Thinking Ahead: Developing a Business Plan
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by: robertjohnston
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Word Count: 578
However, business planning should be realistic. This means planning is based on available resources, and is responsive to the needs of the community. Otherwise, planning is no different from dreaming. Not a few businesses fail because their objectives do not match their resources.
Planning is what to do, how to do it, when to do it, and what to expect in the future. Business planning therefore involves the attainment of goals, and the way to accomplish such goals in your business. A time frame is needed in attaining the goals. Supposing you want to put up a printing business, specializing in hang tag printing and custom hang tags. How do you do it? Do you have funds? Do you also have the skills and interests? Assuming there are no problems in money, skills and interests, when are you going to start the business?
Starting the business is not the end-all and be-all of business planning. Ultimately, it is the consumer satisfaction that requires planning. This should be properly considered because consumer satisfaction means business stability and growth. In financial language, consumer satisfaction is equal to profits. Thus, business planning is a continuous process until consumer satisfaction is maximized and sustained.
Here are some basic principles in planning which can have a general application for small businesses:
Planning must be realistic. It must be based on available resources – human, financial and physical resources. If these are not enough, then it would be impossible to successfully implement the project. Any planning which is not supported by adequate resources is likely to fail.
Planning must be based on felt needs. The objectives of an entrepreneur should fit the needs of the people in a community. Such needs can be identified through observations, personal interviews and questionnaires.
Planning must be flexible. Resources, needs and economic conditions change. Planning should be adjusted to such changes to be effective and relevant. For instance, fundamental changes in government policies require changes in planning the affected aspects of the business. Likewise, planning should be responsive to the trends in consumer tastes and preferences.
Planning must start with simple projects. The most appropriate project for middle class countries is micro business because it requires very simple management technology. It also needs simple and few resources in terms of funds, materials and equipment. Such simple business enterprise has a greater possibility of success. More importantly, it provides a good training experience for operating a business. Later on, the operator can engage in bigger business projects as he or she acquires more resources and management experiences.
For your plan to be effective its objectives must be clearly stated. Such clear statement is necessary so that those who will be involved in the execution of the plan will understand, believe, accept and support it.
It should also provide measures for a satisfactory accomplishment of the objectives in terms of quantity, quality, time and cost. These help in delegating responsibility and measuring results.
Your plan should also state the policies which should guide people in attaining the objectives. And must also indicate what department or unit will be involved in accomplishing the objectives. It may or may not spell out the procedures for performing the required work.
Lastly, your plan should designate the officers who will be held accountable for the accomplishment of the objectives. Sufficient authority should be delegated to such officers and executives.
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