explain the steps in business planning process

The 7 Steps of the Business Planning Process: A Complete Guide

In this article, we'll provide a comprehensive guide to the seven steps of the business planning process, and discuss the role of Strikingly website builder in creating a professional business plan.

Step 1: Conducting a SWOT Analysis

The first step in the business planning process is to conduct a SWOT analysis. SWOT stands for Strengths, Weaknesses, Opportunities, and Threats. This analysis will help you understand your business's internal and external environment, and it can help you identify areas of improvement and growth.

Strengths and weaknesses refer to internal factors such as the company's resources, capabilities, and culture. Opportunities and threats are external factors such as market trends, competition, and regulations.

You can conduct a SWOT analysis by gathering information from various sources such as market research, financial statements, and feedback from customers and employees. You can also use tools such as a SWOT matrix to visualize your analysis.

What is a SWOT Analysis?

A SWOT analysis is a framework for analyzing a business's internal and external environment. The acronym SWOT stands for Strengths, Weaknesses, Opportunities, and Threats.

Strengths and weaknesses include internal factors such as the company's resources, capabilities, and culture. Opportunities and threats are external factors such as market trends, competition, and regulations.

A SWOT analysis can help businesses identify areas of improvement and growth, assess their competitive position, and make informed decisions. It can be used for various purposes, such as business planning, product development, marketing strategy, and risk management.

Importance of Conducting a SWOT Analysis

Conducting a SWOT analysis is crucial for businesses to develop a clear understanding of their internal and external environment. It can help businesses identify their strengths and weaknesses and uncover new opportunities and potential threats. By doing so, businesses can make informed decisions about their strategies, resource allocation, and risk management.

A SWOT analysis can also help businesses identify their competitive position in the market and compare themselves to their competitors. This can help businesses differentiate themselves from their competitors and develop a unique value proposition.

Example of a SWOT Analysis

Here is an example of a SWOT analysis for a fictional business that sells handmade jewelry:

• Unique and high-quality products
• Skilled and experienced craftsmen
• Strong brand reputation and customer loyalty
• Strategic partnerships with local boutiques
• Limited production capacity
• High production costs
• Limited online presence
• Limited product variety

Opportunities

• Growing demand for handmade products
• Growing interest in sustainable and eco-friendly products
• Opportunities to expand online presence and reach new customers
• Opportunities to expand product lines
• Increasing competition from online and brick-and-mortar retailers
• Fluctuating consumer trends and preferences
• Economic downturns and uncertainty
• Increased regulations and compliance requirements

This SWOT analysis can help the business identify areas for improvement and growth. For example, the business can invest in expanding its online presence, improving its production efficiency, and diversifying its product lines. The business can also leverage its strengths, such as its skilled craftsmen and strategic partnerships, to differentiate itself from its competitors and attract more customers.

Step 2: Defining Your Business Objectives

Once you have conducted a SWOT analysis, the next step is to define your business objectives. Business objectives are specific, measurable, achievable, relevant, and time-bound (SMART) goals that align with your business's mission and vision.

Your business objectives can vary depending on your industry, target audience, and resources. Examples of business objectives include increasing sales revenue, expanding into new markets, improving customer satisfaction, and reducing costs.

You can use tools such as a goal-setting worksheet or a strategic planning framework to define your business objectives. You can also seek input from your employees and stakeholders to ensure your objectives are realistic and achievable.

What is Market Research?

Market research is an integral part of the business planning process. It gathers information about a target market or industry to make informed decisions. It involves collecting and analyzing data on consumer behavior, preferences, and buying habits, as well as competitors, industry trends, and market conditions.

Market research can help businesses identify potential customers, understand their needs and preferences, and develop effective marketing strategies. It can also help businesses identify market opportunities, assess their competitive position, and make informed product development, pricing, and distribution decisions.

Importance of Market Research in Business Planning

Market research is a crucial component of the business planning process. It can help businesses identify market trends and opportunities, assess their competitive position, and make informed decisions about their marketing strategies, product development, and business operations.

By conducting market research, businesses can gain insights into their target audience's behavior and preferences, such as their purchasing habits, brand loyalty, and decision-making process. This can help businesses develop targeted marketing campaigns and create products that meet their customers' needs.

Market research can also help businesses assess their competitive position and identify gaps in the market. Businesses can differentiate themselves by analyzing their competitors' strengths and weaknesses and developing a unique value proposition.

Different Types of Market Research Methods

Businesses can use various types of market research methods, depending on their research objectives, budget, and time frame. Here are some of the most common market research methods:

Surveys are a common market research method that involves asking questions to a sample of people about their preferences, opinions, and behaviors. Surveys can be conducted through various channels like online, phone, or in-person surveys.

• Focus Groups

Focus groups are a qualitative market research method involving a small group to discuss a specific topic or product. Focus groups can provide in-depth insights into customers' attitudes and perceptions and can help businesses understand the reasoning behind their preferences and behaviors.

Interviews are a qualitative market research method that involves one-on-one conversations between a researcher and a participant. Interviews can be conducted in person, over the phone, or through video conferencing and can provide detailed insights into a participant's experiences, perceptions, and preferences.

• Observation

Observation is a market research method that involves observing customers' behavior and interactions in a natural setting such as a store or a website. Observation can provide insights into customers' decision-making processes and behavior that may not be captured through surveys or interviews.

• Secondary Research

Secondary research involves collecting data from existing sources, like industry reports, government publications, or academic journals. Secondary research can provide a broad overview of the market and industry trends and help businesses identify potential opportunities and threats.

By combining these market research methods, businesses can comprehensively understand their target market and industry and make informed decisions about their business strategy.

Step 3: Conducting Market Research

Market research should always be a part of your strategic business planning. This step gathers information about your target audience, competitors, and industry trends. This information can help you make informed decisions about your product or service offerings, pricing strategy, and marketing campaigns.

There are various market research methods, such as surveys, focus groups, and online analytics. You can also use tools like Google Trends and social media analytics to gather data about your audience's behavior and preferences.

Market research can be time-consuming and costly, but it's crucial for making informed decisions that can impact your business's success. Strikingly website builder offers built-in analytics and SEO optimization features that can help you track your website traffic and audience engagement.

Step 4: Identifying Your Target Audience

Identifying your target audience is essential in the business planning process. Your target audience is the group of people who are most likely to buy your product or service. Understanding their needs, preferences, and behaviors can help you create effective marketing campaigns and improve customer satisfaction.

You can identify your target audience by analyzing demographic, psychographic, and behavioral data. Demographic data include age, gender, income, and education level. Psychographic data includes personality traits, values, and lifestyle. Behavioral data includes buying patterns, brand loyalty, and online engagement.

Once you have identified your target audience, you can use tools such as buyer personas and customer journey maps to create a personalized and engaging customer experience. Strikingly website builder offers customizable templates and designs to help you create a visually appealing and user-friendly website for your target audience.

What is a Target Audience?

A target audience is a group most likely to be interested in and purchase a company's products or services. A target audience can be defined based on various factors such as age, gender, location, income, education, interests, and behavior.

Identifying and understanding your target audience is crucial for developing effective marketing strategies and improving customer engagement and satisfaction. By understanding your target audience's needs, preferences, and behavior, you can create products and services that meet their needs and develop targeted marketing campaigns that resonate with them.

Importance of Identifying Your Target Audience

Identifying your target audience is essential for the success of your business. By understanding your target audience's needs and preferences, you can create products and services that meet their needs and develop targeted marketing campaigns that resonate with them.

Here are reasons why identifying your target audience is important:

• Improve customer engagement. When you understand your target audience's behavior and preferences, you can create a more personalized and engaging customer experience to improve customer loyalty and satisfaction.
• Develop effective marketing strategies. Targeting your marketing efforts to your target audience creates more effective and efficient marketing campaigns that can increase brand awareness, generate leads, and drive sales.
• Improve product development. By understanding your target audience's needs and preferences, you can develop products and services that meet their specific needs and preferences, improving customer satisfaction and retention.
• Identify market opportunities. If you identify gaps in the market or untapped market segments, you can develop products and services to meet unmet needs and gain a competitive advantage.

Examples of Target Audience Segmentation

Here are some examples of target audience segmentation based on different demographic, geographic, and psychographic factors:

• Demographic segmentation. Age, gender, income, education, occupation, and marital status.
• Geographic segmentation. Location, region, climate, and population density.
• Psychographic segmentation. Personality traits, values, interests, and lifestyle.

Step 5: Developing a Marketing Plan

A marketing plan is a strategic roadmap that outlines your marketing objectives, strategies, tactics, and budget. Your marketing plan should align with your business objectives and target audience and include a mix of online and offline marketing channels.

Marketing strategies include content marketing, social media marketing, email marketing, search engine optimization (SEO), and paid advertising. Your marketing tactics can include creating blog posts, sharing social media posts, sending newsletters, optimizing your website for search engines, and running Google Ads or Facebook Ads.

To create an effective marketing plan , research your competitors, understand your target audience's behavior, and set clear objectives and metrics. You can also seek customer and employee feedback to refine your marketing strategy.

Strikingly website builder offers a variety of marketing features such as email marketing, social media integration, and SEO optimization tools. You can also use the built-in analytics dashboard to track your website's performance and monitor your marketing campaign's effectiveness.

What is a Marketing Plan?

A marketing plan is a comprehensive document that outlines a company's marketing strategy and tactics. It typically includes an analysis of the target market, a description of the product or service, an assessment of the competition, and a detailed plan for achieving marketing objectives.

