The True Value of Business Planning. Many small business owners often forget a businesses plan before start their business. Even they operate their businesses without a business plan. They operate on a day-to-day basis without any planning for the long term. they only see the need to prepair one when they have to approach the bank for loan or to tender for a big business contract, and it was not for them.
A business plan really necessary, it not just a showpiece to impress the bankers and business associates. Well, a well-prepared business plan, usually compiled by a management consultant, does help to impress the bankers. But it is useless if the management do not understand the concepts behind the preparation of a business plan.
A business plan is just a static snapshot of what the business is like if all the assumptions about the environments and competitions remain static. But this is not the case in the real world. Consumer's expectations, market's supply and demand, competitions and other environmental factors change all the times. We have to modify and adapt our business strategies and operations continuously to meet the changing market conditions. So, the concept and planning process is the true value of business planning in the plan. The same thinking process can be used again and again to develop appropriate strategies to take advantage of the changes in the market place.
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