Failing to plan means that you are simply planning to fail. Many businesses have failed, not for lack of ideas by because proper plans were not put in place. This means that a very good idea may end up unsuccessful because there were no structures in place to effect it. The following simply framework will give you an edge over your competitors.
Identifying an opportunity
Before you engage yourself in any venture, you need a preliminary search on the opportunities available. Carry out a strength and weakness analysis for each opportunity. This will help you ascertain the viability. Go for the opportunities that show some positive signs.
Establish objectives/goals
You need to know how much you want to earn and after what time. Ensure that you are not over-ambitious because every business needs a grace period to grow. Goals ensure that you are working towards a specific interest.
Planning premises
This means the working environment. Many people have noble ideas but in the wrong operating environment. You must determine what product to produce, its quantity and the price to be charged.
Study the alternative courses of action
For every plan A, establish a plan B. This is an important step in avoiding frustration and discouragement. A discouraged investors never succeeds.
Establish derivative plans
These are supportive plans that must be established. For example, plan for capital expenditure, marketing and advertisement. This act as pillars for
Establish budgets
Each of the derivative plans must be turned into budgets. Budgets are tools for measuring performance.
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