DR. M. ASIF HASAN
DR. M. ASIF HASAN
Assistant Professor
Mechanical Engg. Section University Polytechnic
A.M.U
DR. M. ASIF HASAN
CHAPTER 2PLANNING FOR YOUR VENTURE
DR. M. ASIF HASAN
-- Once decided to enter the field of
entrepreneurship, a strong planning is a must
-- New entrepreneurs often have a
misconception that planning is essential only for large enterprises
DR. M. ASIF HASAN
-- In fact, planning is equally, if not more, important for small scale
ventures as:
the new entrepreneurs can not afford to make mistakes which will cost him
time, money and mental peace
DR. M. ASIF HASAN
-Planning is essentially choosing course of action from available alternatives
-- It involves detailing of the course chosen
-- It differs from other functions not only in form of the activities but also in
the faculties involved
DR. M. ASIF HASAN
Why Plan??
Planning forces the entrepreneur to view reflectively, analyse his
environment, the enterprise, the people involved and himself in a
certain perspective
DR. M. ASIF HASAN
(1) Planning is essential to survive in the most dynamic situations
-- To lead in a fast changing environment, an entrepreneur should plan for
aggressive strategies to mitigate the risk of non-acceptance of you product
-- These risks can be reduced by planning and re-planning
DR. M. ASIF HASAN
(2) Planning strengthens the position of entrepreneurs
-- Without proper planning: entrepreneurs may keep on drifting without purpose or direction and there survival will be at stake;
they may be tempted to indulge in reckless and blind gambling
--Planning helps them to lead in the right direction
DR. M. ASIF HASAN
(3) Planning gives an overall picture -- Because of constraints on his various
resources, it is essential for an
entrepreneur to have pre-knowledge of all the steps involved in implementing and
running his enterprise
-- This knowledge helps him to better organize and co-ordinate his limited
resources
DR. M. ASIF HASAN
(4) Anticipation of Problems
--Planning equips the entrepreneur with the knowledge of the problems
that are likely to arise
-- thus, can rehearse for alternative actions or solutions for many of the
problems
DR. M. ASIF HASAN
(5)Planning helps in time management -- In order to fulfil the various needs of his
enterprise, it is essential for him to define actions in term of time
-- This will give him pointers to the areas
which should claim his priority and help him to effectively utilize and co-ordinate his
resources
DR. M. ASIF HASAN
-- It has been proved that those entrepreneurs who use systematic
planning and intelligent implementation are most likely to succeed
--Planning, therefore, should be integrated into the company’s system
-- Special emphasis of planning should be towards finding and exploiting
opportunities in a pro-active manner
DR. M. ASIF HASAN
AREAS OF PLANNING
-- For the small entrepreneur, planning need not be complex
-- If he were to put down on paper what is in his mind, a lot of clarity
would emerge
DR. M. ASIF HASAN
Entrepreneur should start planning by defining:
(a) His present status: the resources available to him
(b) His goal: within the constraints of his resources, what can be achieved?
(c) How best to attain it: co-ordinating
& mobilizing the above two factors to achieve his goal in the shortest
possible time
DR. M. ASIF HASAN
To plan, then, he will have to start posing a few questions:
Internal: To analyse his personal strengths and weaknesses:
-- What am I good at??
-- Where can I improve??
-- What are the resources available to me??
-- What is the volume of resources that I can effectively mobilise??
DR. M. ASIF HASAN
Market: To check if the plans he foresees are supported by demand
-- Will what I produce sell??
-- Why will people buy it??
-- How does my product compete with others in the market??
DR. M. ASIF HASAN
Environment: A small entrepreneur should always take into account the outside factors
over which he has no control but which are likely to affect him
-- What are govt. policies -- How do they affect me
-- Will changing trends in social customs and culture affect my product demand
-- Can I diversify if the need arises
DR. M. ASIF HASAN
Basically then an entrepreneur should plan for:
(a) Survival (b) Profit
(c) Diversification
DR. M. ASIF HASAN
Some principles of planning for small enterprise:
-- Any noting, no matter how short, for planning is much better than no noting
at all
-- The most difficult part of planning is to start. Once started it is then easy to
proceed ahead
DR. M. ASIF HASAN
-- The factual basis of the venture, its customers and its environment should
be thoroughly investigated
-- To make planning realistic, it is necessary to have a clear
understanding of one’s business, strength as well as weaknesses
DR. M. ASIF HASAN
-- Effective planning needs creativity and constructive thinking
-- Many a time insiders are not able to perceive what an outsider can
-- Alternative opportunities based on the resources of the venture and the
anticipated needs of the customer should be developed
DR. M. ASIF HASAN
-- Planning is a process, not an isolated occasional act, hence plans should
always be periodically reviewed
-- Plans should be kept alive through constant updating and feedback
-- Plans should never become a ritual or mere paper work
DR. M. ASIF HASAN
-- For the small enterprise, it is
essential to have plans that can be implemented as early as possible
-- Planning should take into
consideration the implementation
DR. M. ASIF HASAN
-- Planning should be supplemented by performance reporting
-- One who wishes to implement his plans successfully must regularly
examine the expected progress against actual progress to decide further
course of action
DR. M. ASIF HASAN
T H A N K Y O U
