ASSIGNMENT

COURSE: CBS 2ALECTURE NAME: MR SHESNATHSUBJECT: BUSINESS MANAGEMENT

CONTENTS What is business planning………………………………………………….………2

Why do a business plan……………………………………………….…………....2

Five essential ingredients of your business plan…………………………..……..3-4

Benefits of having a business planning…………………………………………..4-5

Importance of planning in organization…………..……………………………...5-6

References……………………………………………………………………...…..7

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1. “ Business Planning ” is a vital ingredient of business success”. Discuss this sentences based on your own opinions and perspectives.

A business plan is a document that describes your business, its objectives, strategies, target market and financial forecasts. It's a blueprint to your business's future.

Business plans can vary enormously in length, style and content, but the key is to ensure the document is realistic, practical and regularly reviewed. It should not only set the direction for your business but act as a reference point for measuring performance.

Why do a business plan? It may seem like a lot of work at the outset, but a well prepared business plan can save you time and money in the long run and help you secure major contracts or funding.

Most importantly, a business plan incorporating a feasibility study will help you determine whether your idea is commercially viable and any issues you need to address or plan for along the way. It will help you:

apply for finance from a financial institution; secure investors, sponsors, suppliers and staff; clearly outline your goals and long-term vision; determine the commercial viability of your idea; examine your business idea from many different angles; test your commitment and motivation; identify your business's strengths, weaknesses, opportunities and

threats; develop strategies to successfully operate and market your business;

and establish measures to evaluate your business success.

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Five essential ingredients of your business plan. A business description and mission statement. Every business needs a clear declaration of why it exists, and a basic description of how it intends to meet its primary objective. If you look at a good company website, it will often include elements of the mission statement in an 'About Us' section. It need only be a few sentences, and might be something like "Our company aims to provide outstanding solutions and service to the x industry in and around the area of y". Think of your mission statement as the heart of your business plan. All your goals and activities should flow from it.

Having prepared your mission statement, you next need to comprehensively describe your company. Provide a brief history and then explain what it does, identify the marketplace niche it fills and assert why you and the business will succeed. You may also wish to reveal why your business chose its location and how you will benefit the local community.

A management profile. In business, as in any walk of life, people matter. Potential investors, lenders and even employees are not interested in a faceless, soulless corporate entity. They need to know that competent, experienced people are steering the ship. Provide an outline of your organizational structure and management team, giving solid reasons why your staff are competent to succeed. A chart illustrating the roles and relationships of key employees can work particularly well, and if you are a small company you may even be able to include every single employee.

A financial portrait and strategy. Prospective investors and lenders need a good idea of the financial aspects of your business. Include basic data such as current and projected balance sheet, a profit and loss account and an analysis of cash flow. If you are a start-up, project this information as accurately as possible. It is important not to cut corners with these calculations and do ask for our assistance with this. Above all, make sure your numbers demonstrate that you and your management team have considered the key 'drivers' that will determine your success or failure. Don't fill the business plan with overly optimistic financial projections that could ultimately depict your company in a bad light.

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Sales and marketing objectives. Expertise and past success mean little without an up-to-date strategy for bringing your products or services to market. Describe your intended market, giving specific details on its size and how much of it you intend to serve. What is your market's growth potential? What specific geographic and economic factors play a role? Competitor intelligence is another crucial factor. Name your five largest competitors and explain why you can serve your market better than these rivals. Do not conceal your weaknesses: reorganizing the challenges you must overcome shows that you are realistic.

An executive summary. The likelihood is that many potential lenders will initially only read an executive summary. That's not to say they'll never read your entire business plan - but it does mean that a concise, readable executive summary may be necessary to get your 'foot in the door'. An executive summary should show the highlights of each section of the business plan, providing a clear synopsis of who you are, what you do and where you're heading.

Benefits of having a business planning. Helps you find funding. You might be a fresh entrepreneur looking for capital investment or an established market leader who is looking to grow. In any case, your business plan is the place where you and your consultant put on paper all the reasons why investors should support you with their capital.

Manages your growth. As your business evolves, many things can change including your yearly budget, number of employees and your financial and client targets. If you do not keep on top of the effects of these changes, who will? Your business plan can help you assess and monitor how your company is currently evolving and how it will continue to grow into the future.

Determines and monitors your objectives. Perhaps above any other benefit of business planning, the setting and following through of goals is integral to the success of your business. At the most basic level, your business plan lets you decide and keep track of where you are now and where you endeavor to be in 'x' number of months or years. At a more advanced level, a cycle of business planning keeps you on target through regular meetings and updates.

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Delivers your marketing approach. Who is your target audience? What are the unique selling points (USPs) that allow you to stand out next to the competition? By what tactics will you best reach potential clients? A marketing strategy is an important task unto itself, but you'll have it neatly packaged within your business plan.

Manages organizational and employee requirements. This element of your business plan lets you figure out who within your organization is filling which roles, whether you could benefit from more or less staff and how you will go about recruiting new employees.

A business plan is a valuable part of how you start and conduct your business. In assessing your present and forecasting your future, you'll be well on your way to a clearer vision and a higher chance of success.

Importance of planning in organization. Efficient Use of Resources. All organizations, large and small, have limited resources. The planning process provides the information top management needs to make effective decisions about how to allocate the resources in a way that will enable the organization to reach its objectives.

Establishing Goals. Setting goals that challenge everyone in the organization to strive for better performance is one of the key aspects of the planning process. Goals must be aggressive, but realistic. The other benefit of goal setting comes when forecast results are compared to actual results. Organizations analyze significant variances from forecast and take action to remedy situations where revenues were lower than plan or expenses higher.

Managing Risk And Uncertainty. Managing risk is essential to an organization’s success. Even the largest corporations cannot control the economic and competitive environment around them. The pace of change in business is rapid, and organizations must be able to rapidly adjust their strategies to these changing conditions.

Team Building. Planning promotes team building and a spirit of cooperation. When the plan is completed and communicated to members of the organization, everyone knows what their responsibilities are.

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Creating Competitive Advantages. Planning helps organizations get a realistic view of their current strengths and weaknesses relative to major competitors. Observing competitors’ actions can also help organizations identify opportunities they may have overlooked, such as emerging international markets or opportunities to market products to completely different customer groups.

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REFERENCES 1. www.smallbusiness.chron.com 2. http://www.sheen-stickland.co.uk3. https://www.smallbusiness.wa.gov.au 4. www.articles.bplans.com

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