“The significance and the benefits of planning ahead, both initially and throughout the life of your business, cannot be stressed enough!”
This quote is the key message of Chapter two: Beginning’s sub-chapter “Business Planning.” In this chapter, I have repeatedly stressed about the importance of business planning to my readers so that they realize and appreciate its importance. “A business plan is a document that sets out your goals and objectives, both for you and your business, together with the strategies you will use to achieve these goals.”
A business plan for Small to Medium Enterprises (SME) does not have to be an encyclopedia or a work of art. Business owners must develop a plan for their business. Planning is a pre requisite for success. If they prepare a plan they would be aware of the issues, challenges and opportunities that they would have to face once they start their business. Business Plan would help them strategize everything and be better prepared for managing the risk factors.
A common approach to preparing a business plan is the “Now, Where, How approach: Now-Where is the business now; Where-Where do you want the business to be in the short and medium term; How-how are you going to get there?
The book contains a detailed outline of a good business plan, covering important topics like Market Analysis, Marketing Plan, Financial Plan, Production Plan, SWOT (strengths, weaknesses, opportunities and threats) analysis of the company and its competitors, among other relevant topics, so that the new business owners have an idea what to include in their business plan.
There are some essential points that have to be kept in mind while preparing a business plan: the business plan should be made at the commencement of the business because it helps in identifying a lot of key issues; this doesn’t mean that the planning process is a one-time thing. It continues throughout the business life; since planning is an ongoing thing, the business plan should be referred to and updated regularly.
There are reference books and templates for business plans available on the net and in all book stores, which can be very helpful for business owners. Potential business owners can also seek expert advice from accountants, business consultants etc. if finances allow it. So, what are you waiting for, start planning!
This post was first published on our strategic partner’s website: www.amerq.com