A marketing plan can help businesses identify and prioritize marketing opportunities, allocate resources effectively, and measure the success of their marketing efforts. It can also provide the marketing team with a roadmap and ensure everyone is aligned with the company's marketing goals and objectives.

Importance of a Marketing Plan in Business Planning

A marketing plan is critical to business planning. It can help businesses identify their target audience, assess their competitive position, and develop effective marketing strategies and tactics.

Here are a few reasons why a marketing plan is important in business planning:

• Provides a clear direction. A marketing plan can provide a clear direction for the marketing team and ensure everyone is aligned with the company's marketing goals and objectives.
• Helps prioritize marketing opportunities. By analyzing the target market and competition, a marketing plan can help businesses identify and prioritize marketing opportunities with the highest potential for success.
• Ensures effective resource allocation. A marketing plan can help businesses allocate resources effectively and ensure that marketing efforts are focused on the most critical and impactful activities.
• Measures success. A marketing plan can provide a framework for measuring the success of marketing efforts and making adjustments as needed.

Examples of Marketing Strategies and Tactics

Here are some examples of marketing strategies and tactics that businesses can use to achieve their marketing objectives:

• Content marketing. Creating and sharing valuable and relevant content that educates and informs the target audience about the company's products or services.
• Social media marketing. Leveraging social media platforms like Facebook, Twitter, and Instagram to engage with the target audience, build brand awareness, and drive website traffic.
• Search engine optimization (SEO). Optimizing the company's website and online content to rank higher in search engine results and drive organic traffic.
• Email marketing. Sending personalized and targeted emails to the company's email list to nurture leads, promote products or services, and drive sales.
• Influencer marketing. Partnering with influencers or industry experts to promote the company's products or services and reach a wider audience.

By using a combination of these marketing strategies and tactics, businesses can develop a comprehensive and effective marketing plan that aligns with their marketing goals and objectives.

Step 6: Creating a Financial Plan

A financial plan is a detailed document that outlines your business's financial projections, budget, and cash flow. Your financial plan should include a balance sheet, income statement, and cash flow statement, and it should be based on realistic assumptions and market trends.

To create a financial plan, you should consider your revenue streams, expenses, assets, and liabilities. You should also analyze your industry's financial benchmarks and projections and seek input from financial experts or advisors.

.jpg)Image taken from Strikingly Templates

Strikingly website builder offers a variety of payment and e-commerce features, such as online payment integration and secure checkout. You can also use the built-in analytics dashboard to monitor your revenue and expenses and track your financial performance over time.

What is a Financial Plan?

A financial plan is a comprehensive document that outlines a company's financial goals and objectives and the strategies and tactics for achieving them. It typically includes a description of the company's financial situation, an analysis of revenue and expenses, and a projection of future financial performance.

A financial plan can help businesses identify potential risks and opportunities, allocate resources effectively, and measure the success of their financial efforts. It can also provide a roadmap for the finance team and ensure everyone is aligned with the company's financial goals and objectives.

Importance of Creating a Financial Plan in Business Planning

Creating a financial plan is a critical component of the business planning process. It can help businesses identify potential financial risks and opportunities, allocate resources effectively, and measure the success of their financial efforts.

Here are some reasons why creating a financial plan is important in business planning:

• Provides a clear financial direction. A financial plan can provide a clear direction for the finance team and ensure everyone is in sync with the company's financial goals and objectives.
• Helps prioritize financial opportunities. By analyzing revenue and expenses, a financial plan can help businesses identify and prioritize financial opportunities with the highest potential for success.
• Ensures effective resource allocation. A financial plan can help businesses allocate resources effectively and ensure that financial efforts are focused on the most critical and impactful activities.
• Measures success. A financial plan can provide a framework for measuring the success of financial efforts and making adjustments as needed.

Examples of Financial Statements and Projections

Here are some examples of financial statements and projections that businesses can use in their financial plan:

• Income statement. A financial statement that shows the company's revenue and expenses over a period of time, typically monthly or annually.
• Balance sheet. A financial statement shows the company's assets, liabilities, and equity at a specific time, typically at the end of a fiscal year.
• Cash flow statement. A financial statement that shows the company's cash inflows and outflows over a period of time, typically monthly or annually.
• Financial projections. Forecasts of the company's future financial performance based on assumptions and market trends. This can include revenue, expenses, profits, and cash flow projections.

Step 7: Writing Your Business Plan

The final step in the business planning process is to write your business plan. A business plan is a comprehensive document that outlines your business's mission, vision, objectives, strategies, and financial projections.

A business plan can help you clarify your business idea, assess the feasibility of your business, and secure funding from investors or lenders. It can also provide a roadmap for your business and ensure that you stay focused on your goals and objectives.

Importance of Writing a Business Plan

Writing a business plan is an essential component of the business planning process. It can help you clarify your business idea , assess the feasibility of your business, and secure funding from investors or lenders.

Here are some reasons why writing a business plan is important:

• Clarifies your business idea. Writing a business plan can help you clarify your business idea and understand your business's goals, objectives, and strategies.
• Assesses the feasibility of your business. A business plan can help you assess the feasibility of your business and identify potential risks and opportunities.
• Secures funding. A well-written business plan can help you secure funding from investors or lenders by demonstrating the potential of your business and outlining a clear path to success.
• Provides a roadmap for your business. A business plan can provide a roadmap and ensure that you stay focused on your goals and objectives.

Tips on How to Write a Successful Business Plan

Here are some tips on how to write a business plan successfully:

• Start with an executive summary. The executive summary is a brief business plan overview and should include your business idea, target market, competitive analysis, and financial projections.
• Describe your business and industry. Provide a detailed description of your business and industry, including your products or services, target market, and competitive landscape.
• Develop a marketing strategy. Outline your marketing strategy and tactics, including your target audience, pricing strategy, promotional activities, and distribution channels.
• Provide financial projections. Provide detailed financial projections, including income statements, balance sheets, and cash flow statements, as well as assumptions and risks.
• Keep it concise and clear. Keep your business plan concise and clear, and avoid using jargon or technical terms that may confuse or intimidate readers.

Role of Strikingly Website Builder in Creating a Professional Business Plan

Strikingly website builder can play a significant role in creating a professional business plan. Strikingly provides an intuitive and user-friendly platform that allows you to create a professional-looking website and online store without coding or design skills.

Using Strikingly, you can create a visually appealing business plan and present it on your website with images, graphics, and videos to enhance the reader's experience. You can also use Strikingly's built-in templates and a drag-and-drop editor to create a customized and professional-looking business plan that reflects your brand and style.

Strikingly also provides various features and tools that can help you showcase your products or services, promote your business, and engage with your target audience. These features include e-commerce functionality, social media integration, and email marketing tools.

Let’s Sum Up!

In conclusion, the 7 steps of the business planning process are essential for starting and growing a successful business. By conducting a SWOT analysis, defining your business objectives, conducting market research, identifying your target audience, developing a marketing plan, creating a financial plan, and writing your business plan, you can set a solid foundation for your business's success.

Strikingly website builder can help you throughout the business planning process by offering a variety of features such as analytics, marketing, e-commerce , and business plan templates. With Strikingly, you can create a professional and engaging website and business plan that aligns with your business objectives and target audience.

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Planning Process: Concept and Steps

Planning is the process of setting objectives for a given period and formulating various courses of action to achieve them and selecting the best possible alternatives from the various courses of action available there. According to this application, planning is a choice-making activity because it involves setting up objectives and deciding the appropriate course of action to achieve the objective. It must be remembered that plans are always developed for a given period.

Steps in Planning Process

Following are the steps in the planning process:

