Successful Business Planning - Energizing Company's Potential - Essay Example

Business planning Table of contents a. introduction b. Sorcerer’s accountant c. I’ll Be Denim Company d. strengths of the plans e. weaknesses of the plan f. plan similarities g. plan differences h. challenges i. lessons learnt j. proficiencies acquired k. conclusion l. references Introduction The making of a business plan is an important undertaking for all sectors of the economy. This is due to the many benefits that come with the use of a plan. It has be en quoted that failing to plan is equivalent to planning to fail. The use of the plans for the businesses more so is important in the attainment of the goals and the objectives of the business. (Paley, (2004).) The main benefit of planning is that it results to the reduction in the time spent in the undertaking of the activities of the firm. This is through the proper allocation of the time resources available and the tasks that need to be undertaken by the firm. It is through business plans that the strategic and goals of the company are achieved in the short and the long term of the business. (Ehrlich, S. B., & Michael, D. C. (2009)) The putting in place of a good plan also has the benefit of increasing the use of the resources available. This is the aspect of maximum utilization of the resources available for the company. Business plans also act as effective tools for job allocation between the different personnel who are ion a workplace environment. This is through the clear identification of the activities that should be undertaken by a given employee. This hence facilitates specialization of the tasks by the people in the workplace environment. (Zehle, (2004).) As stated above, business planning is an important tool for the business in its aim and objective of goal attainment. This is through the proper allocation of the resources that are at the disposal of the company. This aids in the goals attainment process. It is also an important tool in the ensuring of the effectiveness of the procedures that are employed by the company. The business plan also helps in seeing to it that the management goals and aspirations are passed to the subordinates and that the company sticks to them. This hence enables the company to best fit in the market of operation. It also helps in outwitting the competition that exists in the market. This in turn helps the company to make massive strides in its activities and make much returns from the operations in which it undertakes. Sorcerer’s accountant. The accounting and bookkeeping plan is the first plan to be analyzed. This is on the Sorcerer’s Accountant. This is an accounting firm that is managed and run by one person, which is based in Chicago Illinois. Some of the activities that are undertaken by the firm include basic accounting, management accounting and QuickBooks. The plan of the firm seeks to make it grow from a one-man managed entity to a broad firm. This is because the firm identifies and acknowledges the benefits that accrue from the presence of several qualified personnel. The benefits include the development of specialization form the people. This is where people are able to specialize in their areas of profession. This enhances better task completion and even better quality services to the customers. This will be for the benefit of the company. ((Paley, (2004).)) I’ll Be Denim Company This company deals with organic denim and apparel. The headquarters of the product line are currently located in Los Angeles. It seeks at producing apparel that is good both for the men and for the women. Most of the operations of the company are undertaken online but it intends to embark on an expansion process. With this, the company intends to operate in a global working arena. This will be enhanced through the opening up of new branches that will facilitate the opening up of new markets. New markets have the advantage of bringing with them new customer numbers who will be useful for the company in the increase of the revenue, which it makes from its operations. Strengths of the plans The accountant plan has some strong components that make it up. The main strong component of the plan is that it is based on the objectives that are goal oriented. It has also developed several keys that will facilitate its success. The first key, which acts as a strength to the company, is the building of trust with the clients. The success of any company is facilitated by the manner in which it addresses the welfare of the clients and the customers. The customers act as the backbone to the success of the company. This is because they are the drivers and the people who are targeted by the plans of all service oriented firms. (Paley, (2004).) The other aspect that acts as a stronghold for the company in the attaining of the objectives that it has set for itself is the intent to maintain an up to date certification and education on the accounting practices. Knowledge is strength. The knowledge that they will acquire will help them in the meeting of the objectives that they have set for their business. This is through the being well conversant with the current affairs and the trends that are in the market at large. This will the useful for the company. This is because with this, they will be able to meet the goals and the plans that they have set for the period. It will also help them in the addressing f the issues that are raised by the customers and the clients in a good manner. This will also aid in the making of the plan to materialize in the business. With better knowledge into the activities that revolve around a firm, the business will be able to expand. (Forsyth, (2002)) The third strength aspect of the company is the seeking to abide with the legal and ethical practices as demands the market. This is in matters such as transparency, reporting and the payment of taxes to the government tax bodies. This will make it to be in line with all the legal requirements that exist. The apparel company plan has several benefits to the company. The first is that it seeks at creating a competitive edge for the company against the other players in the market. This is through the seeing to it that the company undertakes a thorough marketing strategy. They include the advertisements of the company being aired in the social networks and other advertising platforms. This will help in the increasing of the customer number who get access to the information about the company. (Ehrlich, S. B., & Michael, D. C. (2009)) This will also enhance the improvement of the grip of the market. This will result to an increase for revenues that the company makes. It will in the result to profits for the company which will also facilitate growth of the company. Another strength for the company is that it has put in place strategies that are aimed at ensuring maximum flexibility for the company in its operations. This is where it makes a schedule that well falls in place to fit the everyday needs of the organization. The third strength of the company is that it is offering a wide range of services for the company. Through the offering of a wide range of activities and services, it will be able to attract customers from different areas of operations. This will be for the benefit of the company because it will be able to increase the revenues that arise from the different services that it is offering. Weaknesses of the plans The plan of the company is also subject to several weaknesses. The first weakness is that it does not focus on the creation of brand knowledge and information top the customers of the company. This is because it has not put in place any measures that are aimed at marketing the company to the outside world. Through the lack of marketing, the company will not be able to get acceptance to the outside world. Marketing