Types of Planning in Business
Proper planning is a very important part of any business. The business needs to plan out for its operations, investments, strategies to be adopted, growth and expansion path, products, etc. Different plans are required for different situations. Planning is essential at every step of the business' survival.
These plans could be weekly, monthly, quarterly or yearly.
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Start-Up Plans
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This plan is the defining step for any new business. It has an executive summary in the beginning and the projections for the first year. It also lists the company's aspirations and strategies in terms of product or service to be produced, the market in which it is going to operate, implementation milestones and the team that is going to implement them. The financial goals, such as intended sales and anticipated profits, are also chalked out in start-up plans.
Feasibilty Plans
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This plan ascertains whether a business must be set up. This is an extension of a start-up plan. It has an executive summary, mission statement, goals, analysis of the market, costs, pricing and likely expenditure.
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Internal Plans
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These plans, as the name suggests, are internal to the organization. The organization's planned working style is briefly listed here. Each functional department has an internal plan for its functioning and operations. These usually include implementation milestones, time frames and the responsibilities of the people who would execute the work.
Strategic Plans
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This planning is for the overall picture. With a strategic plan the organization chalks out all the alternatives available and the trade-offs in choosing any one over the others. Also, the priorities are underlined and the ends and means toward achieving targets are spelled out clearly.
Growth Plans
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This plan chalks out the organization's path toward expansion. This almost always includes views on investments, operations, finances, time and personnel resources and demand and sales projections, in the event the company expands. Also, if the company is planning to introduce a new product, this planning comes in handy.
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