Business Planning
Business planning involves the process of setting goals, outlining strategies, and creating a roadmap for achieving success within a business. It typically includes elements such as market analysis, financial projections, and operational plans. The purpose of business planning is to provide a clear direction for the organization and to guide decision-making in order to achieve long-term objectives.
7 Key excerpts on "Business Planning"
eBook - ePubThe Essential Management Toolbox
Tools, Models and Notes for Managers and Consultants
- Simon Burtonshaw-Gunn(Author)
- 2009(Publication Date)
- Wiley(Publisher)
...CHAPTER 1 Business Planning This chapter covers the task of Business Planning which is applicable to all businesses whether a sole trader or a multinational conglomerate. The production of a business plan is needed to describe the business, its objectives, its strategies, the market it is in and its financial forecasts. It is often used as a tool for measuring the performance of the organization against that intended over a short- or medium-term period, typically three to five years. For many new businesses the business plan may be used as a tool to promote an interest in the business and to secure external funding and as such needs to be undertaken as a serious task. In addition to this, a business plan has several other purposes as it: • Prompts management to logically examine the business in a structured way and consider what it currently does and what it wishes to do in the future. • Encourages management to set future business objectives and then monitor progress against the plan. • Identifies the resources and time needed to implement the business plan. • Can be used to communicate the key features of the business plan to employees and provide them with an awareness of the business’s direction. • Provides links to the detailed, short-term functional strategies. This chapter also shows the basic stages in producing a business plan and the planning cycle which also looks at past performance and what needs to be addressed as new targets and objectives. Indeed the focus on the business plan is likely to be on three areas: setting realistic goals for the business to aim for, demonstrating how its objectives will be met and finally identifying what resources in terms of people, plant and investment will be required by the organization to achieve the plan. Although there is no set formula for the contents of a business plan, a typical layout is provided in this chapter as a good starting model for those embarking on its production...
eBook - ePubEssential Tools for Operations Management
Tools, Models and Approaches for Managers and Consultants
- Simon Burtonshaw-Gunn(Author)
- 2010(Publication Date)
- Wiley(Publisher)
...CHAPTER 2 Business Planning INTRODUCTION Without doubt it is safe to say that the task of Business Planning is applicable to all businesses whether as a sole trader or a multinational conglomerate. The production of a business plan is needed to describe the business, its objectives, its strategies, the market it is in and its financial forecasts. It is often used as a tool for measuring the performance of the organization against that intended over a short- or medium-term period, typically three to five years. For many new businesses the business plan may be used as a tool to promote an interest in the business and to secure external funding and as such needs to be undertaken as a serious task. At the outset the production of a business plan will help the organization to: • Describe and explain its business idea or proposition. • Provide a structure to the short- and longer-term plans. • Uncover any problem areas that might be lurking. • Identify unforeseen opportunities. • Record the financial details. • Provide an overview of the bigger picture. • Provide an integrated framework for all of the business ideas. • Make the business statistically more likely to succeed. • Identify the risks that the business may face or prevent progress. Another view is that a business plan is vital to: • Gaining financial support from internal and external sources. • Helping the organization to establish operating objectives and to measure results on a realistic basis. • Helping to define a “road map” of where the company is now, where you want it to be, how and when it will get there, and at what cost. This chapter commences by looking at the process of Business Planning, the production of a business plan and what it should cover. It then provides some example business plans which may be of help to those involved in this process and ends by proposing that a feasibility check is undertaken on the final plan...
- Margareta Nelke(Author)
- 2011(Publication Date)
- Chandos Publishing(Publisher)
...Our mission and business concept, including the information strategies, are the basis for strategic planning. In the process of Business Planning we may feel that our financial, temporal and knowledge resources are insufficient. We must set aside time that we do not have, gather facts that are often difficult to find, analyse and make qualified guesses with a large degree of uncertainty, and present the results in an easily digestible and attractive manner without trivialising and simplifying too much. These are big challenges, and the keys to success are to take the process seriously, to devote enough time and to involve the staff in the work. The process of developing and planning the business is, as mentioned earlier, a learning process that also provides some positive side effects. Therefore, the actual work of planning activities and developing long-term strategies gives great benefits which may even exceed the plan itself. The work delivers side effects in the form of increased awareness among the staff, management, users and other stakeholders and a better capacity for dealing with changes within the organisation. Hopefully it will also increase participation, motivation and job satisfaction along with the greater insight and knowledge of the business that are gained during the process. A strategic business plan is not an action plan or a task list. It is generic and should therefore not be too detailed. Action plans and task lists are made at a later stage when the business plan is finalised and result in a plan that can be implemented and followed up. Action plans and task lists are, however, not dealt with in this book. Developing a business plan is both a support for our own work and for the marketing of the business...
