What Is a Business Planning Cycle?

A business plan is a document that refers to a company's specific strategic project and its goals, and must be completed or achieved within a specified time. The business plan should be based on the company's purpose to formulate a strategy, to carry out target analysis of the strategy and to formulate specific measures for the department's mid- and long-term planning. The planning ideas, methods, and their adequacy, suitability, and effectiveness will have a greater impact on the annual work direction and efficiency.

business plan

Right!

A business plan is a document that refers to a company's specific strategic project and its goals, and must be completed or achieved within a specified time. The business plan should be based on the company's purpose to formulate a strategy, to carry out target analysis of the strategy and to formulate specific measures for the department's mid- and long-term planning. The planning ideas, methods, and their adequacy, suitability, and effectiveness will have a greater impact on the annual work direction and efficiency.

Business plan preparation

The preparation of a business plan can be carried out in the following five aspects:

1. Early planning.

When planning the development direction of the company's business strategy, the middle and senior leaders of the company must discuss the five aspects of business plan, business results, internal / external performance data comparison, customer satisfaction, and employee satisfaction. Use the company's internal sales revenue, quality costs, profits and data from external competitors as part of the company's strategy;

2. The main content.

The business plan is divided into two types of medium and long-term business plans and short-term business plans. It is a document specific to a company's specific strategic projects and its objectives, and must be completed or achieved at a prescribed time. It mainly includes: cost, sales, enterprise overall, development and process and quality, business plan activities should be implemented across departments;

3. The method used.

When formulating a business plan, use strategic tools such as SWOT to analyze, determine the level of the company in the entire industry, set benchmarking companies from international and domestic, identify gaps, identify the company's disadvantages and deficiencies, and use the company's Advantages, seize opportunities, establish early warning mechanisms, carry out risk management, enhance corporate image and cohesion, and continuously improve;

4. Objective requirements.

The business plan is to make the enterprise profit as the ultimate goal, focusing on costs and profits. When setting business plan goals, follow the SMART principle, define the target period, target quality, target amount and cost, and monitor the achieved results according to the target period;

5. Metrics.

Measure whether the business plan is reasonable in terms of professional technical content and strategic tools used.