Business Planning Process in Entrepreneurship

Importance of Business Planning Process in Entrepreneurship Development

Business planning is a very important function of entrepreneurship. Business planning also plays a very important role in determining the success of an entrepreneur or entrepreneurship endeavor.

Business planning is also a basic function of the business. At every level of entrepreneurship, business planning takes place.

Why is business planning important in entrepreneurship development? The business planning function helps entrepreneurs to perform their functions better and helps them to take good control of circumstances and events which could come up in the course of their business.

Business planning in entrepreneurship takes a process and cannot be conducted in a vacuum. The process itself is what gives value and credibility to the business planning process.

The business planning process in entrepreneurship starts from a first step and ends at the last step.

We will be doing a critical examination of the business planning process in entrepreneurship to enable for a good understanding of what the business planning process in entrepreneurship is all about and what the process should look like for anyone seeking to participate in business as an entrepreneur.

The business planning process in entrepreneurship goes through certain basic steps. These steps are the elements that make up the business planning process in entrepreneurship.

The business planning process in entrepreneurship involves;

  1. Being Aware of an Opportunity
  2. Setting Goals and Objectives
  3. Consider Planning Conditions
  4. Consider Alternatives
  5. Compare Alternatives
  6. Choose an Alternative
  7. Implementation
  8. Make Reviews

Having listed the basic steps in the business planning process in entrepreneurship, we shall now explain each step in the process.

  1. Being Aware of an Opportunity

The business planning process in entrepreneurship starts with being aware of an opportunity. As the beginning step in the process, this first step is very important.

This step involves being aware of the overall conditions of the market. Being aware of an opportunity can start by noticing that there is a lack of a particular product or service in a market.

It could also start by noticing the inadequacy of a particular service or product. The noticed lapses in the market create an opportunity for entrepreneurship.

And to further exploit this opportunity, entrepreneurship should also have a good understanding of the market and certain prevailing forces such as the level of demand in the market and also the level of competition in the market.

At this stage, entrepreneurship should also understand its strengths and weaknesses in order to be able to take advantage of the noticed opportunity.

  1. Setting Goals and Objectives

The second step in the business planning process in entrepreneurship involves setting goals and objectives.

Setting goals and objectives involve taking decisions on what the business hopes to achieve over a period of time.

This involves a written document of what the business intends to accomplish within a time period. This step in the process not only states what is to be achieved or accomplished, it also states when the goals and objectives are to be accomplished.

  1. Consider Planning Conditions

In business planning process in entrepreneurship, entrepreneurship should make due considerations of the conditions in which the plan is set or supposed to work in.

These conditions are supposed to be considered based on the entire prevailing business environment at the time and also the already made forecasts of the business.

  1. Consider Alternatives

This step involves making due considerations for what could be an alternative course of action. This is done bearing the goals and objectives in mind and considering alternative ways of achieving them.

  1. Compare Alternatives

This step involves making necessary comparisons between the identified alternatives. The goal of this step in the business planning process is to identify which alternative provides the best route to achieving the set goals and objectives.

In making a comparison of the alternatives, it should be on the basis of cost and the quality of work to be achieved.

  1. Choose an Alternative

This step involves making a choice of the right course of action from the identified alternatives. The chosen alternative should be one that enables the accomplishment of the set goals and objectives at the best time and at the lowest cost and also producing the best outcome.

  1. Implementation

In the business planning process in entrepreneurship, the implementation process involves the actual execution of the chosen or selected alternative. Implementation deals with all the activities in procuring machine and equipment and also training the required manpower.

  1. Make Reviews

This process involves making constant reviews and appraisals of the plan and the implementation process to ensure that the results which are being produced are in line with the set goals and objectives.

This process is also made to constantly monitor the progress of implementation and also to measure the quality of work being produced.

Conclusion

While it is important to follow the business planning process in entrepreneurship, it should be known, however, that there are certain things that can affect the successful implementation of the plan, such as the dynamic nature of the business environment which is always changing.

It is also important to bear in mind what the cost of putting together a plan can be. The cost could be in terms of time and financial cost.

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