Top 10 Benefits of Business Planning

BY DANIE BEZUIDENHOUT

2020 VISION entails a detailed Business Plan

The business plan helps a company to derive its advantages and maximise benefits out of them. It creates a clear and concise “roadmap” to follow and should include the following top benefits:

1. Help the Company to formulate its objectives and goals clearly.

The company formulates objectives thoroughly after discussing with the entire team to ensure it is clear and fully understood. These objectives help the company to achieve stability of business, gain buy-in from staff to ensure sustainability and maximize profits.

• Help to avoid a piece-meal approach.

Having an integrative approach leads to professionalism in the business and avoids possible reputational damage.

• Provide a holistic view of the organization.

This creates a team effect, avoid silo mentalities and move an organisation from a ME to a We culture.

• Aims at the long-term plan

Short-term plans are important but setting a long-term plan speaks to the longevity and sustainability of the business.

• Integrate the company plan with the national plans

Setting priorities based on the prevailing market, political and economic conditions remains key to any business.

• Technological factors influence the economic environment of the business. 

The fourth industrial revolution has changed the way business communicate and do business with its customers. Technology present the opportunity to expand the customer, create a database and analyse market trends to mention a few. Technology continuously upgrades and changes in technology are pivotal in any organisation.

• Are acutely aware of the changes in political trends

The impact of politics in business at local, national and international levels has become a game-changer.

• Help the company to achieve its objectives and goals.

The detail is critical in the HOW, WHEN and WHERE. Execution of a business plan is pivotal to any business and certainly worth adopting The Flawless Execution Cycle

Flawless does not mean to be perfect but rather a continuous learning process. Dealing with each issue to improve service and product delivery that speaks to your customers.

• Contributes to the achievement of high rate of profits

Cashflow projections, Capital expenditure and setting targets is the backbone to any business plan. It is measurable, aids in the accountability department but importantly provides a platform for learning and planning.

1. Helps to determine potential growth and profit.

The business plan provides a roadmap to the organisation reminding everyone where they are at and where they are headed in the future and detailing how to get there. Ultimately it should speak to potential investors, funders and create shareholder wealth which leads to a credible valuation of the business.

Business plans are unique to each business and will provide any reader with a clear picture of the business. Business plans remain a moveable document which should be reviewed on a regular basis. Planning is great but executing at ground level often present a different picture, how you adapt your plan will yield dividends with staff getting involved and ultimately lead to increased productivity and profitability.

We provide the business owner with the opportunity to view their business from an outside perspective and offer advice from our years of experience. Our expertise lies in presenting a holistic view, delving into each aspect of the business and offering workable solutions. Our task is to ask the critical questions and help create shareholder value.   

Making a difference every step of the way