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Business Plan

   

Creating A Business Plan

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To understand what a business plan is, and the process involved in business planning, it is important to realize that a business plan is not a document. That is how most people approach this vital effort taken by businesses.

Although the business plan is most evident by examining a collection of papers - it is really the process of deciding what a company will do in order to be successful. Further, it details the elements the business will take to accomplish this success.

The amount of time required to create the business plan depends on the size and complexity of the organization, the variety of locations, divisions and products, the stability and predictability of the business environment and the amount of competition.

Creating a Business Plan
is Important for Big and Small

Many smaller firms often skip the planning process. This is a natural thing to do.

The planning efforts take away time needed to run the business. There are not enough people to perform the day to day tasks, let alone sit around and write up a vision of the future. The seat of the pants method will suffice until we have more time to consider such things. And besides - nobody understands how to do a business plan anyway.

To the contrary - business planning will save time in the long run. A smaller operation requires less time and less formality. It need not be as comprehensive as for a larger concern.

Creating a Business Plan Provides Benefits

A business plan is necessary to provide a logical and rational sense of direction for the direction of a company. Beyond this there are many uses for the organization.

Identification of Strengths and Weaknesses

Company performance can be improved through the detailing of both the good and bad points in operations or other key areas of the business . Potential or emerging problems may be addressed - enabling adjustments and improvements for the future . Strategies which simultaneously build upon the strong factors yet correct the weak areas can enhance the bottom line .

Communication of the Expectations
and Priorities of Management

Clarity of direction can alert staff and management alike of the main directives for the coming year. Historic and projected results and priorities can empower individuals to do a better job.

These are some of the benefits available in business planning which benefit the internal structure. Next we discuss more internal benefits as well as some external pluses.

Creating a Business Plan
Improves your Chance of Success

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