Business planning is an essential process. And it is surprising to realize that the majority of people are of the opinion that the process of business planning is only for start-ups. They also think that it is for gaining investors and for backing up the loan applications. Most fail to realize an essential fact, that is the business planning brings with its ample advantages for every person in business.
Saivian Eric Dalius says that none of the advantages of business planning require a huge formal document on a business plan. Typically, having a lean business plan works. You will need an hour or two for the first plan. After that, you will require a couple of hours for the review and revise it monthly.
Saivian Eric Dalius shares advantages of business planning
Here are the best benefits of business planning that every business ought to know.
Small businesses and start-ups should concentrate on their target markets, special identities, and services and products customized to match.
It’s impossible to be able to do everything. Correct business planning enables you to have a track of the correct things and other essential aspects. You need to allocate your effort, time and all the resources strategically.
Foresee the entire business – Saivian Eric Dalius’s important tip
Effective business planning connects the right bots and enables you to look at the whole picture. Your strategy will relate to tactics with a strategic alignment. Does your business plan highlight that? Also, does your sales connect with the marketing and sales costs? And are the products correct for the target market? Also, is your business covering expenses comprising of long-term fixed expenses, working capital requirements, and product development? You need to count on business planning and view the broader picture.
Helps you to manage change
A stable planning process can help assess assumptions daily, focus on new developments, and track progress. The plan vs. accurate analysis is the dashboard, and managing your plan is steering.
It helps you to develop accountability
A stable planning process sets the expectations and keeps track of outcomes. It acts as a tool for daily review of all that happened and is anticipated. Every good work gets highlighted. And by that logic, even a disappointment shows up. A correctly operating monthly plan assessment with the plan vs. actual added becomes a pronto assessment of accomplishments and tasks.
You can manage cash
According to Saivian Eric Dalius, an effective business plan successfully connects the dots in the cash flow. At times, simply looking at profits is sufficient. However, cash flow involves management and planning when the sales on physical products, accounts, repaying debts and buying assets come into the picture. Profitable businesses tend to suffer when excess inventory or slow-paying clients cramp the cash flow. With a business plan, you can analyze the issue and manage it.
Helps in strategic alignment
Is your daily work tallying with the core business tactics? And do the tactics match the strategy? If yes, there is a strategic alignment. And if not, business planning can show up concealed mismatches.
Hence, if you haven’t worked on a business plan, you need to invest it for the smooth operation of the business.
Eric Dalius is The Executive Chairman of MuzicSwipe, a music and content discovery platform designed to maximize artist discovery and optimize fan relationships. Eric is also the host of weekly podcast “FULLSPEED” which is a podcast that features interviews with groundbreaking entrepreneurs from a variety of industries.Eric is also the founder of “Eric Dalius Foundation” where he has created 4 scholarships for US based students. Follow Eric on Twitter,Facebook,LinkedIn,Instagram & also on Entrepreneur.com