Business Planning is crucial to starting any new organization 

Not to look back at the year which passed away. IT is important to focus on the forthcoming year and keep the last year’s results ready before starting the business plan for the present year. Business planning for all legal and financial organizations must project the planning of the forthcoming months, income, and outlays. These projects help the company with early warnings and preparation to prevent unforeseen losses due to cash flow dips. The planning must be such that it will be able to highlight and capture the financial needs and the best opportunities and timing for any project.

Must be strategic

Business Planning begins with the company’s strategic plan, and that must be done at the end of the last year to avoid any delay in the forthcoming year. Many companies do the planning at the beginning of the year. Before the strategic planning for the business, some important points must be considered, and they are:

  • Need for more resources.
  • Need for hiring more staff.
  • Need for expansion.
  • Effect of the plan on cash flow.
  • Budgeting and need for excess funds. If so, then how much?
  • Need for equipment which includes IT equipment as well.

Once these are planned in a justified way, keeping in mind the goals and the revenue, it is important to determine the outcome in 12 months, including the income and expenditure.

Why is it important?

Business Planning is a roadmap that defines the goal of the business and how to achieve the goal. It also defines how the business will run in the forthcoming year. The document may change if the goal of the business changes. It is important to keep in mind:

  • The goal
  • The type of clients
  • Type of service
  • Type of matter to handle.

The above four criteria if very important, and if these are well planned, then a well-thought-out plan will evolve. Little more thought and planning will bring success and positive results to the balance sheet at the end of the year.

Important three points

It is important to take some time and think about what is required from the business plan and what they want from the practice.

  • One must have their goals set before preparing the business plan. One must be clear as to why to own a firm, what will I achieve, the Impact of having the firm, the service that I want to render to the clients, the problems that I wish to deal with, and lastly, how will the success look like! It is not easy to get all the answers, but it is important o have a clear goal before planning for the business.
  • Revenue is a very important aspect of planning. Once the owner is sure of the success, it is important to know the revenue required to achieve the goal. It is important to estimate the revenue required and the amount that might not look pleasant while planning the business. It is always wise to plan, keeping all the expenditures and income in mind.
  • Once the goal and the revenue are planned, the time has come when the firm must plan the fee structure. Charges will vary from project to project so they will charge hourly for one project and a flat rate for another project. It is important to carry on market research before fixing the fee structure.

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