Strategic Business Planning
Strategic business planningStrategic business planning is an organizations process of defining its direction and making decisions on allocating its resources to pursue this strategy. For a strategic business, planning to determine future direction of the organization, it is necessary to understand its current position and the, position avenues through which it can pursue particular courses of action. Generally, strategic planning deals with at least one of three key questions“What do we do?“For whom do we do it?“How do we excel?The key components of strategic planning include an understanding of entity, vision, mission, value and strategies (In the commercial world a vision statement and /or a mission statement may encapsulate the vision and missions)Vision: outlines what the organization wants to bee or has it wants the world in which it operates to be an idealized view of the world.Mission: Defines the fundamental purpose of an organization or on enterprise, succinctly describing why it exists and what it does to achieve its vision.Business planIt is a formal statement of a 1st set of business goals the reasons they are believed attainable, and the plan for reaching those goals. It may also contain background information about the organization or team attempting to reach those goals. It also may target changes in perception and branding by the customer. Client, taxpayer or larger community.Business plans may be internally or externally focused. Externally focused plans target goals that are important to extend stakeholder.
PURPOSE OF BUSINESS PLANHelp a business in visualization of their future goals or determine their next option in business growth.Business plan is designed to express a purpose in as such a way that it is easy to see how the results will impact the bottom line. Thus helping a business make from a start-up to a money making prospect.It helps to forecast the future, even if the future is not well known.Business plan help in determination of best way to allocate scarce resources such as budgets inventory and other assets i.e. by projecting company’s financial vision a business plan can help leader avoid pitfalls that may lead to failure along the way.A business plan can help to clarify business niche and growth potential. A great idea can end up bugged down in unnecessary changes resulting from poor planning and consideration. A business plan helps in delineate some of these ideas before they result in failures.Formal business plan that outlines the future potential of the business helps time or borrowing capital and funds for expansion of their business.It provide day to day operational assistance – organizations that stay focused on their business plan have a higher chances of success; when used a road map, it can help business leaders stay focused on business growth, mission and goals.Helps channel energy, money and time in a focused direction therapy helping to assure success. A good idea can be capitalized even more with the use of a business plan that shows where money should go, and how long it will take before a business idea can be profitable.Business plan can also indispensable as a tool for future development and growth. Making the right decisions today can help to ensure the success of future developments tomorrow. A business plan can help to illuminate these opportunities and move companies in the right direction. A business plan portrays a formal seriousness that inventory employee and others involved in the development and growth of the business like to see.CONTENTS OF BUSINESS PLAN COVER PAGEThe cover page should include the following;Company’s nameLogoContact person Address and phone numberDate and state of incorporationConfidentiality and non disclosure statementTABLE OF CONTENTS AND TABLE OF APPENDIXESThe table of content and table of appendices should reform the reader to the sections and sub-sections of the business plan.EXECUTIVE SUMMARYIs the first part of the business plan to be read by potential leader and investors? In the case of a poorly written executive summary the executive summary is often the only part of the business plan that got read. Accordingly, you should take the time necessary to prepare a dynamic executive summary that describes the stages of the company and its strategic direction, describes the company’s market and marketing plan, briefly discusses the background of management and states the company’s revenue and profit expectations.