Create Jobs: The first and foremost important thing that entrepreneurs are able to do which lawyers and doctors cannot do is create jobs. The focus is on ‘the output' when the real value in a business plan is the business-planning process itself. As you'll have garnered from the above, business planning is an essential activity, regardless of the stage of business you're at. To help you with critical decisions. Teekid /Getty Images. 5. Entrepreneurship is important, as it has the ability to improve standards of living and create wealth, not only for the entrepreneurs, but also for related businesses. The importance of plannings also lies in its holistic approach. Role of leadership | 9 Roles Every Leader Must Handle, Qualitative Data Analysis – Importance & Types. Thus, because planning helps you decide short term and long term goals, it helps you make decisions faster. it gives a steady growth and prepares the organization for a desired future. It is a part of life and can be performed at all levels. A business plan can help a company assess future opportunities, choose one, and then commit to a particular course of action. Some of the most obvious benefits you can gain from business planning include. A business plan is a very important strategic tool for entrepreneurs. Any of your goals can have more chances of success with proper planning. Required fields are marked *, Copyright © 2020 Marketing91 All Rights Reserved, 7 simple reasons that justify the importance of planning, 2 Main Types Of Variables used in Strategies, The Johari window for personal awareness and team building, Vertical integration - Definition, Types, Examples, 4 simple steps for implementing a strategic plan, Difference between Strategy and Planning - Strategy versus Planning, The Importance of Strategic Planning in an Organization, Tactical Planning - Definition, Importance, Characteristics And Strategy, 6 reasons why Strategic Business Units are Important, 7 reasons diversification strategy is better in the long run. A business plan is not just a document. These are typical traits of a newly formed organization, or an organization which is trying to rebuild itself. Thank you for explaining this a bit clearer. Let's stay in touch :). Thus, when these organizations plan ahead, they have the flexibility to adjust the growth of the organization if any unseen events happen. Particularly the examples provided in the article is easy understandable and helps to get the idea of Marketing Plan. When you start a new business, the temptation is to spend time on the idea and then react to events as they come up rather than focusing on what is important. The entrepreneur’s focus is on the execution side and how to get the product to the market in the shortest amount of … This video will remind you why you did. To plan for an uncertain future. Thanks a lot I understood this better than what I was thought in the lecture room. Planning for Tourism is Important Due to the Following Reasons: 1. The very process of producing a custom business plan enables management to give due consideration to the various factors that mesh together to create the opportunity they are seeking to explore, as well as the resources required and the key drivers needed for success. The first step to start something new takes a lot of courage and determination. M. Kirzner (1973) observes entrepreneurs as; “one who perceives what others have not seen and acts upon that perception”. This same advice holds true when you start your own business. Planning may not be the most enjoyable component of managing projects, but it is the most vital part for reducing risk and failure rates. In order to begin with lesson planning, it is important to know the aims and objectives of the course being taught to students. so great ‘ it is a good information i have seen sofa, Your email address will not be published. The website is an online blog that welcomes entrepreneurs, social media experts, technology enthusiasts, marketing professionals and bloggers to share their ideas and to seek guidance from their fellow professionals through useful and informative articles and news. Easily Spot Business Opportunities. Given that valuing firms is notoriously difficult and subjective, a well-written plan will clearly highlight the opportunity for any prospective investors, explain the value of the business, and increase the likelihood of a successful exit by the current owner. By committing to one opportunity, all other options are effectively marginalised and the company is aligned to focus on key deliverables. It is more important to the entrepreneur’s venture because of the uncertainty of success and less room to make mistake. Second, you may be an entrepreneur and you’ve forgotten why you became an entrepreneur in the first place. Here are 7 reasons justifying the importance of plannings. When you set up a business, it is important to frame an efficient and effective plan. To commit to a particular course of action. If the plan is implemented correctly, the results will always be desirable by the organization. Because of this reason, you will not panic, but instead you will just pay attention to the execution of your plans. Planning brings the organization together. The man behind the entrepreneurship is an action-oriented and highly motivated individual who is ready to achieve goals. This is because you know that how a decision will affect your plan in the long term and whether or not, this decision will help you in achieving your goals. From the start of a small business, to managing a large business, from starting your own career, to the last stages of your working life, planning will be the most important tool that you use in marketing. With anything you set out to do in life, it’s a good idea to have a plan. Whenever you plan, you plan to succeed. Thus, whenever you plan things, you know what are the results expected. Don’t overextend yourself as rest and relaxation are important. 10 Reasons Why Organizing Everything is Important. 3. Thinking like an entrepreneur will enable you to take healthy breaks. Use a plan to establish the right steps to starting a new business, including what you need to do, what resources will be required, and what you expect to happen. Innovation is the cornerstone of sustained economic growth and prosperity. How to Become a Virtual Assistant and Work Remotely? 