Management & Business Plans

Most likely you have heard at a certain point about management plans and business plans. What are those plans and what do they mean ? Why do we need to bother with them ?thDUZZY5QD

What is a business plan ?

A business plan is a written document that states how you turn your business idea into real life, it defines your plans on several topics that help you achieve your target. Business plans are needed for start-ups or well established businesses.

A business plan is a formal statement of business goals, reasons they are attainable, and plans for reaching them. It may also contain background information about the organization or team attempting to reach those goals.

Business plans may target changes in perception and branding by the customer, client, taxpayer, or larger community. When the existing business is to assume a major change or when planning a new venture, a 3 to 5 year business plan is required, since investors will look for their investment return in that timeframe

Your business plan should have answers to at least the following questions :

  • what is your product or service that your business intends to bring to the market
  • who is your target group
  • how do you bring your product on the market
  • what resources do you need to achieve all of the above

It sounds pretty easy right ? Well, it is not easy at all to have a reliable and consistent business plan.  The more you go into the answers of the mentioned topics the more complex it gets.

Imagine that your business plan is like the road map of your trip. You have set your destination , made your plan and are ready to go. At the start of your journey you know what to expect and can stay on track if unforeseen things are happening. The business plan , if it well made, can guide you towards your target.

An business plan is an easy way of avoiding potential risks that can influence your business organization. Why

What is a management plan ?

th9WYHZTI7A management plan should be part of your business plan and is very important to achieve your set target.

The management plan defines how your business organization is going to run. A management plan is a blueprint for the way your organization is run, both day-to-day and over the long term. It includes the standard methods for doing various things — handling money, dealing with the actual work of the organization, addressing the way people in the organization do their jobs — and the overall philosophical and intellectual framework in which these methods operate.

Your management plan should handle at least the following:

  • What is the organization trying to accomplish?
  • What actually needs to get done day-to-day to keep the organization running?
  • What degree of freedom do people at all levels of the organization need in order to do their jobs well?
  • What are the resources available for carrying out a management plan?
  • How does the management plan fit in with the mission and philosophy of the organization?

 

Granted, a lot of work goes into keeping an organization going. Why can’t it just get taken care of as it comes up? Why go to the trouble of creating an actual plan for just doing what needs to be done?

Except for the last, the points below all apply to organizations with a number of staff members. But even a one-person organization needs some management planning. When do bills get paid? How do you relate to other organizations and entities? Will you have a bank account? These are all management issues. If you are a really small organization, you may not need a formal plan, but it’s still important to do some planning.

The general answer here is that your organization is too important for you to leave things to chance. If there’s no plan, everyday tasks may fall through the cracks, emergencies may arise with which no one knows how to cope, responsibilities may not be clear, and–the bottom line–the work of the organization may not be done well or at all.

Because your business plan is the “translation” of your business idea into real life and because management plans are getting more and more important in the 21st century business environment you need and professional approach to this topics. Well thought business and management plans can help you achieve your targets and avoid potential risks. Even though plans are time consuming and are not very easy to do it can spare you a lot of complex and difficult work later on. Get professional help on your way to the TOP , get TopCFO.

A idea without a plan and a target is just a wish.

 

 

 

Reference:

http://ctb.ku.edu/en/table-of-contents/leadership/effective-manager/management-plan/main

https://en.wikipedia.org/wiki/Business_plan

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