Planning is essential for business success. It involves thinking ahead about objectives, strategies, resources, production, marketing, profits and growth. Effective planning is realistic, based on community needs and flexible. Key aspects of planning include conducting SWOT analyses, setting objectives and strategies, and establishing time frames. A good plan has clear objectives, measurability, guidelines, responsibilities and resources defined. Planning eliminates risks, minimizes costs, and detects weaknesses to improve business operations over time.
2. it is thinking ahead of objectives,
strategies, financing, production,
marketing, profit aspects and growth
possibilities. However, business
planning should be realistic. It is based
on available resources and is responsive
to the needs of the community. This
chapter presents the fundamental
principles of planning, criteria of
effective planning, steps, components
and importance of business planning.
3. what to do
how to do it
when to do it
what to expect in the future
4. - involves the attainment of goals. A time
frame is needed is attaining the goals. Starting
the business is not the end of business
planning. Ultimately, it is the consumer
satisfaction that requires planning. This should
be properly planned because consumer
satisfaction means business stability and
growth. Business planning is a continuous
process until consumer satisfaction is
maximized and sustained.
6. based on available resources :
human, financial, and physical resources.
If these are not enough, then it would be
impossible to implement successfully the
project. Any planning which is not
supported by adequate resources is likely
to fail.
7. the objectives of the entrepreneur
should fit the needs of the people in
a community. Such needs can be
known through observations,
personal interviews and
questionnaires.
8. * Planning must be
flexible
resources, needs and
economic conditions change.
Planning should be adjusted
to such changes to be
effective and relevant.
9. In the Philippines, many people are poor and have no
business experiences. The most appropriate project for
them is the micro business. This requires very simple
management and technology.
It also needs simple and few resources in terms of funds,
materials and equipment. Such simple business enterprises
has a greater possibility of success. More importantly, it
provides a good training experience for operating a
business. Later on, the operator can engage in bigger
projects as he acquires more resources and management
experiences.
10.
11. - looking for funds, customers,
materials and equipment. He has
no time in planning. His entire
attention is devoted to the daily
operations of his business in his
intense desire to survive.
12. - the owner-manager realizes the
need to develop and use a budgeting
system. Estimated incomes from sales
and expected expenditures are made.
This is done facilitate the orderly
functions of the growing enterprise.
13. - the owner-manager drafts an annual plan.
He can use either the top down planning or
bottom- up planning. In top-down approach,
the owner-manager provides the goals and let
the employees comply with them. In the case
of bottom up approach he encourages his
employees to participate in planning the goals
and strategies of the enterprise. The first
approach in planning is autocratic while the
other one is democratic.
14. - as the business enterprises becomes bigger,
a long-range planning is needed. This is a
three-or five year plan. Such plan has
flexibility to able to adjust to changing
conditions. An executive of the Xerox
Corporations claims that some of their plans
are being revised every day of the year. At
this stage, planning develops into more
strategic character.
15. 1. The plan should state clearly its
objectives.
2. The plan should provide measures for a
satisfactory accomplishment of the
objectives in terms in quantity, quality, time
and cost.
3. The plan should state the policies which
should guide people in attaining the
objectives.
4. The plan should indicate what
department or unit will be involves in
accomplishing the objectives.
16. 5. The plan should indicate the time which
should be allowed for each activity. It may
be necessary to establish a target data for
completing the activity.
6. The plan should specify the required
resources and their corresponding.
7. The plan should designate the officers
who will be held accountable for the
accomplishment of the objectives.
Sufficient authority should be delegated
to such officers/executives.
17. 1. SWOT ( Strength,
Weaknesses,
Opportunities and
Threats)
The chances of a product
or service can be evaluated
through the SWOT analysis
2. OBJECTIVES
There should be specific
and realistic.
3. STRATEGIES
These are ways are
stated in the financial,
production, marketing and
organizational plans of the
enterprises.
4. TIME FRAME
In business, time is gold.
