For those of you who aspire to become an entrepreneur, it is important to know what business planning is.
The existence of this business plan is very important for a business because without careful and good planning, it is difficult for an entrepreneur to achieve success.
So, what is the meaning of business planning in the business world? What are the goals and benefits?
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So, if you want to know more about questions about business planning, let’s look at the following review of business plans.
Definition of Business Planning
The first thing you need to know is the meaning of a business plan.
Business planning or a business plan is an important activity or activity that you must prepare before starting a business.
In a business plan, you need to write down in detail about the business concept, finance, marketing and other related matters.
It is intended that your business has thorough preparation, so that it is easier to achieve success than having no preparation plan at all.
Business Planning Objectives
Besides needing to know the meaning of a business plan, you also need to know what its goals are.
Planning in a business is very crucial because it aims to make the business run stably and be more successful.
Apart from that, there are many other objectives of the business plan that you have to do, which are as follows.
1. Ensuring the Business is in Accordance with the Vision and Mission
The first goal of business planning is to ensure that the business you are running goes according to the vision and mission that you have set at the start.
Not only that, by making a business plan, you can review the business activities that you carry out regularly and you can use this as material for analysis and evaluation.
2. Calculating Resources
The second purpose of making a business plan is so that entrepreneurs can find out how much resources are needed for the company’s operational activities.
It also includes a clear picture of the number of human resources and the respective skills you will need.
Now, if you already know the amount of resources needed, then you can determine the amount of costs needed for these resources.
3. Estimating Business Profits
The purpose of the next business plan is to be able to determine when your business will make the targeted profit.
Apart from that, you can also develop a strategy to achieve the profit target according to the timeline.
4. Evaluation of the Next Business Plan
The final goal of making a business plan is to be able to evaluate the next business or business.
For example, if there was a problem in the previous plan, then you can find a solution so that the next business plan does not have the same problem or problem.
To collect data and information as evaluation material from each division requires considerable effort if you do not use ERP software that is integrated with each other. Therefore Mekari software can help you in doing this, because currently Mekari already has integrated software such as online accounting software , HR software , online tax applications and omnichannel CRM applications.
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Types of Business Plans
Knowing the types of business plans is also important because you can find out which type is right for your type of business.
1. Operational Planning
The first type is operational planning. This type of business plan is a business plan that can provide a clear picture of how a company runs.
You can still change this plan if the results are less effective.
An example of an operational management plan is an SOP (Standard Operating Procedure)
2. Strategic Planning
The second type of planning is strategic planning, which is a business plan consisting of strategic steps arranged to achieve business goals.
This type of planning is also crucial because it can determine long-term decisions, such as company values, company vision and mission, and so on.
3. Tactical Planning
This type of tactical planning is useful for realizing business strategies that you have previously planned, for example, a marketing strategy.
4. Long Term Planning
As the name suggests, this type of planning is useful for business plans for a period of more than 1 year.
So, what is the purpose of long-term planning? The aim is to project the success of a company on a larger scale, such as “Going international”, or achieving an IPO.
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9 Important Components in Business Planning
In preparing a business plan, there are a number of important components that you must include.
So, what are the components of the business plan? The components or outlines of business planning that are important for you to know are as follows.
1. Corporate Identity & Vision and Mission
The first business planning component is the vision, mission and corporate identity.
What company identity do you need to include? You need to enter identification such as the number of deed of establishment, permits, name of the founder, and so on.
It is important to include your important corporate identity so that readers and investors know that your business is protected by law.
2. Business Overview
In addition to the components of the company’s identity and vision and mission, you also need to include the next component, namely an overview of the business.
An overview of your business includes your product type, industry, orientation, and business values.
This is so that readers can find out your business profile.
3. Target Market
Including a target market component is important to let readers know that your business has the right goals.
Apart from that, entering the target market also serves to assist in convincing investors regarding the potential of your business market share.
4. Product Details
The next component in the business plan is product details.
You are required to include a product detail component because a product is proof that an entrepreneur is serious about running the business, be it a service or physical product.
Product details that you need to include in your business plan include product name, composition, price, and product description.
5. Marketing Plan
The components of the marketing plan are also important to include in business planning because you must be able to market the company’s products to get turnover.
6. Operational Costs
Operational costs are the next component of business planning that you must include.
If it turns out that the capital you need is very high, then you can look for investors to meet these operational costs.
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7. Calculation of Break Even Point (BEP)
Break Even Point is a position when the total capital or outgoing costs is equal to the amount of income you get.
Simply put, BEP is the term “return on investment”.
So, if you already have an estimate of when BEP will occur, then you can find out when the business can generate profits.
BEP can also act as a basis for consideration for investors who will fund your business.
8. Profitability
As you know, the main goal of running a business is to get as much profit as possible.
Now, by drawing up a business plan, you can calculate the estimated profitability of the company.
9. Competition & Strategy Analysis
The last component of business planning is analysis for competition and strategy. Even so, this is one of the most important things in the business process .
Conducting competitor analysis is important to do because it is useful for developing a strategic plan to win the competition with business competitors.