acts as an important tool in the expansion and the development process of the company. (Ehrlich, S. B., & Michael, D. C. (2009)) This is because through marketing, the people from all the corners of the world are able to get relevant information about the company, which they earlier did not have. This aids in the increase of the revenues that are made by the company. The second weakness that is evident in the plan is the lack of expansion intentions. This is where the company has not made clear any intentions to open up more branches and or offices to aid in the improvement of the service levels to the customers. The third weakness that is portrayed by the plan of the company is that it does not focus on the improvement of the environmental conditions. The recent days have been characterized by the organizations and businesses adopting a “green” initiative. This is where; they undertake their activities, in a manner that is friendly to the environment around them. This helps in the reduction of the effects of the global warming effects. There is also a global push for companies to adopt environmentally friendly techniques to achieve maximum success in their respective fields. By the plan omitting this, it will result to the organization not being in line with the demands that are in the market. (Zehle, (2004).) The plan of the apparel manufacturer however has some weaknesses that are associated with it. The first is that it does not pay focus on the green movement trend, which has been on the push in the recent days. This is the movement towards environmental conservation through such things as use of renewable energy and similar other services. Through this, it misses the benefits that accrue from the use of such. The second weakness is that it has put more attention on diversification and less on the product quality and specification. Through this, the misgivings of the products that were in existence before the diversification will not be addressed. The third disadvantage is that it has paid little or no attention to the feedback that is received from the customers on the services that it renders. This affects the organization in that by not sorting out the issues that exist in its services. This hence has the effect of reducing the number of customers that the company has. Similarities between the plans The two companies have several similarities that they possess. The first is that their objectives are set in a way that they seek at attaining maximum growth for themselves. The growth in this case is in the customer numbers and the revenues that arise as a result. The second similarity is that their system are not aligned in a way as to meet the global environmental levels that are being addressed in the recent past. Differences between the plans Some differences also exist in the way the companies undertake their activities. The first is that while the Sorcerer’s accountants are focused on only increasing the customer numbers, they are not focused on increasing the number of branches, which they have. This is because on their part they fully focus on increasing the number of branches. They are also focused more on marketing to increase the number of customers for their products. This will in turn increase their profits. Challenges to planning process There are many challenges that face the process of business planning. The first challenge is the determination of the allocation procedure of the time and the resources available. This has however been countered through the use of the past results as a basis for the analysis. This has been useful because the resources that were used up have been better strengthened and enhanced for the current period. It also provides a good basis for the preparation of the future results. The planning process also faces a challenge in the case of new staff fitting in with the plans and the systems of the organization. This has however been countered through the creation of a strong organizational culture that is adopted by the new employees that join the organization. Lessons from the process and recommendations There are many lessons that can be gathered from the basis of planning in organizations. The first is that the planning process should be given adequate time to be enhanced. The adequate time being given makes the planning process to be an effective. An educated and a well knowledgeable person should also do the planning process. (Paley, (2004).) The planning process should also be done based on the resources that are available on the disposal of the company. This enables the efficient allocation of the resources that are available. This is what facilitates the maximum utilization of the resources of the company. The process should also take into consideration the skills and the competencies of the staff and the personnel of the company. The planning process should also take into consideration the market patterns and any possible changes in the demand and supply patterns should be well recognized. This will enable the company not to make any losses in the future by embarking on the project. The planning process should also be a realistic process. This is to eliminate any chances of overstating and overcasting the resources that are at the disposal of the company. The overstating of such may make the company to embark on projects and activities which it cannot fulfil and meet6 in time. This is at the expense of the company’s resources. (Stutely, (2002)) The planning process should also take into account all the view and the expressions of the people in which the company is party. The taking into account all the views, the company is able to address all the issues that arise from the operations. The planning process should also be in line with the global environmental management standards and levels. This is for the better of the company. Adherence to the levels makes the company to implement strategies that are both cost effective and renewable. This is for example the use of solar energy in the operations. The planning process should also be according to the views and the opinions of the majority. This means that the process should take into account the views and the opinions of the clients and the customers. Proficiencies acquired Many proficiencies are learnt from the study of the planning process. They include the use of opinions of the people to whom the company is party. Another is the adherence to the environmental standards that are set. Third, is to take into consideration the resources that are at the disposal of the company. Conclusion In conclusion, all businesses that intend to have massive returns from their operations should undertake planning of their activities. This is due to the many advantages that planning has to them. They include the saving of time and the maximum utilization of the resources of a given company. The business will make massive gains and attain maximum returns from their undertakings once they implement a fully environmentally friendly plan. This will help them in the seeing to it that they will have a sense of direction in the meeting of the goals that they have set for their businesses. References Ehrlich, S. B., & Michael, D. C. (2009). Business planning . Newark, NJ: LexisNexis Forsyth, P. (2002). Business planning . Oxford: Capstone Pub. Friend, G., & Zehle, S. (2004). Guide to business planning . London: Economist in association with profile Books. Paley, N. (2004). Successful business planning: Energizing your company's potential. London: rogood. Stutely, R. (2002). The definitive business plan: The fast-track to intelligent business planning for executives and entrepreneurs London: Financial Times Prentice Hall. www.bplans.com/accounting_and_bookkeeping_business_plan/executive_summary_fc.php www.shopify.com/guides/businessplan/sample-business-plan Read More