What should new business plan for? An inquiry into South African craft beer

Abstract

Pre-start-up planning s value has been disputed by researchers in the recent past. The need for this research originates from the requirement, proposed by most of the conflicting research, to better understand the content of pre-start-up plans and its influence on business success. By better understanding specific pre-start-up planning activities and the influence that these activities have on planned businesses, entrepreneurs can identify and exploit opportunities more efficiently. The research investigated the activities that new South African craft beer companies engaged in before establishing their breweries and assessed how the pre-start-up planning activities influence brewery development. An interview framework was developed from key concepts that emerged from the literature review. The framework was used to assess points of difference between small and large breweries in their planning activities and the influence it had on their business historic and anticipated future development. Twelve founders of South African craft beer companies younger than 5 years old, with production capacities ranging from 500 liters beer per month to 250 000 liters beer per month, were interviewed. The data gathered allowed for an assessment of small and large breweries planning practices. From the interviews it emerged that entrepreneurs have two options when developing a South African craft beer business with different plan content requirements. The key difference in these options being the origen of planning informaiton used in the development of business plans (either pre-start-up or later in the business development process). The outcome of this research could guide plan development by entrepreneurs and support the development of successful new business.