Small Business Essay

3376 WordsMay 15, 201314 Pages
P3 : Explain different planning techniques There are four major reasons why business planning is used for a company. The first reason is for the startup of a new venture, the second reason is for an existing organization that needs to expand, the third reason is for the purchase of an existing service, product or company, and the fourth reason is to improve an existing company, service or product´s management. It allows an organization, service or product to set goals and accomplish them using facts and resources that can be obtained by specialists. This allows for profitability, growth and a greater chance for a company´s success. Every profession is different, and a key factor in the type of business plan your company needs is the level of complexity your business has. Content and formatting are factors that must be determined by your company´s structure, and the plan will be based on the needs of decision makers in your organization. If your company is ran mostly by funders, Board of Directors, investors and management, your plan will require those considerations. Every business planning technique includes a few general sections of information to describe what your company is trying to accomplish. It contains eight basic components as building blocks, and more specialized plans are built around them to capture the unique goals of your company. The first component is a description of what your company does, benefits, advantages and primary features. The second building block involves what your intention is with that company, whether it is to expand or purchase it etc. Ensuring that you explain why your goals have credibility is the third important component, and the fourth is a description of your target market or customer base. Number five on the list is providing a description of the specialists that you will need to work with you in your venture, and number

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