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


  1. Changes in technology:

Driving in the cycle will not take you to reach to the moon. This saying is also applied in the business. As it is the modern age, and the technology gets changed the over the night. If you do not keep the capabilities of changing the technology and innovate your production and product, then it will push you back in the race of competition.

The innovation n technology also makes your business standard and more beneficial. Modern technology makes your works effortless and increases the quality of production. When you get more benefit in adopting or bringing the new technology, then you have to also bring them. Changes in technology will make your business traditional.

And if you move through that machines, then you cannot achieve your goal. You may slowly fall towards the loss which even becomes difficult to understand at the last stage. Moving according to the wave will make your move fast easy too.

  1. Adoption of culture:

It is necessary to build the culture an system in the business for its better movement. If there is culture than it becomes easy to fertilize and utilize all the employees with one spirit and one commitment. Culture gives the help of tieing everyone in one goal, one target, and one direction. If the employees move towards the different direction with different objectives, then it becomes difficult to direct every employee.

Culture in the business helps to improve your transaction and also the build the relationship between the employees. So if you want to implement the culture in the business, then you should first make the business plan. Culture in the business leads the systematic movement which also affects the business positively.

Advertisement

  1. Goodwill increasing:

When you want to operate the large-scale business, then it also becomes necessary to make the brand more popular which increase the value of the organization’s goodwill. Goodwill is the assets of the business because it clarifies the weight and height of the business.

Business is measured by its goodwill value. We even see that in some company, they have the great value of their organization that their product’s value. Goodwill is intangible assets which are created by the business positioning in the market. Goodwill gives more branding than its product. The cost of the company is known for its goodwill. In other words, goodwill is also evaluated with popularity.

Popularity and goodwill are independent of each other. So when there is applying of a business plan, it directly also affect the goodwill due to many schemes.

  1. Adoption of the environment:

The internal working environment should also be conducive and comfortable for the employees. So that they can work without feeling the tiredness, laziness, and boredom. If the working environment is unacceptable to the employees, there is much chance and possibility of increasing the damaged product.

If the employees do not feel easy and comfortable in working stand, then it creates mental torture and negativity which shown n the increment of un qualitative product. Thus the environment where there is a number of employees, should be managed and maintained in a good manner. If the internal working environment is still cold in the winter season, then they will not show eager and desire to work.

Advertisement

But when you provide the facilities of the heater, then it becomes conducive and they feel comfortable to invest their efforts.

  1. Determining the motivational theories:

The motivational theories are very much essential in the business to inject the employees to invest their ultimate efforts. Producing the positive energy, positive intention and positive psychology to the employees make the business more strong and more popular.

The motivational principle should be adopted according to the culture and nature of the business. A large-scale business needs another theory motivation and small-scale business needs another. Mostly it is seen that the many businesses even get closed because they show misery in expending their amount on employees cultivation and innovation.

You should know that when the employees are happy, then the business will make its transaction speed high. Motivation theory is adopted only when there is the better business plan which enhances the employee’s will and skill.

  1. The increment of shareholder:

In many business companies, there is made the provision of making the employees also the shareholder by giving them some percentage, if they have contributed for some certain period. This is also one of the attractive provision which is made by looking at the benefit of the employees. These kinds of facilities help to promote the product an as well as its quality.

At many times, you even need manpower and capital too which can be even selected by the shareholder. When there is a number of the shareholder, it becomes easy to operate the business due to the availability of different kinds of skilled manpower and capital can be also collected through it.

A shareholder in more number makes the business size bigger and contribution also increases. This decision is also confirmed only when there is a business plan.

See Also:

  1. The permanent or temporary hiring of the employees:

This is also one of the great matter in the business. Sometimes, it also needs to hire the employees on the temporary basis that is also called contract or hiring for a certain period. And another is permanent which makes the employees the part of the business. Mostly the temporary employees are hired at the time emergency or for operating or innovating.

For a certain period, even the highly skilled manpower can be hired which helps to do some new launching and upgrading in the product. The negative aspect of it is also the salary or remuneration given to it. Salary should be given on a daily basis when you hired them permanently if not only for a certain period. The business plan will clarify you all these matters in the small sheet.

  1. Leading towards the goal:

Business is either moving toward its goal or not, these kinds of matter can be only recognized when you have a business plan or module. Business module signs you in every step that you are moving either to the right direction or in the wrong direction.

Due to the availability of every things and analysis of all the factors of business makes the problem easier to identify. While starting the business, there is a business model which directly leads to the goal. The business operation without its goal is just like forgetting and walking in the way. You will nervily reach the peak of popularity. These all things are determined and analyzed by the business plan. A business plan helps to remove all the barriers and makes the way more clear.

  1. The basis of promotion:

There must be the provision of making the employees happy by providing them with different kinds of facilities and services. Changing the employees in time to time will not make your business movement trending. The new employees even take the time to know about the business model, environment and culture.

They spend sometimes in socialization in the business. Therefore, you have to make the provision of providing different kinds of promotive services. And promotion should be done without any domination and discrimination. Promotion should declare by identity and measure the performances of the employees.

When employees get the chance to develop their career planning, they want to stay in your business and invest their ultimate efforts to make your business better.

  1. The basis of punishment:

When you make the provision of punishment, then you should also make the provision of punishment. As you know that even the rat become voicing when it is kept out of the track of out of control.

So everything must act in the limitation. Crossing the limitation and increasing the boundary of flexibility even creates the losses in business. In the same way, there are many employees who do not follow the rule and instruction of their supreme employees. They are even stubborn and mostly involve in creating disputes and conflict in the business.

So paying the remuneration to handicapped manpower is not the beneficial thing for business as it increases the unwanted expenditure. So you should also determine punishment according to their crimes and mistakes by evaluating the business plan.

