subject: Sound Business Plan Imperative For Smes To Script Success [print this page] A sound business plan including specifics of strategic goals and financial objectives is a prerequisite for small businesses in todays world in order to carve a niche for itself in the highly competitive market. Chalking out a well-documented business plan is the first step for small businesses to persuade stakeholders and investors to invest money into their firm, thereby enabling them to realise long-term goals.
Why is it crucial?
Drafting a business plan is a crucial task for SMEs since it involves detailed projections about strategies that the business owner has in mind for its growth. Each business has their pros and cons as well as unique features, therefore while formulating a plan, one has to constantly think of innovative ways to set apart their business from others and make it a success.
A strategic plan is crucial to serve as a guideline to steer the development process of small firms, to keep them afloat and enable them to build a successful enterprise. However, it is seen that most small businesses suffer losses as they do not have a specific plan, said Vijay Soni, proprietor of Mahabir Jewellers, a mid-sized wholesaler of gold, kundan jadau and diamond jewellery in Kolkata.
A clear, specific and detailed documentation of organisational objectives as well as marketing and financial plans will set clear before managers and employees of an SME what is expected of them and provide them guidelines to move forward.
The main objective of drafting a business plan is to identify key areas of problems, set major goals and plan an agenda. A well-formulated plan will not only help your business move in the positive direction but also enable you to prove your companys credentials to lenders and customers, said Avinash Jajoo, director of Tax Consultants, a small-sized tax and investment advisory firm in Mumbai.
A well-defined business plan provides a much-needed direction to help entrepreneurs record good return on investments (ROIs), higher profit margins and achieve greater milestones.
