Greener Business Bureau

Archive for the ‘Business Planning’ Category

Search engine marketing is nowadays renowned to be a very powerful form of online marketing, primarily aiming to boost the success of a business by increasing its popularity and exposure. Thanks to the long-term benefits it offers, lots of online business owners rely exclusively on search engine marketing to boost the profitability of their business. However, in order to get the most out of any search engine marketing campaign, companies have to establish a set of specific goals and make careful preparations.

Any company, regardless of its nature, size and position on the market, should always establish an efficient business plan before initiating new search engine advertising campaigns. The business plan should be properly designed and carefully analyzed down to the last detail. Without proper previous preparations, the prospects of any search engine advertising campaign are very unpredictable. In order to ensure a stable ROI (return on investment) and great exposure for your business equally among new visitors and already-existing customers, your search engine marketing campaign should be properly designed upon the following structure:

- Coherent, relevant and brief mission statement (description of your business);

- Properly promote your specific selling points;

- Address yourself to the most appropriate categories of clients;

- Establish and maintain contact with your clients.

The first step in creating an efficient search engine marketing campaign is to write a solid mission statement or description. This phase is crucial for achieving a successful campaign, so you should ensure that you come up with the most appropriate mission statement for your business. Your mission statement is the first piece of information that will be addressed to your targeted visitors and potential clients, so it should have great potential in drawing people’s attention, enticing them to find out more about your business. It can be quite difficult to write the most appropriate mission statement for your business while restricting it to only a few sentences in the same time. However, the trick is to include in it the major benefits you offer to your clients, using powerful and memorable words.

A good example of a solid mission statement looks like this: “Our Company specializes in designing and developing highly competitive business management solutions that boost the efficiency and profitability of online companies worldwide.” This statement presents the services you offer to clients, the clients’ benefits of employing your services and the targeted market (in this case online companies). You should create similar structures, always keeping them right to the point and using “catchy” phrases. Never neglect this first basic step when trying to achieve a successful and rewarding search engine marketing campaign.

The second step in building a powerful search engine advertising campaign consists of promoting your unique, specific selling points to your site’s visitors and potential customers. This phase of the campaign requires you to identify and emphasize the unique features of your company, the traits that separate your business from the rest. Remember that your specific selling points may take various forms: superior services or products, more affordable fees, very quick delivery of the products, long-lasting warranty and so on. You should carefully analyze all your specific selling points, and prioritize the selling characteristics of your business, always starting with the ones that you consider most relevant and important.

The third step of your search engine marketing campaign consists of identifying the most appropriate categories of clients you wish to address to. Practically, this phase requires you to mentally portray the image of “the ideal customer”. For instance, your targeted clients might be your already-existing, regular customers, newcomers or, why not, the clients of the competition. After you have marked the overall features of the “ideal client”, you should progress by sketching the traits of your targeted customers in higher detail. You should account for features such as age, sex, marital status, level of income, ethnicity and so on. Undoubtedly, the more information you gather about your targeted customers, the better prepared your business will be at appropriately servicing the targeted market. This phase is vital for achieving success in your search engine advertising campaigns, so pay lots of attention when going through this section of the business plan.

The final step is also considered to be the most important, so you should carefully elaborate this stage. Establishing and maintaining contact with your targeted customers is vital for the success of your business, so you need to come up with appropriate “calls to action”. Remember that in order to sell your products or services to customers you have to maintain a good level of interest among your targeted visitors and keep them on your web pages for as long as possible.

Call to action plans can take multiple forms: determining the potential clients to subscribe to your free e-newsletter, to ask for more information about your business, to ask for advice from your representatives, etc. In order to achieve success in your search engine marketing campaigns, you should elaborate as many calls to action as you can think of. In addition, you should create a set of keywords and design “landing web pages” for each individual call to action. By doing this, you will be able to get the most out of your campaigns and improve your business’ ROI coefficient.

Pay equal attention to all these previously described aspects and you will be able to achieve powerful search engine marketing campaigns which will bring long-term benefits to the online business you are running.