  1. Identification of training:

Training is also a very much essential element which should give in time to time. It is also the art and ideas given to employees in the gap of time and situation. As we know that the business also changes its culture, systems, and technology. So you have to make the employees readiness for changes before bringing something new into the business.

Every employee has not the same skill and same learning power. Some even catch up the myth very fast while takes more time. That is why training should be given to employees that make them conduct and perfect in operating and adjust in the available and change situation and environment.

Even the business change its location and strategy when they feel its the needs. At that time, employees are needed to provide the training that brings them in comfort zone. These are also the reason which demands the business plan.

  1. Purchasing or taking the goods on rent:

As we know that no any businessman has sufficient capital and income. So that they can handle all the nerves of the business. In the business, some of the goods are even purchased in cash and even sometimes in credit. But most of the transaction is done in credit due to a slow collection of returning. In this case, the business plan decides whether the product should be purchased in credit or cash.

Because when you purchased the raw material in bulk, you have to purchase it in credit because of its high amounting figures. Sometimes, due to more demand, these kinds of action have to take for managing the balance in the market.

So these all things also generate the problem when it strikes your drastically. As it is said prevention is better than cure, you have to manage and move according to the structure of business either to purchase the good or taking something on rent for the period.

  1. Facilities of delivery:

As we know very well that when we make the product and give it the final shape, it needs to be sell out finally to the customer. And for that, we need the channel and communication. If you are planning to conduct the manufacturing business, then there is need of transport which you have to manage for better communication with supplying partners.

Otherwise, it becomes difficult to supply the product without the involvement of a mediator. Delivery of product to stores also makes them easy to supply them to final costumers. It is also the attracting factors to contact the supplies who will supply your product without any hesitation and problem.

So that there is also the need for a business plan to conduct and plot all the way for short and affordable delivery of the product.

  1. Making the business alliance:

In any case, there comes the situation where you have to move togetherly by the alliance. If there is also another partner doing the same or little different supplying of the product, then there can be the movement w by making the agreement on some points.

There are many partners where you even feel safe to join them because they even fulfill your scarcity. Some of the combination services can be settled and supplied to the customer without any problem. Business alliances help to make your positioning as well as branding and popularity bigger.

You also become great in shape and size which will make the costumer more loyalist and trustworthy. Mostly eth customer fastly shows their trust in a big brand. And they even accept it as well as pay some extra cost for it.

  • 100 Reasons why do we need a business plan in Nepal
  • 50 Reasons why do we need a business plan in India
  • 60 Reasons why do we need a business plan in USA
  • 70 Reasons why do we need a business plan in Canada
  • 10 Reasons why do we need a business plan in UK
  1. Maintenance of tax policy:

Tax is compulsory payment of money to the government which you should pay for operating your business. If you are operating the business in scaling factors, then you should also focus on the tax for payment to the government.

Sometimes, even the tax is distributed and collection wrongly which creates more difficulties in payment. Due to the sudden change in the policy of the government also makes your tax payment less and more both. So experts should be there to handle the tax department for better dealing with government and business transaction.

If you show your cleverness in paying of tax or involving in money laundering, then your business will be trapped and confiscated by the government. So be careful and decide it also by taking the help of business plan.

  1. The specific task to managers:

Managers in the business are not kept only for showing their face but also for leading and dealing with blunder problem. Therefore business plan should instruct them or give the responsibility of handling some great works which affect the business promotion.

The manager is the supreme leader of the business who handles all the positivity and negativity of the business. That is why managers are appointed to tackle all the fluctuation in the business. Specific task mostly indicates the dispute management and dealing with foreign agencies.

  1. Seriousness about the business:

You cannot shine up without burning. We have to know that the sun has such light only when it burns in the high range. Similarly, when you made the intention to bright up your career and life in business, then you have to shows your intention and hard work in the business. For that business plan is the first proof of your seriousness.

Most of the people even jump into business, when they see someone is getting rich and have made great status in the business. By desiring and dreaming they jumped into it. But they forget and can’t even saw their hard work and bad time and well as losses. So business plan helps your gives you the hopes and makes you serious about the business.

  1. Replying the feedback:

According to the report, it is saying that 90% of the customer gives your signals to improve your business product and any component and 10% leave you’re consuming your product without any grievance. You have to always stand inactive and alert mode to modify and renew the product and improve.

Focusing on improving is better than proving which make your reputational height large. When a customer hits the signal, you have quickly improved it. If you make delay in it, you will leave the customer from your hand and connection. They will start consuming other product of the same nature.

  1. Selection of advertisement artist:

It is also one of the important things which can be clarified in a simple way through the business plan because when you show your advertisement with the un-reputed artist or non-recognized artist, then it will also down your business status graph. Broadcasting the advertisement by the reputed artist, actor, model, makes a positive impact on the customer.

The advertisement is the easy way to reach on their mind without anyway. You can easily make them attracted through your effective advertisement. Even the product get higher value and your business will also climb on a high platform.

  1. Adoption of system software:

In today age, the operation of the business without system software is very difficult. Because business does not only have only one case and only one activity. The business deals with the unlimited transaction and unlimited changes as well as situation.

So the application software handles all the case and situation through their software. It also helps to plot and set the transaction orderly which have not the chance of recurring the losses or any confusion. When the transaction records in software and operates through it, become easy to manage all the transaction and terms in systematical order.

And it also becomes easy to calculate, communicate and check the transaction mode and movement.

Advertisement

Written by

Jitendra Sahayogee

I am Jitendra Sahayogee, a Writer of 12 Nepali Books, Director of Maithili films, Founder of Radio Stations, Designer of Websites and Editor of Some Nepali Blogs.

Leave a Reply

Your email address will not be published. Required fields are marked *