Small business management 5e by byrd sbmchap005

Planning, Organizing, and Managing a Small Business... The Process Of Setting Objectives And Determining Actions To Achieve Those Objectives... Planning Provides Internally:3 Means To De

Planning, Organizing, and Managing a Small Business

The Process Of Setting Objectives And Determining Actions To Achieve Those Objectives.

Criteria For Planning

 Be Prepared

 Be Patient

 Know When To Get Help

 Form Support System

 Know Power Of Vertical Integration

 Never Rest On Laurels

Keith Brofsky/Getty Images

Planning & Other Managerial Functions

Planning Provides Internally:

3) Means To Delegate Javier Pierini/Getty Images

Planning Provides Externally:

1) Interest From Investors/Lenders

Reasons To Neglect Planning

 Day-To-Day Activities Get In Way

 Fear Of What It Might Reveal

 Lack Of Planning Knowledge

 Feeling Future Cannot Be

 Operational- Continuous Before &

After Business Starts

Jim Arbogast/Getty Images

Strategic Planning

Comprehensive

Comprehensive Long-

Business Accomplish

Its Mission.

Parts Of Strategic Plan

Mission: Long-Term Direction

Objectives: Short-Term Ends

Strategies: Means To Achieve

Objectives For

Total Firm Functional Area

Areas For Strategic Planning

 Identifying Target Market

 Picking Legal Structure

 Shaping Financial Needs

 Selecting Location

Ryan McVay/Getty Images

SWOT Analysis

Strengths Weaknesses 1)

2) 3) 4)

1) 2) 3) 4)

Opportunities Threats 1)

2) 3) 4)

1) 2) 3) 4)

Strategic Umbrella

Setting Objectives

Changing Demographics

Foreign Competition

Internal Resources (Competitive Edge)

 Human

 Physical

 Financial Royalty-Free/CORBIS

Mission/Strategy John Smith, General Agent

Operational Planning

Sets Policies, Procedures, And Standards For Achieving Objectives.

Parts Of Operational Plan

Consistent Action

Manner Of Operating

Measures Of Control For

Activities

Jules Frazier/Getty Images

Areas Of Operational Planning

• Determining Approach To Market

• Establishing Record System

• Setting Up Schedule

Income And Expenses

Net Profit

Expenses

Variable Fixed

Estimating Annual Income/Expense/Net Profit

Sources Of Funds

A

FEDERAL RE SERVE N OTE

THE UNITED STATES O F AMERICA

L70 744 629F

12 12 12

FEDERAL RE SERVE N OTE

THE UNITED STATES O F AMERICA

L70 744 629F

12 12 12

THE UNITED STAT ES OF AMERICA L70744629F

12 12 12

THE UNITED STAT ES OF AMERICA L70744629F

12 12 12

Purposes Of Business Plan

Plan Should Include

Preparing Business Plan

 Business Current Status

 Where Would Business

Like To Be- Objective

 What Will It Take To Get

Business To Objective- Strategy

 Owner Should Prepare

 Create Action Steps

Monica Lau/Getty Images

Components Of Business Plan

Outline Of Executive Summary

Writing The Plan

 Be Honest

 Use The Third Person

 Use Transitional Words

 Avoid Redundancies

 Use Short, Simple Words

 Use Visuals

Preparation For Presentation