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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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