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


0
  1. To trap the new opportunity:

There are many opportunities in the market which you should recognize. If we see the many inventors, they have just got the sense and foresee about some needs of the invention. Later on, they invented it. The market is the place where you have to identify the customer signal if you become able to know that then you can make that opportunity as your strength. The business funda is very simple.

Even though, it is not understood by the businessman that bears them to lose. You have to also change your business models according to the time.

  1. Repairing the weakness:

When you appear in the market for proving the product then you can’t stay long. Rather prove, you have to focus on improvement. It is the way which makes your b business access to everyone’s hand. When people use your product and them if claim anything wrong with your product.

Advertisements

You must have to instantly improve it and launch in a new manner. Weakness is just like the null and weak bridge made only for showing not for using. It can be break anytime. That is why you have to repair and filtered your mistakes. so that your weakness can be converted into strength.

  1. Renewing the business models:

It is the desire of person and human being that they do not want to take the same dishes in dinner regularly. Everybody wants to change their tastes. So you have to always try to bring something new and surprising which can attract the customer and increase their willingness to purchase it.

In today trend, people have become assayer and they always expense more money on showy things. They want to present themselves as high class and standard. Although, the poor person present themselves as from rich family. That is why, the business plan here play the role to determines the novelty time, maybe to bring in season or festival or any special event. These all the things are decided by the business plan.

  1. Social service contribution:

There are many company and business who are contributing a lot of amount to the social services sector. They even earn the high income and expend in social services through charity. If you place your business head office anywhere, it also becomes your responsibility to manage the society and improving their environment.

Advertisements

So for that, you have to make good cooperation and coordination with the people around the society. Doing or contribution the fund as charity also makes the great and positive impact n the customer. They compel to think that the company is not looting us. They are expanding our money in the right sector. Social services expenditure is not wasted expenses, it recurring income which comes indirectly from the customer.

  1. Advertisement nationally or internationally:

As I have discussed the types of advertisement in the above points. Here the matter comes to increase the advertisement area. Generally, the advertisement is determined according to its business area. If the business is spread all over the country, then you have to broadcast the advertisement in national level by choosing the national level artist having reputed identification in the country.

But if you want to advertise your product internationally with the motto of reaching to multiple countries, then, you can do so too. While doing the advertisement internationally, you have to always focus on choosing the international artist who has an international fan following. If you do so, you advertisement expenses even reduce to the maximum level.

  1. Determining the gap of remuneration of the employees:

As there are any employees working in different sectors, different department by holding a different responsibility and accountability. So the employees working on the same post should be paid equally and the other post employees should be paid equally. There should not be the discrimination for paying the remuneration.

If there exists a large gap between the employees which even impact negatively on the mind of employees and the chances of dispute occurrence increases. Remuneration of employees should give equally but there can be done the differences in paying or providing the incentives, bonus, through evaluation of work performances.

  1. Modification of business and brand:

As it is said that a brand is not changed but it can be modified. If the customer is not catching the product and its reason is the brand. The brand should be also changed with attractiveness. The brand is also the factor of attracting the customer.

The customer even pays the high amount of the most good looking product even it is duplicate. So you have to do the business by reading the mood and motion of a customer. Business should be also plated and presented with new ideology and identification to change the intention and deepening the trust of the customer.

See Also:

  1. Estimation of profit earning every year:

If you do not set the target of earning the product every year, then you cannot move very far. A lame people cannot climb the top of the mountain. They may travel the long distance but not the long mountain. Business is just like the walking on the mountain.

The business without product and the vehicles with a petrol cannot run far. No one can cry too long in empty stomach. People always are in the mood for earning the good profit which makes their business existence. If you fail to earn the margin in any one year, then you may have to move under the loan. So, setting the target of earning a profit every year would make your business survived.

  1. Error rectification manpower:

As we know that mistake is committed by all and everyone. So if you do not improve your mistake, then you will fall into big losses. Your understanding and principle will be based on the learning from another mistake that committing first.

When you build the talented manpower team to improve and rectify the errors, mistakes, weakness of the business, then you will never fail and fall in business. There must be error rectification manpower not only for rectifying the errors but also to avoid before its occurrence. So here also need the business plan to make it more strong and mobilizing.

  1. Expenses of stationery:

You have to also limit your expenses doing on stationary that is documentation, leger recording, and another statement recording. When you maintain the record in the partial basis of any definite subject in filing and some other definite subject in computer software.

If you do so, then it will also save the higher cost. In business, there a huge amount is expended on stationary and filing maintenances because a lot of subjects should be maintained. Business plan here plays the role of making the business more cost deducting.

  1. Providing the refreshment environment to employees:

While working in the business, there must be the cooperating, coordination and refreshment environment. They are also not the machine and you have to treat them like a human being. The environment also plays the great role to change the mood of the person.

A person cannot work for a long time on a sunny day but they can work a few hours more in cool days. Refreshment is needed to cut off the laziness and boredom. The working environment should be eco-friendly and socio-friendly. Rest is also compulsory to invest and activate the effort and use the hands in work.

