Comprehensive business plan have ten elements, a guide for management that helps achieving organizational goals. A comprehensive business plan is essential as it enables business enterprise to meet the desired possibilities of the future.
The following ten elements are included in some degree or other in any comprehensive planning activity.
1. Organization Planning
Organization Planning determines what functions an organization requires, relates these functions in a systematic fashion assign responsibilities to individual positions, and installs and periodically reviews organization plans.
2. Product Planning
Product Planning coordinates the efforts of all departments in maintaining and developing the most profitable product line.
Product planning includes the addition of new products, addition of new product lines, and elimination of existing products.
3. Facility Planning
Facility planning is the determination of needed production facilities, their types, capacities, quantities and locations.
4. Operations Planning
Operations Planning is concerned with production methods, standard practices, types and quantities of production equipment, and production capacities.
5. Material Supply and Inventory Planning
Material Supply and Inventory Planning is concerned with the type and quantity of stock to be acquired and placed in inventory and its systematic location, storage and control.
Its purpose is to supply the desired quantity of product to the customer and to the various segments of the enterprise.
6. Financial Planning
Commercial Planning provides a central point for determining the organizations’ future financial requirements and objectives, for developing plans and policies to fulfill those requirements and objectives and for developing controls to assure compliance with financial plans and goals.
The financial plan outlines ways and means for meeting the company’s’ financial requirements within a prescribed course and within a specified time.
7. Commercial Planning
Commercial Planning is the estimation of future commercial conditions, the appraisal of these conditions and the preparation of plans to capitalize on them.
8. Production Planning
Production Planning deals with the effort for bringing together the necessary men, material, machinery and tools to create a product or service for offering in the market.
9. Human Resource Planning
Human Resource Planning aims to see that the company is provided with the number and type of people it will need in the future. The human resource plan outlines ways and means of providing the enterprise with an adequate number of properly experienced and trained people when and as they are needed.
It also provides a means for helping management achieve the maximum utilization of human resources.
10. Development Planning
Development Planning investigates ways and means of securing opportunities for utilizing the enterprise’s total resources.
The development plan outlines ways and means whereby the company’s resources may be employed to the maximum advantage, taking into account all aspects of the company’s capabilities and appraising the effect of possible changes in social, economic and political conditions.
In conclusion it may be re-iterated that planning is essential because it enables business enterprise to meet the contingencies of the future.
But to be effective a plan must;
(i) be based on a clearly defined objective,
(ii) be simple,
(iii) provide for proper analysis and classification of actions, that is, which establishes standards,
(iv) be flexible,
(v) be balanced, and
(vi) Use available resources to the utmost before creating new authorities and new resources.