Understanding Business Planning with TallyDekho
Hey there! TallyDekho brings a comprehensive guide that acknowledges the readers about business planning and its process. In today’s article, we’ll understand what is business planning and how to conduct effective business planning.
What is Business Planning?
Just like we follow a road map to reach our destination, in the same way, for making a business successful, a business plan is the most basic need. So, basically, preparing and laying down all the plans and blueprint to attain business success is known as business planning.
Also, a business plan also needs regular updates and changes as per the dynamic market scenario. In other words, business planning means setting a business outcome and thereby formulating steps to attain that set outcome.
Objectives of business planning
The main objective of business planning is to plan and formulate the blueprint of business operations to attain business success. Following are the objectives of conducting business planning:
- Give shape to your business ideas
- Assists you in deciding your priorities
- Helps in establish business prospects
- Helps in delegating the responsibility and authority
- Estimating the requirement of resources
Business Planning Process
For preparing and executing a successful business plan, a sequence of steps is laid down. Therefore, we’ll now understand the business planning process in detail:
Idea Generation
The first step in the business planning process is idea generation. Idea generation implies the creation and giving shape to the business idea and understanding in detail what prospects and what kind of business goals your organization wants to achieve.
Scanning environmental factors
The next step after the idea takes a shape is to scan the environmental factors related to the business project. Scanning of environmental factors means understanding the positive and negative factors that will affect the proposed business idea.
Conducting feasibility analysis
The third step in the business planning process is conducting a feasibility analysis. Feasibility analysis refers to analyzing the economical, technological, political, financial and social elements of the market and therefore, preparing the resources accordingly.
Final project layout
Once, the business components and market research are conducted thoroughly, a final layout is prepared that contains all the details of the business proposal, the financial requirements and other market factors that can have a major impact on the business.
Plan execution
The planning stage is done now. This is the second last stage of business planning where the actual plan execution takes place. The prepared business plan is implemented and the responsibilities with matching authorities are delegated to the superiors and their respective subordinates. Now, the actual plan execution happens.
Follow up and Control
The process doesn’t end over here. Regular follow-up is needed and an appropriate control device is also required to analyze the deviations of the actual results from the planned one and thereby, take corrective measures.
The process is continuous and it has to be altered from time to time to make it adjustable in the dynamic business environment. In my opinion, every business organization should prepare a blueprint for attaining future prospects of the business.
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