One of the most crucial elements of starting a new venture is its planning. If you get it right, the trust of investors, distributors, suppliers, and staff is in. However, if the planning goes wrong, it would be difficult to get the venture off the ground.
In this article at CIO, Lou Markstrom explains that it could be extremely tough to select the right technology and business initiative. Therefore, he suggests some crucial elements of business planning to make it easier for the entrepreneurs.
Since effective planning is the key to success, the business plan should be designed in a manner that it helps you secure finance, prioritize efforts, and evaluate opportunities. Initially, it may seem like a lot of work, but a well-prepared strategy can save you time and money ahead. Here are five elements of business planning that may help you strategize better:
- Market: See if the market for your product or service is attractive enough. Is it trendy enough to fast grab consumers attention and enough growth in the market? Sometimes, having a great product or service is not good enough to grow if the market is shrinking rapidly.
- Offerings: Ensure that you have a well-defined product and you can deliver it in a specified time. If you can articulate it or explain it without any confusion, you will probably sell it successfully. Moreover, having a clear technical capability to build, deliver and supply the product is indispensable.
- Operations: Think of the operations in a way a chef would look at a recipe. If you put the right ingredients together that too in the same order, the result will be extraordinary. The ‘organizational chart’ or different roles required also come into play in the operations.
- Financials: Think of financial elements in terms of the project requirement, return or investment worth the time and resources required. Look at the length of the payback period, and net present value. See if these returns cover the cost of capital while looking at the opportunity cost.
- Competition: It is critical for a business to well-define. Look for ways to switch competition to co-operation that is finding a way to work cooperatively with people whom you consider as competitors.
The author believes that analyzing an initiative, plan, project or strategy can effectively answer all the elements mentioned above. Click on the following link to read the original article: https://www.cio.com.au/article/643924/5-critical-elements-business-planning/?fp=16&fpid=1