When any person starts the business then business planning is the essential features of every entrepreneur. Every entrepreneur knew that how this work can be done it. But when it will be represent in written form then he is scared to do it. He says that it is a very difficult task. So, we can say that when any person start the business then always proper format that when any problem arises then he can easily handle the situation.
Business planning:
Planning is deciding in advance:
- What to do?
- When to do?
- How to do?
- How the results are to be evaluated?
Every entrepreneur always focuses on opportunity like:
- Goals of an enterprise in terms of product and services.
- Market awareness like either product is produced for middle people or rich people. Because when goods are produced for middle family then at the time of production rates also considered then all the people satisfy all the needs. When it will produce only for rich people then profit margin is very high.
Following resources are required in ventures.
- Labour - skilled or unskilled --> availability of skilled labour also affects the emergence and growth of entrepreneurship. Labour intensive technique is far better than capital intensive technology.
- Machine - important or local --> in many years ago, all the work was done in hands but now with the help of machine we can do better work within a few minutes.
- Packaging - when product is ready to sale in the market then properly packed condition. Packing is always a better quality because most of the people take interest in product to see the packed condition. After the manufactured the product properly packed in a better quality wise. Acc.to packaging it will be distributed in grades like A, B, C.
- Land: it is the primary factor of production. Without land no enterprise can established. Availability of land is the important or emergence factor of entrepreneurship for development.
Features& merits of business plan:
- Honest plan.
- well written or constructed plan
- completed plan
- Planning is making by the team decision maker.
- Proper detail about the summary before making a plan.
- technical knowledge
- Plan is made in such a way that when change in the market then you can easily handle the situation.
- Before making a business plan all the information related to the plan are properly collected.
- Financial map is properly maintained. Because it is very helpful to tells us about the expenses are incurred in the business during transaction.
- Management is always confident to take all about the decision.
- There is always a positive relation between planning and performance because when plan is must then performance relating plan is also must.
- At the time of changing the situation when error absorbs then it is a best plan.
Disadvantages of business plan:
When you can focus only on long period then at the time of emergency you can't handle the situation easily. So always focus on long term and short term item. When you are not able or capacity to do any type of work then never show in ego to the other person. Otherwise you can suffer from major problem in business. Every businessman not keep in mind that only my project is perfect. When you study about any product or section or department never leave in half. Always detailed study about business to make a plan. Never change a plan in a few times.