• Setting Objectives: The idea behind planning is to achieve desired objectives. Therefore, the first step is to clearly define and describe the objectives of the organization. Firstly, the major objectives should be specified, and then they should be broken down into individual, sectional and departmental objectives. Objectives serve as guidelines for discussion-making in terms of resource allocation. Work schedule, nature of actions, etc., are kept in mind while setting objectives. All efforts must be made to anticipate the problems and relevant opportunities that are likely to arise in the future. For example, an enterprise ABC Ltd. is opening their new branch of laptops, firstly they have to specify the objective, i.e., to sell 3,000 units this year, which is double the previous year’s sales. For achieving this aim, they have to distribute this objective into various departments, such as production, marketing, sales, and finance departments. By distributing the main objective into departmental objectives, the company will face fewer problems in managing its organization.
• Developing Planning Premises: The next step in planning is to establish premises. Planning premises are the anticipated environment in which the plans are expected to operate. These include assumptions and forecasts in the future and knowing conditions that will affect the course of the plan. In short, these provide the environment and the boundaries within which the plans will be executed. Planning premises may be classified as internal and external premises, controllable, semi-controllable, and uncontrollable premises, tangible and intangible premises, and the last foreseeable and unenforceable premises. For example, ABC Ltd. company has set the objective to sell 3,00,000 units of laptops this year. For this, they need to gather information by forecasting, as it is an important technique in developing premises. The enterprise has set this objective after forecasting the increase in demand for laptops due to work from the home policy. An accurate forecast is very important for successful plans.
• Identifying alternative courses of action: After setting the objectives and making assumptions about the future. The next step is to determine alternative courses of action through which the organization can achieve its objectives. In order to identify the various alternative courses of action, it is required to collect all necessary information from primary and secondary sources. The information collected must be correct and believable. The only information which is directly and strategically related to the achievement of the desired objective should be considered. For every plan, there are several options. All the alternative courses of action should be identified. For example, ABC Ltd. should have an innovative way that can be adopted by involving employees and consumers in sharing their own ideas. The company has many alternatives like decreasing prices, increasing advertisement, promotion, and after-sale service. In important projects, the enterprise generates more alternatives through discussion amongst the members of the organization.
• Evaluating alternative courses: After identifying different alternatives the next step is to evaluate each alternative. Evaluation means the study of the performance of various actions. All the possible alternatives should be evaluated keeping in mind their expected cost and benefit to the organization. Comparison among the alternatives should be made in terms of factors, such as the risk involved, planning premises, goals to be achieved, etc. The positive and negative points of each alternative must be thoroughly examined, and thereafter planner should make a choice. For example, ABC Ltd. should evaluate all the possible alternatives and check their positive and negative points.
• Selecting an alternative: After evaluating various alternatives, the next step is to select the most suitable force of action. The basic, detailed, and derivative plans, such as policies, rules, programs, and budgets should be formulated. This is because the derivative plans help in the implementation of the basic plans. Most of the plans may not always be subjected to mathematical analysis. In these cases, the subject and the management experience, judgment, and at times institute play an important role in setting the most suitable alternative. Many times combination of plans is also selected instead of selecting one best course. For example, ABC Ltd. will start T.V advertisements, online marketing, and direct contact with MNCs to increase sales, as selecting the most suitable alternative will increase the profit of the company.  
• Implementing the plan: This step is concerned with transforming the plan into action. The plan must be communicated to the employees in detail. This, in turn, will help to secure cooperation from them. Useful suggestions from employees must be considered, and they should be motivated to execute the plan to the fullest of their abilities. The plan has to be effectively implemented by the real executor. This step would also involve organizing labour and purchasing machinery. For example, ABC Ltd. starts hiring more salesmen in the company to contact and connect with more MNCs. The company will start creating more interesting advertisements on the online platform. They will establish more service workshops in various cities.
• Follow-up- action: After implementing the plan, the last step is to periodically review the existing plan to ensure that the plan is effective. The plan must be consistently monitored, and in case of any deficiency, it should be modified and adjusted. For example, a proper feedback mechanism was developed by ABC Ltd. so that they can take all the complaints and reviews from their consumers and provide a better service experience. Actual customer response, revenue collection, employee response, etc., are very important for the company. 

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• Types of Organisation Structure The term structure refers to the management of parts and interrelationships among activities and people. Therefore, organisation structure is an element of job position that provides the basis on which managers and non-managerial employees perform their assigned jobs. It is the role assigned to them 7 min read
• Difference between Functional Structure and Divisional Structure Organisation Structure is an element of job position that provides the basis on which managers and non-managerial employees perform their assigned jobs. Functional Structure and Divisional Structure are types of Organisation Structure. What is Functional Structure? The structure under which jobs of 2 min read
• Formal and Informal Organisation Organising refers to identifying and growing different activities in the organisation. It brings together human and non-human resources to achieve organisational goals. Organising helps in the implementation of the plan by clarifying job and working relationships for the attainment of desired goals. 7 min read
• Difference between Formal and Informal Organisation Organisations are a network of relationships amongst people working together so as to get the best output in an enterprise. The two types of organisation formed on the basis of relationships are  Formal Organisation and Informal Organisation. What is a Formal Organisation?In every organisation, empl 3 min read
• Elements and Importance of Delegation It is not possible for an individual to perform all the tasks assigned to him. To meet the targets, the appropriate authority is to be delegated to the respective person. Delegation of authority means the division of authority, position, and power flowing downwards to the subordinate. It can also be 4 min read
• Difference between Authority, Responsibility and Accountability Authority, Responsibility, and Accountability are three important elements or processes of Delegation. All these three elements are essential for successful achievement of organisational goals. What is Authority? The right of an individual to command his subordinates and take actions within the powe 3 min read
• Centralization and Decentralization As far as we are concerned with different business organizations, Centralization and Decentralization are two relative terms. Centralization focuses all the decision-making functions at the top of the management hierarchy. Such a situation would get rid of the need for a management hierarchy. In oth 6 min read
• Difference between Centralization and Decentralization According to Henri Fayol,'' Everything which goes to increase the importance of a subordinate's role is decentralization, everything that goes to reduce it is centralization''. What is Centralization? Centralization refers to the concentration of authority at the top level of the organisation. It is 2 min read
• Difference between Delegation and Decentralization Delegation and Decentralization are two terms which are mostly misunderstood as the same. Delegation of authority means assigning work to subordinates and giving them authority to do it. However, Decentralization means the dispersal of authority throughout the organisation. What is Delegation?Delega 2 min read

Chapter 6: Staffing

• Staffing : Meaning, Definition, Features and Importance What is Staffing?Staffing is that part of management concerned with obtaining, utilizing, and maintaining capable people to fill all positions in the organization from top level to bottom level. It involves the scientific and systematic procurement, allocation, utilization, conservation, and develop 3 min read
• Staffing and Human Resource Management Staffing and Human Resource Management Human resource management is a process that brings people and organizations together so that organizational and individual goals can be achieved. Human resource management can be defined as the art of procuring, developing, and maintaining a competent workforce 3 min read
• Staffing Process Staffing is the art of acquiring, developing, and maintaining a satisfactory and satisfied workforce. Staffing is that function by which a manager builds an organization through the recruitment, selection, and development of the individual, which also includes a series of activities. It ensures that 8 min read
• Sources of Recruitment (Internal and External: Meaning, Merits and Demerits) Recruitment can be defined as the process of publicizing information about various job vacancies in the organization. It is a process of searching for prospective employees and encouraging them to apply for the job in the organization. Recruitment is a positive process because it stimulates people t 10 min read
• Difference between Internal Recruitment and External Recruitment Internal Recruitment and External Recruitment are two ways of recruiting people into an organization. In the former method, a company makes use of the existing staff to fill up the vacant jobs. However, in the latter method, a company searches for employees from outside sources. Table of Content Wha 3 min read
• Steps in Selection Process What is Selection?Selection is the process of recognizing and choosing the best candidate out of several potential candidates for a job. The candidates who are not suitable for the job are eliminated. For selection, the candidates have to take several employment tests and interviews. At every step, 5 min read
• Difference between Recruitment and Selection Recruitment and Selection are two of the most important terms used in the hiring process. Recruitment is the process of searching for appropriate employees and encouraging them to apply for jobs whereas the process of identifying and choosing the best person out of a number of prospective candidates 5 min read
• Importance of Training and Development to Organisation and Employees What is Training and Development? Training is a process by which the skills, talents, and capabilities of the employees of an organization are increased. Training helps employees to grasp new skills and utilize the knowledge provided. It is not only required by the new employees, but it is also nece 4 min read
• Methods of Training: On-the-Job Methods and Off-the-Job Methods Meaning of TrainingTraining is a process by which the skills, talents, and capabilities of the employees of an organization are increased. Training helps employees to grasp new skills and utilize the knowledge provided. Training is not only required by the new employees, but it is also necessary for 5 min read
• Difference between On-the-Job Training Methods and Off-the-Job Training Methods On-the-Job Training Methods and Off-the-Job Training Methods are two different training methods. In the first method, the employees are trained at their actual workplace, while they are doing work. However, in the second method, the employees are provided training outside their actual workplace. Wha 2 min read
• Difference between Training and Development Training and Development are one of the most important aspects of staffing. Training and development play an important role in improving the effectiveness and efficiency of the organisation and the employees. Training increases job skills while development shapes attitude. Training focuses on develo 2 min read
• Difference between Training, Development and Education Training, Development, and Education are different from each other. Training focuses on developing the skills, which are already possessed by an employee; development focuses on developing hidden qualities and talents of employees; and education focuses on increasing the knowledge and understanding 2 min read

