It is a part of life and can be performed at all levels. Planning helps you stay prepared to face any untoward situation and let you mitigate losses if any. A business plan is most important for a business and Entrepreneur because whenever we want to do something so we have to need a business plan to do them. Business planning is vital to help you manage your business more effectively. Let's stay in touch :). The focus is on ‘the output' when the real value in a business plan is the business-planning process itself. After you’ve done your market research, it'll be clear to you who you want to reach out to (your target customers), where you can reach them (your marketing channels), and what they're interested in. Here are six reasons why business planning is so important: 1. I REALLY ENJOY THIS WONDERFUL EXPLANATION, MAY ALLAH BLESS YOU WITH MORE WISDOM. Planning is very important in any phase of our life. Innovate 10 Best Reasons to Be an Entrepreneur When the work is hard and the hours are long, these are the reasons founders keep doing what they do. For example – your plan is to increase the sales to 2000 units this year. It is more important to the entrepreneur’s venture because of the uncertainty of success and less room to make mistake. 1. These are typical traits of a newly formed organization, or an organization which is trying to rebuild itself. By Lisa Caprelli, Author of Unicorn Jazz children’s unicorn book series; Director of Unicorn Jazz Presents The Thing I Do – now on its first season on Amazon Prime!. It is the using of new ideas that lead to the making of any new products, services or processes. Unfortunately, the image most of us have is of a 30-page bound document. Second, you may be an entrepreneur and you’ve forgotten why you became an entrepreneur in the first place. If you are planning to succeed, the plan will include your progress as well as the best pathway to achieve the goal. Without a well-developed business plan, there is no chance of getting debt financing from established financial institutions such as banks or equity financing from angel investors. The time you invest in your business plan will pay off many times over. Planning for Tourism is Important Due to the Following Reasons: 1. By channeling an entrepreneurial mindset, you’ll be able to make new contacts with ease. Explanations were crisp and clear. Article by surbhi jalan, June 28, 2014. Easily Spot Business Opportunities. Business planning is an essential element of running any successful business, particularly given the growing uncertainty all businesses face coupled with ongoing changes in consumer behaviour. Thus, whenever you plan things, you know what are the results expected. The importance of plannings cannot be overemphasized for an organization or even for an individual. The end of the implementation of one marketing plan, is immediately followed by the implementation of another marketing plan, the process of which starts immediately with a different objective in mind. Thus, planning is important to an organization because. Some of the most obvious benefits you can gain from business planning include. This is great fun and enjoyable.most especially when am reading. A plan can also detail alternative future scenarios, set specific objectives and goals, and list the resources required to achieve these goals. Teekid /Getty Images. Being a small entrepreneur… For an entrepreneur, this couldn’t be more important. The very process of producing a custom business plan enables management to give due consideration to the various factors that mesh together to create the opportunity they are seeking to explore, as well as the resources required and the key drivers needed for success. 6 Reasons Why Educational Planning is Important for Academic Institutions. When you set up a business, it is important to frame an efficient and effective plan. Use a plan to establish the right steps to starting a new business, including what you need to do, what resources will be required, and what you expect to happen. A business is a risky venture. Careful management of cash flow is a fundamental requirement for all businesses. It is a part of life and can be performed at all levels. Thanks a lot it was very nicely explain in the simplest possible manner. Although you might make plans for different departments within the same organization, however all the departments together are trying to achieve a desired objective. The developments taking place in and the increasing complexity of the educational system have made educational planning an absolute necessity. In reality, few are afforded this luxury, and hence, will be required to secure external investment eventually. Startup 4 Reasons Competitive Analysis is the First Step You Should Take as an Entrepreneur It is impossible to build a successful company … Create Jobs: The first and foremost important thing that entrepreneurs are able to do which lawyers and doctors cannot do is create jobs. This article was originally published by The Finance Navigator – a startup company which simplifies financial planning and cash flow management for other startups. 3 REASONS WHY IT IS IMPORTANT TO PLAN LESSONS. The importance of plannings also lies in its holistic approach. Entrepreneurship is important, as it has the ability to improve standards of living and create wealth, not only for the entrepreneurs, but also for related businesses. The first step to start something new takes a lot of courage and determination. … Required fields are marked *, Copyright © 2020 Marketing91 All Rights Reserved, 7 simple reasons that justify the importance of planning, 2 Main Types Of Variables used in Strategies, The Johari window for personal awareness and team building, Vertical integration - Definition, Types, Examples, 4 simple steps for implementing a strategic plan, Difference between Strategy and Planning - Strategy versus Planning, The Importance of Strategic Planning in an Organization, Tactical Planning - Definition, Importance, Characteristics And Strategy, 6 reasons why Strategic Business Units are Important, 7 reasons diversification strategy is better in the long run. If the plan is implemented correctly, the results will always be desirable by the organization. By committing to one opportunity, all other options are effectively marginalised and the company is aligned to focus on key deliverables. MenaEntrepreneur.org is an Entrepreneur Blog parented by Burgeoning Technologies. 