The answer to the question about who contributes to the preparation of the business plan depends very much on the type of business and the structure and size of the entity. In a very small company, the planning work and the drafting of the document have to be done by the managers and owners themselves. In larger organizations, contributions have to come from different people.
ways on how to prepare a business plan in an already existing firm, The larger the number of management and staff members involved in the preparation of a business plan, the less the chance that non-viable solutions will be arrived at.
Eventually, those employed by the business will assume some of the responsibility in implementing the plan. Therefore, it makes sense from a technical, psychological, and team-building point of view to involve them at an early stage of the process.
Firstly, employees have the best knowledge of the different aspects of the company’s operations, and secondly, no plan will be implemented successfully unless key employees identify themselves with the targets set and means committed. Company employees contributing to the preparation of the business plan are
- The chief executive officer (CEO), who should have the main responsibility for supervising the business planning process.
- The marketing and sales managers, who understand best the demands of the market, its growth potential, the specific requirements of clients, the prices that they are ready to pay, the moves of the competitors.
- The development and production managers, who provide input of central importance for the business plan, such as lead times for developing new products, requirements for new production machinery and equipment, personal needs and raw material requirements.
- The financial manager, who usually puts the financial data of the business plan together, works out the financing requirements of the firm and is one key figure in talking to investors and lending institutions.
The best skills available within the company should then be used for synthesizing and balancing the input provided by the above team members and for producing the actual report. This work should not be allocated simply to the least useful member of staff who happens to have time available. Many companies have failed on how to prepare a business plan in an already existing firm, which most business students are being taught that in their first year of study.
Many large entities have highly competent business development managers whose main tasks are to coordinate the business planning process and edit the relevant documents.
Other enterprises do not have adequate internal resources, and they hire external consultants to guide and facilitate the business planning process.
Steps in the planning process
Assessing the situation
You should be able to know how customers, partners, competitors, and suppliers view your business. The question you should be asking yourself is, “what are the important strength and weakness?” “What can we do well, and what should we not be doing well?” “What are the mistakes we have done in the past, and what do we learn from them?”
Developing a mission
Before going further, you should have a clear vision statement of your firm; developing a mission is the first step of the dynamic planning process since it can change the direction of your business.
Vision tells more about how you will further in the future; it tells what you intend your company to become. A vision shared by all the people concerned with the business is an important factor for its successful development.
Mission defines exactly what you want to achieve. It states the benefits your company will bring to clients, employees, shareholder, and the community.
Your philosophy shares the value and belief of your firm’s culture
Your strategy shows how you succeed or wins
After knowing your mission and assessing the situation, you need to get started by preparing your business plan. These are some things you need to fix
- Appointing a co-coordinator
- Hiring a facilitator
- Identifying team members
- Gathering information
It is important to set your goal in business and in whatever you are doing, it helps you to accomplish your task. Although these goals will have to be adjusted in the iterative planning process. The goals should be time-bound, realistic, and measurable.
Working out the business plan
Trying to set up a business plan involves synthesizing and balancing your market, sales, manufacturing, and financing targets in such a way as to enable the enterprise to meet its overall objectives. Where many firms have failed to sketch a full working plan on how to prepare a business plan in an already existing firm, which many companies do not a business plan, vision or mission, thereby the company is on the verge of folding.
Setting employee objectives
The most important plan after your business plan is settled setting individuals in your firm. The objective of your sales manager is to achieve the sales volumes set in the plan.
These individual objectives should be fixed in writing, and the result of the work should be monitored and assessed periodically. These should form the basis for financial compensation for the employee.
Monitor the process.
Monitoring your business plan is an important factor for the success of your business. Participation in this process can have a profound effect on the way your team members view the role in the enterprise and have an immediate impact on their performance.
What is a business plan?
A business plan is a complete, written explanation of the business of an enterprise. It is a detailed account of the company’s product and services, techniques, markets, and client.