Chapter 7: Directing

• Directing: Meaning, Characteristics and Importance What is Directing?The process of instructing, guiding, counselling, motivating, and leading people in an organisation to achieve the organisational goals is known as Directing.  Directing not only includes order and instructions by a superior to the subordinates but also includes guiding and inspiri 4 min read
• Principles and Elements of Directing Directing is the managerial function of guiding, inspiring, instructing, and harnessing people towards the accomplishment of the desired results. Directing includes issuing orders and instructions that are clear and complete; continuing guidance and supervision to ensure that the assigned tasks are 5 min read
• Importance of Supervision Supervision refers to the process by which managers oversee the activities and performance of their subordinates to ensure that tasks are completed correctly, efficiently, and in alignment with organizational goals. Effective supervision involves various responsibilities and practices, including Gui 5 min read
• Features and Importance of Motivation What is Motivation?The process of stimulating and inspiring people at work to contribute to the best of their capability for the achievement of organisational objectives is known as Motivation. Motivation is the inner psychological force that activates and compels a person to behave in a particular 4 min read
• Process of Motivation The process of stimulating and inspiring people at work to contribute to the best of their capability for the achievement of organisational objectives is known as Motivation. Motivation is the inner psychological force that activates and compels a person to behave in a particular manner. It is a pro 4 min read
• Maslow's Hierarchy of Needs Theory Behind every successful organisation, there is a highly motivated and committed team of employees. Since motivation is complex as it deals with human behaviour, various researchers have given different theories. Maslow's Hierarchy of Needs theory is considered very significant as it highlights the n 7 min read
• Financial and Non-Financial Incentives What is Incentive?Incentive refers to all majors in the form of monetary and non-monetary rewards, which are used to motivate people to improve performance. The needs of employees are different. Some of them can be satisfied by money, while others cannot be satisfied by only money. The incentives ar 4 min read
• Difference between Financial and Non-financial Incentives Incentive refers to all majors in the form of monetary and non-monetary rewards, which are used to motivate people to improve their performance. The incentives are classified into two categories or groups they are Financial Incentives and Non- Financial Incentives. What are Financial Incentives? Inc 2 min read
• Features and Importance of Leadership The process of influencing the behaviour of people towards achievement of organisational goals is known as Leadership. It indicates the ability of an individual to maintain good interpersonal relations with followers and motivate them to contribute to achieving organisational objectives. An individu 3 min read
• Types of Leadership Styles The process of influencing the behaviour of people towards the achievement of organisational goals is known as Leadership. It indicates the ability of an individual to maintain good interpersonal relations with followers and motivate them to contribute to achieving organisational objectives. An indi 4 min read
• 10 Qualities of a Good Leader Leaders are individuals who possess attributes of leadership. They focus on satisfying the behavior of each member of the group and the realization of group goals. A leader inspires employees, provides psychological support, helps in implementing changes, handles conflicts effectively, and works tow 5 min read
• Which is more effective Push or Pull marketing ? What is Push Marketing?Push marketing is when a company actively shows its products to people, instead of waiting for customers to come looking for them. It's like when someone tries to sell you something directly, by either talking to you about it, sending you ads in the mail, or putting up big pos 5 min read
• Communication: Meaning, Definition, Features and Importance What is Communication?Communication is an indispensable element in human relationships. Humans interact with one another through communication. The term 'communication' is derived from the Latin word 'communis', which means common. Therefore, communication is defined as an exchange of facts, ideas, 4 min read
• Elements of Communication Process The process of exchange of ideas, views, facts, feelings, etc., between two or more persons in order to reach a common understanding is known as Communication.   "Communication is the sum of all things, a person does when he wants to create an understanding in the minds of another. It involves a sys 3 min read
• Communication Channels | Formal and Informal The path through which information flows from sender to receiver is known as the channel of communication.There are two main channels of communication: Formal CommunicationInformal CommunicationFormal Communication Official communication taking place in an organisation is known as formal communicati 3 min read
• Formal Communication: Meaning, Types, Merits and Demerits What is Formal Communication ? Official communication taking place in an organisation is known as formal communication. It is related to the status or position of the sender and receiver. It generally takes place either between employees of different levels as in the case of superior-subordinate or 3 min read
• Informal Communication: Meaning, Networks, Merits and Demerits The process of exchange of ideas, views, facts, feelings, etc., between two or more persons to reach a common understanding is known as Communication. Communication is a social process as it involves two or more persons. It is a pervasive and continuous function. There are two main communication cha 3 min read
• Barriers to Effective Communication The factors which obstruct the effectiveness of communication is known as Communication Barriers. These barriers cause a mismatch between the understanding of the message by the sender and the receiver. These barriers can occur at any stage of the communication process.  Table of Content Classificat 6 min read
• Measures to improve Communication Effectiveness The factors that obstruct the effectiveness of communication are known as communication barriers. Through these barriers, communication can be prevented or a part of it is filtered or incorrect information may be carried, which leads to misunderstanding.For the success of an organisation, effective 3 min read

Chapter 8: Controlling

• Controlling in Management: Meaning, Nature, Importance and Limitations What is Controlling in Management?Every organisation aims at achieving some goals from its business activities and it is essential to ensure whether or not the firm is performing activities according to the pre-determined goals. The controlling function of management helps an organisation in ensurin 6 min read
• Relationship between Planning and Controlling Planning and Controlling are inter-related to each other. Planning is a blueprint of the course of action to be followed in the future. It is also a mental exercise that requires imagination, foresight and sound judgment. It is thinking before doing. It is a preparatory step, and it refers to detail 4 min read
• Process of Controlling Controlling means comparing the actual performance of an organisation with the planned performance and taking corrective actions if the actual performance does not match the planned performance. Controlling cannot prevent the deviation in actual and planned performance; however, it can minimise the 8 min read

Chapter 9: Financial Management

• Role and Objectives of Financial Management We all know that finance is essential for running a business. Business enterprises require careful financial planning and understanding of the resultant capital structure, risks, and profitability that they may have. All these have an effect on shareholders as well as the employees. They require an 5 min read
• Types of Financial Decisions What is Financial Decision?The decisions regarding the financial matters of any organization are known as Financial Decisions. In simple terms, it refers to the decision regarding the investment of the funds of the business in various assets. Financial management focuses on providing solutions to th 3 min read
• Investment Decision: Meaning and Factors affecting Investment Decision What is Investment Decision? Investment decision refers to the decisions that involve the investment of various resources of the firm to gain the highest possible return on investment for their investors. An investment decision is categorized as a long-term and short-term investment decision. Financ 4 min read
• Financing Decision: Meaning and Factors affecting Financing Decision Financial Management is concerned with the management of the flow of funds and involves decisions related to the acquisition and application of funds in long-term and short-term assets. It is concerned with two aspects, they are procurement of funds as well as usage of finance. Financial decision re 4 min read
• Dividend Decision: Meaning and Factors affecting Dividend Decision Financial Management is concerned with the management of the flow of funds and involves decisions related to the acquisition and application of funds in long-term and short-term assets. It is concerned with two aspects, they are procurement of funds and usage of finance. Financial decision refers to 3 min read
• Financial Planning: Objectives and Importance Financial Planning is essential for the preparation of a financial blueprint for a business organization. Its main objective is to ensure that ample funds are available at right time. If enough funds are not available the firm will not be able to honour its commitments and carry out its plans. On th 4 min read
• What is Capital Structure? Finance being the life force of every organization, needs to be estimated, raised and utilized properly to maximize the returns from such investments. A correct estimate of current and future needs of capital needs to be made to have an optimum capital structure which shall help the organization to 6 min read
• Factors affecting the choice of Capital Structure What is Capital Structure? Capital structure decisions involve determining the types of securities to be issued as well as their relative share in the capital structure. The financial decision regarding the composition of the capital structure is made after the financial requirements have been estab 8 min read
• What is Fixed Capital and Working Capital? We all know that finance is essential for running a business. Business enterprises require careful financial planning and understanding of the resultant capital structure, risks, and profitability that they may have. All these have an effect on shareholders as well as the employees. They require an 10 min read
• Factors Affecting the Fixed Capital The assets which remain in the business for a period of more than one year are known as Fixed Assets. For example, plant, machinery, building, land, furniture, equipment, etc. These assets are not meant for sale. Fixed Capital is the money invested by a company in its fixed assets, which are to be u 4 min read
• Factors Affecting the Working Capital Excess of current assets of an organisation over its current liabilities is known as Working Capital. Simply put, it is the finance available to an organisation for its day-to-day business operations. It can also be defined as that part of the total capital, which is required for holding current ass 6 min read

Chapter 10: Financial Markets

• Financial Market : Meaning, Functions, and Classification What is Financial Market?A market that serves as a link between the savers and borrowers, by transferring the capital or money from those who have a surplus amount of money to those who are in need of money or investment, is known as Financial Market. Simply put, Financial Market is a market that cr 7 min read
• Instruments of Money Market A market that serves as a link between the savers and borrowers, by transferring the capital or money from those who have a surplus amount of money to those who are in need of money or investment, is known as Financial Market. Simply put, Financial Market is a market that creates and exchanges finan 7 min read
• What is Capital Market? A market including all institutions, organisations, and instruments providing medium and long-term funds is known as a Capital Market. A market that serves as a link between the savers and borrowers by transferring the capital or money from those who have a surplus amount of money to those who are i 8 min read
• Difference between Money Market and Capital Market A market that serves as a link between the savers and borrowers by transferring the capital or money from those who have a surplus amount of money to those who are in need of money or investment is known as Financial Market. In general, the investors are known as the surplus units and business enter 4 min read
• What are the different Methods of Floatation of Securities in Primary Market? A market that serves as a link between the savers and borrowers by transferring the capital or money from those who have a surplus amount of money to those who are in need of money or investment is known as Financial Market. Simply put, Financial Market is a market that creates and exchanges financi 5 min read
• Difference between Primary Market and Secondary Market Market including all institutions, organisations, and instruments providing medium and long-term funds is known as a Capital Market. It does not include institutions and instruments providing finance for a short term; i.e., up to one year. Some of the common instruments of a capital market are deben 6 min read
• What is Stock Exchange? A market that serves as a link between the savers and borrowers by transferring the capital or money from those who have a surplus amount of money to those who are in need of money or investment is known as Financial Market. Simply put, Financial Market is a market that creates and exchanges financi 8 min read
• Trading Procedure on a Stock Exchange A market that serves as a link between the savers and borrowers by transferring the capital or money from those who have a surplus amount of money to those who are in need of money or investment is known as Financial Market. Simply put, Financial Market is a market that creates and exchanges financi 6 min read
• Basic Stock Market Terms | Common Terms in Stock Exchange The Securities Contract and Regulation Act defines a stock exchange as, "An organisation or body of individuals, whether incorporated or not established for the purpose of assisting, regulating, and controlling of business in buying, selling, and dealing in securities." There are many jargons that a 4 min read
• Depository System: Meaning, Services and Constituents In the early times, securities used to be in the form of physical certificates leading to settlement delays, forgery, theft, etc., which made the settlement system on the Indian Stock Exchange inefficient. To solve these issues, the Depository Act, 1996 was passed in India. The purpose of this Act w 4 min read
• Demat Account: Types, Importance & How to Open What is Demat Account?A Demat Account or Dematerialised Account is an electronic account or an online portfolio form that is used to hold securities like bonds, stocks, mutual funds, and ETFs (Exchange-traded Funds). Simply put, a Demat Account records the ownership of securities electronically, whi 8 min read
• What is National Stock Exchange of India (NSEI)? The National Stock Exchange of India (NSEI or NSE) is a leading stock exchange in India that allows people all over the country to trade securities of all types. It was incorporated in 1992 and started its operations in 1994. The NSE also launched a capital market segment in 1994 along with the futu 4 min read
• What is Over the Counter Exchange of India (OTCEI)? Over the Counter Exchange of India (OTCEI) is an organisation which was incorporated in 1990 under the Companies Act 1956. The trading in OCTEI commenced in 1992 and is a fully computerised, single window, and transparent exchange. OTC Market or Over the Counter can be defined as a place where selle 4 min read
• Difference between NSEI and OTCEI A market that serves as a link between the savers and borrowers, by transferring the capital or money from those who have a surplus amount of money to those who are in need of money or investment, is known as Financial Market. In general, the investors are known as the surplus units and business ent 4 min read
• Securities and Exchange Board of India (SEBI): Objectives and Functions SEBI (Securities and Exchange Board of India) was set up in 1988 for the regulation of the functions of securities market. It promotes orderly and healthy development in the stock market. However, initially, SEBI did not have complete control over the stock market transactions. It was just left as a 5 min read

