Definition of a Business Plan and Important of Financial, Marketing, and Organizational plans
Business Plan
A business plan is a written document with the goals and objectives of a specific company and how to achieve those goals within a given period. A good business plan is a determiner of organizational success. A satisfactory business plan should indicate the products/ services offered. It should be flexible in case of a change in the market. Also, both short term and long term goals should be into consideration. In the same way, it should indicate the sales target and expenses.
Although business plans are different, they have common elements: Executive summary, business overview, sales, and marketing strategy, and financial information (Zimmerer, & Scarboroug, 2005).
Importance of financial planning
A financial plan is a road ++map to your financial goals. It should have your current and future goals in terms of money. A financial plan is essential for business success as it helps the company achieve its objectives quickly. In the same way, it aids in the company’s future growth. financial plan evaluates where you are and where you aim to be soon. It helps in prioritizing the allocation of finances to the right projects. It also ensures the sufficiency of funds, which helps in the company’s stability in the market (Babiarz, & Robb,2014).
With exceptional financial planning, it improves the standard of living due to proper management of your profit and the flow of your products/ services in the market. Similarly, it lowers financial stress in case of an emergency.
Importance of marketing plan
A marketing plan is how a business promotes its product/services to reach its target customers. Marketing is essential in attaining company goals and objectives. Through marketing, a company can sell its products, which in turn, brings profit, hence the business growth and sustainability (Babiarz, & Robb,2014).
This helps a business to venture into the market no matter how high the competition is, as the company tries to come up with unique ideas and high-quality products and services.
Organizational plan
Organizational planning is defined as implementing the right resources and the right people in the right places to achieve the company’s short term and long term objectives. Specific strategies have to be applied, formulated, and monitored. This helps the employees to know where they should be, at what time, and what to do.
References
Babiarz, P., & Robb, C. A. (2014). Financial literacy and emergency saving. Journal of Family and Economic Issues, 35(1), 40-50.
Cohen, W. A. (2005). The Marketing Plan. John Wiley & Sons.
Zimmerer, T. W., & Scarboroug, N. M. (2005). Essentials of Entrepreneurship and Small Business Management. Prentice-Hall.