102 Reasons Why Do We Need Business Plan To An Entrepreneur – Importances of Business Plan in Entrepreneurship

  1. Extension of business:

If you want to go long, you have to walk with all the needed thing that will create a problem in the way. But if you have not long vision and want to limit your business in any local boundary, then you do not feel the difficulties of a scarcity of business plan.

However, if you have the target and set your goal for making your business popular and branded in great area and coverage, at that time, there is need of a business plan for moving in right direction with the right motto. Business extending is not the minor thing that everyone can do. Most of the business has a limited market and limited customer.

Therefore, your business plan decides all these things how wider you want to extend your business boundary.

  1. Marketing concept :

There is a different way of promoting your business. Without marketing, you will not make your impact and mark in the market as well as in the mind of the customer. There is saying that the sawing product is sold first because it is looked by everyone.

Operating your business in four walls will not get the customer because it is not seen by the customer. And in today age, you must need marketing ideas to promote your business and draw the attention of the customer. So that you will also get a place in the eyes of the customer and become demandable and branded deliveries.

  1. Tackle with the rule of government:

As we know that the stability of government in any country is only for five years. There may change the government every five years. Even some country it happens in two to three years. So you should also stand with strong determination and preparation to tackle with government rule and law.

If you are operating under any one law, you might get instruction to change the system of business due to a change of government policy. The government takes the action and changes the law according to their own concept and briefing. They do not make the rule by targeting anyone industries and business.

So that, the business going into profit may start to descent down d towards the loss when the government changes. So your business plan also prevents you from those kinds of attacks and improve the business strategies.

  1. Provision of the government:

In any country, the government policy and provision are made by targeting the helpful action to the business. If the country has a positive mindset then government even brings the provision for business for promoting their business to increase the growth of the economy too.

So that kinds of provision become helpful to the business and they even take its benefit. When you have a business plan, you can set the government business provision in your own business module to make the growth of business in more speed. The government even brings the provision like as tax deduction, or starting of business in remote areas will get many more subsidies by the government.

This kinds of facilities and helps at the initial stage will be very helpful and easy moving.

  1. Models of advertisement:

Advertisement in business plays a great impact to reveal your business product and make your appearances in the market with heavy moral. There are many kinds of advertisement which you can do with different tools and ideas. You can even do the advertisement in the newspaper, electronic media, radio, television, and internet media.

More than this, there are also many techniques of advertisement which become fruitful and impactful in the business. You can make your business great by operating in silent mode. You should make your appearance vibrantly so that the conversation starter in the customer and people.

A single advertisement will also make the product popular. When the advertisement even touches the heart of the customer, they once surely consume it.

  1. Attachment of permanent customer:

Operating the market with long vision have great risks and opportunity to make their existence stable in the market. If you make your mark positive in the customer and market, then you will surely make the permanent customer.

And if you become able to make some percentage of permanent growth then you will never have to suffer from the low-profit graph. There is saying in the business world that ”a satisfied customer works as advertisement”. So you should also focus on satisfying the customer by delivery them a qualitative product and fashionable design.

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A person having no desire even buys the product when it makes an impact in their mind due to its designs and styles nowadays.

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  1. Confronting the internal and external environment:

The external and internal environment also affect the business sometimes very hard in which the business also have great risk to crack. But when you become self-aware and prepared for all these kinds of the environment to confront with it, then these will not make any great effect.

An environment like political, social, market, economic, cultural, seasonal etc. are the environment which even hits the business drastically without any signal. At that time, it becomes difficult to even save your existence. There occurs only one solution that is to quit.

So, the business is not for any fixed day only, its the work to operate to century and century. No one can determine the business life. Therefore you should also tackle the internal environment like a board of directors, employees, members, shareholder etc. for better cooperation.

  1. Setting the priorities:

In the business transaction, there even appears many kinds of situation, which you should have to solve with great courage. It is lighter when it comes one by one, but it becomes very hard and difficult to tackle with it when the multiple burdens come at a single time.

At that time, the business plan becomes very helpful because t it also contains the remedies to recover it. The priorities are settled with great determination and great daring. While solving the burden, you need to differentiate the burden into many parts and set the priorities according to its nature and effect.

Sometimes even there come the high level of demand, sometimes even the lots of damages product start to produce. These kinds of works can be only terminated by setting its priorities.

  1. Making the brand popular

Branding is the most important thing which keeps the demand for the product in a regular manner. If the branding has done at a high level and the product is treated as branded then it becomes one of the most favorite product and likable product.

The manner here comes in the matter of branding, how much popular you want to make your product. If you want to make its branding in the national level, you should work according to it and if you want to gain popularity become demandable in the local level, then you have present yourself according to the local environment and intention of the customer.

If there is a business plan, then it will become easier to spread your product branding up to a particular area and level.

  1. Cash inflow and outflow:

Cash inflow and outflow in the business determines the performance and level of business that it is operating. If the cash inflow is more than it affects positively but if it has negative acquisition, then is signs negative. Cash inflow also means the income generated through the selling of the product and collection of money from different parties.

While the cash outflow means the payment and going of money from the business. And you better know that the business in credit is just like the committing suicide. Credit business will always keep you in thirsty even having water but its far. So the business plan also limits its fluctuation and more instability in the business. From this statement, the business reduces its cause to fall down in the market.

