There are many people who dream of being an entrepreneur and starting their own businesses. With various opportunities coming forward at this age, the number of startups is increasing every day. Whenever you try to start a business, there are several factors that are needed to be done properly, among them is planning. In fact, effective planning can do wonders.,
Planning is an important activity of every business organisation. It is the foremost task which every business has to do before starting its other initiatives. Every implementation of an idea starts with planning. Therefore, planning has an important role to play in any venture or business.
If planning is not done properly, the business is bound to fail at any given point. Many brainstorming ideas die before execution because of improper planning. Effective planning is what makes the lifeline of every business. In this article, we will talk about the 8 steps that you need to follow for effective planning of your business. These steps are just paving the road to success, so let’s take a look at them.
Recognise the Opportunities
Create Objectives
Planning Premises
Finding Alternatives
Evaluating Alternatives
Choosing Alternatives
Making Supporting Plans
Implementation of Plans
Recognise the Opportunities
Before creating a plan, there is the foremost need to recognize the opportunities that exist in the external environment. There are 8 stages of planning, to make an effective plan, in which Recognising the opportunities comes first. The managers of the organisation must do a clear analysis of all the aspects of the opportunity on the basis of the future as well as the present. The management should also do an analysis of the present position of the company so that the strength and weaknesses can be taken out which will lay the foundation for setting up the objectives of the organisation.
Create Objectives
Your objectives define your business, if there are no objectives then the growth of the business is not possible. The objectives of an organisation must be very clear and well defined. A proper objective of an organisation provides a proper direction to the organisation and its different departments. The objective of the organisation decides the future of the organisation, therefore the management must create a clear set of objectives that the organisation needs to achieve.
Planning Premises
As we already know that the process of planning premises is done on the basis of the future. However, as the future is uncertain, so we must create some forecasts on the basis of assumptions. These forecasts are known as the planning premises. The assumptions may not be true, but considering and forecasting them will make the organisation ready to deal with them. Therefore, the management must develop the planning premises so that the organisation can survive in case of any unwanted occurrence.
Finding Alternatives
There are multiple ways to do a single thing. Similarly, there are multiple ways in which the objectives of an organisation can be achieved. The management must develop and identify all the multiple and unique ways of doing things that can help them in achieving the objective of the organisation because if by any chance one way is failed to achieve the objective, another is ready to take its place so that the objectives can be achieved without any delay or blockage. Apart from that amongst these alternatives, the best possible case must be chosen.
Evaluating Alternatives
After identifying all the ways for achieving the objective, each of the alternatives must be properly evaluated. The process of evaluation of the alternatives must be made on various factors like investment requirement, risk, uses of resources, profit, and others. The management should properly analyse the pros and cons of each and every alternative and where those alternatives can take them. So, that the best one of them can be taken out and can be applied to their business to achieve the objectives.
Choosing Alternatives
Once after the evaluation process, the managers will have the proper awareness of the pros and cons of each alternative. Out of all those alternatives, the managers have to make decisions and choose a plan which is more profitable and where less risk is involved. The alternative that will be chosen should fit perfectly to achieve the goals, while choosing the alternative, three tools are must that is, experience, experimentation and research.
Making Supporting Plans
Each main plan requires various work to be done. In order to execute the main plans, there is the requirement of supporting plans for various works like hiring manpower, buying required materials, purchasing raw materials and others. The supporting plans are not different plans but they are parts of the main plan which help in managing the different activities and things. The main plans couldn’t take place without the supporting plans and therefore, the managers should create supporting plans to carry forward the work.
Implementation of Plans
After the creation of the main plan and the supporting plan, there is a need to bring them into action. The plans should be implemented in such a way that they can help in achieving the objectives. The process of implementing the plans includes the formation of policies, procedures, the budgets, and a sequence of activities to be performed in order to achieve all the goals. Once the implementation is done, now you have to wait and see if you are able to achieve the objectives of your business.
Conclusion
A proper business plan helps you in your strategies to make your business successful. When you start your journey of entrepreneurship, the growth of your business keeps you going and it can only happen through proper planning. While planning you need to follow all the steps required, then only you can achieve your end goal.
FAQs
What are the effective planning steps of a business?
Some steps to make planning effective:
- Recognise the opportunities.
- Create Objectives.
- Planning Premises.
- Finding Alternatives.
- Evaluating Alternatives.
- Choosing Alternatives.
- Making Supporting Plans.
What is planning in management?
Planning defines the correct actions to achieve organisational goals. It helps in the efficient utilization of available resources. Realistic planning helps in achieving organisational goals in the most competitive way. Hence go on and plan to achieve the goals you have set.
What is planning premises?
The forecast or the assumptions about the future which provide a base for planning in the present are known as planning premises. They are the anticipated environment in which plans are expected to operate.
What is a good business plan?
A company often needs a business plan before it can borrow money from a bank. Good plans are usually highly detailed and include information on all aspects of the business, including the industry, marketing, finance, personnel, and various operating procedures.
