What is a business plan? Pros, cons and composition
Business matters are always subtlety. No matter what kind, Notice that there are a lot of people doing business, But if you look at people who have achieved the goals they have set, not all of them. One of the things that will help a business stay on track is to have a correct “business plan.”
This is a key factor in helping executives or owners to see the bigger picture. There is planning according to the principles that suit their own business. There is a clear solution to the problem. It also makes it easier for people to work together to understand the purpose. Therefore, to understand the importance and use it properly. Let’s learn at the same time that there are interesting business plans.
What is a business plan?
A business plan is an essential tool that helps every entrepreneur build their own business according to the plan they have been invented and laid out. A business plan is a “guide” in doing business. Because both large businesses and SMEs need to have some planning before they actually act.
We have to make a business plan by the operation. To assist in structuring and making decisions and allowing the business to grow in the right direction.
The key content of a business plan is a clear analysis of information relevant to that business, whether it is internal factors, external factors, and other things that affect the business’s operation. Because naturally, people who want to have a business tend to look to the future and come up with their own career ideas like best au casino sites.
But if there is no suitable management method or plan, Cannot see information in all business dimensions. It can cause many problems in the past. Business planning will use the nature of the Mind Map method or the list of information on paper. But nowadays, as the world is more modern, it can be planned through mobile phones or various IT equipment types.
Pros and cons of writing a business plan
It’s normal to do anything, and there are both pros and cons. Writing a business plan is the same. For those interested in setting up their own business or have a business already, there is no clear plan. Let’s take a look at the pros and cons of writing a business plan to determine how it should be optimized for the job. Creating modernity and helping to grow in a suitable pattern.
Pros of Writing a Business Plan
# 1 Get the full picture of the whole business.
The first point, which is a major plus for any entrepreneur writing a business plan, is: It will help to see the whole picture of how the business is going. The word overview here is like standing outside and looking down somewhere.
The business is the same. Having a business plan will help you understand all the paths that happen, such as costs, expenses, profits, strengths, weaknesses of the business, the investment value, etc. Good, then should keep doing Anything that is not correct, then adjust accordingly. For growing business operations
# 2 Ease the burden of management and problem solving
It is an advantage from the first story. When the big picture is seen, knowing the business’s flaws and hurrying to fix them will help reduce a lot of administrative burdens. No need to sit in the headache that this problem is caused by. How should I fix it? Because the guidelines have already been laid out roughly, choose to pick and adopt which method should be taken to deal with the problem. When solving this problem is less, it helps the business owner develop other ideas.
# 3 See a growth avenue
In business planning, It is not just the implementation of techniques and methods for effective internal management. It also helps create growth, More advancement to the organization, and Enough to do as planned in the first step. There will be additional planning to move higher one level at a time. See what channels are there to create opportunities for development to the next level.
Many large businesses started as small SMEs. It helps to grow because it sees channels or strengths of the business that should choose the way to expand their organization. Alternatively, if you like to grow your business with some extra cash, try real money online casino games.
# 4 There is a clear implementation of procedures
Working according to appropriate procedures Is another important key that every business must-have. If different people do the same, the results are inconsistent, and the business can be more harmful. Therefore, it will help everyone know how to proceed by the established guidelines when there is a clear business plan. The likelihood of errors is reduced. And achieving results as expected Corresponds to the needs of management from the beginning.
# 5 Can actually raise capital to the business
New business people looking to borrow money from financial institutions may not know that. Before the loan can be recovered, a business plan must be written for the institute. Assess that it is appropriate to lend a lot. If the business plan is clear, Everything is consistent, and there is a chance to do it. Lending becomes easier. On the other hand, if the business plan is not clear. When written, do not understand, do not know about, or do not have any business plan to present, lending opportunities will be reduced by more than half.
Drawbacks of writing a business plan
# 1 There was a delay in setting up or running a business.
If the longer the business plan. There will only be a lot of delays in setting up or operating a business. This is a mistake for those who think for a long time, as they tend to view prudence and safety the most in business. Therefore, it is considered a disadvantage that may lead competitors to move forward faster and become the market leader instead. This time, no matter how good the business plan is, it may become a permanent follower.
# 2 Theories and practices are different.
This is the norm of work. There are always differences between theoretical and practical. And various factors surrounding the problem Or little details that happened, so sticking to the business plan alone might not fix that much if the management does not see the reality and adhere to the theory that they are too confident.
# 3 Some plans are beyond the real capacity to go through.
When planning a business, there must be various approaches to be created as a practice to achieve the most perfect But keep in mind that the working limits of each business are different, such as individual talent, capital, law, etc. So oftentimes, plans on paper can look fancy. But when it is actually put into practice, it cannot be fulfilled entirely by some limitations. The results are therefore not as targeted. Make management mistakes happen.
