How Planning is the key to a Successful Business?

How Planning is the key to a Successful Business?

A popular Management Quote says “You will never go where you want to if you don’t have the right map!True, Indeed! If you are not clear where you want to go, what you want to do, what your goals are and how you are going to achieve it, the probability of your business succeeding is very low. In any Business Lifecycle, Planning is the crucial key that opens up plethora of options for the business to establish itself, sustain and eventually, succeed. In this article, we will analyze how Planning helps you set your priorities, provide clarity of the work you do and facilitates decision making.

“Failing to Plan is Planning to Fail!”

Planning helps Managers or Businesses to think beyond the everyday toil of Business. So, it is vital that the first step of any Business, new or established, is exhaustive Planning. Ideally, Planning Process has the following six steps.

1. Identify Organizational Objectives: This is the focal point that defines what the business is established for. It is imperative to get this straight, these objectives are the visin of the business and short term and long term goals have to be set to establish them.

2. Creating Strategies to achieve Goals: Strategy is defined any step taken to achieve your goal.This is the stage where you list out how you are going to establish your objectives and identify many different ways to establish the goals.

3. List alternatives to reach Objectives: This is the crucial step which creates a strong backup for the Business or Organisations. An exhaustive list of ways to reach objectives based on the Business’s strength, weakness, opportunities and threat. A detailed analysis of what would happen if each alternative or strategy is implemented has to be done.

4. Choose the Best Strategy: Based on the previous step, evaluate the best option to be implemented and choose the best strategy to be implemented.

5. Develop Action Plans to reach Objectives: Create Action Plans to implement the chosen strategies. Creating a time bound action, with division of work and allocating budget is a part of the Action Plan.

6. Kick Start the Action Plan: This is the “Go-Live” stage when the action plans are implemented.
The above roadmap gives a clear and detailed explanation of how planning plays an instrumental role in any business right from step one of establishing the business and paves way for its success.

Benefits of Planning

1. Optimized Usage of Resources and budget: Effective Planning and Scheduling ensures that the resources involved in the business, like manpower, budget, machineries are used optimally. It also helps in frugal usage of budget on the essential aspects of business, like marketing, staffing and operations.

2. Time Management: Time is the major driving force in any business. When you know what is your goal, how you are going to do it, what resources you are going to use, a lot of time is saved to concentrate on productivity.

3. Easy to identify Pitfalls: When you have a clear plan about what you intend to do, it is easy to identify where you go wrong and thereby correct it.

4. Efficient Team Work: When there is a clear vision, it is easy to delegate work among the team. This clarity avoids conflicts regarding the sharing of work and facilitates on time completion of work.

5. Informed Decision Making: Decisions are ideally based on the vision and future goals. When the vision is clearly identified through planning, it becomes easy to take guided and informed decisions.

Thus, Planning plays an instrumental role in any business’s success right from the initiation of the project to the successful establishment of the business. It is imperative for all businesses to set goals and work on strategies to achieve the goals.

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