Thorough planning allows financial resources to be used wisely, and for the human resources of the company to be as productive as possible. The planning process must produce specific and detailed tactics, not vague generalities.
The management team evaluates what the company is doing well and where it is falling short. The forecast numbers are compared to actual results during the year. The result of this process is a business plan that serves as a guide for management to run the company.
Instead of saying the company will employ Internet marketing, the plan must detail which categories of Internet marketing will be emphasized, which websites will be used, and the cost of advertising. Before launching a product or entering a new market, management must determine a strong customer need to solve a problem.
Discrepancies are analyzed to determine if a change of course is required, or if shifting expenses may be necessary due to a changing economic environment.
Financial Forecast A financial forecast, sometimes referred to as a company budget, is produced during the planning process. The planning process provides a blueprint for improvement in all areas.
Devising Marketing Strategies The marketing plan details which customer groups will be targeted and how these customers will be convinced to make a purchase. Where are we now? Industry and Competitive Review Keeping track of competitors is an ongoing process in business, but in the planning cycle this information is used to evaluate the strengths and weaknesses of each competitor.
Also included in the plan must be reasons why these strategies are likely to result in success. Resource Allocation The planning process determines how all the assets of the company will be marshaled to achieve the goals and objectives.
Describing the most critical tasks that must be completed and the time frame for completion, a business plan allows companies to allocate resources to accomplish goals. Where do we want to go?Business Planning and Financing Management Series Building Block 2 The Business Plan frameworks within which to think and discuss essential areas of your business.
The process offered will provide sufficient grounding in the topic so that you will know Building Block 2 – The Business Plan and Executive Summary. The Elements of a Business Plan: First Steps for New Entrepreneurs Cole Ehmke and Jay Akridge into a business plan, you begin the process of creating a successful enterprise.
This publication addresses common questions about business plans and then discusses what is. The business planning process is designed to answer two questions: Where are we now?
Where do we want to go? The result of this process is a business plan that serves as a guide for management to.
senior and middle management in business planning and as a reference manual for individual enterprises to prepare their business plans, for submission to investors for funding, including venture capital funds.
Owners should be very involved in the planning process.
Hiring someone to do it or delegating it to someone who is not a key member of the company will result in an inferior plan. No plan (or a poor plan) is a leading cause of business failure. You can improve your chances of success with a good Business Plan. The business planning process can also be used to test alternative ideas and assumptions, as one of the main reasons for planning is to help the business prepare for an uncertain future.Download