Business the plan as strategic object of the company
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nd right business plan can help to make that distinction.
.Second (or third) opinion.. Some of the entrepreneurs mistakenly think, that they know everything about their organization, and do not need the help of third parties. This can become a serious drawback. More often people are blinded with their personal achievements and do not notice possible negative outcomes, that can occur with their business.. The most experienced entrepreneur can still benefit from a different point of view. Moreover, if several independent persons will be involved in examining business plan - more alternatives and mistakes they will be able to find. Even if there is the only person involved in business, it will be helpful to find someone who can study the plan objectively and point out possible weaknesses that might have been missed.
.Expect the unexpected.. As we live in an instable world, many different unexpectedness may happen. The majority of such surprises are negative.. Every business plan needs some wiggle room to allow for unexpected changes. Part of this involves creating budgets and marketing plans with some built-in flexibility; but adapting to change also requires the acceptance that business practices that worked well in the past might have been modified or even abandoned.
.Uniqueness.. Template business plans - might help to get started, but it won't help to succeed. Many entrepreneurs simply forget about uniqueness of their business, and strive to copy their competitors, just because it seems that they are more successful.. After all, people are in business to beat the competition. To learn from the competitors' strengths, but also learn how to spot their weaknesses and use them to improve own business plan will be like a perfect strategy
.What's the point?. Building a business involves hard work and struggle. Effectiveness will not be achieved without any motivation.. For effective work there must be a clear set of rewards for employees. When setting goals in business plan, it is necessary to include some concrete motivation that goes beyond the satisfaction of a job well done. Another strong accent should be made on the SMART of the goal. (Specific, Measurable, Attainable, Realistic, Timely).
.Don't skip the plan!. Of course, the biggest mistake of all is failing to create a business plan in the first place. Planning is hard work, and there's no guarantee it will make business succeed.. A good composed plan is still the best way to turn vision into a realistic, coherent business.
.2 How to improve planning with the help of modern applications
, many entrepreneurs are beginning to revise their strategic initiatives and pay attention to the efficiency of the processes of budgeting and planning in their companies. Today, when the ERP (Enterprise Resource Planning), and key financial applications are already quite constant, financial leaders are set back an old question: how the financial system may be the best partner for the business?- is the right starting point. Despite the significant investments and efforts in the area of reporting, the problem of comparing actual performance with goals established previously is still not solved. Increasing demands from customers is an essential factor for the company's ability to make predictions for the future. Performance analysis has a much greater value if performed in comparison with the earlier goals.in the planning function may be an important factor in increasing the capacity of the organization, as well as the main (though not yet taken into account) of any part of the cycle of performance management. But the real issue - is to have the courage to challenge the settled order of things and create an approach that integrates planning with strategic objectives, sales and operations, reporting on the performance and, of course, material incentives. And also represent complicated multi-step path to achieve this goal. Thats why planning and forecasting are relevant nowadays.to ask any financial manager, how well his organization deals with drawing up plans and forecasts, in response we can hear: "Not really." Here are the most common problems:
budgets are drawn up with a too low level of detail;
in the budgets accents are placed incorrectly: focuses on spending on a cost center and operational performance parameters remain in the shadows;
lack of integration between financial planning, traditional sales and operations planning;
forecasts are made only for fiscal year;
data definitions are inconsistent or level of detail is different from the actual figures that at least makes it difficult to compare real and planned performance or even makes it impossible;
non-aggregated processes are complicated with spreadsheets and permanent variations;
too much attention to the long preparation of the annual budget and not enough - a permanent, flexible adjustment process forecasts.consequences of poor planning and forecasting are very significant and negative. In addition to the inefficient manual work and increased costs, the risks associated with inaccurate forecasts include a decline in confidence to the business with external stakeholders, which leads to a parallel decrease in market capitalization. In this context, these risks represent a real danger.mentioned above, it is possible to emphasize the following. The current process of planning is complicated by the inefficiency of its individual stages, the lack of integration with the strategic and operational planning and the inability to establish common, comparable standards of data. If we consider these issues in the broader context of the overall role of the financial system in an organization, it becomes obvious that they interfere with this system in order to become a true business partner of the corporation.the past two years many organizations have begun the process of improving the budgeting and planning. This trend has spread to all sectors, with both small and large companies. But the problem is what kind of a way the company should choose to implement the required changes. Often, instead of admitting that their organizations need to rethink the role of the planning function, the heads of financial and information departments fall into the software "trap" and try just to use new tools to solve problems.results.manufacturers have learned to incorporate the requirements of planning functions and can provide the incoming efficiency gained by automating processes and eliminating isolated decisions based on spreadsheetsresults.organizations choose the package application because of advertising slogans that promise fast and hassle-free introduction, and partly because of own aspirations as soon as possible to achieve the desired results. But without the constant work of improving the use of these applications, further advantages that they can provide, may be frustrated. In fact, the introduction of packaged applications can be a first step towards addressing the problems within the planning process, but attention should not escape the fact that these applications will lay only the groundwork, but far from comprehensive in order to achieve the expected results in increasing productivity and efficiency. Companies that focus only on the implementation of packaged applications to support planning, essentially limit themselves to improve processes and efficiency, as well as analytical and predictive capabilities.goal.need to conduct a fundamental revision of the planning process in the context of the overall situation with the management efficiency. This is necessary to achieve the ultimate goal: to improve the company's ability to predict the effectiveness of their work and at the same time create conditions for the continuous monitoring of performance and to adjust their activities.this, strategy should be closely associated with the objectives related to efficiency, and actual performance should be easily comparable to the targets. Finally, financial incentives should depend on how performance is related to the plan. This will ensure that actions are consistent with goals. Here are some key issues that will help to understand what possibilities for improvement has an organization.
The choice of direction and set goalswell does the corporation understand its organizational strategy? Does the organization understand the factors of business value and potential financial implications of different scenarios? What is a balanced set of indicators to establish the tasks for raising efficiency and incentive systems of managers in accordance with all the strategic objectives?
Business Planningwell are the strategic plans and objectives related to the operational planning process? Was a functional planning and scheduling so-called "bottom up"(bottom-up) integrated (e.g, sales plans and financial plans)? Are the functional and individual assessment panels, indicators and definitions to the achievement of these goals connected between each other?
Performance Managementthe set of reports and evidences of efficacy well-organized, to provide managers with information about how the company is on track to meet the planned and strategic goals? Does the organization have features (tools, processes, skills and culture) for rapid response to changing circumstances on the market (effective and efficient change projections)?many companies the process of planning is the area where the financial system can effectively demonstrate the concept of partnership with the business. But the improvement of the process will also require integration with other functions, using the latest technology, determined to change the existing order of things and the desire to better support the planning function with the overall business performance management. This is certainly not an easy task,