eBook - ePubStart-Up Guide for the Technopreneur
Financial Planning, Decision Making, and Negotiating from Incubation to Exit
- David Shelters(Author)
- 2012(Publication Date)
- Wiley(Publisher)
...Chapter 3 Business Planning from a Strategic Financial Perspective In this chapter, we demonstrate the value of a business plan. We list both internal and external purposes of composing a business plan for entrepreneurial ventures, discuss the main objectives to be accomplished for each section of the plan, examine how the plans can be customized based on the types of prospective investors sought, and present rudiments to follow in composing a business plan. Value of a Business Plan The act of writing the business plan serves as a valuable thought-provoking exercise. Once completed, the plan serves as an essential reference source and basis for periodic updates. Drafting your business plan is the opportunity to incorporate your knowledge of your investors (KYI) in written form to efficiently organize and plan your business and represent your business effectively to prospective investors. What value does composing a business plan offer? Composing a business plan is a thought-provoking exercise that provides a method for you to set goals, priorities, and strategies. The goals, priorities, and strategies you decide on should be derived from the results of your KYI research and inquiries and what I call “discoveries” made during your brainstorming process with your founding partners. A discovery is any important, actionable notion that comes to your attention as you are composing your business plan or any other planning document. A discovery is actionable in that it prompts a revision, addition, deletion, or reformulation of a goal, priority, or strategy. As such, discoveries are key to effective Business Planning. A former client had an operational software as a service business when he hired me to help decide which of two different ways to focus his business. He had struggled with the choice for a long time. When I asked to see his business plan, he informed me that he never bothered to draft one because he never needed to raise funds from external sources...
eBook - ePubThe Organizational Master Plan Handbook
A Catalyst for Performance Planning and Results
- H. James Harrington, Frank Voehl(Authors)
- 2012(Publication Date)
- Productivity Press(Publisher)
...No matter what manner or type of financing you are seeking, lenders expect to be apprised of the source and amount of any capital that has already been secured, spent, or dissipated. They also often expect key executives to have made substantial personal equity investments in the business. They will feel even more comfortable if they recognize any other investors who may have participated in earlier stages of the financing process. Component 2: A Strategic Vision is the Core of Your Business Plan * * Definition of business strategy, from Entrepedia: The entrepreneurship wiki. Formulating a strategy is really about deciding what the objectives of the business are, and developing an overall strategy for how they should be achieved within the business environment. This should be done in a way that best takes advantage of the company’s resources and core competencies (what it does best — its key competitive advantages). Strategy formulation then needs to follow a process that includes: (1) understanding where the business is now: externally — in terms of its markets, customers, competitors and general business environment — and internally, in terms of its resources and competencies, i.e., swot analysis), (2) outlining objectives for the business in terms of where it wants to be — in order to continue towards (and hopefully also to thrive and grow in) the future, i.e., vision and mission statements, and (3) developing strategies and tactics for the business as a whole, and the different functions within it, in order to achieve these objectives, i.e., master planning strategy. www.entrepedia.org (accessed November 10, 2011). In almost every case, the first 50% of the Business Plan is geared toward helping develop and support a solid business strategy. Management and the board of directors must begin by looking at the market, the industry, the customer base, and its competition. They need to analyze and study customer needs and the benefits of current products and services...
eBook - ePubMarketing Plans for Services
A Complete Guide
- Malcolm McDonald, Pennie Frow, Adrian Payne(Authors)
- 2011(Publication Date)
- Wiley(Publisher)
...Chapter 5 Marketing planning Phase One: the strategic context In each chapter, we will stress the difference between the process of marketing planning and the output of this process – the strategic marketing plan. What should appear in the written output of the strategic marketing planning process was shown in Figure 4.3 in the previous chapter. We have seen that the first phase of the marketing planning process involves determining (or re-examining) the mission statement and setting corporate objectives. In this chapter, we will look at both of these issues in some detail, using examples from the service industry to illustrate how some companies have set about these tasks. Particular attention will be given to the problematic issue of mission development. These two steps form the strategic context and provide the pivotal link between the corporate plan and the marketing plan, as outlined in Figure 4.2. Step 1 Mission A mission for services Business strategy is a top management responsibility that involves both identifying the future direction of the organization as well as managing the creative interaction of the functional disciplines of operations, marketing, finance and human resource management. It is both a process and a way of thinking which leads to the development of a set of strategies that assist the business in achieving its corporate objectives. Virtually all companies have a business strategy; however, this may be implicit or explicit. While some companies are successful with only an implicit strategy guiding the chief executive and the management team, it is our experience that companies developing an explicit strategy through a planned approach have a greater chance of long-term success. If the organization has no clear notion about its vision and values, it may be in a quandary regarding the way forward The process of business strategy formulation should commence with a review and articulation of the company’s mission...
eBook - ePub- Rob Dransfield(Author)
- 2013(Publication Date)
- Routledge(Publisher)
...Strategy involves complex high-level decision making and has major resource implications for a business. The strategy that a board selects needs to meet the criteria of suitability, acceptability and feasibility. The strategy is the means to achieve ends that are set out in the vision and objectives of the organization. In preparing, monitoring and evaluating strategies it is essential to continually scan the external business environment. The economic environment is perhaps the single most important external factor impacting on business decision making. The economic environment comprises changes in GDP and consumer spending, as well as a range of other important changes such as interest rates, exchange rates and wage rates. Changes in the economic environment present a key risk and uncertainty facing businesses. Key Ideas Some of the main points covered in this chapter are listed below. If you are unsure about any of them then revisit the appropriate section. If you would like some additional reading on the topic try the books listed below in recommended reading. What are business strategies? Businesses strategies are the means through which organizations achieve their objectives. Strategies involve long-term decisions that have major resource implications for an organization. The board of a company plays a key part in helping to formulate, question and monitor the effectiveness of strategy. Typically strategies relate to the longer period, although strategies should be flexible so that they can be adjusted in the light of changing circumstances facing an organization. Criteria for effective strategies Strategies should meet three main criteria: (1) they should be acceptable to stakeholders including shareholders; (2) they should be suitable to the environment in which a business is operating (e.g...
