Management
Why is a Business Plan Critical for Long Term Survival?
Businesses often prepare business plans when they encounter one of the following circumstances: borrowing money, raising capital, forming partnerships, and launching special projects.

Businesses often prepare business plans when they encounter one of the following circumstances: borrowing money, raising capital, forming partnerships, and launching special projects. Although a well written business plan can help a business achieve those specific goals, it does not mean that the business plan would not be necessary otherwise.
In fact, according to the Turn Around Management Association (TMA), not having a business plan is a sign of trouble for a company because plans are carried according to individual interpretation. A good analogy could be driving a car without a map; businesses that don’t understand their strategic position in the marketplace risk losing market share to the competition at the least excepted moment.
Also, management should compare business performance to competitors as GE did during the 20 years of success when Jack Welch headed the conglomerate. In this example, GE compared performance metrics such as sales growth, gross margin, ROI, and ROE to leading competitor and industry benchmarks. This allowed GE to monitor its performance against competitors enabling it to stay ahead of its competition. However, most businesses only perform a variance analysis comparing year over year metrics. Even though this approach allows the business to compare itself to past performance, it does not capture business performance against the competition. A well written business plan supported by comprehensive market and industry research provides businesses with a map of the marketplace allowing them to navigate the complex and changing competitive landscape.
- Social Media3 years ago
Top 5 Advantages and Disadvantages of Social Media Marketing
- Management8 years ago
The man who destroyed his multimillion dollar company in 10 seconds
- Management3 years ago
The Five Common Materials Used to Manufacture Reusable Grocery Bags
- Management8 years ago
If you fail to plan, you plan to fail
- Management2 years ago
Unexpected Death of a Business Owner: What Happens Now?
- Accounting & Finance8 years ago
Do You Have a Poverty Mentality?
- Management8 years ago
Workforce Planning – Balancing Demand and Supply
- Management2 years ago
Have An Eye for Eyewear? Here’s How to Start Your Own Optical Business
- Innovation4 years ago
5 Ways How Globalization Impacts Small Businesses
- Management3 years ago
7 Essential Tips For Opening a Mechanic Shop
- Management3 years ago
The Importance of Presentation Skills in Business
- Management3 years ago
Pros and Cons of Offshoring