6 Important Business Planning Components for Companies
In order for a company to run as expected, an entrepreneur must have a business plan or better known as a business plan. A business plan is a document that expresses confidence in the ability of a business to sell goods or services by producing satisfying and attractive profits for funders. There are 6 important business planning components for a company. The following is the full explanation.
a. Make a Business Description
The business description aims to explain briefly what line of business will be run, along with the potential of the product and its possibilities for survival and growth in the future. In this business description, it is expected that everyone who is later involved in the business will know the potential and direction of development of the business.
b. Carry out Marketing Strategies
Marketing strategy is an important business component. The marketing strategy to be carried out must be the result of careful market analysis. Market analysis is a force that must be used to create a target buyer. In writing this strategy, you need an appropriate analysis so you can take advantage of the opportunities that exist. The type of analysis that can be used for example is a SWOT analysis. With this analysis, you can find out the strengths, weaknesses, opportunities and threats for a product so that it can implement the right marketing strategy without wasting time, effort and cost.
c. Make Competitor Analysis
Competitor analysis is used to determine the strengths and weaknesses of competitors in the same market. After discovering the strengths and weaknesses of competitors’ products, the company can then look for strategies to market products in a different way to competitors.
d. Design Development
Design and development plans are needed to show the product planning stage, development charts in the context of production and sales. Besides being useful for knowing future business plans, the design of the development will also influence the business financing planning.
e. Operational and Management Plans
Operational and management plans are made to explain how the business will run and be sustainable. The operational plan will focus on the logistics needs of the company, for example the various tasks and responsibilities of the management team, how the assignment procedures are between divisions within the company, and the budget and expenditure requirements related to company operations.
f. Calculating Financing
The financing factor becomes an important element in a business plan. Where the source of funds comes from, how to manage the budget so that it is efficient and the business can run smoothly is an important task that must be planned in the financing component.