Chapter 11: Marketing

• Marketing: Features and Functions The social process by which individuals and groups obtain what they need and want through creating, offering and freely exchanging products and services of value with others is known as Marketing. Marketer works hard to discover the needs and wants of customers and try to develop products or service 7 min read
• Difference between Selling and Marketing Selling and Marketing may seem like two similar concepts; however, they have huge differences between them. Marketing is a much broader concept than Selling. What is Selling?A part of the marketing process which involves all the personal and impersonal activities that are involved in finding, securi 4 min read
• Marketing Management Philosophies The management of all activities that are related to the market is known as Marketing Management. Earlier, marketing and selling were one and the same thing. But, with the introduction of globalisation, consumers play a crucial role in the market. Besides, different marketing strategies have also be 8 min read
• Elements of Marketing Mix : 4Ps What is Marketing Mix ?The tools or ingredients or the variables mixed together by the marketers to interact with a specific market are known as Marketing Mix. It is the essence of any marketing endeavour and is the main building block of the marketing efforts of an organisation. The concept of mark 6 min read
• What is Product Mix? Meaning of Product Mix The first element of the marketing mix is Product and it depicts the tangible or intangible goods offered by organisations to customers to satisfy their needs and wants. In simple terms, it is a bundle of utilities. Product Mix means the important decisions related to a produc 4 min read
• Classification of Products Anything of value offered by an organisation to the market for satisfying their want or need is known as a Product. The concept of product not only relates to the physical product, but also the benefits offered by the product. For example, while purchasing a washing machine, a consumer does not only 9 min read
• Difference between Convenience Products, Shopping Products and Speciality Products Based on Shopping Efforts there are three types of products; namely, Convenience Products, Shopping Products, and Speciality Products. What are Convenience Products? The products which are purchased immediately, frequently, and with the least effort and time are known as Convenience Products. Conven 4 min read
• Difference between Consumer Products and Industrial Products Anything of value offered by an organisation to the market for satisfying their want or need is known as a Product. The concept of product not only relates to the physical product but also the benefits offered by the product. For example, while purchasing a washing machine, a consumer does not only 3 min read
• What is Branding? Banding is one of the most important components of product mix as a marketer has to make an important decision on whether the product of the firm will be marketed under its generic name or brand name. Here, the Generic name means the name of the whole class of the firm's product. For example, laptop 5 min read
• Packaging: Meaning, Levels, Importance and Functions What is Packaging?The act of designing and producing the container and wrapper of a product is known as packaging. It plays a very important role in today's world as packaging can be a reason for the success or failure of many products. Appropriate containers and wrappers provide protection and conv 4 min read
• Labelling: Meaning, Types and Functions What is Labelling?The part of the product or a tag which is attached directly or indirectly and carries information about the product or the seller is known as a Label. Labels provide information to the customer. The process of putting identification marks on the package is known as Labelling. Label 3 min read
• Price Mix: Meaning and Factors Affecting Price Determination What is Price Mix? Price is the value of a product or service passed on by the buyer to the seller. As a customer is very sensitive about the price of a product, it is a crucial element of the marketing mix. A slight shift by the organisation in the price of a product can shift the customers towards 6 min read
• What is Place/Physical Distribution Mix? Meaning of Place/Physical Distribution Mix It is essential to make the product or service available to the customer at the right place and at the right time, then only the customer would be able to purchase the product or service. Place is an element of marketing and is a process of transferring goo 11 min read
• Types of Distribution Channels Place/Physical DistributionIt is essential to make the product or service available to the customer at the right place and at the right time, then only the customer would be able to purchase the product or service. Place is an element of marketing and is a process of transferring goods from the plac 4 min read
• Factors Determining Choice of Channels of Distribution Place/Physical Distribution It is essential to make the product or service available to the customer at the right place and at the right time, then only the customer would be able to purchase the product or service. Place is an element of marketing and is a process of transferring goods from the pla 4 min read
• Components of Physical Distribution Place/Physical Distribution It is essential to make the product or service available to the customer at the right place and at the right time, then only the customer would be able to purchase the product or service. Place is an element of marketing and is a process of transferring goods from the pla 5 min read
• What is Promotion Mix? Meaning of Promotion Mix The last element of the marketing mix is promotion, which includes activities undertaken by the marketer to communicate with the customers and distribution channels so they can enhance the sales of the firm. Through promotional communication, an organisation's aim is to info 5 min read
• Advertising : Features, Merits and Demerits What is Advertising?Any paid form of non-personal presentation and promotion of goods and services by an identified sponsor is known as Advertising. It is one of the most popular tools of promotion. Information or details regarding benefits, price, and availability of the products and services are p 5 min read
• Objections to Advertising Any paid form of non-personal presentation and promotion of goods and services by an identified sponsor is known as Advertising. It is one of the most popular tools of promotion. The main aim of advertising is to increase the demand and sale of goods and services. Newspapers, televisions, magazines, 4 min read
• Personal Selling: Features, Merits and Role What is Personal Selling? The process of informing customers and persuading them to purchase products through personal communication is known as Personal Selling. It is a two-way communication and involves direct face-to-face communication. Salespersons are appointed by companies to create product a 5 min read
• Qualities of a Good Salesman The process of informing customers and persuading them to purchase products through personal communication is known as Personal Selling. It is a two-way communication and involves direct face-to-face communication. Salespersons are appointed by companies to create product awareness and preferences w 3 min read
• Difference between Advertising and Personal Selling Advertising and Personal Selling are two major elements of Promotion Mix that helps a marketer in communicating with the customers. What is Advertising? Any paid form of non-personal presentation and promotion of goods and services by an identified sponsor is known as Advertising. It is one of the m 3 min read
• Sales Promotion: Merits, Demerits and Activities/ Techniques What is Sales Promotion? Short-term incentives, which are offered to encourage the buyers to make an immediate purchase of a product or service is known as Sales Promotion.Sales Promotion helps to boost the sales of a company. It also aids other promotional efforts, such as advertising and personal 5 min read
• Public Relations (PR) : Meaning, Importance, Roles and Tools What is PR?The full form of PR is Public Relations. It is the deliberate, planned, and sustained effort to establish and maintain mutual understanding between an organisation and its public. It is a continuous activity and it aims to create and manage relations with the public successfully.  Accordi 4 min read

Chapter 12: Consumer Protection

• Consumer Protection: Meaning, Importance and Means The Consumer Protection Act 1986 was replaced by the Consumer Protection Bill 2019, which was introduced by the minister of food and public distribution, and consumer affairs Mr Ram Vilas Paswan in the Loksabha. The Bill was introduced on July 8, 2019. The basic aim of the Consumer Protection Act 20 7 min read
• Who is a Consumer? In general terms, a consumer is understood as an individual who consumes a product. Whereas the term 'consumer' stated under the Consumer Protection Act is comprehensive as it covers not only the consumer of goods, but the consumer of services also. Table of Content Consumer of GoodsConsumer of Serv 4 min read
• Consumer Protection Act 1986 v/s Consumer Protection Act 2019 According to the Consumer Protection Act 2019, a Consumer is a person who buys any goods or avails any services for a consideration, which has been paid or promised to pay or partly paid or partly promised or under any scheme of deferred payment. A consumer also includes a person who is using the go 3 min read
• Redressal Agencies under the Consumer Protection Act, 2019 The three-tier grievances machinery set up by the Consumer Protection Act 2019 to redress consumer grievances is known as Redressal Agencies. The three agencies are District Commission, State Commission, and National Commission. According to the Consumer Protection Act 2019, a Consumer is a person w 5 min read
• Remedies available to Consumers under Consumer Protection Act 2019 According to the Consumer Protection Act 2019, a Consumer is a person who buys any goods or avails any services for a consideration, which has been paid or promised to pay, or partly paid or partly promised, or under any scheme of deferred payment. A consumer also includes a person who is using the 4 min read

CBSE Previous Year Papers (2020)

• CBSE Class 12 Business Studies Solved Question Paper 2019 Code (66-2-1) Business Studies(Code No. 66/2/1) Time allowed: 3 hoursMaximum Marks: 80General Instructions: Read the following instructions very carefully and strictly follow them: (i) This question paper contains five Sections – A, B, C, D and E. (ii) Section – A contains questions 1 to 8 carrying one mark each. 15+ min read
• CBSE Class 12 Business Studies Solved Question Paper- 2020 Set 1 Business Studies (Code No. 66/C/1) Time allowed: 3 hoursMaximum Marks: 80 General Instructions:Read the following instructions very carefully and strictly follow them :(i) This question paper comprises five sections  A, B, C, D and E. There are 34 questions in the question paper. All questions are 15+ min read
• CBSE Class 12 Business Studies Solved Question Paper- 2020 Set 2 Business StudiesCode No. 66/C/2 Time allowed: 3 hoursMaximum Marks: 80 General Instructions :Read the following instructions very carefully and strictly follow them :(i) This question paper comprises five sections - A, B, C, D and E. There are 34 questions in the question paper. All questions are co 15+ min read

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The Business Planning Process: 6 Steps To Creating a New Plan

In this article, we will define and explain the basic business planning process to help your business move in the right direction.