10 Reasons Why Organizing Everything is Important. We Need Business Plan To An Entrepreneur Importances of Business Plan in Entrepreneurship is most valuable. You can make a lot of money, you can break even or you can lose a lot of money. Therefore, below I present 4 reasons why YOU as an entrepreneur should care about financial planning. The man behind the entrepreneurship is an action-oriented and highly motivated individual who is ready to achieve goals. Thus, because planning helps you decide short term and long term goals, it helps you make decisions faster. I love writing about the latest in marketing & advertising. Don’t overextend yourself as rest and relaxation are important. When you start a new business, the temptation is to spend time on the idea and then react to events as they come up rather than focusing on what is important. These goals, and the subsequent planning, will always lead to the progress of the organization. Planning brings the organization together. Thus, the importance of plannings is seen when we know which factors to observe to evaluate and control the plan. A business plan can help a company assess future opportunities, choose one, and then commit to a particular course of action. Confident Entrepreneurs = Confident Investors. The very creation of a business plan ensures that you cover all the various bases you need to when taking an idea from conception through to launch. This is because you know that how a decision will affect your plan in the long term and whether or not, this decision will help you in achieving your goals. So, tomorrow if a competitor launches a new product, you have an answer already in the pipeline in your plan. An opportunity to test out a new idea to see if it holds real promise of success. These organizations do not have a standard strategy. One of the biggest reasons that so many businesses fail can be attributed to this: some business owners fail to plan. Another important reason why business leaders should make strategic planning a top priority is that it cuts down risk when there’s economic downturn or uncertainty. This means you need to sell 500 units a quarter. If the plan is implemented correctly, the results will always be desirable by the organization. A good business plan not only helps entrepreneurs to focus on the specific steps necessary for their to make business ideas succeed, but it also helps them to achieve both their short-term and long-term objectives. The production of a credible business plan is one of the primary requirements for any entrepreneur seeking investment to grow. Thinking like an entrepreneur will enable you to take healthy breaks. Role of leadership | 9 Roles Every Leader Must Handle, Qualitative Data Analysis – Importance & Types. Planning may not be the most enjoyable component of managing projects, but it is the most vital part for reducing risk and failure rates. Innovation is the cornerstone of sustained economic growth and prosperity. so great ‘ it is a good information i have seen sofa, Your email address will not be published. Planning important, because through progress, an integrated approach, flexibility, and all of the other points mentioned above, planning ultimately helps the organization reach a desired, economically viable and profitable objective. Thus, it is not a surprise that planning will eventually lead you to have better success and achieve a better position in the market, be it a brand or a product. It can be anything from a short trip to a setting up a business. The lack of publicity is primarily responsible for India occupying a dismal position in the global tourism scenario, and not the lack of infrastructure development, as envisaged by the Indian Tourism industry. With anything you set out to do in life, it’s a good idea to have a plan. In order to begin with lesson planning, it is important to know the aims and objectives of the course being taught to students. You can follow me on Facebook. The website is an online blog that welcomes entrepreneurs, social media experts, technology enthusiasts, marketing professionals and bloggers to share their ideas and to seek guidance from their fellow professionals through useful and informative articles and news. Any of your goals can have more chances of success with proper planning. Planning important, because through progress, an integrated approach, flexibility, and all of the other points mentioned above, planning ultimately helps the organization reach a desired, economically viable and profitable objective. Planning is very important to every venture. The progress of the organization is the reason that planning is important for the management. Entrepreneurs Create New Businesses Entrepreneurship is an important driver of economic growth and innovation. At the same time, if the growth is large and you are at 700 units, then you need to boost manufacturing. The management of the organization always keeps goals for itself which it wants to achieve. Why Forecasting Is Important. If you do your best to think, feel, and act like an entrepreneur, people will treat you like one. If you fail to plan, you are planning to fail.Benjamin Franklin Why not get started with your marketing research today? Here are the top reasons why it is vitally important for every entrepreneur to be confident. 3. Here are 7 reasons justifying the importance of plannings. By committing your thoughts to a plan, you can understand your business better and also chart specific courses of action that need to be taken to improve your business. 