Elements of a business plan That helps you to be successful
It’s coming to an important part for people who will build their own business or have already started their own business and want to have the right business plan. It is necessary to know all the elements for effective planning. And create opportunities for business success. Let’s take a look at what they are.
# 1 Conclusion
It is a conceptual guideline and a clear guideline for executives on how they want their business. Try to state the importance of the business clearly. Creating a real interest that will help shape future growth. Not an imaginary plan; If explained, it is. What was it like telling all of the management’s ideas to build this business? Which one has a chance actually to do it? And which need to rely on other additional approaches. Highlights – Cons of products/services that you think are their own?
# 2 Business overview
It is to write a brief overview of what this business is like. What is the model for costing customers? Target audience Create a marketing channel. There are short-term goals, long-term goals, etc. This will help everyone who reads a clear understanding of the author’s way of doing business. And see the whole picture of the possibilities that may occur to the business when appropriate guidelines are followed.
# 3 SWOT Analysis
If I say that this is the heart of a business plan, it would not be wrong. It analyzes the strengths and weaknesses that come from internal and external factors of the business to see what is outstanding and where it needs to be corrected. By SWOT analysis, the list can be divided as follows:
S = Strength: Strength is an analysis of the strengths within their own organization. There is something special that is superior to other businesses, such as quality products, multiple payment systems, 24-hour service, and a product. New that has never been in the market before, etc., is an internal factor that can be controlled and developed to be better and better.
W = Worth Weakness Analysis of the weakness that occurred in the organization that needs to be solved. As an internal factor, it is still considered enough to be controlled. And can be improved to make it even better, such as not enough employees to produce, selling prices higher than competitors, too few sales channels, etc.
O = Opportunity, an opportunity to analyze external factors of the business, which is an opportunity that will help achieve real growth in the future, such as new laws that are more beneficial to businesses, consumer behavior flows that focus on the same trend as products/services, etc.
T = Threat obstacles and ends with an external factor analysis of potential barriers to business. It is an external factor that cannot be controlled, but we must try to find solutions such as the epidemic, the ban of new laws on certain categories of goods, etc.
# 4 Marketing plan
When writing a business plan, it is necessary to have a clear marketing plan. To be an administrative guideline, Ready will analyze the suitability of the upcoming business in any major direction. There are many parts of the general marketing plan, but what must be certain is targeting, marketing segmentation. Define the business position, 4P’s (Product, Price, Place, Promotion), 4C’s (Consumer Needs, Consumer Benefits, Convenience, Communication), and create a good image for the target audience.
# 5 Internal management plans
When planning in terms of various factors to increase business opportunities to grow in the market. Must turn to look at organizational development as well. Mainly, this plan will focus on the organization’s general aspects to create an effective management service, such as having a suitable location for the operation, the structure Administration and person in charge of various positions, machine tools, etc.
# 6 Operational plans
When there is a plan to help manage within the organization, it must continue with a plan for action to be consistent with the creation of efficiency until satisfactory results, for example, the system of each department. Establish clear duties, distribute work systems, share time shifts to produce enough product to meet the needs, establishing a clear standard of work, having rules for employees to follow in the same direction, etc.
# 7 the money plan
In doing business, money is inevitably involved. Planning for this along with it will make it easier to manage. Reduce the risk of loss in all areas The financial plan must start from bringing capital from different parts together, income-expenses, taxes, costs, sales, profit-loss, depreciation, inventory. , Wasted expenses, Accounts receivable – Accounts payable, etc. Most of the time, it requires an expert in accounting to introduce or co-author a business plan in this field.
# 8 backup or contingency plans
Ultimately, when writing a business plan, there is always a backup or contingency plan. Because, as you know, the map is written as a preliminary guide for predicting the probability. But when you actually do it, it might not happen as expected. Having this backup plan will help resolve the initial problem promptly. Reduce the risk of developing problems that are bigger than controlled. Some examples of things that should have a backup plan
Such as planning for online sales channels, But the sales did not meet the target. Therefore having to switch to using offline instead, raw materials cannot be imported. Must change to use Thai products, duplicate products with other brands Raw materials had to be changed to make a difference, having higher production costs than expected. Some of them have to be cut down to achieve the target profit; some partners cannot execute the plan. Need to modify etc.
This is all about a business plan that every business person should know and do. Making such a plan is not just starting a new business only, But people who have been doing it for a long time can keep planning or have constant adjustments to be appropriate without any problems.
For the most part, writing these plans will be divided into short-term 1-2 year plans, medium-term 5-7 year plans, and long-term plans for more than 10 years to suit each type of business’s suitability. Writing a good business plan increases your chances of managing success as you expect. And help increase future growth. This is something that every business person must experience and try to do their best.