BUSINESS PLANNING

Business Planning

Business Planning

Introduction

A business plan is crucial element of any business. It contains all the description as to how should we achieve the vision of the business. Planning plays an important role in business plans as approximately 80% of new businesses fail are mostly due to a lack of planning and the process planning, which is very necessary for the smooth flow of business. It is important for the plan that it should include all the skills to examine and clearly understand the issues (Jinnett, p.3).

If planning is good then there is no issue for the business as it is necessary that the business should focus on strong planning. The biggest mistake which is committed by business planners is to misunderstand the market and the opportunities available to their product or service. Many new entrants in business are excited about their product or service and assume that consumers will react the same way. They then play around with the figures so as to give realism to the business opportunity (Jinnett, p.6). In other words, some planners make their dreams for reality. It is not uncommon for professional planners to reject the plan after a review of just a few minutes when the planner is not clear of the business opportunity. This is the question that the investment companies in venture capital are mainly interested in.

This paper focuses on the company Pacet Automotive Cooling Fans. It is UK's one of the largest supplier of quality automotive cooling fans. The one plan which I have used for analysis is “Pacet Business Plan”; there are strengths of this business plan as it is focusing on each and every part needed to be a perfect business plan, however there are some weaknesses as well. Further in the paper the Pacet's business plan is compared with the Best Practice Business Plan.

For evaluation I will use the evaluation process, which clarifies that what are the most important factors for evaluating a business plan, this aspect will help understand easily. Pacet is a non-listed public company, engaged in the manufacturing of innovative electronic cooling automotive impellers. The extensive use of technology has resulted in the company's emergence as the leading manufacturer of impellers for its clients (www.pacet.co.uk). The firm has targeted the electronic cooling equipment segment and desires to supply customized and innovatively designed impellers to the potential buyers. The company has also shown its interest in forming an alliance with its stakeholders, enabling the firm to gain more ground in this technology-oriented market of fans.

Discussion

Pacet- Business Plan

To start a business a business plan is developed that is made by the Entrepreneur or by the management and it specifies what task are to be made and it describes the mission of the organization. Similarly Pacet has developed a business plan to achieve that mission and vision statement how the organization should perform and make people under them to work on it. There are four tasks involve in business plan that Pacet has developed:

Identification and assessment ...