Planning In Management : Objectives of Planning

When you are starting a business or a company you need to be very selective. You have to decide what you are going to sell and how you are going to sell it. But, is that all required.  No, there are many other things that you need to focus on. You must have a proper plan related to what you are going to do and how you are going to do it. You must have an idea regarding what are the things that you need to be successful. 

All those successful people who have achieved success in their business have used this technique in order to grow their business. Therefore, management is said to be very important. Now, you might think that management is tough. Well, no it is not that tough. You just need to be clear about your business and you can easily manage things.

In this article, we will discuss how you can do management. We have also discussed the objectives of planning in management.

What is Planning ?

In simple words, planning can be explained as the steps required to complete your goal. Here, the goal stands for what do you want from your company or business. Steps stand for how you are going to reach that goal. Planning requires time. You have to decide about every step that you will take to reach your goal. You need to decide how you will start your business. What will be your first activity after starting your company? You have to think about the things that you will need for growing your business. 

For example, suppose you are going to start a company that produces tea. Now, you have to plan the launch of your brand. Once you have introduced your brand in the market, it’s time for 2nd step. The second step can be related to sales. How are you going to sell your tea? You might hire a salesperson to do this work.

Here, you have to first decide about the number of salespersons that you will hire. Also, you need to decide the salary of those salespersons and how you are going to arrange that money. Apart from these, you must think about advertisements that can increase your sales. These steps will help in growing the business.

Now, similar to the example given above, all types of business require planning. To create a successful plan, first, you need to be sure regarding your business goal. First, decide, what do you want to achieve from your business. By what percentage do you want to increase your sales and in how much time. Once you are clear about your goal, you will find ideas yourself.

However, if you are still finding it difficult to make a plan, you may take help. Many experienced people can help you to come up with a better plan. You may also read business books and magazines for more ideas and tips.

Why do we need to plan?

Planning as already discussed is an important part of management. In simple words, you can say that it is the first step of management. As for a strong building, we need strong pillars. Similarly, for successful management, we need strong planning. 

Objectives of Planning in Management

Here, we have discussed some benefits of planning:

1.    Reduces the risks in business: When we think of starting a company or business, we are concerned about various risks. This happens because we are not aware of the various things related to the market. When you make a good plan, you get the idea regarding various types of risks that your company can get.

Since you will know about the risks in advance you will be prepared with a good backup plan for your business. This will result in minimal loss to your company and it will be easier for you to get compensated for those losses.

2.    Helps in working on one thing: It is one of the best things you get from planning. One of the major steps of planning is goal setting. Once you have a goal, it is easier to work on various ideas to achieve that goal. You will know what exactly you want to achieve and how you are going to achieve it.

This information will decide each and every step. The chances of success are higher when you are clear about your goals. If you read the biographies of various successful men, you will learn the same thing.

3.    Helps in maintaining good coordination: For the success of a business, the staff and boss must be well coordinated. When you will be clear about your goal, you will explain your idea to your staff in a more effective way. Your staff will understand your view and they will work accordingly. They will also feel it easier to talk about their problems to you.

This will improve the communication between you and your staff, leading to a strong boss and employee relationship. All of these things will help you in achieving your business goals.

4.    Helps you in utilizing resources mindfully: Resources are one of the important things to be focused on while building a business. But you should know how to use the resources in the most effective manner. Planning makes you aware of all the available resources.  Once you know the resources available to you, it becomes easier to use them. You will use the resources in an organized manner.

Therefore, planning must be done while keeping all the resources in mind. A good plan will surely lead to a successful business.

5.    Keeps your company motivated: A company is formed by the people working there. The mindsets of those people will decide how your company is going to work.  When you have a strong plan, your staff is aware of what they need to do. Whenever they will be demotivated, you will be there to increase their confidence. Your plan must have some tips and tricks regarding how you will deal with the low confidence of your staff.

The more you focus on the mindset of your staff, the better results you will get. Also, you should have regular conversations with your staff.

There are many other benefits of having a plan. Whenever you think of starting a company, you must think about these benefits. The benefits will motivate you to make an effective plan which can lead to the growth of your business. Further in this article, you will learn about how you can make an effective business plan.

Limitations of Accounting Standard

Importance Of Planning in Management

Here are some tips on how you can improve planning.

•    Set the goal: We have already discussed this above. You need to be clear about your goal. You must decide what do you want from your business and how much time you are going to give on it. Now don’t set unrealistic goals. Think carefully and decide all the possible things that you can achieve in the time you want. You make seek advice from your staff or colleagues. 

•    Reduce the chances of failures: A proper plan is not that which focuses on success but one which also focuses on failures. Yes, think of the moments when you can fail in your business. Think of all the possible times when you can fail in growing your business.

Now, you have to focus on the reasons. Find the reason why you can fail at a certain thing. Once you know the reason, the next step is to find the solution to that problem. Take time and think of all those ideas which can help you to avoid failures. It is possible that you will still fail but the number of failures will be less. 

•    Make a list of unnecessary things: Now you might be thinking about why we need to make the list of unnecessary things. Well, wise people are not those who keep track of productive things only. Wise people are those who know what can waste their time. Think of the things which will take extra time but are useless when it comes to growing your business.

Sit calmly and make a list of all those things. Once you are done with the list, you will know what exactly will lead to time waste.

•    List all the resources: Resources are another important area to be focused on. In order to grow your business, you must use your resources wisely. You have to decide how many resources you need.

Now that you know about the resources, you must have an idea regarding how you are going to arrange these resources. Think of all the possible ways you can use to arrange these resources. Not only this, but you must decide how you are going to use those resources in order to grow your business. 

•    Develop new ideas: Every problem can be solved in different ways. You have to apply the same theory during planning. Think of all the possible tricks that you can use to deal with the problems. Read and research various possible ideas. When you will work on this thing, you will find that you have created many new ideas. You can take help from business books and magazines.

You may also talk to other successful businessmen who have gone through similar things. This will help you in making a better business plan and you will get more confidence. You will learn how to deal with a problem more confidently. 

•    Stay motivated: It might seem not relatable but it is very important.  Without motivation, you can’t do anything in long term. But remember one thing, you can be motivated every day. You have to keep yourself motivated. You can do it by practicing positive affirmations, journaling and meditation. 

Whenever, you feel like you can’t be successful, just work on motivating yourself. During planning, there will be many points where you will feel like you aren’t enough to work on that thing. At that moment, you have to make yourself believe that you can do it and you will be successful in it.

•    Financial condition: You must be clear about the financial things when you are starting a business. Make a chart regarding how much money you need to spend to grow your business. Once you are done with this, decide how you will arrange the money. Since you are doing business, you must get profit from it.

You have to decide how much money you will make per sale to reach your financial goals. Not only this but you have to be ready with a backup plan in case your company fails to generate profit. 

•    Be aware of your competitors: Another important point to make a successful plan. Don’t be jealous of your competitors. Instead of being jealous, think of the differences between you and your competitors. You must of aware of both goods and bad of your competitors. Once you observe your competitors, next step is to apply that knowledge in your plan.

Learn from their mistakes and don’t repeat those things while making your plan. If your competitors are doing something good, then also you have to learn from it. You don’t have to copy their idea, you have to take experience and create your idea.

As you are done reading the article, you must be aware of how important is planning. We also learnt about the various benefits of planning. There are many tips discussed regarding how you can make an effective plan. If you utilize all the tips from this article, you will surely make an impressive business plan. Once your are done with planning, next thing depends upon your actions. Your actions should be according to your plan. Also, you can make changes in you plan as you discover new challenges in growing your business. These tips will help to be successful in your business .