Business Planning: Know the Definition, Purpose, Types and Components

For those of you who aspire to become an entrepreneur, it is important to know what a business plan is.

The existence of this business plan is very important for a business because without careful and good planning, it is difficult for an entrepreneur to achieve success.

So, what is the meaning of business planning in the business world? What are the goals and benefits?

Well, if you want to know more about questions about business planning, let’s look at the following reviews about business plans.

Understanding Business Planning

The first thing you need to know is the meaning of a business plan.

A business plan or business plan is an important activity or activity that you must prepare before starting a business.

In a business plan, you need to write in detail about business concepts, finance, marketing, and other related matters.

This is so that your business is well-prepared, making it easier to achieve success than not having a plan at all.

Purpose of Business Planning

Besides needing to know the meaning of a business plan, you also need to know what its purpose is.

Planning in a business is very crucial because it aims to make the business run stably and be more successful.

In addition, there are many other goals of the business plan that you must do, which are as follows.

1. Ensuring Business According to the Vision and Mission

The first purpose of business planning is to ensure that the business you are running runs according to the vision and mission that you have set at the start.

Not only that, by making a business plan, you can review the business activities that you do regularly and you can use it as material for analysis and evaluation.

2. Calculating Resources

The second purpose of making a business plan is so that entrepreneurs can find out how many resources are needed for the company’s operational activities.

This also includes a clear picture of the number of HR and each of the skills that you will need.

Well, if you already know the amount of resources needed, then you can determine the amount of costs required for these resources.

3. Estimating Business Profit

The purpose of the next business plan is to be able to determine when your business will make a targeted profit.

In addition, you can also develop a strategy to achieve the profit target according to the timeline.

4. Evaluate the Next Business Plan

The last purpose of making a business plan is to be able to evaluate for the next business or business.

For example, if there was a problem in the previous plan, then you can find a solution so that the next business plan does not have the same problem or obstacle.

Types of Business Plans

Knowing the types of business plans is also important because you can find out which type is right for your type of Business.

1. Operational Planning

The first type is operational planning. This type of business plan is a business plan that can provide a clear picture of how a company is running.

You can still change this plan if the results provided are less effective.

An example of operational management planning is SOP (Standard Operating Procedure)

2. Strategic Planning

The second type of planning is strategic planning, which is a business plan consisting of strategic steps that are prepared to achieve business goals.

This type of planning is also crucial because it can determine long-term decisions, such as company values, company vision and mission, and so on.

3. Tactical Planning

This type of tactical planning is useful for realizing a business strategy that you have previously planned, for example, a marketing strategy.

4. Long Term Planning

As the name suggests, this type of planning is useful for business plans for a period of more than 1 year.

So, what is the purpose of long-term planning? The goal is to project the success of a company on a larger scale, such as “Going international”, or achieving an IPO.