Starting a business needs a long preparation; you must able to foresee what will happen in near future. Successful business starts into small entity; they are getting bigger and bigger as time goes by. They became successful because they have foreseen what will going to happen in their company in near future, and they execute every move and decision according to their business plan. There are 6 objectives of business planning.
· To see the growth of their business - this goal is specifically aiming to monitor the milestone of your business overtime. You must always check if your business path is according to your plan, because sudden changes will result into more risky actions.
· To support business loan application – business plan can really help with your loan for your own business. It will serve as basis whether you are qualified in the loan that you’re applying for. This will give guarantee to the creditors that loan payment will be given overtime.
· To attract investors – Business plan will serve as a resume to gather some business man who is capable on helping your company through financial aspect. It will tell the investors your future plan on your business. If your business plan fits to the taste of your investor, they will help you financially. Always makes sure that the return of their investment is good, because they can serve as your asset in handling business.
· To create a new business - creating a business plan on starting up business is really necessary this will help you guide your business into the right path.
· To sell a business unit – if you wish to start a new business, and deciding to sell your old one. The buyer will have a better understanding about the business you are selling.
· To orient new employees – this will help as the fundamentals that your employee should learn before start working for your company.
2. Compare Business planning and Strategic Planning
Business Planning is all the information needed in a specific company. All the operation that must be executed in every area is here. The mission, vision, values, standard, and culture of the company. It is also use to improve the competitiveness of the company. You can see here every output in the company so that if there is any problem you can create an immediate solution. While Strategic Planning is all about formulating strategies on how the company implement their business plan. This planning focuses on strategies that maintain the company to the right track. It is also use to make sure that the business plan works overtime.
3. How do we setup short term objectives which must be consistent with the long-term objectives?
We all know that the objective of the company is divided into 2 parts, the long-term objective and the short-term objective. The short-term goals are goals that are expected to happen within a year. While the long-term goals are goals that can possibly happen for a very long year. In creating long term goals, you must have your objective and that main objective of your business will be your mission and vision of the company. So, in creating a short-term goal always make sure that it is bind to your mission and vision statement. Because this short-term goal is one of the steps that leads you to your main goal. For example, you want to start your own bakery and make it run competitively in near future. Your short-term goals should be learning how to bake. Then another goal is saved money to buy equipment. It will get a series of short-term goal before achieving your main goal. You must create your short-term goal like you’re taking a single step on achieving your main goal. And make sure that every goal you create it is bounded on what you want on your business.
4. What are the segments in business planning?
In creating a business plan, you must have this on your paper.
· The title page – it includes all the basic information about your business. It includes the name of the business and in what form. Type of business, the location. The cellphone and telephone number the date and the person who has prepared the paper.
· The executive summary – It is the summary of the business plan, and the sources of financial fund like borrowing or having an investor should be put in this area.
· Description of the Business – it is a brief description of your business. It explains what specific industry that your business belongs to, the target market, the market size, and the strategy on how you give the product and services to your customer.
· Description of your product or service - it simply talks about your product itself, the benefits of your product, the material use, and what makes your product unique.
· Marketing Strategy - it simply tells how your product should be advertise and promote in the market
· Analysis of competition – You must need to know your competitors’ strength and weaknesses and how you will deal with it.
· Operation and management – it shows the way on how we manage our business, how the staff be oriented, how should we act at work and the obligations and responsibility of every employee.
· Registration requirement – It is in need to put the proof that your company is registered in BIR, SSS, and SEC.
· Financial Aspect – It includes the financial statements that will show how profitable your company are. It uses to attract future investors.
· Social Responsibility – It only shows the salary and wages, also the benefits that your worker experience while working.
5. What are market niche?
It is a small market segment that is focus on satisfying the needs and wants of the customers. They give the products feature that is made for that specific market. The product is created for that specific area, with a beneficial price range on both buyer and seller but still related to the quality of the product. Thus, the product niche is all about creating a product that has a good quality and price that can satisfy the needs and wants of the specific market segment in the market.
6. How do we create the vision and mission of a company?
In creating a mission and vision of the company let’s start to go back to where the business starts. We must know what are the reason you establish a business then let’s start to create a mission and vision that is bound to the culture of the business itself. We must focus on the objectives that we want to obtain, the will of the owner, and the purpose of that business. The mission and vision are the long-term goals of the business, in order to create that we must follow the S. M. A. R. T. It should be Specific that is focused on what the company should achieve. Measurable the plan is easily measured and possible to execute. Attainable the plan should be achievable and not impossible to attain. Reasonable The plan can be achieved reasonably. And it should be Time Bound the plan can be achieve in a specific time.
