Startupdonut

Business planning is a key part of creating a successful business. Planning helps you assess how good your business idea is and decide what the best way is to achieve your plans.

Planning lets you think about what you want to do, how you are going to do it and anticipate mistakes. If you don't plan, your only option is to learn as you go along - often at high expense.

Effective planning helps you develop a business strategy that takes into account what you are trying to achieve and what competitive threats you face. A realistic strategy will take into account your own skills and the financial resources you have.

This word strikes fear into the heart of some small-business owners, because it sounds so grand. In truth, it simply means having a plan of action to get your business to where you want it to be. Strategic planning can be as longwinded or brief as you like, but the key is to focus on what you're trying to achieve and what you need to do to make it happen.

All businesses need plans. Knowing where you're going is the equivalent of checking the route before you set off on a car journey - it makes getting to your destination simpler. Having an overall strategic plan will help you remain focused and more disciplined about the things you do. If you're spending time working on something that doesn't take you closer to your overall goal - then you're working on the wrong thing.