Importance and Advantages of a Concrete Business Plan

It can also be comprehended from these statements that planning is the base upon which the other managerial operations are carried out in an organization. It is a cyclical process in an organization. Planning first, based on planning organize people and coordinate them. Ultimately the performance of the organization is compared with the plans made initially and based on the results the making of plans starts again. If this cycle is carefully carried out in an organization, objectives can be achieved easily. But it is not as simple as mentioned here. There are a lot of factors that influence the planning process. For a small business, the need for planning and the importance of planning will be more crucial because of the scale of operations. For a small business, organization planning is crucial to survive and to grow in a competitive environment. Hence, this essay elaborates on the need, value, importance, and advantages of a concrete business plan in the following pages.
For a small business, there are so many reasons which make a business plan very valuable for its survival and growth. The primary reason is that the plans can help us to perceive opportunities. Awareness of the opportunities is not a strictly planning process. But, the awareness of the opportunities is essential for making plans. When there is a mechanism for efficient planning in an organization, it includes a collection of information from the market intelligence sources. When the organization is effective in planning it will be in the constant lookout for information about new opportunities. Both factors are reciprocative in nature. When there is good planning the organization is receptive to the opportunities in the environment. When it is receptive to the opportunities created by the changes in the external environment, there is room for more planning and implementation. Thus, planning makes the organization to be on track towards the achievement of its strategic goals.