12 Reasons Why Business Planning is Important!

A Business plan is like a road map that tells you exactly where you are headed. (If you are looking for a street most people don't wander around aimlessly, instead they look at a road map to see exactly how to get from point A to B).
A Business plan can be used internally to plan and control the business. It can also be used as a document to present to venture capitalists, bank managers etc to attract funds.
Allows you to plan and control your organisation's growth.
Allows you to set performance goals for yourself, your managers and your organisation. Once goals are set, performance can be checked.
Reduces waste and duplication of effort.
Forces managers to write down exactly where they are in the marketplace and where they are headed, creating a better understanding of the market.
Forces managers to analyse what is happening in the marketplace.
Forces managers to look more closely at what is happening in the business. Many a good business has fallen into trouble by not controlling its finance. Companies must plan for seasonal fluctuations, expected increases or decreases in demand. They must standardise systems to price for profitability.
Managers must divorce themselves from fire-fighting and look objectively at the business. He/she must allocate a portion of time to matching firms resources with opportunities in the marketplace.
Allows managers to clearly understand the business priorities.
Planning means less surprises.
Planning creates an awareness and acceptance of change.

Last Updated (Friday, 11 June 2010 10:05)

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