Business Planning - Is It Important?

By Author: Clara Ross
Total Articles: 47
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Setting up a business is not an easy task to do. Businesses are often based on assumptions that are driven out of the facts available. Business plans are the blue print of activities that are to be carried out by the business management to help erect the business structure. Business plan is a source of direction for the management. It is usually made before the start of the business, or when the business is in the conceptualization stage. It reflects the vision of the management. A business plan tells any one reading the document what are the businesses plans and how effectively will they be able to achieve them. What will be the means employed to reach the described goals and how will these be obtained. Presentation is the key to making a business plan.

Often business plans are made with no real thinking behind its making. Business plan is not a document that would be made every then and now. It is a document that usually is very sort after and well prepared. It covers all the aspects of the business. An ill prepared business plan can best lead to confusion and chaos. Business plan plays a very important role in setting ...
... the business pace and long term sustainability. The business plan document not only includes what the business has to do, but it basically outlays the whole business model that the business has to follow in order to be successful over a longer period of time. Business plan provides with the exact situation analysis in which a business is operating. The credit a business can utilize also is dependent on the fact that how efficiently is it able to convince the financial institution it approaches for getting the loan facility. A convincing business plan is that which is made on realistic grounds and shows the realistically optimistic picture.

Things that don't exist in the real world can't also exist in the business plan as well. Business plans are not only made for the management or the financial institutions, they are also made for the other stakeholders involved like the creditors, investors, and potential share holders. It is very necessary therefore to keep in mind all the people who are to read the business plan, while making one. Before finalizing the business plan, the management should write down the intended purposes the business plan has to serve. Only proof reading the business plan won't suffice the business plan should also serve the purposes defined by the planners. Unless the business plan serves some basic motives being laid down by the management, there is no use of making one.

Clara Ross is the writer for Dubai Blog - Real Estate & Property , Best mobiles & Mobile Phones Blog and American Wholesale Blog . The author has got more than a decade of experience in the real estate, marketing, and wholesale industries and has been writing articles in industry related magazines, websites and blogs.