Self study area

Whether you are starting a new venture, looking at new opportunities for an existing business or updating your strategy, planning is essential. Business planning is not just an exercise that you have to go through to raise financing for your business. Business planning has a critical role to play, at every stage in the life of your business.




The whole planning process acts as a checklist, helping to ensure that you think about all the important issues and that nothing is overlooked. You choose what the best options are. You decide where to focus your efforts and what you need to do to give yourself the best chance of success. Without a plan, you are running your business by trial and error.

Effective planning starts with deciding what you are trying to achieve and takes this all the way through to creating a realistic plan. It should encompass all the following aspects:

• Your long-term goal. What really matters to you? What is the purpose of your business? As your business reacts to changing circumstances, how will you keep on track? 
• Your objectives. What would you like to achieve in the next 12 months, 24 months and 36 months? Why have you chosen these targets, now? Is there an opportunity you want to exploit, and why do you think it exists?
• The strategy. How can you take best advantage of the opportunities you have identified? What are the key risks and how can you control them? What assumptions have you made and what would it help to know? 
• Tactics. How will you put your strategy into action? Who will do what, when? 
• Financial review. Can you afford your plans? Which tactics are likely to be the most cost-effective? How will you monitor progress?