Building A Business Plan
Posted by Steven in Annual plan, Business plan, Five Year Plan, Rolling Plan, Sound strategy, Vision
Defining a sound strategy is vital preparation for success. But even the best strategy will fail without a good business plan to put it to work. The strategy is the idea behind, but the business plan is the first of many tools by which the idea will turn in to actions. The business plan is the where, when, how, and why of what a company must do to implement its strategy. It’s just that simple but in the same time it’s difficult too.
The business plan offers general and specific guidance on reaching company goals. It outlines actions. It also seperates the dreamers from the doers.It is often the great equalizer between the enthusiastic idea generators and the serious business people who will accomplish their dreams.
Business plans are usually annual, based on the fiscal year. But there are also multiple year plans – the most common which is the Five Year plan. An annual plan is operational and necessary to manage the company’s economic needs for the coming year, whereas a Five year plan is more strategic and designed to chart the firm’s direction. In addition five year plan should be rolling plan. A rolling plan is a perpetual motion engine for your business vehicle.Once you finish the first year in your plan, you add another year to the end of the plan, so the company always looking five years ahead. Not only does this ensure, greater continuity of vision, but it also spares managers the enormous task of creating subsequent five year plans.
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