Employees cannot work continuously for long. You have to determine and provide the refreshment environment for managing the swimming pool, facilities of cold and hot drink as well as television etc.

  1. Formation of the customer through multiple approaches:

If you not active your energy and focus on attracting and forming the new and new customer then you cannot extend your business. Business is operated due to the size of the customer.

The business only become big and profitable when they have a large customer. So you have to always project your business and product to form the new and one customer by providing the new experience of consumption. Business plan help to create, cultivate and carve the customer mood, intention, movement and their attitude on the product.

It makes the product and business goodwill more perfect and large as well as also helps in positioning in the market in robust form.

  1. Purchasing the transport vehicles:

This is also the matter of discussion because the business cannot be operated at home and customer would not visit there. You need to deliver the good to the supplier or whole seller to sell the good. They will supply the goods finally to the customer.

The customer wants to get the product in an easy manner. If you but your own transport vehicles w to deliver the goods from one place to another, then it might increase the cost of the product due to indirect expenses. But when you supply the product on rent vehicles, a large amount of money for purchasing of those vehicles is saved. Here is also the need for a business plan to clear the confusion.

  • 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. Entering into a new sector:

If you want to make the business big then you have to always try the new sector to make your investment. New sector investment becomes sources of extra and additional income. If you have multiple sources of income, then it becomes easy to extend and increase your business group.

If you are now manufacturing the product, then you have to make your investment in another sector which also strengthens your strength. Business has not certain criteria for coming profit. I may be more and maybe a loss. The earning from the business will only more when you even create your sources of income in another sector. It also becomes easy to compete with your competitors.

  1. Evaluation of work performances:

This is also the important and necessary work done by the business organization. It helps to determine the remuneration and their bonus or incentive. As we know that there are different employees and all hold their own responsibility. So the role, responsibility and their level and performances or contribution in the business can be only analyzed by the measurement of work performance.

Equal measurement of work of all the employees classifies the category and level of all the employees. It is also very fruitful to know the strength and weakness of the employees so that their needs and training can be identified. That is why the business plan set the format for evaluating the work performances of the employees.

  1. Gross margin percent:

While operating the business, you should have to include the certain margin percentage in the prices. The inclusion of a certain margin or profit percentage will only make you survive. Running in the empty stomach does not go to the long distance.

Without including the percentage of gross margin, the business suffers from a great transaction but it would not show any profit. The business will be paralyzed slowly and after. Gross margin makes the business table and progressive. Percentage of margin should not be too high in the initial phase, but it should be must include maintaining the expenditure f business. So the business plan here also plays the great role.

  1. Liquidity management:

Liquidity management the management of cash and credit. As we know that there can be a need of cash anytime. So the business should always perform their activities by managing the balance of cash and credit. When we invest our amount in any sector, then the amount should be invested in high research and investigation so that the amount will not become bad debt and a bad investment.

You may need the cash any time to deal with new partners or to purchase the raw materials. Liquidity management helps to maintain the balance of cash transaction and credit transaction which helps the business to grow in speed rate.

  1. Starting with zero profit:

If you have thought to start the business at zero profit in the initial phase that, it may become your own hanging rope. You will self-fall into your own dug pit. There are a lot of expenses going on, as well as the salary of the employees is compulsory to pay even the business goes in loss or profit.

Loss or profit does determine the business movement and it is affected when you do not maintain the profit. You cannot go long in a hungry mood. Similarly, the business cannot move long when you have planned to start with this concept. A business plan helps to amend you thought before implanting it in the business.

  1. Selling cheap or selling quality:

This is also the two concept of doing business nowadays. Selling cheap in high numbers is the concept of China who focuses on earning less profit in the product but keep the objective of selling in a high quantity which makes their earning high in collective amount.

Next one, the selling quality product is the concept of America and Japan, they believe in supplying the original and durable product so the customer cannot break their faith over their product and even become protectable. Selling cheap product also provides your good benefit but you have to compromise with quality where if you sell the qualitative product then, you have to sell the product inexpensive price. These all the matter will be solved by the business plan.

  1. Scalability and profitability:

If you are doing the business and you are not able to scale up your business as large as you can, then you cannot become the star in the market. There must be the cable business which can be stretched up to long. If the business is stable, then the business life increased.

  1. Discounted or non-discounted business:

You have to decide that whether you want to make the business movement through discounted approach or non-discounted approach. There is much company who provides the discount on the product and some are also such company who does not provide the discount.

This is also the matter of clarifying. Business should be always operated in similar and perfect approach. Business plan here helps to choose the approach including reason.

  1. Determination of offer and its releasing date:

This is also the techniques of doing business. In it, there are different numbers of offers which you can bring in the market to attract the customer in bulk. Customer attraction in through offer releasing would help to promote your business.

The offer should be released on any specific period or day which creates the specialty to purchase it. A business plan is the guidelines of business.

  • 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
We Expect Your Valuable Ratings - Rate this post
Advertisements

Like it? Share with your friends!

0
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.

0 Comments

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