Dollinger index

168 ENTREPRENEURSHIP

“to be a good corporate citizen” or “to have a reputation for integrity” or “to develop

innovative products” are hard to quantify. Qualitative objectives involve the effectiveness

of the new venture, the extent to which the firm maintains and expands its position in

the competitive environment and in the macroenvironment. Qualitative objectives,

therefore, concern with external and environmental issues and are viewed over the long

term.

Table 5.1 lists possible objectives, and the three dimensions are shown as continua

along the arrows. The objectives toward the top of the list (beginning with sales prof-

itability) represent short-term, quantitative measures of efficiency. The objectives toward

the bottom (anchored by social concern/responsibility) represent long-term, qualitative

measures of effectiveness. The firm’s objectives should be both realistic and challenging

and should be consistent with the rest of the narrative and with the plan’s financial pro-

jections.

Market Analysis. The market analysis section aims to convince the reader or investor

that the entrepreneur fully understands the competitive environment and the macroen-

vironment. It must demonstrate that (1) the addressable market for the product or ser-

vice is substantial and growing, and (2) the entrepreneur can achieve a defendable com-

petitive position. Suggestions and recommendations for market analysis follow:

• Overall Market: A description of the firm’s industry includes its current conditions,
  and its projections for sales, profits, rates of growth, and other trends. Who are the
  leading competitors and why have they been successful? Where is the market located
  and what is its scope—international, regional, national, local? Because investors pre-
  fer industries with the potential for large sales volumes and high growth rates, they
  need to see the big picture.

TABLE 5.1 Specific Objectives

Sales Profitability

Market share

Market position

Productivity

Product/service quality

Innovation

Employee morale

Training/development

Social concern/responsibility

Effectiveness Qualitative Long Term

Objective Efficiency Quantitative Short Term

Time Frame

for Objectives

Measurement of Objectives