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Business planning sept to dec 2016

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BUSINESS PLANNING
- Planning is a basic management function that precedes all the other management functions-
- Planning involves deciding in advance what to do, how to do it, when to do it and who to do
it and reconciling company resources with objectives and opportunities.
Importance of Planning
Why should Businesses plan?
- Planning provides a common framework within which uniform decision-making is possible
- Comprehensive planning enables businesses to anticipate and adjust to a dynamic business
environment
- Planning acts as a management tool in solving problems and challenges faced by business
enterprises from time to time
- Planning avoids disorder, confusion, inefficiency and wastage of resources
- Planning brings unity of purpose and focuses all efforts to achieving organizational
objectives
Nature of Planning
- Planning is goal-oriented- Plans are developed and executed to achieve goals
- Plans are future oriented- they relate to future activities
- Planning is a continuous activity- that requires constant and continuous checking of events
- Planning acts as a link between the past, present and future
- Planning is the basic function that should precede the other functions in business.
- Planning is the primary function of every manager at all levels of management
- Planning is an integrated process- each plan need to be integrated with others e.g. from
different departments in an organization
Business ventures prepare different plans for use and these include; strategic plans, production
plans, financial plans, marketing plans, Human resource plans and operational plans and may be
short time or long term. Although these plans are different and may serve different functions, all
of them have one important purpose: to provide guidance and structure to the business.
An important type of plan is the business plan especially for entrepreneurs who what to start a
new business venture

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BUSINESS PLAN
Business plan is one of the most important documents for the entrepreneur at the start up stage
and is necessary to guide in the planning and development of the venture. A business plan is a
written proof that the entrepreneur has performed the necessary research, has studied the
business opportunity adequately and is prepared to capitalise on it with a sound business concept.
It serves as an entrepreneur’s road map in the process of setting up a successful business.
What is a Business Plan?
- It is essentially a description of a proposed or existing business that describes all the relevant
external and internal elements involved in starting and operating a new business venture.
- It consists of functional plans such as marketing, finance, production and management
- Includes an explanation of the business, an evaluation of the competition, estimates of income
and expenses and other information.
- Preparation of a Business plan entails gathering important information and making important
decisions.
Who Should Prepare a Business plan?
Any entrepreneur who is about to start a Business or one who is already in business. Research
has proven that those enterprises that prepare business plans increase their likelihood of success
and outperform those that do not. Studies also indicate that many small businesses don’t develop
Business plans leading to high failure rates
Scope and value of the business Plan Who Reads the Plan?
A business plan is important to employees, investors, financiers, suppliers, customers, advisors
or consultants and the entrepreneur. Each of these groups reads the business plan for different
purposes and hence the entrepreneur must address their issues and concerns
Three perspectives that should be considered in preparing a Business Plan:
1. The Entrepreneur’s perspective He understands the venture and should be able to
articulate well what the venture is all about, the product/ service, technology
2. The marketing Perspective (Customer orientation): The entrepreneur should consider the
market view; would the customer buy the product/ service? The entrepreneur should try to
view the venture through the eyes of their customer

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BUSINESS PLANNING - Planning is a basic management function that precedes all the other management functions- - Planning involves deciding in advance what to do, how to do it, when to do it and who to do it and reconciling company resources with objectives and opportunities. Importance of Planning Why should Businesses plan? - Planning provides a common framework within which uniform decision-making is possible - Comprehensive planning enables businesses to anticipate and adjust to a dynamic business environment - Planning acts as a management tool in solving problems and challenges faced by business enterprises from time to time - Planning avoids disorder, confusion, inefficiency and wastage of resources - Planning brings unity of purpose and focuses all efforts to achieving organizational objectives Nature of Planning - Planning is goal-oriented- Plans are developed and executed to achieve goals - Plans are future –oriented- they relate to future activities - Planning is a continuous activity- that requires constant and continuous checking of events - Planning acts as a link between the past, present and future - Planning is the basic function that should precede the other functions in business. - Planning is the primary function of every manager at all levels of management - Planning is an integrated process- each plan need to be integrated with others e.g. from different departments in an organization Business ventures prepare different plan ...
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