Entrepreneurs, rather, pathfinders, as we call them are people who make things happen and they, are individuals who are full of action.
They invent new products, manufacture and sell them.
Planning is an important aspect of business success especially the small businesses.
Let’s break it down for your immediate understanding, planning simply means the dynamic process of preparing your business for the future according to the strategic management course.
Business managers have five important functions in a business and planning is the most important one of them. For the sake of our topic, we would not engage in other functions of business managers as we are here to state nothing more than the importance of business planning.
- There are three different planning.
Strategic planning: This is the systematic process of evaluating the impact of environmental factors on your business and the major decisions you face and the goal is for a long term success.
- Operational planning: This type of planning focuses on the actions that must be taken in the short term, usually one year. There is something you must know here, when operational planning is not based on a strategic plan, your business runs the risk of making a decision that might look very good but have a negative long term impact. Ideally, operational planning should happen after strategic planning had been done.
- Financial planning: This is the process of preparing budgets and protection whenever any planning activity takes place. The numbers are just numerical representation of the strategic and operational planning processes.
The above process as itemized for your understanding is what results in the effective business plan.
Now let me ask you a very simple question; what is a business plan? Am sure they must have taught you this in school but what am not sure about is, did they give your practical example of what a business plan is and what it can do for you in school? Maybe, not.
A business plan is a footprint that gives your business direction.
It is pertinent for you to know that every new business whether big or small needs a business plan for two important reasons.
- To serve as a guild for the owner who develops the business.
- To prove to the investors that the business owner has carefully thought about the direction of the business.
I need to quickly make it clear to you here that no investors will consider financing your business if your business can’t present a concise and realistic business plan and the more information you offer an investor about their money how it will be used, the more they will want to invest their mine in your business.
Writing a business plan is really hard work that must be carefully done and it should be able to outline the goals of the business and how the goals will be accomplished as this will encourage investment and provide you with a well thought out plan to follow. As you write it on paper, you will uncover problems that you didn’t think of initially and how to solve them. Your business plan will save you time and money and, you should prepare it in a way that the only question on the investors mind ill be “How much can I invest”
Due to the challenges and the difficulty in coming up with a strategic concise business plan our team has decided to develop one that will help you get the right investor for your business, anytime.