{"id":619,"date":"2023-06-15T03:12:30","date_gmt":"2023-06-15T03:12:30","guid":{"rendered":"https:\/\/mudabicara.com\/en\/?p=619"},"modified":"2023-06-15T03:12:30","modified_gmt":"2023-06-15T03:12:30","slug":"what-is-business-planning-definition-purpose-types-and-its-components","status":"publish","type":"post","link":"https:\/\/mudabicara.com\/en\/what-is-business-planning-definition-purpose-types-and-its-components\/","title":{"rendered":"What is Business Planning? Definition, Purpose, Types and Its Components"},"content":{"rendered":"

For those of you who aspire to become an entrepreneur, it is important to know what business planning is.<\/span><\/span><\/p>\n

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.<\/span><\/span><\/p>\n

So, what is the meaning of business planning in the business world? <\/span>What are the goals and benefits?<\/span><\/span><\/p>\n

Read Also : What is the Meaning of Project Organizational Structure: Definition and Duties<\/a><\/strong><\/span><\/pre>\n
So, if you want to know more about questions about business planning, let’s look at the following review of business plans.<\/span><\/span><\/p>\n
Definition of Business Planning<\/span><\/span><\/span><\/h2>\n
The first thing you need to know is the meaning of a business plan.<\/span><\/span><\/p>\n
Business planning or a business plan is an important activity or activity that you must prepare before starting a business.<\/span><\/span><\/p>\n
In a business plan, you need to write down in detail about the business concept, finance, marketing and other related matters.<\/span><\/span><\/p>\n
It is intended that your business has thorough preparation, so that it is easier to achieve success than having no preparation plan at all.<\/span><\/span><\/p>\n
Business Planning Objectives<\/span><\/span><\/span><\/h2>\n
Besides needing to know the meaning of a business plan, you also need to know what its goals are.<\/span><\/span><\/p>\n
Planning in a business is very crucial because it aims to make the business run stably and be more successful.<\/span><\/span><\/p>\n
Apart from that, there are many other objectives of the business plan that you have to do, which are as follows.<\/span><\/span><\/p>\n
1. Ensuring the Business is in Accordance with the Vision and Mission<\/span><\/span><\/span><\/h3>\n
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.<\/span><\/span><\/p>\n
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.<\/span><\/span><\/p>\n
2. Calculating Resources<\/span><\/span><\/span><\/h3>\n
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.<\/span><\/span><\/p>\n
It also includes a clear picture of the number of human resources and the respective skills you will need.<\/span><\/span><\/p>\n
Now, if you already know the amount of resources needed, then you can determine the amount of costs needed for these resources.<\/span><\/span><\/p>\n
3. Estimating Business Profits<\/span><\/span><\/span><\/h3>\n
The purpose of the next business plan is to be able to determine when your business will make the targeted profit.<\/span><\/span><\/p>\n
Apart from that, you can also develop a strategy to achieve the profit target according to the timeline.<\/span><\/span><\/p>\n
4. Evaluation of the Next Business Plan<\/span><\/span><\/span><\/h3>\n
The final goal of making a business plan is to be able to evaluate the next business or business.<\/span><\/span><\/p>\n
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.<\/span><\/span><\/p>\n
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. <\/span>Therefore Mekari software can help you in doing this, because currently Mekari already has integrated software such as\u00a0 <\/span><\/span>online accounting software<\/span><\/span> ,\u00a0 <\/span><\/span>HR software<\/span><\/span> ,\u00a0 <\/span><\/span>online tax applications<\/span><\/span> \u00a0and\u00a0 <\/span><\/span>omnichannel CRM applications.\u00a0<\/span><\/span><\/p>\n
Read Also : What is the meaning of Inventory Recording Method: Definition, Benefits, and Types<\/a><\/strong><\/span><\/pre>\n
Types of Business Plans<\/span><\/span><\/span><\/h2>\n
Knowing the types of business plans is also important because you can find out which type is right for your type of business.<\/span><\/span><\/p>\n
1. Operational Planning<\/span><\/span><\/span><\/h3>\n
The first type is operational planning. <\/span>This type of business plan is a business plan that can provide a clear picture of how a company runs.<\/span><\/span><\/p>\n
You can still change this plan if the results are less effective.<\/span><\/span><\/p>\n
An example of\u00a0 <\/span><\/span>an operational management plan<\/span><\/span> \u00a0is an SOP (Standard Operating Procedure)<\/span><\/span><\/p>\n
2. Strategic Planning<\/span><\/span><\/span><\/h3>\n
The second type of planning is strategic planning, which is a business plan consisting of strategic steps arranged to achieve business goals.<\/span><\/span><\/p>\n
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.<\/span><\/span><\/p>\n
