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Business Planning & Improving Business Growth
Planning is fundamental to business growth. It helps to create a vision for a well established business. A successful
business requires strategy to please its customers and excel despite cut throat competition. Let us now learn what
exactly is business plan and why it is necessary.
Planning the
business
Growing Business
Business Plan
A business plan is a detailed plan of what entrepreneurs want to achieve in a company and how to achieve it. When
planning a business, an entrepreneur has to think about several factors. This includes answering the following questions:
• Who is the customer and which need is being met?
• What product/service to sell?
• What are the various business activities involved?
• Which material(s) is/are required to build the product?
• What is the number of customers being targeted?
• What is the role of each team member involved in the business?
Importance of Planning the Business
Business planning is important to entrepreneurs. The reasons for making a business plan are as follows:
a. Estimate of required funds: Once you know the products and sales destinations, the next steps are to estimate the
amount it will take to start a business. Without an estimate of the amount of money, an entrepreneur could make a
large investment or start a business without enough money to run the business.
b. Estimating the amount of material required: Knowing the amount of material required lets the entrepreneur
determine the cost of manufacturing a product or the cost of providing a service.
c. Prominent: The business plan also strategies how to get customers to consider the company unique to customers
compared to their competitors.
d. Goal Setting: Another important reason for the plan is to set ambitious yet realistic goals. These goals motivate
entrepreneurs to work hard.
Improving Business Growth
After starting a business, entrepreneurs need to think about how to continue to improve and grow by adding value to
their business for attracting customers. The following principles need to be considered:
a. Quality: Business owners can improve their business by improving the quality of the products or services offered to
their customers. This helps them get noticed in the business and also justifies higher prices.
More cash flow will help your business grow. For example, in case of tea business, entrepreneurs can improve the
quality of the product by offering various varieties of teas in different quantities.
Entrepreneurial Skills-III 79