What is Business Planning?

Business planning is the process whereby an organization’s leaders figure out the best roadmap for growth and document their plan for success.

The business planning process includes diagnosing the company’s internal strengths and weaknesses, improving its efficiency, working out how it will compete against rival firms in the future, and setting milestones for progress so they can be measured.

The process includes writing a new business plan. What is a business plan? It is a written document that provides an outline and resources needed to achieve success. Whether you are writing your plan from scratch, from a simple business plan template , or working with an experienced business plan consultant or writer, business planning for startups, small businesses, and existing companies is the same.

Finish Your Business Plan Today!

The best business planning process is to use our business plan template to streamline the creation of your plan: Download Growthink’s Ultimate Business Plan Template and finish your business plan & financial model in hours.

The Better Business Planning Process

The business plan process includes 6 steps as follows:

• Do Your Research
• Calculate Your Financial Forecast
• Draft Your Plan
• Revise & Proofread
• Nail the Business Plan Presentation

We’ve provided more detail for each of these key business plan steps below.

1. Do Your Research

Conduct detailed research into the industry, target market, existing customer base,  competitors, and costs of the business begins the process. Consider each new step a new project that requires project planning and execution. You may ask yourself the following questions:

• What are your business goals?
• What is the current state of your business?
• What are the current industry trends?
• What is your competition doing?

There are a variety of resources needed, ranging from databases and articles to direct interviews with other entrepreneurs, potential customers, or industry experts. The information gathered during this process should be documented and organized carefully, including the source as there is a need to cite sources within your business plan.

You may also want to complete a SWOT Analysis for your own business to identify your strengths, weaknesses, opportunities, and potential risks as this will help you develop your strategies to highlight your competitive advantage.

2. Strategize

Now, you will use the research to determine the best strategy for your business. You may choose to develop new strategies or refine existing strategies that have demonstrated success in the industry. Pulling the best practices of the industry provides a foundation, but then you should expand on the different activities that focus on your competitive advantage.

This step of the planning process may include formulating a vision for the company’s future, which can be done by conducting intensive customer interviews and understanding their motivations for purchasing goods and services of interest. Dig deeper into decisions on an appropriate marketing plan, operational processes to execute your plan, and human resources required for the first five years of the company’s life.

3. Calculate Your Financial Forecast

All of the activities you choose for your strategy come at some cost and, hopefully, lead to some revenues. Sketch out the financial situation by looking at whether you can expect revenues to cover all costs and leave room for profit in the long run.

Begin to insert your financial assumptions and startup costs into a financial model which can produce a first-year cash flow statement for you, giving you the best sense of the cash you will need on hand to fund your early operations.

A full set of financial statements provides the details about the company’s operations and performance, including its expenses and profits by accounting period (quarterly or year-to-date). Financial statements also provide a snapshot of the company’s current financial position, including its assets and liabilities.

This is one of the most valued aspects of any business plan as it provides a straightforward summary of what a company does with its money, or how it grows from initial investment to become profitable.

4. Draft Your Plan

With financials more or less settled and a strategy decided, it is time to draft through the narrative of each component of your business plan . With the background work you have completed, the drafting itself should be a relatively painless process.

If you have trouble writing convincing prose, this is a time to seek the help of an experienced business plan writer who can put together the plan from this point.

5. Revise & Proofread

Revisit the entire plan to look for any ideas or wording that may be confusing, redundant, or irrelevant to the points you are making within the plan. You may want to work with other management team members in your business who are familiar with the company’s operations or marketing plan in order to fine-tune the plan.

Finally, proofread thoroughly for spelling, grammar, and formatting, enlisting the help of others to act as additional sets of eyes. You may begin to experience burnout from working on the plan for so long and have a need to set it aside for a bit to look at it again with fresh eyes.

6. Nail the Business Plan Presentation

The presentation of the business plan should succinctly highlight the key points outlined above and include additional material that would be helpful to potential investors such as financial information, resumes of key employees, or samples of marketing materials. It can also be beneficial to provide a report on past sales or financial performance and what the business has done to bring it back into positive territory.

Business Planning Process Conclusion

Every entrepreneur dreams of the day their business becomes wildly successful.

But what does that really mean? How do you know whether your idea is worth pursuing?

And how do you stay motivated when things are not going as planned? The answers to these questions can be found in your business plan. This document helps entrepreneurs make better decisions and avoid common pitfalls along the way. ​

Business plans are dynamic documents that can be revised and presented to different audiences throughout the course of a company’s life. For example, a business may have one plan for its initial investment proposal, another which focuses more on milestones and objectives for the first several years in existence, and yet one more which is used specifically when raising funds.

Business plans are a critical first step for any company looking to attract investors or receive grant money, as they allow a new organization to better convey its potential and business goals to those able to provide financial resources.

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Navigating The Business Planning Process: Step-By-Step Guide

October 8, 2024.

Creating a comprehensive business plan is one of the most critical steps for any entrepreneur or business owner. Whether you’re a startup looking for funding or an established company aiming to scale, a well-structured business plan serves as a roadmap to guide your business toward success. At  Hudson Business Plans , we understand the importance of this process, which is why we’ve crafted this step-by-step guide to help you navigate the business planning process effectively.

Step 1: Define Your Business Vision

Before you begin writing, it’s essential to have a clear understanding of your business’s vision. Ask yourself, “What problem does my business solve?” and “Where do I see my business in the next 5 to 10 years?” Your vision will drive your business objectives and strategies . A strong vision also gives potential investors confidence that your business has long-term potential.

Tip:  Be specific about your mission and how it aligns with your target market’s needs.

Step 2: Conduct Market Research

One of the key foundations of any business plan is thorough market research . This step helps you understand your industry, identify your target audience, and evaluate your competitors. Knowing the current market trends and customer behavior allows you to position your business effectively and identify potential growth opportunities.

Tip:  Use both primary (surveys, interviews) and secondary research (industry reports, competitor analysis) to gather data.

Step 3: Write Your Executive Summary

The executive summary is often the first section investors or lenders read, so it needs to be clear, concise, and compelling. It should provide a snapshot of your business, including your mission, product or service offerings, target market, and financial goals. Although it appears first in the business plan, it’s usually easier to write this section last, once all the details of your plan are in place.

Tip:  Keep your executive summary to one or two pages and focus on the highlights of your plan.

Step 4: Develop Your Business Model

Your business model outlines how your company will generate revenue and profit. This section should clearly explain your products or services, pricing structure, and sales strategy . A solid business model demonstrates to potential stakeholders that you have a clear path to profitability.

Tip:  Make sure your business model aligns with your target market’s needs and is flexible enough to adapt to market changes.

Step 5: Outline Your Marketing and Sales Strategy

An effective marketing and sales strategy is crucial for driving business growth . In this section, outline how you plan to reach your target audience, generate leads, and convert them into customers. Include details about your marketing channels (social media, email marketing, SEO, etc.), advertising budget, and sales process.

Tip:  Highlight any unique marketing approaches that set your business apart from competitors.

Step 6: Create an Organizational Structure

A clear organizational structure shows how your business operates. This section should include information about your management team, their roles, and how your company is structured. If you’re seeking funding, this helps investors understand who will be responsible for executing the plan and managing the business effectively.

Tip:  Include a detailed management summary with bios of key team members and their experience.

Step 7: Include a Financial Plan

The financial section is one of the most critical parts of your business plan, especially for investors or lenders. This section should include detailed financial projections for the next three to five years, including profit and loss statements, cash flow forecasts, and balance sheets. You should also include your funding requirements, whether you’re looking for loans, investors, or grants.

Tip:  Be realistic with your financial projections and ensure they align with your business goals and market research.

Step 8: Develop an Operational Plan

Your operational plan outlines how your business will run on a day-to-day basis. This includes everything from production processes to supplier relationships and customer service protocols. It should also detail key milestones and timelines to demonstrate how you plan to achieve your business goals.

Tip:  Include contingency plans to show how your business will handle potential challenges or disruptions.

Step 9: Add Risk Analysis

Every business faces risks, so it’s important to show that you’ve considered potential challenges and have strategies in place to mitigate them. Your risk analysis should cover external risks (such as economic downturns or market competition) as well as internal risks (like cash flow management or supply chain issues).

