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Business Planning Cycle

If you want to know about business planning cycle, read on and you can learn a lot. A business plan is a necessity and it can help you in achieving your goals or objectives. The cycle reassesses a business’ overall strategies and it’s efficacy in attaining predetermined objectives.

Ideally, the cycle is followed in an annual basis because the objectives for the next year should be determined as well.

The Components of Business Planning Cycle

Every business owner should know about the business planning cycle. A business plan is a necessity and it can help you in achieving your goals or objectives. The cycle reassesses a business’ overall strategies and it’s efficacy in attaining predetermined objectives. Ideally, the cycle is followed in an annual basis because the objectives for the next year should be determined as well. The cycle consists of 5 main components – strategic planning, consultation/scrutiny, financial, employee appraisals, and the criteria for decision making. You need to look into these components one by one to be able to create a comprehensive business plan.

There are many things that a business owner has to attend to but it is vital to determine the hierarchy of things that should be accomplished. Learn to prioritize so that you can better achieve your goals. This is called strategic planning. It would be impossible to do things at once but with your own list of priorities, you can accomplish more in less time. Financial planning is easy to understand. As the name suggests, this will involve the business operations costs and financial commitments. All changes in your chosen industry should be assessed so that you can make adjustments in your business. Your financials should contain the 3 components – cash flow, income, and balance sheet.

Employee Appraisal and Decision Making

Assessing the performance of employees every year is vital. When you evaluate the performance of employees, you will need to consider the quality, talent, and the time-cost. Business owners also need to accept the feedback of employees so that they can make the workplace better and in turn, boost the morale of students. Under the consultation/scrutiny, specific benefits or hindrances are reviewed or criticized to ensure that the business goals are achieved.

When establishing the criteria for decision making, you will need balanced scorecards. This will measure the operational costs and business activities that correspond to the mission, agenda, or vision of the business. Under this component, you will also deal with internal rate of return, breakeven analysis, and net present value. The business planning cycle should be carefully studied by the business owner because this can help him or her in creating the most suitable business plan. Always keep in mind that the business plan serves as the roadmap to success. Without it, it would be impossible achieve your business goals. The plan is not just needed during the business opening but you will need to follow the cycle so that you can do some revisions that will benefit the business in the end.

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