  1. Launching the changes:

Today is the modern trend. People do not even consume any single product m for more day. They are hunger of change and novelty. And if you are not able to head out according to the desire of the customer, then your business will not pick up the graph.

Selling the traditional clothes in today time, will not be caught by the customer. They always want some extra designed, some extra model which even makes their looks more attractive. Most of the people of today have become fashionable and rich to due to the increment of income. They buy the new one inexpensive price but not the traditional product at the lowest price. Latest product attracts the customer faster than other old product.

  1. Making the communication partner:

When you want to move to another market and another geographical area with the purpose of extending your business, you need the communication partner to access your product finally to the customer through their channel. Doing the business in large level is easy to handle all the sector and all the phase under own monitoring.

There we need a communication channel to supply our product ultimately to the customer with high risk. Communication partner should be declared and negotiated only when we have a proper business plan. That gives us hints and instruction to choose and moves in the right direction by contacting with the right partner. That is why we can say that the business plan also helps to build the communication partner.

  1. Dealing with agencies:

As we know that in the business sector, no one is fully filled and independent. Everyone is dependent upon others according to the nature of the business. Some of the businessmen manufacture some single parts while some other parts and some assembled it and give its final shape and design. It mostly looks in the cotton industry and automobiles industry.

All the parts are manufactured in a different industry and gathered and assembled in another factory. In the same way, you also need to deal with a different agency to collect the raw material and semi-finished goods to gives its final shape and convert into the finished goods. While operating the business and increase its extensional network, you have to deal with more and more number of agencies.

  1. Collection of capital:

Business never says you that the capital is enough, it’s like the water stored in the sea have pierced on the bottom. Business has unlimited scope and boundary to extend and increase the product and transaction. The business also runs and performs according to the investment.

No one knew, when will the bad time start, when will the deflation and inflation suddenly appears in the market. Pricing, demand, and supply of product may suddenly upwards an suddenly downwards. It may come to a higher level sometime and falls to bottom level sometimes. At that time, you need more capital to invest and renew the business. And all these things are firstly analyzed in the business plan.

  1. Specify the transaction:

Business is known for its transaction or performances. If the transaction of the business is not in speed, it means you may have to place and stitch the closed board on its gate. So, being a businessman, you should always focus and try to increase the transactional figure of the business.

When the business transactional figure has good running, it will support you help to pick up your business to the next level. Business should always try to attract the more and more customer, satisfying the more and more customer. When there increase the satisfied customer, the transaction itself increases. The ideas, tricks, and offers, all these should be adopted according to the demand of the time with the help of a business plan.

  1. Payment of loan:

Most of the business is operating under the loan. Because everyone does not have such huge capital who can start at the initial phase. That is why most of the businessman does the transaction with the bank because they get the capital in low-interest rate.

But when the capital amount becomes great, the interest also become great which even creates sometimes difficult to make payment. While borrowing the loan from the bank, you should first analyze your business and transaction whether it would be suitable or not to withdraw the money in such figures. Otherwise, you may sink on your own boat.

If you are operating your business in the loan, then you should always be very careful and serious about its utilization and investment in sources generating sector.

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  1. A number of product launching:

Some of the businessmen even make the plan to increase its product number with the increase and growth of the business while some start with multiple products. Because they know that if any product does not pick up by the customer, then another will provide benefit to them. That reduces the probability of going to lose.

You can manage the money and funds by selling some product even any of them do not demand by the customer. A business plan helps to derive the new and attractive product which makes the business more standard and transparent. A number of product increase more transaction and more transaction leads to more profit.

Before coming in the business or even modifying the business with the motto of releasing some more new product also needs the business plan.

  1. Utilizing the resources:

As in the business, there are different resources which are not in use and socked as deactivated good. So all these things should be considered for taking benefit from it by utilizing it in proper places. In the business, if you do not try to utilize and mobile the passive resources, the sources of income will also end.

All the resources should be utilized properly which even helps to manufacture some new things and product or helps to reduce the cost. Resources like human resources, technical resources, and financial resources should be mostly focused on to achieve the targeted result. All these three resources are the backbone of the business which should always be kept and maintained in a strong and robust manner.

  1. Price determination:

Doing everything does not make the works completed. The one and another problem arise continuously in the business. Next one, the pricing also affect very much in business. You should determine and marked the price in the ration of your competitor. While determining the price of the product, you should also measure the quality range.

After all this measurement, it becomes guidelines to determine any particular price in accordance with your competitor. Otherwise, marking the price in high level having low-quality product will not be purchased by the customer. The customer always is ready to pay the more amount only to the good and qualitative product.

No one will pay the amount of gold to steal. Determination of price should be done by comparing ad measuring all the component that includes it with other.

  1. The increment of the production:

When the demand increase of your product, at that time you should also increase the production. If your delay for doing the production of a good or there is a problem and scarcity of raw material in your camp, then you cannot make your stand in front of the customer. There is saying that time, death and customer do not wait.

They all have no time. If you are not able to provide the goods at demand, then they may move to another supplier. And this will stroke your business very badly. When the business starts to rest at its speeding graph, it means the bad time has started. You have to always stand with all readiness to production in the camp.

In this case, if there is the business plan, then it becomes easy to maintain all the material for producing the goods at the time demand. The pressure of demand even makes your tired away.

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