For this reason, an
entrepreneur must be
efficient in time
management.
19. 1. What is unique about my products/service?
2. Who are my competitors?
3. How will my customers buy?
4. What is my share in the market?
5. Who are my customers and where are they
located?
6. What is market potential?
7. Where will I put my business?
8. How big should be my plant or place of
business be?
20. 9. What equipment will I need and what size?
10. How will I create customers?
11. What personnel do I need?
12. How will I organize my enterprise?
13. What kind of records do I need?
14. How much capital do I need?
15. How profitable will be business be?
16. How financially healthy will I be?
17. What is my break-even point?
23. A. Description of
Business
B. Product/Service
C. Market
D. Location of
Business
E. Competition
F. Management
G. Personnel
H. Application and
Expected Effect of
Loan ( If Needed)
I. Summary
24. A. Sources and Applications of Funding
B. Capital Equipments List
C. Balance Sheet
D. Break- Even Analysis
E. Income Projections (Profit and Loss Statements)
1. Five Year summary
2. Detail by month for first year
3. Detail by quarter for second, third,
fourth and fifth years.
4. Notes to explanation
25. F. Cash Flow Projection
1. Detail by month for first year
2. Detail by quarter for second, third,
fourth and fifth years
3. Notes to explanation
G. Deviation Analysis
H. Historical Financial Reports for Existing Business
1. Balance Sheets for past five years
2. Income statements foe past five years.
3. Tax Return
26. Personnel resumes,
personal balance sheets,
cost of living budget, credit,
reports, letters of reference,
job descriptions, letters of
intent, copies of leases,
contracts, legal documents
and anything else relevant
27.
28. 1. Evaluate your personal resources
and interests and the resources of
the community.
2. Analyze your market.
3. Choose a proper business location
4. Prepare a financial plan
5. Prepare a production plan
6. Prepare an organizational plan
7. Prepare a management plan
29. Putting up a business is not a
game of chance. It is not a win or
loss activity. However, there are
always risks in business. Some of
these can be avoided. Others
cannot be avoided like natural
calamities, but their effects can be
minimized.
30. PLANNING CAN BE
ELIMINATE BUSINESS RISKS
because it carefully studies
the competence, interest and
resources of the entrepreneur
against the needs of
consumers, together with the
presence of competitors.
31. PLANNING CAN MINIMIZE
COSTS OF PRODUCTION.
-The resources of production such
as money, materials, machines and
manpower are properly used and
scheduled according to plan. The
entrepreneur monitors and controls
every aspect of the business
operations to prevent unnecessary
wastes.
32. PLANNING CAN DETECT THE
WEAKNESSES OF THE BUSINESS
OPERATIONS.
In planning goals and objectives are
formulated. Alternative strategies are
designed on how to attain the objectives
and goals. The various resources or inputs
are also indicated to support the strategies.
If the goals and objectives have not been
accomplished according to time frame, there
is something wrong with operation. The
entrepreneur can then reevaluate his
planning.
33. Successful planning is highly
dependent on adequate and
accurate information. This is much
needed in knowing the needs of
consumers, and the strength and
weaknesses of competitors. Such
data give the entrepreneur the
ability to make the right goals and
effective strategies.
In addition, any entrepreneur who
follows the principles of planning is
most likely to succeed in his
34. * Planning is thinking ahead. It decides what to do; how to do it; when
to do it; what to expect in the future.
* The principles of planning are : it must be realistic, based on felt
needs, it must be flexible; and it must be a simple project at the
start.
* Stages of business planning are: unplanned stage, budgeting-system
stage, annual planning stage, and strategic planning stage.
* Planning to be effective should have the following features: clear
objectives; measurability, policy guidelines, time frame, required
resources and costs, responsible personnel and implementing
office.
* Components of business planning are SWOT, objectives, strategies
and time frame
*A sound business plan must be objective, clear, logical and simple
flexible, stable and complete and integrated.