An insight on Business Planning

Business is life. Our daily lives revolve around several businesses. The tooth-brush you use, the soap you use, the clothes you wear, the mobile you use be it any commodity it is an outcome of someone’s business. Have you ever thought about the potato transformation? From a random potato boy to a curly fry… It undergoes several mutually dependent processes. From farm to factory it takes logistics, in the factory it undergoes washing, cleaning, cutting processes. Later, on the assembly line it gets fried, air-dried, the flavors & seasonings are mixed. Finally, it undergoes packaging process. From there, the company dispatches the consignments to the various outlets. We as the customers buy the same and there we see value- addition in every step involved in the process. It’s business that transforms the resources into goods. It’s the value proposition we are talking about in every aspect of life.

A value proposition is all about the incorporations you are proposing to a good/service. It could be anything  convenience/cost reduction/risk reduction/customisation/performance/availability/getting the job done/design/brand/price etc. A value proposition is a concept that connects customer needs to customer satisfaction through our offerings.

For any successful business, we need to know about three major concepts.

Firstly, The promoter’s passion towards the cause. A business builds through immensely dedicated efforts that are channelized for impactful processes.

Secondly, Self-belief It’s hard yet possible to do, but it’s definitely not easy. Never stop believing in you. It’s the self-belief that makes you realize your potential and drives you to carry out the tasks.

Lastly, A solid Business Plan. The business plan we conceptualize and assimilate becomes the heart of a business and the reason for our existence. A business plan is a long process that starts with the idea generation for a business and ends with going live with a full-fledged business plan implementation.

Major components of a business plan- 

1. Vision/ Mission

2. ‎Company Profile

3. ‎Objectives and Goals

4. ‎Products/ Services

5. ‎What makes you different?

6. ‎What is your target market?

7. ‎Who are your customers?

8. ‎What is your business process?

9. ‎Environmental scanning

10. ‎7C’s

11. ‎Porter’s Five Forces

12. ‎SWOT

13. ‎Detailing

Environmental scanning- It is an analysis you do to know the impact of the internal & external forces on your business. It is divided into the internal and external environment. Internal environment includes your culture, resources and organizational structure. On the other hand, the external environment is further classified into two categories which include the task environment and the societal environment. Task environment is all about your stakeholders’ Employees, Customers, Competitors, Unions, Trade Associations, Investors, Suppliers etc. The societal factors include the political-Legal, sociocultural, Economical, Environmental and the technological factors that affect your business.

In our upcoming meetings, we will discuss them in brief through class activities.

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