Through our time in the fab business hub community The FAB Business Hub – Events By Fab, we are asked the following question:

What is the importance of having a plan in business?

Whether this be a plan as a whole, a marketing plan or plan of action for your upcoming event our answer is a simple reply and that is: If we do not know where we are heading how do we know how to get to our end destination and this is the sole importance of creating a plan in business so it navigates you to the right destination and you can get there a lot quicker than you may without a plan of action to follow.

A plan can be one of many things but the main plan of action in business is known as the business plan, as it is an essential document for any entrepreneur looking to start and grow a business. It is the blueprint of the company and helps in evaluating risk, determining strategy, and setting goals.

However we feel this phrase/word of a ‘business plan’ can be quite dauting to our audience; so we prefer to describe this as a plan of action with anything you wish to accomplish in business.

Implementing a solid plan of action

A successful business requires much more than just a good idea- it requires a solid plan of action that will guide the trajectory of the company. As a business plan ‘plan of action’ for example, is not just for securing funding or attracting investors- it should be developed before starting any business, project or service big or small.

As a well-executed and comprehensive plan of action whether this be for your business, marketing or event; ensures that all aspects of the company are being taken into consideration. It also provides an outline on how to move forward with different decisions  and making necessary changes to events as they arise.

Plus, a plan in any form is a document that details the scope of the project, the objectives, and the plan for achieving those objectives. It should also be written by someone who is passionate and used as a communication tool that will help them get their message across to others.

A plan of action, should be based on facts and assumptions of what you want to achieve and the key objective should be determined first, then successively break down into specific goals and tasks that need to be completed in order for you to meet your primary objective.

It can also help present your idea but also gives insight into the reasons behind them. It brings to light all of the steps needed in order for your plan to be successful and how much time and money each step will take.

How to implement an effective business plan? 

Without an effective plan, most businesses would fail within the first objectives or take them a lot longer to achieve. As, by having a effective plan in business will make you see your strengths, weaknesses, opportunities and threats, therefore it will show you what opportunities you have, so you can take them onboard and let them be strengths.

Plus, it will allow you can gather what the threats are in your external or internal environment to avoid them and work on the weaknesses to make them into strengths.

So, in answer to the first question of the importance of having a plan in business i will leave you with on of our favourite quotes:

‘A goal without a plan is just a wish’

A take away for you in your business, here are some things you can include in your action plan:

  1. Executive Summary – Tell people in a short paragraph the overview of the business.
  2. Company description – Where do you want your company to go in the future, visions.
  3. Market analysis and sales – Ideal clients, marketing strategy.
  4. Service or product – what is it?
  5. Financial projections – income and expenditure statements, cashflow forecasts.

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