8 Important Benefits Of A Business Plan

business plan

One thing every new venture must do is the transition from strategy formulation to the implementation stage of new venture operation. And one fact remains that entrepreneurship is not complete until what is invented gets to the market.

A business plan can be defined as the written document which expresses in details the proposed business activities of an organization ( particularly new business). In other words, by the business plan, the entrepreneur expresses in writing his or her vision, the likely strategy to be employed, and operations of the proposed venture.

Basically, the business plan represents the minimum document required by any financial source and creates a ticket for the entrepreneur to enter the investment process.

Below are the benefits of a business plan for an entrepreneur:

  1. The entire business process compels the entrepreneur to walk through and identify all the rough and smooth roads of business, thereby helping him or her to avoid paying high tuition fee of business failure.
  2. Business planning process enables the entrepreneur to reduce anxieties and tensions by confronting them during the process of developing and writing.
  3. A properly crafted business plan usually lead managers to manage successfully as it contains all the tools of management- mission statement, objectives, goals, strategies, etc.
  4. It provides the first line training on business for the entrepreneur. It makes him or her get familiar with necessary details of business.
  5. It forces the entrepreneur to get interested in all aspects of the business, hence, he or she views the venture more critically and objectively.
  6. It restores confidence in the entrepreneur as the projection of risks and knowledge of critical factors reduce fear of an unknown future.
  7. An effective business plan guides the company’s operation, as it usually contains a direction of its future course coupled with required strategies to achieve it.
  8. Most importantly, it provides the entrepreneur the necessary tool with which to link and communicate with investors. That is, it is a prerequisite for sourcing of capital.

Business plans must therefore describe all the relevant internal and external elements involved in starting a new business. It is to be noted that all existing businesses also require business plans.

How To Create A Healthy And Conducive Work Climate

positive work environment

In any business, the management is expected to make conscious efforts in the business enterprise to create a healthy work climate.

There’s no doubt that the manager would be inundated with several problems that could overshadow the need for a healthy and conducive work climate but this would mean restricting the manager to achieved results. In large organizations, different levels of managers are judged based on their performance standard.

In small businesses, the overall result is determined by unit contributions made by individual employees. One tool, every business manager must employ is skill human relations. To develop a healthy and conducive work climate in any business, the following actions are recommended.

  • Setting of the enterprise rule: Top management has the key responsibility to determine the work climate. It is only after this lead is set that the employees will follow suit. Subordinates in small business enterprises usually watch for the kind of examples being set. It is necessary therefore, that all who have responsibility of setting direction or supervising others must observe friendliness, concern towards employees, exhibit professionalism, commitment to the organization etc.
  • Public praise and private reprimand: It is a welcome human relations practice for managers to display deserved praise in public and reprimand in private. A quiet compliment is however recommended particularly when the situation calls for it.
  • Always be a good and attentive listener: Listen to understand the situation fully well. Avoid making judgements easily. Do not ever be too busy thinking of what response to give, else good listening becomes difficult.
  • Always make clear expectations of results: While giving instructions, ensure that others understand what you expect from them. If the instruction is unclear, the response will also be insufficient.
  • Make efforts to preserve the dignity of every employee: Most people who accept jobs do so as a last resort. There are some employees who usually expect to be treated badly. You will have to prove them wrong by treating them kindly and with utmost respect. A person’s good self image is very important. And managers should avoid placing the employee in a position where he or she loses face. In most cases, when this happens, employees react by putting up a defensive, perhaps violent posture that hardly helps the situation.
  • Encourage participative management: Managers must view every employee as important, intelligent, and useful. Some ideas for improvement may come from the employees. Therefore, it’s a good practice to allow them participate in the management of their affairs.
  • Appropriate change behaviour: We all agree that change is constant. Managers must implement change with caution. This is because people resist changes that require them to establish new ways of doing things and this can constitute a great challenge to the management. Therefore, managers must ensure that changes introduced are those likely to bring about minimum disruption of good work habit.

A healthy and conducive work climate is the home for effective results.

6 Ways That Written Communication Can Benefit Your Business.

written communication

While there are different kinds of communication available for managers to use in positioning their organization competitively better than others, in today’s business, we are familiar with written communication. It involves the use of letters, memos, notices, bulletin, manuals, books, etc, to transmit information in an organization.

Principles of Good Writing:

It can be very difficult for some people to put their brilliant ideas in writing. To improve their skills, they should apply the following basic principles:

  • Write your ideas or suggestions as simple and clear as possible. Avoid unnecessary and ambiguous words that will make your ideas/suggestions difficult to understand.
  • Audience should be taken in consideration in the terms of contents and the tone of information. Make sure that appropriate contents and tone match the audience used.
  • Proofread the document several times to avoid incorrect grammar and usage. Read over your write- up once or twice for error detection. Use a dictionary to check the spellings of words or use spell-check functions on your computer if you are using one.

Below are the advantages that written communication can bring to your business:

  1. Written communication provides permanent records of information.
  2. It helps to lay down appropriate principles, policies, and rules for the running of a business.
  3. Written communication provides ready reports or records and references.
  4. It helps to transmit information wisely and selectively.
  5. It is more valid,reliable and more unique than speech.
  6. Effective Written communication is a permanent means of communication.