Tip:  Presenting risk mitigation strategies can help boost investor confidence and show that your business is resilient.

Step 10: Review and Refine Your Plan

Once your business plan is complete, take the time to review and refine it. Ensure that your plan is cohesive, realistic, and aligns with your overall vision. You may also want to seek feedback from mentors, advisors, or business consultants to ensure it’s as strong as possible.

Tip:  Update your business plan regularly to reflect any changes in market conditions, business performance, or growth objectives.

A well-crafted business plan is not just a formality—it’s a powerful tool that can guide your business toward success. By following these steps, you can create a plan that not only helps you secure funding but also provides a clear path forward for your business’s growth and development. At  Hudson Business Plans , we specialize in helping businesses of all sizes navigate the business planning process, from idea to execution. Contact us today to learn how we can assist you in crafting a plan that turns your vision into reality.

Related Blog: Common Mistakes to Avoid When Writing Your Business Plan and How Hudson Business Plans Can Help You Succeed

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Business Planning

Written by True Tamplin, BSc, CEPF®

Reviewed by subject matter experts.

Updated on June 08, 2023

Are You Retirement Ready?

Table of contents, what is business planning.

Business planning is a crucial process that involves creating a roadmap for an organization to achieve its long-term objectives. It is the foundation of every successful business and provides a framework for decision-making, resource allocation, and measuring progress towards goals.

Business planning involves identifying the current state of the organization, determining where it wants to go, and developing a strategy to get there.

It includes analyzing the market, identifying target customers, determining a competitive advantage, setting financial goals, and establishing operational plans.

The business plan serves as a reference point for all stakeholders , including investors, employees, and partners, and helps to ensure that everyone is aligned and working towards the same objectives.

Importance of Business Planning

Business planning plays a critical role in the success of any organization, as it helps to establish a clear direction and purpose for the business. It allows the organization to identify its goals and objectives, develop strategies and tactics to achieve them, and establish a framework of necessary resources and operational procedures to ensure success.

Additionally, a well-crafted business plan can serve as a reference point for decision-making, ensuring that all actions taken by the organization are aligned with its long-term objectives.

It can also facilitate communication and collaboration among team members, ensuring that everyone is working towards a common goal.

Furthermore, a business plan is often required when seeking funding or investment from external sources, as it demonstrates the organization's potential for growth and profitability. Overall, business planning is essential for any organization looking to succeed and thrive in a competitive market.

Business Planning Process

Step 1: defining your business purpose and goals.

Begin by clarifying your business's purpose, mission, and long-term goals. These elements should align with the organization's core values and guide every aspect of the planning process.

Step 2: Conducting Market Research and Analysis

Thorough market research and analysis are crucial to understanding the industry landscape, identifying target customers, and gauging the competition. This information will inform your business strategy and help you find your niche in the market.

Step 3: Creating a Business Model and Strategy

Based on the insights from your market research, develop a business model that outlines how your organization will create, deliver, and capture value. This will inform the overall business strategy, including identifying target markets, value propositions, and competitive advantages.

Step 4: Developing a Marketing Plan

A marketing plan details how your organization will promote its products or services to target customers. This includes defining marketing objectives, tactics, channels, budgets, and performance metrics to measure success.

Step 5: Establishing Operational and Financial Plans

The operational plan outlines the day-to-day activities, resources, and processes required to run your business. The financial plan projects revenue, expenses, and cash flow, providing a basis for assessing the organization's financial health and long-term viability.

Step 6: Reviewing and Revising the Business Plan

Regularly review and update your business plan to ensure it remains relevant and reflects the organization's current situation and goals. This iterative process enables proactive adjustments to strategies and tactics in response to changing market conditions and business realities.

Components of a Business Plan

Executive summary.

The executive summary provides a high-level overview of your business plan, touching on the company's mission, objectives, strategies, and key financial projections.

It is critical to make this section concise and engaging, as it is often the first section that potential investors or partners will read.

Company Description

The company description offers a detailed overview of your organization, including its history, mission, values, and legal structure. It also outlines the company's goals and objectives and explains how the business addresses a market need or problem.

Products or Services

Describe the products or services your company offers, emphasizing their unique features, benefits, and competitive advantages. Detail the development process, lifecycle, and intellectual property rights, if applicable.

Market Analysis

The market analysis section delves into the industry, target market, and competition. It should demonstrate a thorough understanding of market trends, growth potential, customer demographics, and competitive landscape.

Marketing and Sales Strategy

Outline your organization's approach to promoting and selling its products or services. This includes marketing channels, sales tactics, pricing strategies, and customer relationship management .

Management and Organization

This section provides an overview of your company's management team, including their backgrounds, roles, and responsibilities. It also outlines the organizational structure and any advisory or support services employed by the company.

Operational Plan

The operational plan describes the day-to-day operations of your business, including facilities, equipment, technology, and personnel requirements. It also covers supply chain management, production processes, and quality control measures.

Financial Plan

The financial plan is a crucial component of your business plan, providing a comprehensive view of your organization's financial health and projections.

This section should include income statements , balance sheets , cash flow statements , and break-even analysis for at least three to five years. Be sure to provide clear assumptions and justifications for your projections.

Appendices and Supporting Documents

The appendices and supporting documents section contains any additional materials that support or complement the information provided in the main body of the business plan. This may include resumes of key team members, patents , licenses, contracts, or market research data.

Benefits of Business Planning

Helps secure funding and investment.

A well-crafted business plan demonstrates to potential investors and lenders that your organization is well-organized, has a clear vision, and is financially viable. It increases your chances of securing the funding needed for growth and expansion.

Provides a Roadmap for Growth and Success

A business plan serves as a roadmap that guides your organization's growth and development. It helps you set realistic goals, identify opportunities, and anticipate challenges, enabling you to make informed decisions and allocate resources effectively.

Enables Effective Decision-Making

Having a comprehensive business plan enables you and your management team to make well-informed decisions, based on a clear understanding of the organization's goals, strategies, and financial situation.

Facilitates Communication and Collaboration

A business plan serves as a communication tool that fosters collaboration and alignment among team members, ensuring that everyone is working towards the same objectives and understands the organization's strategic direction.

Business planning should not be a one-time activity; instead, it should be an ongoing process that is continually reviewed and updated to reflect changing market conditions, business realities, and organizational goals.

This dynamic approach to planning ensures that your organization remains agile, responsive, and primed for success.

As the business landscape continues to evolve, organizations must embrace new technologies, methodologies, and tools to stay competitive.

The future of business planning will involve leveraging data-driven insights, artificial intelligence, and predictive analytics to create more accurate and adaptive plans that can quickly respond to a rapidly changing environment.

By staying ahead of the curve, businesses can not only survive but thrive in the coming years.

Business Planning FAQs

What is business planning, and why is it important.

Business planning is the process of setting goals, outlining strategies, and creating a roadmap for your company's future. It's important because it helps you identify opportunities and risks, allocate resources effectively, and stay on track to achieve your goals.

What are the key components of a business plan?

A business plan typically includes an executive summary, company description, market analysis, organization and management structure, product or service line, marketing and sales strategies, and financial projections.

How often should I update my business plan?

It is a good idea to review and update your business plan annually, or whenever there's a significant change in your industry or market conditions.

What are the benefits of business planning?

Effective business planning can help you anticipate challenges, identify opportunities for growth, improve decision-making, secure financing, and stay ahead of competitors.

Do I need a business plan if I am not seeking funding?

Yes, even if you're not seeking funding, a business plan can be a valuable tool for setting goals, developing strategies, and keeping your team aligned and focused on achieving your objectives.

About the Author

True Tamplin, BSc, CEPF®

True Tamplin is a published author, public speaker, CEO of UpDigital, and founder of Finance Strategists.

True is a Certified Educator in Personal Finance (CEPF®), author of The Handy Financial Ratios Guide , a member of the Society for Advancing Business Editing and Writing, contributes to his financial education site, Finance Strategists, and has spoken to various financial communities such as the CFA Institute, as well as university students like his Alma mater, Biola University , where he received a bachelor of science in business and data analytics.

To learn more about True, visit his personal website or view his author profiles on Amazon , Nasdaq and Forbes .

Related Topics

• Business Continuity Planning (BCP)
• Business Exit Strategies
• Buy-Sell Agreements
• Capital Planning
• Change-In-Control Agreements
• Cross-Purchase Agreements
• Decision Analysis (DA)
• Employee Retention and Compensation Planning
• Endorsement & Sponsorship Management
• Enterprise Resource Planning (ERP)
• Entity-Purchase Agreements
• Family Business Continuity
• Family Business Governance
• Family Limited Partnerships (FLPs) and Buy-Sell Agreements
• Human Resource Planning (HRP)
• Manufacturing Resource Planning (MRP II)
• Plan Restatement

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Do you own a business, which activity is most important to you during retirement.

• Giving back / charity
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Part 2: Your Current Nest Egg

Part 3: confidence going into retirement, how comfortable are you with investing.

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Business Jargons

A Business Encyclopedia

Definition : Planning is the fundamental management function, which involves deciding beforehand , what is to be done, when is it to be done, how it is to be done and who is going to do it. It is an intellectual process which lays down an  organisation’s objectives and develops various courses of action , by which the organisation can achieve those objectives. It chalks out exactly, how to attain a specific goal.

Planning is nothing but thinking before the action takes place . It helps us to take a peep into the future and decide in advance the way to deal with the situations, which we are going to encounter in future. It involves logical thinking and rational decision making.

