Business plan and its importance

What is Entrepreneurship and its importance and features? Article shared by Entrepreneurship is the tendency of a person to organize the business of his own and to run it profitably, using all the qualities of leadership, decisions making and managerial caliber etc. But conceptually they are different.

Business plan and its importance

What is the Importance of Planning in Management? Importance of planning in management are: Planning is the first and most important function of management. It is needed at every level of management.

In the absence of planning all the business activities of the organisation will become meaningless. The importance of planning has increased all the more in view of the increasing size of organisations and their complexities.

Planning has again gained importance because of uncertain and constantly changing business environment.

business plan and its importance

In the absence of planning, it may not be impossible but certainly difficult to guess the uncertain events of future. The following facts show the advantages of planning and its importance for a business organisation: Under the process of planning the objectives of the organisation are defined in simple and clear words.

The obvious outcome of this is that all the employees get a direction and all their efforts are focused towards a particular end. In this way, planning has an important role in the attainment of the objectives of the organisation.

For example, suppose a company fixes a sales target under the process of planning.

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Now all the departments, e. In this way, the attention of all the managers will get focused on the attainment of their objectives. This will make the achievement of sales target a certainty.

business plan and its importance

Thus, in the absence of objectives an organisation gets disabled and the objectives are laid down under planning. Planning is always done for future and future is uncertain.

With the help of planning possible changes in future are anticipated and various activities are planned in the best possible way. In this way, the risk of future uncertainties can be minimised. For example, in order to fix a sales target a survey can be undertaken to find out the number of new companies likely to enter the market.

By keeping these facts in mind and planning the future activities, the possible difficulties can be avoided.

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Under planning, future activities are planned in order to achieve objectives. Consequently, the problems of when, where, what and why are almost decided. This puts an end to disorder and suspicion. In such a situation coordination is established among different activities and departments.

It puts an end to overlapping and wasteful activities. Consequently, wastages moves towards nil, efficiency increases and costs get to the lowest level.

For example, if it is decided that a particular amount of money will be required in a particular month, the finance manager will arrange for it in time. In the absence of this information, the amount of money can be more or less than the requirement in that particular month.

Both these situations are undesirable. In case, the money is less than the requirement, the work will not be completed and in case it is more than the requirement, the amount will remain unused and thus cause a loss of interest. It is clear that planning selects the best alternative out of the many available.

All these alternatives do not come to the manager on their own, but they have to be discovered.Presentation - The importance of a business plan 1.

Templates Importance of a Business Plan 2. •A business plan is a formal guide for how you plan to create or grow a business.

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