Business planning is the art of setting goals and objectives in most articulate way and mapping them in a document with the aim of achieving the set goals and objectives. It lays out the growth strategy, the resources required and the team to implement the game plan. To build an effective business plan one has to start with realistic and honest appraisal of the present business position.
Critical aspects of business planning
Gather the right information
The accuracy of a plan is dependent on the accuracy of planning data that is available especially;
-Accuracy of information on the past and current trends.
-Accuracy of data for forecasting.
A plan covers a future period hence the importance of accurately forecasting the future environment under which the plan will be implemented. Some of the methods that can be used to forecast include;
-Trend analysis- analyzing the behaviour of a particular variable over time in assumption that the trend in the past to the present will continue into the future.
-Expert opinion- seeking opinions of experts in the field on how a particular variable is likely to behave in future.
-Using statistical analysis, predicting the probability of a particular variable behaving in a certain way at a future period of time.
Goals and objectives
A plan is heavily guided by set goals and objectives.
-These objectives determine the activities to be carried out, their time frame and resources to be allocated.
-Activities contributing more to achievement of objectives are allocated more resources.
-Setting wrong objectives may lead to failure in achieve the overall goal of the company.
-Resources are always limited while competing needs are many.
-A balance should be created between the need to achieve objectives and need for optimum utilization of the scarce resources.
A good plan must be time bound. Time frame adds value to a plan in the following ways;
-Early accomplishment of objectives increases the present value of financial benefits of a plan by having the benefits earlier than planned.
-Helps prioritize plan activities and keep focus on current activity for specified time before shifting focus to another activity in the plan.
-Someone must be held accountable for every planned activity.
A continuous tracking of progress of a project. It involves;
-Collecting data on the current stage in the implementation of project activities and comparing it to planned progress.
-Taking stock of resources usage at a particular stage of project implementation to assess whether funds are prudently utilized as planned.
-Tracking the time taken at project activity against the planned time.
-Preparing progress report highlighting above analysis.
Assessing whether the planned activities shall produce the desired results or the activities implemented have positive impact.
The main purpose of evaluation is;
-Assess overall success of the project in meeting set objectives.
-Assess whether the planned funds were prudently spent.
-Find out whether the plan was sound and what can be improved in future.
A well laid out business plan forms a strong foundation for business growth and success. Implemented by visionary team the plan can lead to realization of business objectives.
A marketable strategy is a deliberate survey of a business idea. The arrangement will be a vital representing report for you.
The methodology of drawing up a marketable strategy:
Gives, together with the plan of action, a great structure and helps you to actualize arranged exercises in the right succession
Gives as reasonable a picture as could be allowed of the business – plans for the future and opportunities
Provides for you a composed rundown of information and preconditions, business idea, items/administrations, target gatherings/market decisions, picked methodologies, market potential, association and the venture’s budgetary prospects
Explains what you must do and how, in the meantime as it portrays to you and others why you are doing it
Clears up a few objectives that you and others can identify with
Structures a choice premise for the venture and raises your consciousness of the decisions and choices you will need to make
Sets you up to begin your own particular undertaking or grow a current venture
Careful chip away at the strategy for success will expand the likelihood that your venture will succeed, and that you get a clearer diagram of the danger you will really run in seeking after your business idea.
Your strategy for success ought to likewise be an element record that is balanced when you increase new understanding. Thusly it turns into a vital control device for your business, together with the plan of action.