Importance of business plan to a business

what is a business plan

WHAT DO YOU UNDERSTAND BY BUSINESS PLAN

A Business Plan is key to business success! The one phenomenon I have observed in my business (and dtechi) career is that when we don’t take time out to look ahead and actually see where we’ve pointed our ship, we will often find a iceberg to hit.

I know that the term Strategic Planning can seem scary – but really, all it means is to develop a plan of action designed to achieve a particular goal.

Long term goal setting can be challenging to most because the ‘big’ goals are overwhelming and it’s hard to ‘see’ and many people set ‘long term’ goals and leave it at that…. and then wonder how they are going to make that $1million in 5 years!

Also READ: 16 Low-Cost Marketing Tips and Strategy

The thing is that long term goals are GREAT! They keep us thinking of the ‘bigger picture’ but we really need to be setting shorter term goals based on these bigger goals. Break our goals down into smaller, more achievable ones – Yearly, Quarterly and Monthly and then use the monthly goals to create daily and weekly work plans.

I have no end of trouble trying to forecast where I want to be in 2 years – I’m so used to how quickly the world changes that I know that what I choose today will, most likely, be out of date. Instead, I choose to have an intention – based on my spiritual and emotional needs – and then look at what I need to do in my business and personal life to support that intention.

So, let’s say I want to earn $600k in the next 2 years to become debt free. I could say that I need to earn $300k in clear profit each year – but I find that utterly overwhelming. Instead, I choose to say that I want to earn $5,000 a month and based on what I am doing, develop ‘something’ that will generate me ongoing, residual income.

Also READ:  WHAT ARE CHATBOTS AND HOW THEY HELP IN DOING BUSINESS IN 2018

I know that focussing on the overall goal of becoming debt free, a ‘minimum’ earn each month and a focus on creating something that will keep on earning for me will keep me heading in the right direction.

I know the numbers don’t stack up! I know that all of my goals aren’t specific! What it does do though, is allow me to set my work plan each day and each week to move closer to my goals.

At the end of each month, I sit down (with my wonderful Husband) and review my activities in my business and ask myself how these are helping me achieve my larger goal.

I have to say that some months I may pull in more than $5000 a month but on reflection, the work isn’t helping me reach my bigger goal – it’s short term and instant gratification stuff. I then need to consider, in the cold light of day, how each opportunity fits in to my ‘master plan’ and, sometimes I do ‘turn away’ opportunity – because it doesn’t fit with my longer term game plan.

Also READ: Huawei Mate 20 Pro To Feature Dual Edge Curved OLED Display

Importance of business plan

“By failing to prepare, you are preparing to fail” – Benjamin franklin.
To succeed in any business or business environment, you ought to have an entry plan, that is why an economist will always go with this four point before starting a business; what to produce, how to produce, for whom to produce for.

The British Assessment Bureau listed the following importance of business plan;

Business plan helps to assess whether your strategies are working and to make the most of new opportunities as they arise. Prioritizing and managing your resources will contribute to the success of your business.

Importance of business plan

It also give you the chance to learn more about the industry and competitors so as to gain control of the environment you are within, identify your current position and where you want to be in the future – set your goals, timeframes for achieving them and how you’ll measure performance. Every business should understand now that all things revolve with social media, try and channel your product online, get a facebook page or more like a youtube channel for your video and get your friends to know what is new about your product, by this means you can achieve and outshine your competitors in the industry.

Also, your business plan shouldn’t just be a document written once and filed away; it must be an ever-changing, live document that mirrors a growing and changing business. It is advised to set reminders or schedule internal meetings to review your business plan regularly, so that you can accommodate changing circumstances in the plan.

The last but not the least for you to remember is that your business plan get you a good finance, it controls the investors whether or not to invest in the business.
Also don’t forget, every business plan needs a marketing plan, Google as a big organization still invest in marketing, facebook does the same and so on.

Now, I know this sounds wishy washy and not in-line with many of the Guru recommendations, but for me, it works.

Always remember that dreams only becomes true if only we have courage to pursue them

I urge you, give it a go – what do you need to be doing today in your business to meet your own emotional and spiritual needs and wants for the next 2 to 5 years? Share your thoughts below….

You May Also Like

About the Author: Afolabi Achiever

Software Engineer and WordPress, Blogging and SEO Expert https://dtechi.com

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.