A company is sometimes all a person has, and every person wants their business to succeed and for or a company to succeed, a Business Development Plan (BDP) is one of the necessities. Although not the sole base of a Business, BDP is among the core pillars of a company as it guides organizations in purpose, including mission, vision, and values, as well as products or services, target audience, and strategies the business will use to achieve success.
The business plan includes step by step guide for all the members of the organization. Without a coherent business development plan, a business has no road map to follow when pursuing opportunities and running daily operations. The consequences of not having a business development plan can be critical.
1. Lacks the Focus
With a reasonable business development plan, a company does not have identifiable business objectives. The company lacks the focus to attain corporate and financial goals and develop plans that will halt the company from moving forward. Lack of objectives means that your company does not have a clear vision of what direction to go in in the future. If there are no specified goals and objectives, then there is no point in continuing the business. Objectives are used to develop long-term growth and productivity plans that are essential for the sustainability of the organization.
2. Resource Wastage
Business plans and strategies are used to allocate business resources into projects and operations that need them. When there is no planning or planning is not coherent, it’s strenuous to create budgets for special projects and understand the personnel and funding resources required to launch new products and grow the business.
3. Unclear Organizational Structure
Part of business planning is recognizing the people in charge. Some businesses prefer having a profoundly organized chain of command, while others are more loosely organized. Whichever method the company chooses, it should be made clear to everyone. This establishes responsibility for the success of each department and helps staff know who to review for elucidation of job duties or questions. Without a proper business plan, the company structure is not defined and there is no cornerstone effort for employee and corporate development.
4. Communication Flow Not Coherent
The systematic processing and distribution of information are necessary for the success and growth of a business. A business plan establishes a line of communication and allows employees to understand information precedence, the flow of information in and out of the company and how information is allocated internally. With a proper plan, there is no formal composition for communication and important information can get lost. Every employee will naturally cornerstone on what they believe is supreme, which may or may not align with yours.
It is important to know and let everyone in the team know the purpose of the business about why the company is started in order to save everyone time. However, it should not be assumed that employees and even managers know the purpose, although you think they certainly should know it because of the countless times you have discussed it. There needs to be a clearly written explanation so that everyone can get a clear picture. Some companies create their mission statement as to their purpose which is the reason for their existence.
6. Unclear Mission and Vision
Through proper and strategic planning, you can map out how your company will achieve its purpose or mission. However, you should be wary about how much detail to include in your plan. The business climate is a fluid one, changing due to numerous factors, including industry advances and the state of the economy. If the strategic plan is too particular it will be difficult to modify the course even slightly when it is necessary. The plan should designate to everyone the direction the company is headed towards its mission, but flexible enough to change course as needed.
In a nutshell, the Business Development Plan is a key factor for a company to run smoothly and gain success in the future. BDP is made so that the direction and the progress can be tracked, which is necessary to move forward in the future. All in all, BDP should be made before starting a company so that you can have a clear picture and use the resources tactically.