Business Plan and Business Planning Process - Essay Example

Business Plan and Business Planning Process The sight of a very successful enterprise is a very motivating phenomenon but for enterprises and businesses to succeed is not something that happens out of the blue or something that just happens overnight. Various companies and businesses have put in place structures and principles that ensure resounding successes. Undoubtedly, one of the structures or principles is that of the construction of a workable business plan. But getting a business plan entails more than just getting a printed document titled ‘business plan’. In this write-up, Stutley’s assertion that “The chief executive of the business or business unit should take overall responsibility for the plan, but the best business plans are developed by the whole….for an enterprise-wide plan, all departments…should contribute to the planning process and the final documentation” (2007, 17) shall be linked to how an all-inclusive policy in the construction of a business plan can lead to successes for companies. Difference between business plan and business planning process Ward (2000) explains that “a business plan is a document that summarizes the operational and financial objectives of a business and contains the detailed plans and budgets showing how the objectives are to be realized.” Giving a closely related definition, Berry (2011) explains that “a business plan is any plan that works for a business to look ahead, allocates resources, focus on key points, and prepare for problems and opportunities.” On the other hand, Gleeson (2011) posits that “the business plan process is simply the steps you go through and actions you take when producing a business plan.” From these definitions, the differences that can be drawn between a business plan and the business planning process are that whereas a business plan is a document, the business planning process is an action. Again, whereas a business plan is an end product, the business planning process is a means to an end and is actually the means that results in a business plan. To this effect, it can be said that an effect business planning process leads to a workable and effective business plan. The concept of all-inclusive business planning process A business plan has been described as the lifeline as well as the skeleton of a business. To this end, it is true to say that the success or failure of a business rests on its business plan and the implementation of the plan. For this reason, it is very important that a business plan bares the characteristics of success. But to do this, it has been made clear that a business plan is actually the end product of the business planning process. So it is important to place much emphasis on the business planning process rather than the business plan itself. It was perhaps in support of such an argument that George Hewell said that “if you fail to plan, you plan to fail.” One strategy that has been suggested to resulting in an effective business plan is to actually do the planning with several hands on deck (Stutley 2007). This is to say that chief executives, managers and other administrators of businesses and corporations should actually include the expertise of as many brains as possible in the business planning process. The business planning process should not be made to appear so sacred, secretive and consecrated. Rather, it should be a team process. How all departments can play active roles in the business plan process By having an all-inclusive business planning process in any company or organization means getting every department and in some cases, intellectuals from outside the organization bring their input. To do this and do it properly rather than doing it for doing sake, there are certain factors that should be ensured. Firstly, departmental heads and their selected representatives should be responsible for the portions of the business plan that relates to their department. Secondly, there should be a peer review team within and without the company to who would give independent criticism to the draft plan. Thirdly, there should be professional supervisors and auditors who would give final approval to the business plan. Finally, sight should not be lost of the entrepreneur or chief executive as the dreams and future of the organization or company should rest on his visions and aspirations. According to Jonker (2009), in small and medium businesses, almost every employee can be consulted through the use of questionnaire and checklists whereby they will write their contributions to the business plan. Such entries, he advocates should be considered by the business planning team during the actual planning stage. The role of the entrepreneur in the all-inclusive business planning process It is a strategic business plan, a short term business plan or an intermediate business plan, the role of the chief executive or the entrepreneur can never be neglected. As much as chief executives and entrepreneurs would allow for an all-inclusive business planning process, their individual roles should not be undermined. Morton (2009) for instance talks of the role of resources in getting the ideas of the business plan implemented. There is no denying fact however that the entrepreneur is the number person we look on to in the provision of resources. For this reason, it is important to consult with the entrepreneur for his input on how much resources he or she would be in a possible to invest in the business plan. Again, the entire business plan should reflect the total vision of the entrepreneur. Such vision is very important because the entrepreneur remains the lifelong employee of the organisation and unlike other employees he or she has no option of quitting even when the running of the company does not suit him. Importance of all-inclusive business planning process An all-inclusive business planning process is very vital in several ways. Some of these have been numerated below: 1. It builds a healthy interpersonal and executive-employee relationship in the organisation. This is a phenomenon needed for organisational growth (Bellissimo, 2011). 2. All employees embrace the plan and thus wok in harmony with the chief executive or entrepreneur in ensuing the achievement of the plan 3. The plan becomes a masterpiece and professionally oriented because it becomes the make up of various professional sampled from among as many employees as possible. 4. General planning, drafting and finalisation of the business plan becomes easier and simple; effective, efficient and less tedious because it is done out of the cooperate effort of many people (Tutor2U 2011). 5. Biases and fantasies are avoided to a large extent due to the contribution of peer reviewers. REFERENCE LIST Bellissimo, 2011, ‘The Importance of a Business Plan’, retrieved May 4, 2011, Berry T, 2011, ‘What is Business Plan?’, retrieved May 3, 2011, Business Plan Help and Small Business Articles. Gleeson A, 2011, ‘The Business Planning Process’, retrieved May 3, 2011 Hewell G, 2011, ‘The Business Planning Process’, retrieved May 5, 2011 Jonker M, 2009, ‘Business Plan Essentials’, retrieved May 4, 2011 Morton L. P 2009, ‘Strategic Planning Process’, retrieved May 5, 2011, Tutor2U 2011, ‘The Process of Business Planning’, retrieved May 5, 2011 Read More