Planning in Your Business
When you fail to plan, then you are planning to fail. Planning is part and parcel of our existence, and we make plans every day towards particular goals. It, however, concerns business planning. A business plan is crucial to any business’s success and is often likened to the foundation upon which a company sat.
A business plan is a guideline or map that enables a business to prepare for the future and prevent obstacles. In other words, it is a written document that describes the financial background, marketing strategy, sales, goals, and objectives of a business and how to achieve them.
A good business plan must be clear and concise and relating to the company such that even a layperson can get a good understanding. The feasibility of the project must also be considered mainly based on its financing options.
A business plan usually consists of the following:
This is usually to introduce the document and highlight the segments of the document.
An executive summary is the overview of everything contained in a business plan. It must be written exquisitely to catch any reader's attention.
It includes your business name, purpose and location.
A product analysis describes and explains what your products have to offer, your target markets, your competition.
It outlines how you intend to attract customers and to keep existing ones.
A finance plan enlists the cost of establishing the business, the expected sales and projected cash flow. It also states the purpose and source of financing. There are various reasons for seeking finance in a business. The primary reason for seeking finance is expansion. Others include accumulation of assets (property, vehicle, equipment etc.) and cash flow purposes. As a start-up, you may be required to borrow from family and friends; banks or take overdrafts or do crowdfunding. All these means are forms of gathering funds for practical set up.
It summarises how the business operates. It is vital for the smooth running of the business day-to-day activities.
It has to do with staff functions, job description, recruitment, payment, human resource policy. This plan is vital as the staff are crucial in the business's growth and overall success.
This plan includes information on the business name registration, licenses and permits. It also identifies procedures that can harm the business and ways in which they can be dealt with.
It includes strategic steps, including resources in carrying out the goals and objectives set by the business.