WHY EVERY BUSINESS NEEDS A BUSINESS PLAN

 A few months back I was tasked by a client to explain to her why her business was struggling. After a thorough discussion I realized that the business lacked continuity and had no clear road map. It required a business plan. Uganda is ranked as one of the most enterprising countries in the world and this is a great trait in us. Despite this strength most of our businesses are micro and face formidable challenges such as access to affordable credit, registration encumbrances and weak operational systems. This means a lot of efforts are needed to strengthen them and no one can do it alone. 

A business plan is a road map and no just a document to raise money . Even  businesses that have business plans tend to shelve it yet it is a very critical document in guiding the operations of a business. It is very easy to plan for other events in life but neglect the source of our livelihood. Businesses are like a body and it has systems that require adequate care. We knew of certain businesses that are no longer in existence. This is because the rate of change is high. Technology is altering the rate of innovation at a terrific speed. This explains why regardless of size a business requires a written document to guide its operations.

I have been a student of business for over 10 years and I have observed that most of the successful businesses started small but they had a global orientation. They do a lot of internal research to keep alive. They hire the best employees so that they can keep abreast with the latest trends. This means that for any business to outgrow its founder it must put a lot of attention on organizing its internal capability. I normally go through down and observe how Ugandans do their business and a number of small businesses disregard keeping records. But if we are to become a competitive country we should focus on building the internal capacity of  our businesses . It calls for understanding the strengths, weaknesses, opportunities and threats that our businesses have .

WHY IS IT IMPORTANT TO DEVELOP A BUSINESS PLAN 

1.It helps in decision making

2.It eases to know the unique capability of the business

3. It aids in resource mobilization and allocation

4.It stabilizes the business.


A business is like a body. It has different structures that require our attention. It requires clear leadership, marketing, financial systems, operational standards and marketing. In order to transform Uganda into a Middle Income Country attention should be focused enabling businesses to develop business plans so that businesses have a sense of direction and owners should own the  operationalization of the business plan.

For individual and corporate financial literacy training contact :


Coach Phillip Kiryowa

Personal Finance Coach (CMA)

Master Trainer, Bank of Uganda

Founder, Advanced Empowerment Link

+256752615916 

For Financial freedom and Sustaianble Enterprises

Comments

Post a Comment

Popular posts from this blog

ACRE OF DIAMONDS

 According to Dr. Dennis Kimbro in his book Think And Grow Rich  every human being is an acre of diamonds. In simple terms we have more potential than we can imagine. With adequate self reflection this statement can change any person's life. It is Dr. Myles Munroe who noted that without knowing our purpose on earth we are likely to lead a less impactful life. The question that has been asked by many leading scholars is why are some people more successful than others? Is it family background? Is it luck? Is it the country where they were born? Unfortunately no body has a clear answer to this contradicting question. Hellen Keller was born blind but by the time of her death she was a very successful leader. Oprah Winfrey had a tough childhood but is now one of the most influential leaders in the world. Nelson Mandela was imprisoned for 27 years but became the president of South Africa. From the above case studies it is important for each one of us to learn a lesson. We have more...
Read more

A SAVINGS PLAN CAN AID IN FINANCIAL ADVANCEMENT

 I remember during the Trainer of Trainers training conducted by Bank of Uganda we were encouraged to develop a savings plan. This was a key development because without a plan we may live in financial darkness. In my years of providing financial literacy across the country especially youths I have observed that the intangible practices that may be undermined play a big role in the big picture. I have been asked a question, "how can one save yet their needs exceed their income?. It is a tough question but the best practice remains that even in the hardest of circumstances we should prioritize saving .This is because we do not know what the future holds. As humans we forget so fast. Who remembers during the lock down of Covid-19 when people were not working. Life was extremely tough. It was an opportunity to reflect about the importance of savings during good times. A savings plan enables a person to determine why they are saving. It could be for school fees, buying a plot, a car an...
Read more

WE CELEBRATE GRADUATION BUT AFTER THAT WHAT NEXT ?

 Uganda is officially dominated by young people. Over 50 %of the population are youths. With a high population the job market also shrinks yet people need to survive. It is the means of survival that create social pressure. The unemployment dilemma in the country can be dissected from different angles and each person or all stakeholders have a critical role to play.  Universities and other institutions of higher learning produce over 300,000 graduates per year. The job creation rate is about 70,000 jobs per year. This means that the job market is narrow. It is a common sight to see over 100 applicants for one job. This is a signal that something drastic must be done to change this trajectory. Development partners such as government, private sectors and donors such as Master Card Foundation are playing a critical role in addressing youth unemployment. In fact this suggests that fight against youth unemployment must be multifaceted.  During graduation season it is justifiab...
Read more