5. A lot of new businesses are carried away and figure their passion and optimism are enough to build a successful company. A business plan is a very important strategic tool for entrepreneurs. Aims and objectives of the course. They identified different patterns between the best and the rest. From the start of a small business, to managing a large business, from starting your own career, to the last stages of your working life, planning will be the most important tool that you use in marketing. These are the seven reasons why market research is important, especially for smaller teams and businesses: 1. Check out these 9 reasons why you really do need it. A clear statement of your business mission and vision And I’m going to make a case for why you ought to become an entrepreneur. Murphy’s Law (Anything that can go wrong, will go wrong.) Most new businesses need startup and operating capital to get off the ground. Sara Jones; 23 Mar 2018; Views: 221055; Last updated on 21st Oct 2020. The reason is quite simple-many businesses fail, not because they are unprofitable, but because they ultimately become insolvent (i.e., are unable to pay their debts as they fall due). Article shared by. it gives a steady growth and prepares the organization for a desired future. In the lines below, I give you a few major reasons why entrepreneurs need to be encouraged in today’s society. Here are six reasons why business planning is so important: Business planning is vital to help you manage your business more effectively. So why is marketing important? December 9, 2019 By Hitesh Bhasin Tagged With: Marketing strategy articles. This video will remind you why you did. However, if you are at 400 units, then you need to evaluate the options to increase sale. To plan for an uncertain future. At the same time, you are clear what the future holds for you and what is the ultimate goal. Given that valuing firms is notoriously difficult and subjective, a well-written plan will clearly highlight the opportunity for any prospective investors, explain the value of the business, and increase the likelihood of a successful exit by the current owner. The following are six reasons why entrepreneurship capital is important to the economy: 1. However, you always keep a tab on the planning, so that you can at anytime refer to the plan and find our whether you are on track or not. To commit to a particular course of action. How to Become a Virtual Assistant and Work Remotely? By committing your thoughts to a plan, you can understand your business better and also chart specific courses of action that need to be taken to improve your business. A business plan is not just a document. It is in their approach and values in their sales targets by using forecasting as the first step in planning. Your email address will not be published. M. Kirzner (1973) observes entrepreneurs as; “one who perceives what others have not seen and acts upon that perception”. Whenever you plan, you plan to succeed. Thanks a lot for this valuable article. The importance of plannings increases in an organization where stability has not been observed. Marketing Is an Effective Way of Engaging Customers. Particularly the examples provided in the article is easy understandable and helps to get the idea of Marketing Plan. The entrepreneur’s focus is on the execution side and how to get the product to the market in the shortest amount of … This ultimate goal, which has been decided by planning, makes your decision making more efficient and more ‘to the point’. Thus, when these organizations plan ahead, they have the flexibility to adjust the growth of the organization if any unseen events happen. Planning plays an essential role in our lives. Right from your small wallet to your big family, everything needs to be organized. In an ideal world, all businesses would be self-financing in exploiting business opportunities. Organizing is a process of arranging things and keeping them into order. 3. 1. This same advice holds true when you start your own business. Why a Business Plan is Important for Entrepreneurs. Thanks a lot I understood this better than what I was thought in the lecture room. Palo Alto's Alan Gleeson highlights how proper planning can be key to your firms success. Whenever you make a marketing plan, you know what you want to achieve in a given time frame. Because of this reason, you will not panic, but instead you will just pay attention to the execution of your plans. Here's why. Thank you for explaining this a bit clearer. Here are 26 reasons to become an entrepreneur. To help you with critical decisions. I am a serial entrepreneur & I created Marketing91 because i wanted my readers to stay ahead in this hectic business world. One of the best things about planning is that it can be done in the board room. Unity will always lead to success and hence, the integrated approach which planning imparts to an organization is ultimately very important. As you'll have garnered from the above, business planning is an essential activity, regardless of the stage of business you're at. Simon Crompton, freelance Journalist and entrepreneur; Source: Courtesy Photo. In short, it can help ensure that you are prepared for all sorts of eventualities. There has been a report that surveyed over 300 companies to identify some of the common characteristics of top performing businesses. It is a holistic analysis of your company, the environment it operates in, and a route map to achieving success based on the resources available. Since strategic planning involves an on-going evaluation process, it puts the company at an advantage. Small wallet to your firms success and objectives of the organization growth of uncertainty... You really do need it at all levels vision Teekid /Getty Images it be! Qualitative Data Analysis – importance & Types plannings increases in an organization or for! Leadership | 9 Roles every Leader Must Handle, Qualitative Data Analysis – importance & Types most obvious you..., freelance Journalist and entrepreneur ; Source: Courtesy Photo and entrepreneur ; Source: Courtesy Photo and helps get! I present 4 reasons why market research is important to the entrepreneur ’ s a good information have. 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