When a new business opens in the area of Baltimore, Maryland, it is very important that a phone company that specializes in business communications systems is chosen. This is to ensure that all of the company’s telecommunication needs will be taken care of by professional experts. Leaving an important need such as this in the hands of just any phone company you run across can sometimes result in problems like equipment failure, down-lines, and other frustrating problems that can have a huge effect on the efficiency that your company provides.

There are numerous different types of both small and medium-sized companies that can require a wide variety of features that can be found on several of the manufactured name brands in telephone equipment systems that are available today. However, if the phone company in Maryland that your company selects does not provide you with choices in efficient business communication systems that can handle specific tasks that are required, in many cases it can result in a no-win situation. After all, the new business phone system that a company owner or employer chooses is often the very item that is relied upon to keep the company in a smooth and efficient operating condition.

If you are the employer of a new company in Baltimore or the surrounding area that is about to open its doors, it is extremely important to make a comparison on the business communication systems that will be provided by the phone company that you plan to have installing your equipment and providing your service. If they provide such well-known names in business telephone equipment as Nortel, ESI, and other popular manufactured brands, then you can expect that they will have no problems in meeting the communication equipment specifications of your business.

Some of the most common features that are generally sought after and used on a continuous basis by new businesses in the Baltimore area would include the following:

* Interactive voice response
* Internet access
* IP networking
* Unified messaging
* Multimedia call center
* Mobility solutions
* Other beneficial features

If you are planning the grand opening of a new company in the near future, it would be very helpful to browse the Internet for a phone company in Maryland that has the dedication, the experience, and the much needed knowledge concerning the business communication system that will work the best for the needs of your company.

Writing a small business plan is beneficial for any business of any nature. But the business plan serves beyond just being a presentation face to an external party. For any company to be successful, it must boast of satisfied customers, and this can be achieved by having good company policies that point the directions that the general operations will take as the business runs. To have satisfied customers, the company must have a solid customer service that will serve as the contact point for the customers to the business. Therefore, by writing a plan for a small business, the entrepreneur is one step closer to enhancing their customers’ experiences.

Customer services are of two natures, external and internal. External customer services usually involve marketing strategies that will be used to woo the potential customer to the business. Internal customer services usually involve applying strategies that will ensure customer loyalty is developed and more customers stay. By writing a small business plan, these two customer service aspects are defined and each is solved accordingly.

To enhance customer experience, the internal customer service must be of great quality. The most effective way to do this is by establishing a solid first contact resolution. The first encounter with the customer care agent should be pleasant enough to build the customer’s confidence with the company. For this to happen, the company’s background mechanisms should be running smoothly. The company’s components should co-exist, and the task force should work as one entity towards finding solutions. The task force should work as a team regardless of which departments they interact with. This means that there should be an open communication amongst all members of the team.

Without these two aspects, finding solutions for the customers will be almost impossible and of poor quality. Communication and teamwork are usually defined by the business policies placed to direct the business. These policies will be made more definite by writing a small business plan for the enterprise. With the help of a reputable business writing service, these policies will be modeled towards successful running of the business.

It is also important to manage customer experience. A customer is more willing to wait for a particular service if their faith in the company is high. By writing a small business plan, the entrepreneur has the opportunity to establish policies that will ensure that there are few complaints and repeat contacts from customers. The operation plan should ensure that the goods or services are delivered as expected, and any query is handled as soon as possible. Writing a small business plan will also ensure that the management sector is as efficient as possible. This will ensure that the right people are delegated for the right tasks, and those involved with customer service are trained so as to manage contact with customers. A reputable business plan writing service provider will always point out that efficiency in management will always reflect through the satisfaction levels of the customers, and eventually, the sales made.

If you are planning to start a limousine service business then you need to take some steps in order to set up reputed company that is both profitable and efficient in coping with demands of customers. Firstly you should personally inquire about the scope tourism in the area in which you would be going to start this business. If the potential for renting limousine is limited, then there is no point in investing money. Your company should be able to fulfill the requirements of various businessmen and families. Being owner of limousine business requires constant command and patience. A proper business plan is indispensable. This depicts potential investors why they should be interested in investing in your company.

