Importance of a Business Plan

  Ateet Sanghavi   Jan 19, 2014   Uncategorized   Comments Off on Importance of a Business Plan


Can you imagine jumping off to the 5th grade without passing through the ABCD of the previous ones? Impossible right? What is the output going to be? Failure! This is definitely not what any or every one of us wants, by just compromising on the time factor. What is essential for each and every success story in the real life and professional world is being able to go up the ladder by taking the first stepping stones in the right direction. It is extremely pivotal for success that one goes up the path of building oneself or one’s business by planning a strong foundation, beforehand.

Business talk, let’s plan or let’s talk, business plan.

It is extremely indispensable to have in place your virtues and values set up in order to bring to light the real motive of setting up your own business. It is extremely essential to go the extra mile and manage preparing a business plan for your venture – be it for a start up, to plan your funds and functioning; or be it an established firm that needs to run more in collaboration and keep track of the various trends. It could also be a business plan for a firm that isn’t doing well for its fortune and thus needs to discover if it should put itself up on sale or merge with an existing company.

Thus, whatever is the scenario, it is important to keep a base plan for executing the picture in the righteous way, yeah? All the resources, the energies, the funds and the strategies can be streamlined only if one has a business plan to follow. It is considered very important to have a set of values in place for steering across and through all the possible bottlenecks that can come across your venture when least expected. For example, a disaster management or the security alarms in place can be saviors and business life savers when it comes to unseen calamities. We need to make sure that we are prepared before hand for any kind of obstacle – be it the competitive rivalry or even managing human resources within the company.

Let’s brief out why we require the business plan:

1) The vision and mission of the organization require to be clear in order to help oneself as well as the others in the organization to achieve the organizational goals and objectives. To streamline one’s personal goals with those of the organization is also an important aspect for each and every resource of the company which shall only be looked at when the plan or the focus of the business is set and clear.

2) Benchmarks and performance standards.

Benchmarks and standards to upgrade the business processes and practices can only be known in order to make the right decisions with the help of a clear and focused business plan. Mid way constructions can be corrected if any discrepancies have occurred in the establishment or functioning.

3) A business plan – The Blue print

A business plan can be very well considered as a blue print when it comes to focusing the intensity of efforts and focus in the needed areas. It can serve as a guide to any and every organization in order to track the opportunities available for prospering and also to treat the threats in the right and orderly manner.

4) Customer – The King!

With a business plan in place we sure get more aware of the various segments that can be targeted to make the potential customer base and also to identify the relevant buying behaviors for increasing the sales revenue.

5) Let’s “turnaround” the company!

A business plan can also help to increase the turnaround of the company who hasn’t been sticking to good margins. It is the plan encompassing the finances and the other resources which require collaboration and coordination to be effective as a team of resources, for organizational goals and profits.

6) Competitor hassles?

No more worries, if you have your strategies in place! So let’s talk about how you can actually strategize the various moves that you might have to make when there is a rundown due to competition. It is only when you have planned your analysis and your problem solving machinery in place, that you will actually be able to make it for the required cut throat competition successfully. Apart from these possibilities, looking at the dangerously competitive scenarios today, it is highly difficult for any firm – especially a start up to take off and sustain in the society.

7) SWOT – That’s what!

Your business plan is the bible that has all of your company secrets induced in a manner that will actually help you to narrate the strengths and weaknesses to yourself as well as the other components of the organization in a way that it is actually considered to be the guide for utilizing the strong points and putting away with the weak points of the company or striving towards converting the weak points in to strong ones and then navigating those towards building a stronger organization. The opportunities may be not be very visible each time, but however, the analysis that goes into finding out profitable ones is only possible if you have planned your business requisites and goals.

Thorough analysis of the opportunities before taking them up is also a criterion that totally depends upon the set values and norms laid down in the business plan. There may however be threats to the organization, which may not be foreseen and thus can create havoc in the functioning. However, if there is the perfect conduct for the factors that can be pivotal in solving the various threats and the problems it can be essentially helpful in putting away the losses and the unseen contingencies. Thus, the business plan can actually serve as a savior.

Thus, to sum it up a business plan is essential and means the bible to any organization – big or small. It is the action plan and the perfect descriptive guide that can help everyone in the organization to be prim and proper with the various objectives and goals of the firm, the marketing strategies, the funding arenas, the protocols, the functioning in each and every managerial field as well as the various stepping stones towards the progress of the firm’s destined profit making!!

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