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Why_do_we_need_a_business_plan
| Why do we need a business plan?
Copyright © Cecilia Chang
What is a plan? Plan is divided into steps or point form for you
to analysis and to reach the place you want to go. A person can
have many plans, from his personal life to workings days. In
companies where business plans exist give us an overlook of how
the outcome will be if work is carried out.
Some people don’t notice the planning. Do you? We are growing up
as planned since we are born. We go to nursery then slowly to
college. We cannot jump queue the plan. How to? Can we go to
university without going through our pre-schools and higher
schools examinations…etc. we can’t. If your dream is to become a
lawyer, you need to study laws or a salesperson, you’re to have
a good communication skill.
In our everyday life, we plan what or where to eat; where to go
after work; what to buy; what time to reach a place; we’ve so
many plans all day. When you finish college, you step into
another stage of planning whereby you’ve to go out to work,
parents will no longer support you. When you’ve adequate
earnings, you’ll plan when to get married, have children and so
on.
There’s a quote say ‘Fail to plan is plan to fail’. Do you
agree? You need a plan to work things out. If you have no plan,
you’ll find yourself going no where, end up stuck or lost. But
things will go a lot smoother when you have a plan in hand.
You’ll find more time and success will come as you follow the
step by step procedure.
Let’s talk about business plan. Business planning gives us an
overlook of the outcome.
A business plan is for a business to look further, allocate
resources, focus on main points, and prepare for place of
improvement and problems. However, many people think that this
plan is for new business only. But they are also important for
running a business towards success. Business need plans for
better growth and development.
A simple plan includes the summary, mission, key to success,
market analysis and break-even analysis. This result can show
whether or not this business is worth to proceed with a detailed
planning. But it’s not enough to run a business.
A detailed business plan consists of these points: 1Executive
Summary 2Objectives 3Mission 4Keys to Success 5Company Summary
6Services 7Market Analysis Summary 8Management Summary
9Financial Plan
Most important factors in a business plan are the cash flow and
how you go starting about it.
Why cash flow is important? We need to understand this term for
success in business. Cash is often misunderstood as profits. But
both are different. Profit is just the numbers showing in your
account, it’s not the real cash in your bank yet. Many
profitable companies close down due to cash flow problem.
Next is how we carry out the plan. This is where to show that
the plan works. It is forever easier said than done. Do you
agree? The plan is just only words or theory unless you lead or
guide your people to get the tasks done. Business planning is
about knowing the outcome and improvement to your business.
About the author:
Cecilia Chang is an internet marketer and articles publisher at
http://www.articles.sgonliners.com. Her personal business blog
is located at http://www.blog.sgonliners.com. She builds a human
edited web directory at http://www.sgonliners.com. If you want
to suggest and promote your site, please don’t hesitate to
submit it.
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