Small businesses often require copious amounts of planning. Business owners usually write several types of plans throughout their company&rsquo;s operation. Business planning is usually an administrative function in small business. Business owners can struggle to create business plans because of the amount of responsibility already involved in the business. Accounting, marketing, maintenance and hiring employees are just a few activities that come before business planning.
Small business owners often write a business plan when starting their company. The business plan is a guidebook that outlines the initial operations of the new business venture. Business plans include information on the business owner&rsquo;s idea, organizational structure of the business, potential financing needs for start-up costs, target market or demographic analysis and plans for creating successful future operations. The business plan serves as the primary tool for obtaining external financing when starting the business.
Business plans provide a road map for business owners. Rather than shelving the business plan once the company is started, business owners should continually refer to the business plan throughout the company&#039;s operation. Business owners can compare current operations to the business plan outline. This ensures owners do not get too far off the mark when running a business. Business owners also might need to refresh their ideas by reviewing the business plan.
Small business planning should not stop after the initial business plan. Business owners should consider creating plans throughout their business operations. Plans often provide an outline for business divisions or departments. Business owners also use plans to create strategies for accomplishing specific tasks. Strategies contain the specific guidelines, rules or objectives for various business operations. Implementing an evaluation process to measure the plan&#039;s effectiveness is also an important consideration of small business management.
Business owners might not need to create extensive business plans for every aspect of their company. Running a business according to a strict written plan can create an inflexible business environment. Business owners should be prepared to make decisions that might not be outlined in their business plan. Additionally, written plans can have different results when implemented in the economic market. Actual financial returns often vary from pre-determined estimates or expectations.
Business owners who struggle with planning can consult resources offered by the Small Business Administration, or SBA. The SBA offers copious amounts of resources for writing initial business plans and maintaining profitable business operations. Business owners often use these resources because they are free of charge. Using a management consultant or other professional advice often involves an up-front expense that business owners cannot afford in the early stages of business operations.
- &ldquo;Small Business Management: An Entrepreneurial Emphasis&rdquo;; Justin G. Longenecker, Carlos W. Moore and J. William Petty; 2002
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