PLAN FOR SUCCESS
When you venture into a business there are a few things you keep in mind before plunging into it. One of them is planning without which you cannot proceed and which is pivotal Planning is mandatory for a successful business. Fail to plan and you plan to fail.
Planning is considerably difficult as one cannot gain an insight into its value. If you start thinking of initiating and operating your business in the same lines as sailing on a boat, the purpose and advantages of planning become clearer.
When you start sailing you never know what to expect: sudden change in weather conditions, lost or broken equipment, mistakes regarding the correct direction, an injury, dangerous sea animals etc. Planning for these eventualities will allow one to deal with them and still reach their objective in spite of temporary setbacks. Lack of planning, on the other hand can spell disaster. The more careful we are with our planning, its more likely that problems will be anticipated and not allowed to interfere with our ultimate business objective.
The Business Plan :Innumerable books and articles have been written on how to adopt an "effective" business plan. The traditional business plan is a very well defined. It is written as a presentation to lenders, potential investors, and bankers in order to raise capital. It is a kind of an advertising document and, may tend to exaggerate a little. The business plan which is considered to be a planning document, is generally not in lieu of these exaggerations. After a while YOU tend to believe the business plan ... even when you know that the matter within the document is absurd and far fetched in places. (Yes sir, there are no second notions about it, sales will rise easily each year ... as long as there is no shortage in obtaining adequate financing.)
A traditional business plan is required when you require investor capital at the onset. But if you are like so many of those who are starting a small business venture where little or no formal investment is needed, you need another plan ... A plan for YOURSELF ... You need a strategic plan.
The strategic Plan
A strategic plan is your plan for success. It defines your business mission, your current situation, and where you want to be in three to five years. Like the traditional business plan, a strategic plan should be well-structured, and complete and should cover the requirements.
Source: http://www.isquare.com/planning.cfm
Planning is considerably difficult as one cannot gain an insight into its value. If you start thinking of initiating and operating your business in the same lines as sailing on a boat, the purpose and advantages of planning become clearer.
When you start sailing you never know what to expect: sudden change in weather conditions, lost or broken equipment, mistakes regarding the correct direction, an injury, dangerous sea animals etc. Planning for these eventualities will allow one to deal with them and still reach their objective in spite of temporary setbacks. Lack of planning, on the other hand can spell disaster. The more careful we are with our planning, its more likely that problems will be anticipated and not allowed to interfere with our ultimate business objective.
The Business Plan :Innumerable books and articles have been written on how to adopt an "effective" business plan. The traditional business plan is a very well defined. It is written as a presentation to lenders, potential investors, and bankers in order to raise capital. It is a kind of an advertising document and, may tend to exaggerate a little. The business plan which is considered to be a planning document, is generally not in lieu of these exaggerations. After a while YOU tend to believe the business plan ... even when you know that the matter within the document is absurd and far fetched in places. (Yes sir, there are no second notions about it, sales will rise easily each year ... as long as there is no shortage in obtaining adequate financing.)
A traditional business plan is required when you require investor capital at the onset. But if you are like so many of those who are starting a small business venture where little or no formal investment is needed, you need another plan ... A plan for YOURSELF ... You need a strategic plan.
The strategic Plan
A strategic plan is your plan for success. It defines your business mission, your current situation, and where you want to be in three to five years. Like the traditional business plan, a strategic plan should be well-structured, and complete and should cover the requirements.
Source: http://www.isquare.com/planning.cfm
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