Top 10 Benefits of Business Planning
The systematic business planning helps the business to derive its advantages and get
benefits out of them. The Benefits of business planning include
1. Business Planning helps the Company to formulate objectives and goals clearly. The company formulates objectives after discussing thoroughly with superiors, colleagues and sub-ordinates. These objectives help the company to achieve stability of business and maximize profits.
2. Business planning helps to avoid piece-meal approach and to have integrative approach.
3. Business planning helps to view the organization in total rather than department-wise.
4. Business plan aims at the long-range plan rather than short-range plan.
5. Business plan integrates the company plan with the national plans and priorities.
6. Business plan takes into consideration the environmental factors. Technological factors influence the business plan significantly. Technology has been upgraded continuously. The changes in technology are pivotal, resulting in high technology.
Announcement of economic liberalizations, globalization and privatization policies by the Government of India, in 1991, changed the economic scenario of the country. The changing scenario influences the economic environment. Added to this, significant changes have taken place in social and political environment.
7. Liberalization, Privatization and Globalization not only brought significant changes in the economy, but they have intensified the competition. Globalization allowed many MNC’s to enter and operate in India. This resulted in tough competition between domestic and foreign companies.
The liberalizations policy of the Government allowed for the establishment of a number of companies. It resulted in severe competition even within the domestic companies. Business plan should take into consideration, the competition levels among the companies.
8. A good business plan helps an organization to be aware of the changes in political trends and their impact in business at national and international levels.
9. Effective business plan helps the company to achieve its objectives and goals.
10. Effective business plan certainly contributes for the achievement of high rate of profits and increases in earning per share.
11. Business plan helps to determine potential growth and profit.