TOPIC 3: BUSINESS PLANNING
Critical issues in business success and failure
- importance of a business plan
- management - staffing and teams
- trend analysis
- identifying and sustaining competitive advantage
- avoiding over-extension of finance and other resources
- using technology
- economic conditions
It should be clear by now that a business plan is important. If you still need to be convinced READ What Is the Importance & Purpose of a Business Plan? (Chron).
Once the business plan indicates that your business has a strong possibility of being successful it needs to be brought into action.
- Management structures and the managers themselves need to be chosen. Then the managers need to staff the business and organising the teams in which they will be working. READ: Staffing Issues Critical to Business Strategies
- The business needs to continue monitoring, evaluating and adjusting the business plan and its implementation by conducting trend analysis. This includes the importance of sustaining a competitive advantage.
- With some initial successes a business may be tempted to overextend by acquiring too many resources such as purchasing and leasing equipment, cars and inventory. This could then stretch finances too thin. This also means being careful about not overcommitting to customers about what the business is capable of achieving.
- READ why using technology remains key to business success (and the video).
- Finally, businesses need to adapt their business plans according to economic conditions. READ What Constraints are Placed on Business in the Economy? Also see the video below.