Knowing 8 Complete Business Planning Components
Every business run requires business planning to minimize the risk of losses that occur in business. Therefore, the important to find out the business planning component so that the business run can run according to plan.
Falling up in running a business is a natural thing. However, we can minimize the risk by careful planning. This is because every business plan always considers the risk of losses and tries to find a solution.
Although the risk cannot be removed at all in a business. However, we can minimize the risk, so it doesn’t have too much impact on a big loss. Besides that, the solution to all possible risks has been prepared before.
The size of a business requires mature business planning. Especially if the business has just begun. New business people certainly will not understand the possibility of possible risks, even unexpected risks beforehand.
Definition of business planning
Business planning is actions or steps to be carried out when going to run a business or business. In implementing it requires a business planning component so that the business can be implemented properly.
The importance of business planning
The risk will always accompany every effort run, if without mature planning, be prepared for a business that is run will face bankruptcy and losses. Therefore, here are some functions if you use planning in your business:
1. Minimizing the risk
The best business planning is to predict the risk that might occur, here’s the solution. Therefore every component of business planning must be done carefully so that all possible risks are resolved immediately. This is one preventive action.
2. Become a winner in business competition
One of the business planning functions is to understand competitor behavior. Thus, all the behavior of competitors in their business activities can be learned. In the end you can have a strategy to win business competition.
3. Mastering market share
Being a winner in business competition will be very easy to if you have good business planning. Therefore, every business planning contained in it must be carried out properly in order to control the market share.
4. Falling marketing strategy
Running every component of business planning can determine the marketing strategy that is directed and on target. Thus, it will be easily reached the sales target. This is because every business plan includes marketing planning so that its products can be accepted on the market.
5. Get high operating profit
Having a good marketing strategy, and wider market share will easily reach sales targets. Thus, it will be very easy to get greater profits. This is certainly very profitable for business people.
8 important components in business planning
Knowing how important business planning to start a business, it is also important to know the business planning components. This is because the component is interrelated with each other so that the business can run according to the plan. Here are some of the components:
1. Description of the business
The first business planning component and is an important part of a business that is executed, namely the existence of a business description. The description of the business is very important, because it can explain to the relevant parties regarding the business explanation that will be carried out.
Descriptions of business are useful for notifying related parties regarding the idea of business that will be carried out. Thus, they will understand business information to be released. For larger businesses, it should be informed to every stakeholder.
2. Marketing strategy
After determining the business description, in business planning that is no less important, namely determining the marketing strategy. Marketing strategies include, studying the advantages and disadvantages of its competitor’s products.
As it fights on the battlefield, which requires a strategy. To start a business also requires a good marketing strategy. It works so that the products or services produced can be accepted on the market.
3. Market research
Doing market research from the product to be produced, is one of the important parts of business planning. Market research includes studying consumer tastes, one of them. Thus, the product that will be produced can be easily accepted by the market.
Market research is important enough to start a business. The success of marketing products or services, market research must be done first, to find out the market segmentation well. Therefore, for business people do not miss this.
4. Implementation in the production process
After running the business planning component previously explained. So it is no less important, namely implementing production process activities. The launch of the product from running a mature business plan will fall better.
Planning will not mean anything without action. This action was carried out through the implementation of the production process that was in accordance with the predetermined business planning. So, planning can be evaluated.
5. Monitoring products
Further business planning that is no less important, namely product monitoring, how much the product can be accepted on the market. So that it can be known for the lack of products that are less favored by the market for improvement.
Starting a business, mainly starting the launch of the product or service must always be monitored in the market. This is important for the evaluation of how much the success of the resulting product is acceptable in the market.
6. Maximizing operational management
If the five previous stages have been carried out, then the next is to conduct a business planning component by regulating operational management. Operational management includes setting equipment for the production process, and the use of raw materials.
Operational management also includes the selection of quality human resources, for the efficiency of production activities that are first executed. Quality human resources are company assets that serve to maximize business activities.
7. Estimated costs
Take into account the costs that will be issued no less important to start a business. Estimates the costs that will be incurred when they will start a business. The cost calculation is very important, to take into account profit or loss. Don’t let the costs incurred are greater than the results obtained.
Mature business planning can estimate the amount of costs to be incurred. If the cost is too large, the other solution is found so that the costs can be pressed. Therefore, this section is one of the important components.
The last component in the business planning component is reviewing the entire planning component that has been carried out. If it works, it can easily reap the benefits. If not, it means something is wrong in carrying out business planning.
Business planning cannot be identified if it is not practiced directly. Thus, it can easily review, the advantages and disadvantages of business planning has been done.
Starting a business is certainly not easy, various risks that might occur. Like the lack of receipt of products on the market, or some adverse events that cannot be predicted earlier, such as natural disasters for example. Therefore, the importance of running every component of business planning.
The importance of business planning in business in order to compete with its competitors. Surviving in a business competition is certainly not easy. Especially if business orientation to get as much profit as much. So that marketing strategies are needed so that sales reach the target.
Understanding various components in business planning is the important thing you have to do if you want your efforts to experience profits and continue to grow. Adjust your business planning with real conditions that occur on the market.
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