a fifteen-year period; and so I hope that by passing on this experience, I might save the readers some grief of their own. The book is intended to serve two key purposes, which for many of its target audience, will overlap each other.
First, it is intended as a course textbook for students and candidates who are studying for either the NVQ Level 3 Business Planning, or the Institute of Management Certificate in Management (Business Start-up), which closely follows the content and syllabus of the NVQ. The Vocational Standards for the NVQ Level 3 Business Planning were revised in 1999 by the Small Firms Enterprise Development Initiative (SFEDI). The SFEDI, alongside the Management Charter Initiative (MCI), is a partner in the Management and Enterprise Training Organization (METO) which has incorporated the lead-body roles of these two organizations under one umbrella, and is now responsible for establishing the national vocational standards for all aspects of management.
The book is intended both to provide the basic factual information necessary to gain the underpinning knowledge to achieve the NVQ, along with advice and guidance on the preparation of suitable portfolio evidence which will enable the candidate to be successfully assessed for the NVQ or Certificate qualifications. In producing the necessary evidence requirements to meet the NVQ assessment process, the candidates will also produce for themselves, a feasible business plan which is capable of being lifted directly out of the NVQ portfolio for presentation to a bank manager, or an alternative potential source of finance.
Second, and on a much more practical level, the book is aimed at providing a readable and structured guide for the increasing numbers of people who each year consider the option of setting up a small business or becoming self-employed. It outlines the options for operating the business and the many risks involved. It also examines a wide range of aspects that must be considered and assessed as part of the process of setting up a business. For those aspiring owner-managers, the information about NVQ structure and assessment is unlikely to be of much interest. But whether the reader's objective is to produce a business plan to simply achieve a qualification, or to produce such a document to convince a dubious bank manager of the viability of a business proposition, many of the key aspects to be considered are the same. Most important of all, a careful and detailed analysis of those aspects can provide a yardstick by which potential entrepreneurs can objectively evaluate the true risks, pitfalls and potential profits of their dreams.
The book has been deliberately formulated to raise a continuous stream of questions throughout, which are intended to prompt the reader to relate them to their own particular business situation. If you keep asking yourself these questions at each stage, then hopefully you will avoid some of the problems that befall many new businesses in the early stages.
The biggest problem faced by small firms is that of surviving the first year or two. A basic knowledge of the process of planning and organizing a business can substantially increase the chances of survival, with or without the accompanying qualifications. This book is aimed at providing some of that knowledge and information to improve those chances. Good luck with your venture!