Concept of business plan


Entrepreneurs are responsible for envisioning and defining the business and identifying various requirements for the new enterprises. The founders should have necessary kills and knowledge of the producers that go in making the enterprises. The success of new enterprises will be based on the resilience of the entrepreneur. An entrepreneur needs good enthusiastic people who can share the vision of the entrepreneur and complement the skills of one another and emotionally attached to the new venture concepts.


Planning 

This is a fundamental and primarily managerial function for an specific operation. planning is required to form an organization (Sisk 1973), it is consider to be the foundation for the for the performance of manager's job.

Planning is carried out to select in advance for an organization and it's functional areas, future possible courses of action from among alternatives, it is done to decide what is to be done and to what end, who will do what at a certain time and how it will be accomplished.


Meaning of Business Plan

Business plan is a written statement of what an entrepreneur proposes to take up, it is a kind of guide first or course of action what the entrepreneur hopes to achieve in his business and how is he going to achieve it. In other words, business plan services like a big road map to reach the destination determined by the entrepreneur.


Reason for Business Plan

To plan about a business is a necessary process to undertake before, during and after start up. The business venture could be a fresh proposed start-up, a new one developing within an exiting corporation, a new organization or business project for as long as it is proposal to convert action into results. As the backbone of any enterprise, it is very essential for an entrepreneur to ask him/herself why he needs a business plan, an axion says if you fail to plan, then you have planned to fail.


Here are some of the reasons for business plan

  • It gives a road map/guide for the business: It is not everyone that starts a business with a plan, but it is better to have one to guide you . It guides you through the various phase of your business and you will not be working amiss, it's guides you through every stage of your business straight from the implementation of that business idea to the completion and through the growth of the business.
  • It defines your business: It helps you to identify the business objectives/ goals and programs that must be achieved and keep you focused.
  • It ensures regular business review and course of correction: The business plan is your regular reference to ensure you stay focused on its objectives, your business plan will need constant review as the business develops, it provides the chance to focus one's mind on how you intended to run the business and to identify early on any areas or issues that might have been forgotten or neglected.
  • It helps in proper allocation  of resources: This is why having a business plan is very important cause it helps to allocate resources property handle unforeseen complications thereby assisting in making adequate business decisions. It helps you spend the money for the business well cause you have a stated business plan.
  • It also helps you to review current progress of the business, it helps in comparison of the plan and the progress of the business and having a clearly presented business plan document will also make it easier for any specialist support needed.

Now you have a business idea to venture into, you don't just rush into it, you must have a clearly defined business plan which will state out all you need for the accomplishment of the business ideas you have, when these ideas are now stated out, the you can implement your business plan. Have a business plan today and your business success will be actualize.

Hope this was helpful, please do kindly share with friends and please don't forget to subscribe to get prompt notification on our next articles. Thanks

Comments

Post a Comment

Popular posts from this blog

Marketing strategy of a business

Image
Many authors based on their understanding and applications have defined marketing. Marketing is defined as any human activity directed at satisfying needs and wants through exchange process, Kotler. This definition is very comprehensive as it shows that marketing is a human activity showing that whatsoever man engages in marketing activity is involved because there is an element of satisfaction and exchange, which are the two pillars of marketing. Some people saw marketing as selling but that is just figment of marketing activity that ensures that products are sold. We shall discuss some important marketing terms that will help the entrepreneur to sell his product, which is the focal point of discussing this concept. Marketing strategy When a market segmentation is done and a target market is identified, the entrepreneur can then develop a suitable marketing strategy to be able to achieve his profit and sales intention connected to the organizational objectives. Kotler ...
Read more

Personal Financial Planning

Image
Personal planning is a crucial part of personal finance that must be carefully done if saving must be available for entrepreneurial investment. I stated on our previous article that if you fail to plan invariably you have planned to fail. This all-important financial planning must be monitored and re-evaluated from time to time to ensure that it does not violate our savings and investment  dream of the future. Bootstrapping is recommended before thinking of taking a loan from the bank for your business. Personal financing This is the application of the principles of finance to the monetary decisions of an individuals or family unit. It addresses the ways in which individuals obtain, budget, save and spend monetary resources over time, taking into account various financial risks and future events. Five basic steps involved in financial planning   1. Assessment A simple income statement and balance sheet can be prepared to assess the personal financial situati...
Read more

Identification of business opportunity (using SWOT analysis)

Image
Some opportunities are sometimes identified while the entrepreneur is having his/her self assessment in terms of strength, weakness, opportunities, and threats universally referred to as SWOT . SWOT analysis is a useful self-appraisal system for your strength and weakness that help establish your business or develop your business by exploiting your abilities, talent and opportunities, it is frequently used to understand, underline and identify the opportunities open to you and the threat you are likely to encounter. SWOT analysis could also be that initial self appraisal of the ability of the business opportunities to start and survive. 1. Strength (S) This is the interval factor like the advantages of your organization, what you do better than others, the unique or low-cost resources you can draw upon that others can't. These are mainly the core operational capabilities you have and the reach of your distribution network. 2. Weakness (W) This is an inherent li...
Read more