The authors clinched:
“Except in a small number of cases, business planning appeared to be positively correlated with business success as measured by our variables. While our analysis cannot say that completing a business plan will lead to success, it does indicate that the type of entrepreneur who completes a business plan is also more likely to run a successful business.”
A business plan is a prescribed report of predefined business goal related to vision & mission of an organization and they are totally in touch for getting or attaining these goals. It consists of many efforts of groups or teams and overall background of the business in order to achieve these goals.
Business plan can be changed by the perception and demand of many customers or many other influencing communities. If a business is going to prepare a new plan according to the need of customers, it has to make 3 to 5 years plan or as long as, investors and customers are taking interest.
The reason behind every successful and railed business is to implement well-thought business plan. The people who start business without any planning suddenly become insolvent in all aspects. Keep in mind that there is large quantity of risk for commencing new business. The reason for failure of business is that many proprietors commonly commit mistakes in the normal course of its operations. However, there is no assurance that your business will succeed as risk element always there, where is business, but here are some precautionary measures and planning to mitigate risk and keep the business on smooth track.
1: Vision & Mission Statement
Before starting business, you must have clear concept about your business such as; what is the nature of business? What are the objectives & goals? Why it has to be incorporated? – And many others too. To answer of all these questions, you have to prepare vision or mission statement of your business. Vision statement is a broader look to where you want to see your business after 10 or 20 years and what are the actual objectives of the business. For example:
“Our vision is to protect your Vision”
Similarly mission statement is predefined tracks to be followed to reach the final destination or vision.
2: Selling Strategy
Second step to have a successful business is to know about your selling products. Many owners do not take it serious, but its actuality. It is not more that you are selling denims rather it is important to make plan how your denims can be unique from others. You also need to bring it into your knowledge that how a customer can attract and how you can defeat your competitors. For all these things, you have to prepare selling strategy in order to sustain your business in the competitor’s market.
3: Marketing & SWOT Analysis
Aforesaid mentioned facts persuade towards the effective marketing strategy and plan for the betterment of business. For this purpose, you have to conduct SWOT analysis (Strength, Weakness, Opportunities and Threats). This analysis depicts about the strength & weakness of a business and opportunities and threats of the same. The main objective of the companies is to locate the clients and customers, for which they have to chalk out a proper plan for placing, positioning, pricing and promotion.
4: Financial Management
The next step is to keep the proper record of all financial transection & entries in a proper way. This is the only way to keep your business on the track in regard of income and expenditures. This can be done by recruiting an accountant at the initial stage of business with the guarantee that you have proper accounting system. The main cause of business failure is that owners do not take care of their expenses and do not book them properly.
5: Compliance Of Tasks
It is very important in the business to define the tasks with reference to expertise and their implementations accordingly. Any task cannot be implemented until; it does not have an owner. You have to scrutinize and recognize a reasonable person who can take care of all the business activities, and be a responsible person for implementations of the same.
6: Assumptions In Plan
For the fruitful business, there must be some cushion and leverage in the postulate of business plan. As you know that plans are prepared by humans and error can be commit by them. So there must be some assumptions in plans that can be changed or modify with the demanding trend. A plan which does not have any space of amendment usually becomes obsolete and finally effects on the business operations.
7: Recruitment Of Loyal People
In the end, it is the wise decision of management to hire those people in the organization who are committed and loyal toward jobs. Who they perform their duties as it is their own business. It is very important decision on the part of management, as this can be proven fruitful or overwhelming for your business. So have a good employee, have a good outcome.
Your business cannot progress by leaps & bounds unless it remains static and inflexible. Planning is just like a future prediction and you have to follow of this structured map for achieving goals. It is the regular process to be reviewed and amended periodically.
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