Business Tips write for us

business tips write for us



Like most people, you must have heard about the business plan. Everyone is talking about it. The concept is indisputably, and to say the least, very popular. However, there seems to be confusion in practice when explaining what a business plan is. Therefore, it is very relevant in our opinion to try to answer the following question: what exactly is a business plan?

So to be able to explain in more detail what the business plan is, we must be more particularly interested in the exercise or, in other words, in the process that it is necessary to accomplish to arrive at the drafting of a business plan. Before going any further, however, we must ask ourselves a few questions: first, is it beneficial for an SME to do some planning? Second, is it possible to make a connection between planning and the performance of a business? To answer these two questions, we referred to specific studies that have remain done on the subject.

According to most researchers interested in the question, it is obvious that there is a positive relationship between the planning that is done in a company and the results that this company can achieve. Some researchers such as Wyant, Mayer, and Goldstein have concluded that the lack of planning in a company is a significant cause of bankruptcy. Some researchers such as Chicha and Bracker have even gone much further, claiming a positive link between the level of planning sophistication and the performance a business achieves. Researchers Robinson and Pearce even go so far as to assert that planning is so essential to an SME that its absence is very likely to jeopardize its survival.

2 – Quality planning

business tips write for us

We owe one of the most crucial planning contributions to Orpen. After studying the planning activities in 52 SMEs, he established that it is less the time that a manager devotes to planning than the quality of his planning work that makes the difference between an SME that obtains a return. High and an SME that receives a low return.

It is also at this same conclusion that Gérald D’Amboise arrives. According to D’Amboise, planning is helpful for SMEs. On the other hand, the mere existence of a written plan does not reflect the value of this plan. The excellent performance depends more on the quality of its planning than on time devoted to it.

However, the researchers are almost all of the same opinion: “a well-done planning exercise (from the business model to the business plan) leads to a better knowledge of the company and the business sector. in which it operates”. To run a business well, it is necessary to identify the key components and remain constantly attentive. This identification of crucial elements is, most of the time, one of the most apparent consequences of planning activity.

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