Setting Up a New Enterprise: The Enterprise Process
Hello future entrepreneur! This chapter is incredibly important because it gives you the map—the step-by-step process—that every successful business (and your own Enterprise Project!) must follow.
We are moving from just having a great idea to actually making it happen. Understanding these steps ensures you don't miss anything vital and helps you manage risks systematically. This is the heart of setting up a new enterprise!
Quick Look: Why follow a process?
- It makes the huge task of starting a business manageable.
- It forces you to plan carefully, saving time and money later.
- It helps you measure success (or failure) effectively.
The Six Stages of the Enterprise Process
When you start any enterprise, whether it’s a school event or a global tech company, you must go through these six stages. Think of it like baking a cake: you can’t bake (implement) until you’ve found a recipe (planning) and checked your ingredients (identifying needs).
Memory Aid (Mnemonic): I E A I M E
Identify, Explore, Action plan, Implement, Monitor, Evaluate.
Stage 1: Identifying the Problem or Need or Want
This is the starting block. An entrepreneur doesn't just invent something cool; they find a gap in the market and fill it. You need to ask:
- What problem can I solve?
- What need is currently unmet? (A need is something essential, like food or transport.)
- What want can I satisfy? (A want is something people desire but don't strictly need, like a new phone or gourmet coffee.)
How to Identify Needs/Wants:
- Observation: Look around your school or local community. What frustrates people?
- Market Research: Talk to potential customers. What are they complaining about?
Example: A student notices that everyone forgets their lunch money. The unmet need is a reliable, convenient way to pay.
Key Takeaway (Stage 1):
The idea must be based on a clear customer need or want. If no one needs it, the enterprise will fail.
Stage 2: Exploring Creative Solutions
Once you know the problem (e.g., forgotten lunch money), this stage is all about brainstorming how to solve it. Don't restrict yourself—be as creative and innovative as possible!
The Exploration Process:
Start with many ideas (e.g., a special vault, a school credit card, a payment app, a physical token) and then narrow them down based on practical factors like:
- Cost: How much will each solution cost to set up?
- Skills: Do you have the skills needed (or can you get them)?
- Risk: Which solution is the least risky?
- Viability: Can this solution actually work in the real world (e.g., legally, technologically)?
Example: After exploring, the entrepreneur decides the "payment app" is too expensive and risky, but creating a simple, branded "lunch token" that parents can buy in advance is feasible. This is the chosen solution.
Key Takeaway (Stage 2):
Identify multiple potential solutions and choose the one that offers the best balance of creativity, low risk, and practical application.
Stage 3: Action Planning
This is where your idea turns into a detailed instruction manual. The action plan is the blueprint for your enterprise—it lists every task that needs to be completed, in order. This stage is absolutely vital for your coursework project!
What must an Action Plan include?
- Tasks: A list of all activities (e.g., design the token, find a supplier, set the price, create posters).
- Responsibility: Who is going to do each task? (Especially important if you are working in a group.)
- Deadlines: When must the task be finished?
- Resources: What materials, money, or skills are needed for the task?
- Contingency Planning: What happens if things go wrong? (e.g., If the supplier delivers late, we will print temporary paper tokens.)
Did you know? Action plans help you track whether you are ahead of schedule or falling behind, making monitoring (Stage 5) much easier.
Key Takeaway (Stage 3):
Planning prevents poor performance! A thorough action plan ensures everyone knows their role and provides deadlines to keep the project on track.
Stage 4: Implementing the Plan
This is the most exciting stage: doing the work! Implementation means putting the action plan (from Stage 3) into practice.
What happens during Implementation?
- Tasks are carried out (e.g., the team contacts the token manufacturer).
- Resources are used (e.g., money is spent on advertising).
- You use all your practical enterprise skills (like leadership, negotiation, team-building, and time management) to overcome daily challenges.
Analogy: If Stage 3 was writing the script for a play, Stage 4 is the actual performance on opening night.
Common Challenge to Avoid:
Mistake: Sticking rigidly to the plan even when it’s not working.
Solution: Be flexible! Unexpected problems always arise; successful implementation means being able to adapt.
Key Takeaway (Stage 4):
Implementation is the physical execution of the plan, relying heavily on the entrepreneur's practical skills and flexibility.
Stage 5: Monitoring Progress
Once the enterprise is running, you must constantly check its performance. Monitoring means comparing what is actually happening against what you planned in Stage 3.
Methods of Monitoring:
- Checking Deadlines: Are tasks being completed on time?
- Financial Checks: Is cash flow matching the forecast? Are we spending too much?
- Customer Feedback: Are customers happy? (Use surveys, complaints logs.)
- Sales Data: Are we selling as many tokens/products as expected?
If monitoring shows a problem (e.g., sales are lower than expected), you must take corrective action—perhaps changing the pricing or improving marketing. This links back to being adaptable during implementation.
Quick Review Box: Monitoring
Monitoring answers the question: "Are we doing things right?"
Key Takeaway (Stage 5):
Monitoring is the continuous checking process that ensures the enterprise stays aligned with its goals and allows for timely adjustments.
Stage 6: Evaluation of Successes and Failures
This happens after the main enterprise activity is complete. Evaluation is critical because it tells you what you learned and how to improve future projects.
What does Evaluation involve?
- Reviewing Objectives: Did you meet your original goals (e.g., Did we raise £100 for charity?)
- Analysing Performance: Why did some things succeed? Why did others fail?
- Stakeholder Feedback: Getting opinions from customers, suppliers, and team members.
- Personal Skills Assessment: How well did you use your own enterprise skills (leadership, problem-solving)?
Evaluation is not just about recording a grade or score; it's about deep reflection. The failures are often the most valuable part, as they teach you how to adjust the entire process (IEAIME) next time.
Example: "We successfully sold the tokens (success), but the process took twice as long as planned because we did not delegate tasks effectively (failure). Next time, we must improve our action planning and delegation skills."
Key Takeaway (Stage 6):
Evaluation determines whether the project achieved its aims and identifies strengths and weaknesses for future entrepreneurial ventures.
Comprehensive Review: The Cycle
Remember, the Enterprise Process is often seen as a cycle, not just a straight line. What you learn in the Evaluation stage (Stage 6) helps you better Identify a need (Stage 1) for your next enterprise project!
Common Misconception to Avoid:
Students often confuse Monitoring (Stage 5) and Evaluation (Stage 6).
- Monitoring = Happening during the project. (Checking daily performance and making small, immediate fixes.)
- Evaluation = Happening after the project. (A formal review of the final outcome and lessons learned.)