The amount you have to initially spend is variable, as there is no fixed requirement how many limousines you may initially require. The total price is dependent on the number and type of model purchased. It is highly recommended to broaden your car selection because different clients have different preferences. Second hand cars are good alternatives if your budget is low. Some money should also be reserved for office equipment such as a computer, desk and chairs.

This business gives you the opportunity to attract various types of clients. All the hotels need limousines to drive their very important guests around. Many enterprises require limousines to escort their guests to and from their hotels. A limousine is also very frequently hired for weddings. It is generally considered as symbol of pride for bride and groom to sit in limousine.

Your Limousine rental service should be advertised to full scale in order to be fruitful. It’s a good idea to include a small presentation about your company during its inauguration. This would publicize your brand. You need to adopt marketing strategies to gain upper edge over your competitors. Your limousine rental services can be advertised in magazines, newspapers and websites. You might also need to personally visit hotels, clubs, and corporations, and make contacts that will be helpful for your business. A logo would help in making your service popular. All the vital contact information should be displayed by logo itself. a meeting should be arranged with an accountant to know about tax strategies and ways to maximize your business tax deductions.

To many managers, the term “business planning” is a buzzword to describe what 30 years ago was conceived as the financial budget, and therefore the restricted realm of the accountant. To others it may represent a document required to obtain an overdraft or a loan from their bankers. A business plan may prove to be the most important document that may be compiled in any business. This paper aims to eliminate such taboos and simplify what the strategic business planning process is all about, and how its benefits could be maximised by the management of a business.

THE TERM “STRATEGIC BUSINESS PLANNING”

When we speak about a strategic business plan, the message to be conveyed is about the strategies and tactics to be adopted by an organisation to reach its missions and goals. An integral part of the plan is financial in nature, but the strategic business plan is no plan at all if it does not address marketing, human resources, ICT and all other resources needed to integrate and fuse the organisational efforts to achieve targets, in terms of maximisation of profits. Thus, an effective business plan should serve FOUR underlying purposes:

oIt is a tool for management to convey both within and outside the organisation the goals for the business plan period;

oIt provides the strategic framework for holistically managing the business;

oIt allows the identification of objectives and how the attainment of these objectives could be achieved and, most importantly, closely monitored

oBy demonstrating that proper controls and achievement of objectives are happening, it provides an effective means of attracting new capital to finance the business objectives.

WHAT IS REQUIRED?
Many have compared the marketing of a strategic business plan to a candidate’s CV, when applying for a job. What must be ensured is that the plan is not just figures and numbers, but also shows a good understanding of all those essential determinants in reaching the stated targets. Thus, we should first and foremost ask ourselves questions such as:

Who are we?

What do we do?

Who are our customers and what are their expectations?

What and where will our business be in one, two, three, five years?

What are we doing NOW to get where we want to be?

How should we get there?

Do we have the resources in terms of machines, people, finances, technology and so on?

Do we need to obtain external financing and what type/extent is convenient to us?

We could keep going on asking questions as much as we would like our plan to be detailed. Probably the answers to some would need more effort in terms of time and resources than others. The most important factors which determine this preliminary stage of planning is to ensure that we are asking ourselves the right questions, that they are leading our business in the direction we want it to go. On the other hand, a manager must be aware of asking too many questions that lead nowhere. The objective of this process is to enable the manager to grasp what the target is and then plan on how to achieve that target.

