What Is the Overall Purpose of a Business Plan? | Your Business

 

purpose of business planning

The business planning department is also commonly referred to as strategic planning. This function analyzes the long-term goals of the company which, in turn, informs the development of organizational resources and strategic initiatives. For example, a company may be . A business plan is a formal written document containing business goals, the methods on how these goals can be attained, and the time frame within which these goals need to be achieved. It also describes the nature of the business, background information on the organization, the organization's financial projections, and the strategies it intends to implement to achieve the stated targets. Small-business owners have been known to describe business plans in the most colorful terms. Since a business plan requires a huge time commitment, it's understandable why you may have heard it.


What are the purpose of planning in an organization?


Small-business owners have been known to describe business plans in the most colorful terms. The main purpose of a business plan is to answer two key questions. What does this business hope to accomplish? How are we going to accomplish it? This is no lead-in to a pep talk, but if it serves as one, it would be OK with the U.

Small Business Administration. It has long touted a business plan as the foundation of a business — and you know what would happen to a house if it were built on a shaky, unreliable foundation. Small-business advocates like to say that a business plan is a must-have document for both potential business partners and investors. But after contemplating the purpose, importance and actual contents of a business plan, you might agree that it's most valuable to the small-business owner who writes it.

Writers would say that they are guided by purpose; they have to know why they are writing and what they hope purpose of business planning achieve. Although it may ultimately consist of dozens of pages, a business plan must answer two fundamental questions:. Anytime you assign your thoughts to paper, you hopefully achieve clarity of purpose; good writing demands it.

In this way, a business plan becomes a compass, supplying direction and focus as an entrepreneur's business vision takes shape. Many small-business owners liken the launch of their business as a journey. It's an apt analogy — and one worth extending. If you wouldn't embark on a trip across town, much less across the country, without figuring out how you're going to get there, it defies logic how anybody could consider embarking on the journey of a lifetime without a business plan.

It should take the front-row seat before the journey even begins. Like that demanding college professor with high expectations, reviewing a template of a business plan has a way of dispelling any notion that a business plan can be written in one night, or even two. It takes time to do it right and complete the sections in a thoughtful manner. The sections include:. As you go about implementing the countless details involved in starting a business, you probably will refer to your business plan repeatedly, purpose of business planning.

Mary Wroblewski earned a master's degree with high honors in communications and has worked as a reporter and editor in two Chicago newsrooms. Skip to main content. Tip The main purpose of a business plan is to answer two key questions. References 5 U. About the Author Mary Wroblewski earned a master's degree with high honors in communications and has worked as a reporter and editor in two Chicago purpose of business planning. Wroblewski, M, purpose of business planning.

Small Business - Purpose of business planning. Note: Depending on which text editor you're pasting into, you might have to add the italics to the site name.

 

Business plan - Wikipedia

 

purpose of business planning

 

Small-business owners have been known to describe business plans in the most colorful terms. Since a business plan requires a huge time commitment, it's understandable why you may have heard it. A business plan serves as your blueprint for how you will operate your business. While you need to have a business plan to seek investors or get a loan for your company, the plan is actually for your benefit. It helps you maintain a long-range view as you make daily business decisions. Purposes of planning in an organization The following are some of the important purpose of planning in an organization. 1. Facilitates Accomplishment of Objectives: The aim of planning is to facilitate the attainment of objectives. It focuses its attention on the objectives of the organization. It states the objectives of each department in the organization and of the enterprise as a whole.