The statement “The best growth strategy for an entrepreneurial venture or a small business is a well-planned one” should be understood in a way that when a person wants to create their own business, to achieve success, not go bankrupt and earn an income, he or she must develop a thorough action plan. This means that the entrepreneur must calculate all possible risks, analyze the market conditions, and assess the possible competition.
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He or she must also calculate the amount of money needed to open and maintain their business, find out where to obtain a loan or where to get investments. Opening a business and starting the work is not easy, but it is even more difficult to stay competitive in the marketplace and not become cash negative. Consequently, an entrepreneur needs to formulate a strategy on how to further promote their product and capture new market segments so as not to lose the competition. Thus, in order to achieve success for an entrepreneurial venture or a small business, one needs to take into account all these points and develop a well-planned business strategy.
I agree with this statement owing to the fact that, as it was noted, launching a new venture requires much investment and time, and there is a constant bankruptcy risk. Developing a detailed plan helps to avoid unnecessary expenditures and generate more profit for the business. It has been proved that enterprises with a “written detailed” strategy perform better than companies with a superficial business plan or without any plan at all (Williams et al., 2019). Thus, the need to develop a well-thought-out business strategy is supported by empirical evidence, so I believe that when starting a venture or enterprise, everything needs to be well planned.
Williams Jr., R.I., Smith, A., Aaron, J.R., Manley, S.C. & McDowell, W.C. (2019). Small business strategic management practices and performance: A configurational approach. Economic Research-Ekonomska Istraživanja, 33(1), 2378-2396. Web.