Page 73 - Bisiness Studies_Form_3

Business Studies for Secondary Schools

Chapter Four

Business planning
FOR ONLINE READING ONLY

Introduction

Most innovative and successful businesses that we see today started with proper
planning. Planning helps entrepreneurs know well about the businesses they will
start, the amount of capital they will need, the sources of capital, how the businesses
will be formalised, the key operations, and all other important aspects required to
make the businesses successful. In this chapter, you will learn about the concept
of business planning and the components of a business plan. The competences
developed will enable you to prepare and execute a business plan.

Think
Life without a plan.

Activity 4.1

Create a list of your daily activities. From this list, choose one activity and develop
a simple plan for its execution. Your plan should include the following details: the
activity name, the time it will take place, how it will be carried out, who will be
involved, and the resources needed for its implementation. Share your plan with your
classmates and explain why planning is important for that activity.

The concept of business planning
As individuals, we often make several decisions on the things we want to do and how
we want to do them. This is part of planning. Planning entails deciding ahead of time
what needs to be done, when it should be done, how it should be done, and who should
do it. Similarly, business owners do the same in managing their businesses. Almost all
successful businesses undergo planning continuously, just like the way we plan our
activities every day. The business planning process involves logically putting together
an entrepreneur’s thoughts in a manner that describes the business’s current status,
market situation, and precise activities that the business will undertake to achieve its
goals.

65 Student’s Book Form Three