3. Tactical Planning<\/span><\/span><\/span><\/h3>\n
This type of tactical planning is useful for realizing business strategies that you have previously planned, for example, a marketing strategy.<\/span><\/span><\/p>\n
4. Long Term Planning<\/span><\/span><\/span><\/h3>\n
As the name suggests, this type of planning is useful for business plans for a period of more than 1 year.<\/span><\/span><\/p>\n
So, what is the purpose of long-term planning? <\/span>The aim is to project the success of a company on a larger scale, such as “Going international”, or achieving an IPO.<\/span><\/span><\/p>\n
Read Also : What are Performance Indicators? Purpose, How to Measure, and Function<\/a><\/strong><\/span><\/pre>\n
9 Important Components in Business Planning<\/span><\/span><\/span><\/h2>\n
In preparing a business plan, there are a number of important components that you must include.<\/span><\/span><\/p>\n
So, what are the components of the business plan? <\/span>The components or outlines of business planning that are important for you to know are as follows.<\/span><\/span><\/p>\n
1. Corporate Identity & Vision and Mission<\/span><\/span><\/span><\/h3>\n
The first business planning component is the vision, mission and corporate identity.<\/span><\/span><\/p>\n
What company identity do you need to include? <\/span>You need to enter identification such as the number of deed of establishment, permits, name of the founder, and so on.<\/span><\/span><\/p>\n
It is important to include your important corporate identity so that readers and investors know that your business is protected by law.<\/span><\/span><\/p>\n
2. Business Overview<\/span><\/span><\/span><\/h3>\n
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.<\/span><\/span><\/p>\n
An overview of your business includes your product type, industry, orientation, and business values.<\/span><\/span><\/p>\n
This is so that readers can find out your business profile.<\/span><\/span><\/p>\n
3. Target Market<\/span><\/span><\/span><\/h3>\n
Including a target market component is important to let readers know that your business has the right goals.<\/span><\/span><\/p>\n
Apart from that, entering the target market also serves to assist in convincing investors regarding the potential of your business market share.<\/span><\/span><\/p>\n
4. Product Details<\/span><\/span><\/span><\/h3>\n
The next component in the business plan is product details.<\/span><\/span><\/p>\n
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.<\/span><\/span><\/p>\n
Product details that you need to include in your business plan include product name, composition, price, and product description.<\/span><\/span><\/p>\n
5. Marketing Plan<\/span><\/span><\/span><\/h3>\n
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.<\/span><\/span><\/p>\n
6. Operational Costs<\/span><\/span><\/span><\/h3>\n
Operational costs are the next component of business planning that you must include.<\/span><\/span><\/p>\n
If it turns out that the capital you need is very high, then you can look for investors to meet these operational costs.<\/span><\/span><\/p>\n
Read Also : Organizational Structure of Large, Medium, Small Hotels and Their Duties<\/a><\/strong><\/span><\/pre>\n
7. Calculation of Break Even Point (BEP)<\/span><\/span><\/span><\/h3>\n
Break Even Point is a position when the total capital or outgoing costs is equal to the amount of income you get.<\/span><\/span><\/p>\n
Simply put, BEP is the term “return on investment”.<\/span><\/span><\/p>\n
So, if you already have an estimate of when BEP will occur, then you can find out when the business can generate profits.<\/span><\/span><\/p>\n
BEP can also act as a basis for consideration for investors who will fund your business.<\/span><\/span><\/p>\n
8. Profitability<\/span><\/span><\/span><\/h3>\n
As you know, the main goal of running a business is to get as much profit as possible.<\/span><\/span><\/p>\n
Now, by drawing up a business plan, you can calculate the estimated profitability of the company.<\/span><\/span><\/p>\n
9. Competition & Strategy Analysis<\/span><\/span><\/span><\/h3>\n
The last component of business planning is analysis for competition and strategy. <\/span>Even so, this is one of the most important things in\u00a0 <\/span><\/span>the business process<\/span><\/span> .<\/span><\/span><\/p>\n
Conducting competitor analysis is important to do because it is useful for developing a strategic plan to win the competition with business competitors.<\/span><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"
For those of you who aspire to become an entrepreneur, it is <\/a><\/p>\n","protected":false},"author":2,"featured_media":620,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[7],"tags":[124,110],"class_list":{"0":"post-619","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-economic","8":"tag-business-planning","9":"tag-economy"},"yoast_head":"\nWhat is Business Planning? 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