(Submit Articles) Putting up a business is not a game of chance. It is not a win or lose activity. However, there are always risks in business, but some of these risks can be avoided. Others cannot be avoided like natural calamities, but their effects can be minimized.

Planning can eliminate business risks because it carefully studies the competence, interest and resources of the entrepreneur against the needs of consumers, together with the presence of competitors. Through marketing research or feasibility study, you can determine whether it is profitable to set up a certain kind of business or not. If you project is to introduced customized printing materials like custom bookmarks and other personalized bookmark printing, your market research will gauge whether you will push through or transfer another location, maybe because there are a lot of competitors, and that your products are already introduced and very similar to them or very minimal market.

Planning can minimize cost production. The resources of production such as money, materials, machines and manpower are properly used and scheduled according to plan. The plan includes how much money do you need? How will you spend the money? Where will you get the money? What are your expenses? How soon can you recover your money or investment?

In analyzing your market, these points should be taken into account: is there a good demand for your product or service? How many competitors are there in the market? What is your estimated share in the market? Who are your customers? And, are they interested in the existing product or service?

In choosing a proper business location to minimize cost, you should consider if the location is near to your prospective customers? Are there facilities like electricity, water, transportation and communication? Is the place clean, decent and peaceful? Do you have good alternatives in case the best location is expensive? Is it accessible to raw materials and other supplies?

A manager monitors and controls every aspect of the business operations to prevent unnecessary wastes. This results to economy and efficiency. Without planning production inputs are wasted more often than not.

To prepare an effective production plan, consider these questions: Is it more economical to rent or buy production equipment? Can you ensure or improve your product design or quality? Can your production facilities meet demand? Do you have inventory control? And, do you have proper scheduling of production?

Planning can detect the weaknesses of the business operations. In planning, goals and objectives are formulated. An organizational plan is your guide. This plan should answer the following questions: What type of business organization is most suitable? Do you know the corresponding laws, policies, and requirements of your business organizations? Are you aware of the advantages and disadvantages of each type of business organization? Who will be the officers and employees of your enterprise? What are their duties and responsibilities?

Alternative strategies are designed on how to attain the objective and goals. The various resources or inputs are also indicated to support the strategies. If the goals and objectives have not been accomplished according to time frame, there is something wrong with the operation. You can then reevaluate the planning.

Successful planning is highly dependent on adequate and accurate information. This is much needed in knowing the needs of consumers, and the strengths and weaknesses of competitors. Such data give the entrepreneur the ability to make the right goals and effective strategies.

In addition, any entrepreneur who follows the principles of planning is most likely to succeed in his business.

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