Characteristics of Planning

• Managerial function : Planning is a first and foremost managerial function provides the base for other functions of the management, i.e. organising, staffing, directing and controlling, as they are performed within the periphery of the plans made.
• Goal oriented : It focuses on defining the goals of the organisation, identifying alternative courses of action and deciding the appropriate action plan, which is to be undertaken for reaching the goals.
• Pervasive : It is pervasive in the sense that it is present in all the segments and is required at all the levels of the organisation. Although the scope of planning varies at different levels and departments.
• Continuous Process : Plans are made for a specific term, say for a month, quarter, year and so on. Once that period is over, new plans are drawn, considering the organisation’s present and future requirements and conditions. Therefore, it is an ongoing process, as the plans are framed, executed and followed by another plan.
• Intellectual Process : It is a mental exercise at it involves the application of mind, to think, forecast, imagine intelligently and innovate etc.
• Futuristic : In the process of planning we take a sneak peek of the future. It encompasses looking into the future, to analyse and predict it so that the organisation can face future challenges effectively.
• Decision making : Decisions are made regarding the choice of alternative courses of action that can be undertaken to reach the goal. The alternative chosen should be best among all, with the least number of the negative and highest number of positive outcomes.

Planning is concerned with setting objectives, targets, and formulating plan to accomplish them. The activity helps managers analyse the   present condition to identify the ways of attaining the desired position in future . It is both, the need of the organisation and the responsibility of managers.

Importance of Planning

• It helps managers to improve future performance , by establishing objectives and selecting a course of action, for the benefit of the organisation.
• It minimises risk and uncertainty , by looking ahead into the future.
• It facilitates the coordination of activities . Thus, reduces overlapping among activities and eliminates unproductive work.
• It states in advance, what should be done in future, so it provides direction for action.
• It uncovers and identifies future opportunities and threats .
• It sets out standards for controlling . It compares actual performance with the standard performance and efforts are made to correct the same.

Planning is present in all types of organisations, households, sectors, economies, etc. We need to plan because the future is highly uncertain and no one can predict the future with 100% accuracy, as the conditions can change anytime. Hence, planning is the basic requirement of any organization for the survival, growth and success.

Steps involved in Planning

By planning process, an organisation not only gets the insights of the future, but it also helps the organisation to shape its future. Effective planning involves simplicity of the plan, i.e. the plan should be clearly stated and easy to understand  because if the plan is too much complicated it will create chaos among the members of the organisation. Further, the plan should fulfil all the requirements of the organisation .

Related terms:

• Strategic Planning
• Human Resource Planning Process
• Controlling
• Succession Planning
• Gap Analysis

Reader Interactions

Samwrl says

August 17, 2018 at 4:04 pm

Very informative.

Triza Naliaka says

November 8, 2021 at 1:01 pm

Wow great it helped me in my unit studies

SOLOMON WEKESA says

October 21, 2023 at 12:53 pm

I like the presentation, it’s much educative on planning processes

Sahil power lifter Sujjon says

October 24, 2018 at 6:59 am

Michael says

March 3, 2021 at 6:25 pm

Thank you for the advice

Jamilu Saleh says

November 11, 2023 at 7:18 pm

Very impactive

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February 11, 2022 at 12:06 am

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November 28, 2022 at 10:04 pm

It’s very helpfull for my semester exam

FASASI,MUTIU ABIOLA KEHINDE says

December 5, 2018 at 11:45 am

This is highly impressive as it gives detailed clues on the subject matter- Planning. Indeed, it is educative and informative

ismail bin latif says

February 6, 2019 at 2:34 pm

March 17, 2019 at 6:48 am

July 17, 2021 at 11:38 am

Wow, I love this,well detailed

R.Venkataramany says

April 18, 2019 at 12:48 pm

Really a simple but effective narration on planning which even commom men can follow.

Riya yadav says

November 23, 2019 at 1:00 pm

Can you please add scopes of planning too.

April 21, 2019 at 8:45 am

Language is simple and clear

June 30, 2019 at 9:26 pm

very clear language all are understandable . Nice post sir it help me for my semester exam .

George Emetuche says

July 4, 2019 at 9:55 pm

Great job on Planning! It is simple, yet detailed!

teyeku says

August 15, 2019 at 5:40 pm

It is nice continuous by this ways

Tossyn temi says

October 13, 2019 at 3:12 am

Really helpful. God bless you Ma’am.

Surbhi S says

October 14, 2019 at 9:51 am

Thank you so much all the readers, for constantly appreciating the article, it means a lot to us, Keep reading. 🙂

February 4, 2021 at 2:23 pm

Great piece Thank you

Rahul Bansal says

October 19, 2019 at 2:37 pm

Amatulla says

November 13, 2019 at 12:10 pm

very informative, and to the point

November 20, 2019 at 11:37 pm

Nice work Ma’am, very educative and well narrated… It will really help me in my exam tomorrow

Abdujebar Mohammed says

November 25, 2019 at 1:05 am

Very nice. Thank you so much very helpful article

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December 8, 2019 at 3:57 am

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December 26, 2019 at 11:15 pm

Very nicely done. Your show schedule gave me the info on some shows I was wondering about.

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January 2, 2020 at 2:05 pm

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January 21, 2020 at 2:57 pm

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February 26, 2020 at 9:41 pm

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Tangiri says

February 29, 2020 at 4:07 pm

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March 4, 2020 at 8:34 am

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July 22, 2020 at 8:08 pm

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August 31, 2020 at 4:37 pm

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Akinbi Oluwaseun Esther says

September 21, 2020 at 9:10 am

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November 4, 2020 at 4:38 am

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November 26, 2020 at 9:24 am

Great Article, how do I cite it, what date was it published and who is the author? Can you please assist me with this information. Thank you.

November 26, 2020 at 9:41 am

The article was written by Surbhi S. on December 3, 2016

chikiss says

November 27, 2020 at 11:32 am

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December 10, 2020 at 2:12 pm

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Sandie says

December 14, 2020 at 2:46 am

Matthew says

December 20, 2020 at 6:54 pm

Good points

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It is a very important article. But, plz give me the reference for this article.

David Onyatta says

February 27, 2021 at 8:46 pm

I’m very grateful. Thanks.

Abhishek Kumar saxena says

March 17, 2021 at 7:58 pm

Ortese Msughter says

March 25, 2021 at 3:11 am

You have done a wonderful by providing this information.

K. S. Afzal Ahmed says

April 7, 2021 at 6:35 pm

I found it which I was looking for. Very informative, briefed and illustrative.

Thanks to the Author. Keep doing also on other projects. Good by.

Reridis Paulinus says

May 3, 2021 at 12:34 pm

Interesting and informative Thank you very much. God bless 👏

buba juwara says

June 1, 2021 at 8:11 am

very simple to understand keep the good work i am deeply touch

Elijah Awune says

September 9, 2021 at 5:48 pm

Nice research done

Very helpful. Thank you

September 16, 2021 at 2:31 am

please advise who wrote the article and when it was published. this may help on my research. hope somebody can help me

September 17, 2021 at 11:20 am

It was created on Dec 3, 2016 by Surbhi S.

October 20, 2021 at 11:26 pm

Full of information

Hani Ibrahim says

October 24, 2021 at 12:27 am

Perfect, it is very useful thanks guys 🥰

Comr simon israel says

November 11, 2021 at 2:25 pm

November 11, 2021 at 2:28 pm

So perfect on planning

Mumaraki Nanyama says

November 21, 2021 at 10:55 am

Well researched.

Jyoti badiger says

November 23, 2021 at 2:17 pm

Super, very helpful thank you so much🥰

December 25, 2021 at 12:26 am

Helpful information

February 3, 2022 at 2:05 pm

Clear information.

Faiz Rahman Ghafari says

March 1, 2022 at 7:30 pm

Simple and good explanation. Thank you.

Lizzianah says

March 19, 2022 at 7:36 pm

Clear and straight to the point…easy to understand Thanks a lot, I believe it will be of great help in my exam

March 19, 2022 at 7:40 pm

Simple and clear,easy to understand Thanks so much,I believe it’ll be of great help in my end of semester exam Be blessed for your help

Asaku Emma says

April 21, 2022 at 9:05 pm

Thanks so so much for the work

Micheal says

April 25, 2022 at 5:47 pm

it is very easy to understand…

Janaka Fonseka says

May 29, 2022 at 8:40 pm

very helpful. thanks for sharing this valued information

Daniel happiness says

June 8, 2022 at 5:15 pm

Thank you sir is really helpful

martha Situmbeko says

June 10, 2022 at 10:09 pm

Thank you so much for the information

Cecilia says

August 15, 2022 at 9:11 pm

Thanks a bunch, easy to understand and very informative.

edward says

September 13, 2022 at 4:01 pm

Wow! it helped me formulate class materials, good.

Carolyn says

September 24, 2022 at 10:48 pm

Good information.

Rachel Pronsloo says

January 26, 2023 at 6:23 pm

I would like to use some of the information in this article. Can I get the writer’s name, etc., to include as a reference source?

February 10, 2023 at 11:00 am

The author’s name is Surbhi S.

March 11, 2023 at 4:13 pm

Wow clearly stated and easy to understand. Thank you.

Galugali Abudalah Mugabi says

March 24, 2023 at 2:33 pm

clearly stated, very simple to understand. thank you for posting such information.

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May 20, 2023 at 12:20 pm

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thonemmanuel says

May 29, 2023 at 4:05 pm

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August 16, 2023 at 5:18 pm

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