Importance and limitations of business plan

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Importance and limitations of business plan
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• Just like management is continuous activity in
  the same way o needs continuers updates and
  planning as the business moves on we need to
  adjust as per the situation arrives. We can say
  that business planning is one of the most
  important factors of management. It also sets up
  the arena for all upcoming functions of
  management like organizing, directing etc. We
  will understand the perception of business
  planning (BBGV211020)
• We know that business planning or planning means
  in planning we decide what has to be done in
  future and we can say it decides what has to be
  done in future in order to achieve what the
  organisation or business wants to be.
• So we can say that business planning helps to set
  the objective of the business and it develops a
  plan of action to achieve the desired results.
  Once the planning is done it becomes clear
  what is expected from the people working in
  an organization like manager and worker they get
  the clear picture of what is expected from them
  and what has to be done to achieve the
  desired objective.
• Managers are very vital for the functioning of
  the business planning. It requires improvement,
  imagination and the ability to do multitasking
  especially from the managers. And planning is a
  function which managers of all levels should
  perform.
• Business Planning is Important Planning is very
  important and plays a role in management. It
  explains to the manager where the business is
  heading. It also reduces the uncertainty in the
  organization. Now Let us discuss some important
  factors of planning.
• Planning provides a Direction planning is
  predetermined planning for the organization. It
  explains how and what work is to be done.
  Planning provides direction to workers and
  managers, without planning their actions will be
  clumsy and not organized.

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• Uncertainty is reduced by planning Planning
  creates the objectives and at the same time it
  anticipates the future changes in the
  organization. So managers get the chance to
  prepare themselves for the future and planning
  also helps them to deal with the uncertainties.
  Planning helps to understand present, past and
  upcoming trends and deal with the uncertainty in
  the market.
• Planning reduces the waste of time The complete
  plans are made according to the needs of all
  departments. Planning ensures that all
  departments are connected and all the activities
  are coordinated, because of planning there is
  clarity in action and all work is carried out
  without any interruptions or waste of time.
• Planning helps in Innovation Planning in reality
  involves a lot of innovation on the side of the
  managers. Being the first purpose of management
  it is a very tricky activity. It supports the
  manager to expand their horizons and helps them
  to think another way. So the manager has to be
  imaginative, keen and inventive.
• Planning makes the decision easier In business
  planning the objective of the business has been
  set, a plan of action has been developed and even
  calculations are made for the future. This helps
  all the managers to make decisions easily.
  Decisions are taken fast because of business
  Planning.
• Establish goals and Standards Business Planning
  helps to set goals and standards. Business
  planning helps managers to check performances
  according to the standard. This will help the
  business to understand goals have been achieved
  or not. So planning is a precondition for
  controlling the business.
• Business planning is significant and necessary
  for all business but it has some limitations
  also below are some limitations of business
  planning.

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• Rigidit once the business planning is done and
  the plan of action is set generally managers are
  working on the same business plan. The manager
  may not be in position to change the plan if
  required in certain circumstances, or the manager
  is not willing to change the business plan. This
  kind of rigidity is not best for any business.
• Not perfect in vibrant Conditions In an economic
  environment nothing is stagnant. Most of the time
  conditions keep changing like economic,
  political, environmental and legal these all
  conditions do change. In such a vibrant
  environment it becomes difficult to calculate
  future changes. And if a manager cannot predict
  precisely, the business plan may fail.
• Planning can also reduce creativity Business
  plan takes away the creativity from managers as
  they work according to business plan and they
  follow it blindly. Managers do not change the
  plan if the situation demands, sometimes they
  even dont suggest to management that some
  changes are required in the business plan as per
  the situation so the manager reduces his
  creativity.
• I have explained about business planning and
  some limitation of business planning end of
  the day it depends on planning and change the
  business plan if required or condition
  arrives to do so well its all about proper
  business planning to become successful
  entrepreneur.
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