Establishing your own business doesn’t happen overnight. It needs proper planning and efficient execution of said plan to ensure that everything will fall in its proper places. Entrepreneurs and businesswomen/men make business plans and feasibility studies to identify possible challenges and create strategies that will pave the way to achieving success. Business planning allows your money to work for you, not the other way around.
Since every entrepreneur aims for their businesses to succeed, they need to take every step slowly but surely to avoid failure. One important tool in achieving this goal is Business Planning. How can you say that a business is successful? There are many ways to gauge success, but one obvious indication is that the company is still earning money in your absence – that is what you call ‘your money working for you.’
Business Planning is a process of establishing or setting up directions of how you will achieve your business goals. There’s an adage that says, “A goal without a plan is just a wish.” Yes, setting up your goals is imperative since this will create our path and guide you along the way to achieve success.
There are many reasons why Business Planning is important to all entrepreneurs. We’ve previously shared 5 really excellent reasons. In this post, we will be pointing out 5-MORE reasons why business planning is important.
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- Be able to focus and set priorities. Creating a Business Plan is beneficial, especially for those who are just starting up since this will give you a sense of focus on what needs to be done first. Since you cannot do everything at the same time, this will help you track the progress of all the important things. You can designate your time, resources, and efforts wisely.
- Plan for future uncertainties and execute a course of action. By devoting yourself to your Business Plan, you will have a better understanding of your business. Think of the possible challenges and roadblocks that could hinder your business success. Determining this in advance will help you prepare for a course of action to help you face challenges that may risk your business. Alleviating those potential issues is significant to help you create a plan on how to manage the risks successfully before it even occurs. When an important business challenge confronts you you also be better positioned to; go over it, under it, around it or better yet straight on through it!
- Help you manage cash flow. One of the essential requisites of a business is to diligently handle your finances or cash flow. It is not only about profit monitoring, you also need to make sure that your business will not become insolvent because this is one reason why businesses fail. Business Planning helps you determine potential financial problems and easily modify them. You can create your own business processes and procedures to maximize time, labour, and money. In the long run, all of these can help you establish a good cash flow, which is easier to manage.
- Be able to better understand your competition and your customers. All businesses have both direct and indirect competitors. With Business Planning, you can examine your competitors’ weaknesses and strengths, which enables you to evaluate your advantages. This does not necessarily mean that you will copy or duplicate your competitors because that’s malpractice. We prefer the idea of S.I.D.; Swipe, Improve (make it yours) and Deploy. During planning, you can set your unique business strategies that metamorphose them from others of the same business niche. You will also learn to analyze your target customers, what they are looking for, or what they are expecting from your business. If you are a $1,000,000 business does it not make sense to emulate a $10,000,000 business
- Accomplish your target business success. Businesses with no proper planning may fail due to rapid changes in the global market. Planning would help you find new opportunities and generate strategies to make use of them. This will enable you to carve out a large share of the market, thus, escalating your revenue.
We hope you are enjoying this blog article “5 More Reasons Why Business Planning is Important”. To start to build your Business Plan NOW for FREE join our FOCUS Yourself; A 7-Module Business Planning Program.
So if you have a business venture in mind, start writing down your plans and put them into action for a victorious business journey.
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1.You can find out more about what a business plan is and its importance with the international best-selling book CHAOS; How Business Leaders Can Master the Power of Focus. Get your FREE copy HERE
2. Use our FREE business planning program FOCUS Yourself; A 7 Module Business Plan Program. This is not a business plan template, it is a full business plan that is EASY and FAST, making your plan SUSTAINABLE and entirely PRACTICAL. Start your business plan NOW
3. Not sure why you need a small business plan? REGISTER for a FREE FOCUS Discovery Consultation where you will talk business, your business, with international best-selling author James Burgess
4. Challenge yourself to FOCUS Your Business In Just 30-Days and learn how to build a business that will THRIVE not just survive with our FREE webinar HERE.