Planning is the most important fundamentals of business. An effective planning plays a major role in the success of business. Every business function depends on the planning and a business can hardly run without planning. So planning plays a major role in business continuity and growth. So many businesses worry about paperwork whenever they hear the word “planning”. So here we have the simple process of making an effective plan inside business:
-Recognise the Opportunities:
Before creating a plan, there is the need to recognize the opportunities that exist in the environment. The core team must do a clear analysis of all opportunities on the basis of future as well as of present. The management should also do the current business analysis so that the strength and weakness can be taken out. This will lay the foundation of setting up the objectives of organisation.
The objectives of an organisation must be very clear and well defined. A proper objective of an organisation must provide a proper direction to the organisation and its departments. The objective of the organisation decide the future of the organisations. Therefore the management must create a clear objective of the organisation.
As we already know that the planning is done on the basis of future. But, as the future is uncertain, so we must create some forecasts on the basis of assumptions. These forecasts are known as planning premises. The assumptions may not be true, but considering and forecasting them will make the organisation ready to deal with it. Therefore, the management must develop the planning premises so that the organisation can survive in case of any occurrence.
-Finding the Alternatives
There are multiple ways to do a single thing. Similarly, there are multiple ways in which the objectives of an organisation can be achieved. The management must develop and identify all the multiple ways of doing the things which can help them in achieving the objective of the organisation.
After identifying all the ways for achieving the objective, each of the alternatives must be properly evaluated. The process of evaluation of the alternatives must be made on the various factors like investment requirement, risk, uses of resources, profit, etc. Management should properly analyse pros and cons of each and every alternatives so the best one of them can be taken out.
-Choosing the Alternative
Once after the evaluation process, the managers will have the proper awareness of the pros and cons of each alternative. Out of all those alternatives, the managers have to make decisions and choose that plan which is more profitable and less risk is involved.
-Making Supporting Plans
Each main plan requires various works to be done. In order to execute the main plans, there is the requirement of supporting plans for various works like hiring manpower, buying required materials, purchasing raw materials and etc. Supporting plans are not different plans but they are parts of main plan which help in managing the different activities and things. The main plans couldn’t take place without the supporting plans and therefore, the managers should create supporting plans to carry forward the works.
-Implementation of Plans
After the creation of main plan and the supporting plan, there is the need to bring them into action. The plans should be implemented in such a way that it can help in achieving the objectives. This process of implementing the plans includes the formation of policies, procedures, budgets, and a sequence of activities to be performed in order to achieve the goals.