The paper "Small Business Evaluation in Western Australia" is a perfect example of a business case study. The important elements in the business formulation should be well reflected in a professionally drafted business plan of the organization. This is an important tool in the evaluation of a newly established business since it serves as a measure of how best a new business has been able to achieve its objectives. The basic component of the business plan should include the following; The mission statement capturing the entrepreneur’ s vision of what he is trying to articulate, a business description touching on the company’ s products and services, how his products are different and why he believes that he is going to achieve the market share from the competitors.
A market analysis is the next important tool and should discuss the possible challenges, entry behavior, business SWOT analysis, external and internal environment and finally the market share that the proprietor believes he can secure. The management of the section should describe the managerial team including their professional training and experience. A cash flow statement should then follow describing future growth, current needs, and possible revenue projections. Evaluation of a business is a vital practice in management, an equivalent in bigger businesses known as company valuations.
It is a company evaluation that is done in the quest to acquire the monetary value of a company. The different methods used in the measurement of a company’ s worth may give a wide range of different results as the approaches may differ. Some methods rely on financial statements while others depend largely on the revenue generated by the company or the average amount of money that buyers are willing to spend for full acquisition of the company’ s assets, and clients depending on the type of company (David J., 2011). The net worth of a company may be used to deliver evaluations.
It involves an analysis of the company’ s financial records like the balance sheets. The balance sheet is a record of the company’ s assets and liabilities and forms a basis for the evaluation of the company’ s worth.
Department of Innovation industry Science and research. (2002). http://www.industry.gov.au/industry/ReportsandStudies/Documents/EvaluationofBusinessgovau.pdf. Available: http://www.industry.gov.au/industry/ReportsandStudies/Documents/EvaluationofBusinessgovau.pdf. Last accessed 21st Apr 2014.
David J. (2011). Predictive evaluation ensuring training delivers business and organizational results. San Francisco: Berrett-Koehler Publishers.
Hoggarth, (2010). Hoggarth Liz, and Hilary Comfort. A practical guide to outcome evaluation. London: Jessica Kingsley Publishers, 2010. Print.. London: Jessica Kingsley Publishers.