Neccessity for on-going planning in business

When the decision to start a business has been made, and the amount of initial investment has been determined, you should proceed to plan current activities.
It begins with setting strategic goals: for 3-5 years or more. For example, such a goal may be to achieve a certain volume of sales and the amount of profit.

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It is important to control the absolute net profit and the profitability ratios, i.e., its relationship to assets and revenue. If the business is developing steadily, then all these indicators should grow.
Further, the global goal needs to be broken down into stages by year. The next year should be planned in more detail.

When the annual plan is ready, operational plans are drawn up on its basis - quarterly and monthly plans. For some indicators, for example, for shipment and receipt of money, shorter plans should be drawn up: for a decade, a week, and, if necessary, for a day.
To achieve this goal, the implementation of all plans must be regularly monitored. If you notice deviations, you should identify their causes and take measures to correct the situation.
It is important to understand here that the approved plan is not a dogma. If the market situation has changed significantly, then you should not "cling" to the numbers that no longer reflect the real situation.
It is possible and necessary to correct plans, including strategic ones, but it is important to distinguish “global” changes from temporary difficulties, incl. It is associated with insufficient qualifications of performers. In the latter case, it is not the plans that need to be changed, but the organization's methods.

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