The Importance of Business Planning for Success

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For years business has been sprouting up. A new entrepreneur arrives with an idea, and builds on that and eventually builds that something into a business. From the earliest stages a business must have some kind of plan. Whether this idea is conceived at a table on a piece of scratch paper or something more formal, the business most likely derived from a business plan. One might ask why it is important for an organization to develop formal plans. The answer to that may be that, if one wishes to succeed they must first have a plan. Some businesses if being funded will need to show a business plan before any investment takes place. This plan which is an orderly step-by-step conception or proposal for accomplishing an objective, basically …show more content…

(Barnat, n.d.) The Operational Plan should be designed with the strategic objectives in mind. The difference in Strategic and Operational Plans is relevant to time frame, scope, and the inclusion of organizational objectives. People like to be able to envision a plan. Sometimes it may be easier to believe in a plan rather than the person behind the plan. Operational plans allow for a process to become established. This process is the day to day activities of an organization which could in its simplest form look like one of the following …show more content…

The objectives of this plan will reach out several years. These plans will give the organization major goals to aim for, i.e. being the first level three trauma unit in the county. Through the developmental process of a strategic plan it is common practice to identify an organizations strengths, weakness, opportunities, and potential threats. In order to develop an operational plan the business needs to have the basis of its strategic plan in place. In other words, In order to know how to get there, one needs to know where they are going. Once it is known where we are going, figuring out how to get there is the job for an Operational plan. The Operational plan will show how day to day activities are carried out in support of the strategic goals of the organization. Once plans are in place they need to be monitored in order to determine the need for change, this is best done by incorporating KPI’s into the plans for data collection and progress

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