6 Reasons Why Educational Planning is Important for Academic Institutions. One of the biggest reasons that so many businesses fail can be attributed to this: some business owners fail to plan. The management of the organization always keeps goals for itself which it wants to achieve. Innovate 10 Best Reasons to Be an Entrepreneur When the work is hard and the hours are long, these are the reasons founders keep doing what they do. It is the using of new ideas that lead to the making of any new products, services or processes. Business planning is vital to help you manage your business more effectively. However, you always keep a tab on the planning, so that you can at anytime refer to the plan and find our whether you are on track or not. Unity will always lead to success and hence, the integrated approach which planning imparts to an organization is ultimately very important. Since strategic planning involves an on-going evaluation process, it puts the company at an advantage. I REALLY ENJOY THIS WONDERFUL EXPLANATION, MAY ALLAH BLESS YOU WITH MORE WISDOM. Thus, planning is important to an organization because. It is a holistic analysis of your company, the environment it operates in, and a route map to achieving success based on the resources available. At the same time, if the growth is large and you are at 700 units, then you need to boost manufacturing. These goals, and the subsequent planning, will always lead to the progress of the organization. They identified different patterns between the best and the rest. And I’m going to make a case for why you ought to become an entrepreneur. Entrepreneurship is an important driver of economic growth and innovation. However, if you are at 400 units, then you need to evaluate the options to increase sale. The very creation of a business plan ensures that you cover all the various bases you need to when taking an idea from conception through to launch. The reason is quite simple-many businesses fail, not because they are unprofitable, but because they ultimately become insolvent (i.e., are unable to pay their debts as they fall due). Marketing Is an Effective Way of Engaging Customers. A clear statement of your business mission and vision By committing your thoughts to a plan, you can understand your business better and also chart specific courses of action that need to be taken to improve your business. This is great fun and enjoyable.most especially when am reading. If you fail to plan, you are planning to fail.Benjamin Franklin The end of the implementation of one marketing plan, is immediately followed by the implementation of another marketing plan, the process of which starts immediately with a different objective in mind. These organizations do not have a standard strategy. A business is a risky venture. The time you invest in your business plan will pay off many times over. For example – your plan is to increase the sales to 2000 units this year. We Need Business Plan To An Entrepreneur Importances of Business Plan in Entrepreneurship is most valuable. These are the seven reasons why market research is important, especially for smaller teams and businesses: 1. Here are six reasons why business planning is so important: 1. In an ideal world, all businesses would be self-financing in exploiting business opportunities. Thanks a lot it was very nicely explain in the simplest possible manner. I am a serial entrepreneur & I created Marketing91 because i wanted my readers to stay ahead in this hectic business world. Entrepreneurs Create New Businesses 3. Simon Crompton, freelance Journalist and entrepreneur; Source: Courtesy Photo. For an entrepreneur, this couldn’t be more important. Article shared by. Explanations were crisp and clear. Another important reason why business leaders should make strategic planning a top priority is that it cuts down risk when there’s economic downturn or uncertainty. Whenever you make a marketing plan, you know what you want to achieve in a given time frame. Being a small entrepreneur… A plan can also detail alternative future scenarios, set specific objectives and goals, and list the resources required to achieve these goals. Check out these 9 reasons why you really do need it. Unfortunately, the image most of us have is of a 30-page bound document. Here's why. At the same time, you are clear what the future holds for you and what is the ultimate goal. By channeling an entrepreneurial mindset, you’ll be able to make new contacts with ease. The lack of publicity is primarily responsible for India occupying a dismal position in the global tourism scenario, and not the lack of infrastructure development, as envisaged by the Indian Tourism industry. Thanks a lot for this valuable article. Planning important, because through progress, an integrated approach, flexibility, and all of the other points mentioned above, planning ultimately helps the organization reach a desired, economically viable and profitable objective. Confident Entrepreneurs = Confident Investors. In short, it can help ensure that you are prepared for all sorts of eventualities. I love writing about the latest in marketing & advertising. December 9, 2019 By Hitesh Bhasin Tagged With: Marketing strategy articles. 1. You can follow me on Facebook. By committing your thoughts to a plan, you can understand your business better and also chart specific courses of action that need to be taken to improve your business. 1. Therefore, below I present 4 reasons why YOU as an entrepreneur should care about financial planning. It is a part of life and can be performed at all levels. Organizing is a process of arranging things and keeping them into order. A good business plan not only helps entrepreneurs to focus on the specific steps necessary for their to make business ideas succeed, but it also helps them to achieve both their short-term and long-term objectives. Startup 4 Reasons Competitive Analysis is the First Step You Should Take as an Entrepreneur It is impossible to build a successful company … Although you might make plans for different departments within the same organization, however all the departments together are trying to achieve a desired objective. After you’ve done your market research, it'll be clear to you who you want to reach out to (your target customers), where you can reach them (your marketing channels), and what they're interested in. Sara Jones; 23 Mar 2018; Views: 221055; Last updated on 21st Oct 2020. An opportunity to test out a new idea to see if it holds real promise of success. Thus, the importance of plannings is seen when we know which factors to observe to evaluate and control the plan. The importance of plannings increases in an organization where stability has not been observed. 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