EFFECTIVENESS AND FLEXIBILITY

What are the nuts and bolts of an effective and sound strategic business plan that truly delivers the business targets? The mission, objectives and overall strategy must be determined. Particular attention must be focused on the implementation and evaluation stages that follow the setting of objectives and strategies. It is here that a business will succeed or fail. Experience has shown that at times, a business plan needs to be radically changed after one year, to conform with the ever-changing and volatile business environment. Do not be surprised! This is a healthy experience. As every manager knows, rigidly sticking to a particular plan, where the business encloses itself in a cocoon, can bring about those looming black clouds of ensuing business failure. Exhibit A presents the Critical Success Factors (CSFs) of good strategic business planning, whilst Exhibit B illustrates the benefits accruing from a properly organised plan that distinguishes one business from another. These benefits ensure that the organisation is homogeneously geared and glued towards the ultimate objective of maximising profits.

THE ESSENTIALS

We must remember that even the best of business plans, which takes many hours to compile, will only take a few minutes of the reader’s time. Perhaps, a cursory glance at the executive summary and the conclusion will be the main determinants for the success or otherwise of the plan. It is true that great business ideas backed by superior management techniques will probably succeed without any written presentation. But, that minute possibility of failure necessitates extra effort for that slight edge over the chances of success. In plain words, this means that a strategic business plan MUST itself be planned! Exhibit C provides a practical guide, showing the essential requirements for the success of a strategic business plan. Managers must put themselves in the shoes of those who will read the strategic business plan and who will then subsequently take the decision, be it the board of directors, the bank manager or a creditor. Thus, what the reader wants or does not want to know, determines the structure and flow of the plan.

THE PLANNING TEAM

Before embarking on writing the plan, the business must ensure that it is written by someone or a team to whom it really matters, because of the enthusiasm and commitment that they put into it. Besides, such a team would in all probability be in possession of a substantial amount of information to determine the goals, targets and resources needed by the organisation. Of paramount importance is perhaps the message to be conveyed to the compilers of the plan. The team has to clearly and effectively show that it satisfies the following criteria:

oIt has the necessary experience in compiling good plans. The various disciplines in the organisation have to come together, thus ensuring a holistic approach.
. It can realise successfully the targets set, meaning that the compilers of the plan should also possibly be or include those same managers who will actually implement and monitor the plan’s performance;

oIt has already done what is being proposed – this means there is enough competence and experience to link to past plans, in terms of objectives and achievements; . It fully understands all the risks and pitfalls. Contingency planning is an integral part of a strategic business plan, where realistic risks are carefully planned for;

o It can relate the business plan to current and anticipated resource levels. Generally, each organisation has an element, large or small, of un utilised resources. The strategic business plan is the tool that identifies and effectively uses such dormant resources.

BUSINESS PLANNING TOOLS

Once the team has been identified and given the necessary powers and responsibilities, what remains is the identification and provision of the necessary tools to produce the strategic business plan. Each and every organisation should choose its tools for good planning, considering such issues as structures, staff competencies, organisational cultures, current resources, etc. However, the following list of commonly-used tools is neither exhaustive nor binding, but is an extremely efficient checklist, which is a valuable form of reference:

oClear and concise planning forms and guidelines

oA set of planning definitions

.Internal and external surveys

.Financial modelling packages ‘Organisation-wide availability and sharing of information

.Identification of standards to assess whether the targets are achieved

.Training programmes for planning staff

.Task force/Focus groups

Of course, the adoption of such tools depends on the size of the business. For example, in the case of Task Force/Focus Group, these approaches are used where the organisation tends to be rather large in size. This also applies for Internal/External Surveys, where the cost and time of collecting such information has to be viewed in terms of the accruing benefits to the quality of the plan itself.

AN EFFECTIVE PLAN

What remains is therefore the organisation of all the data collected and the composition of the strategic business plan itself. The executive summary itself is built up after the rigorous exercise of establishing the comments, figures and messages contained in the plan. The summary must be seen as conveying to its readers, in a short but effective message, where the business is to-day, and what future scenarios the plan is proposing.

It is the norm for Executive Summaries to be limited to one page of prose, but the most important element, be it one or two pages long, or even three, is that the summary, when read must immediately provide the reader with what to expect in the plan itself and what the plan’s conclusions are, the targets to be achieved, how they will be attained and what monitoring systems will assure their delivery. Exhibit D is a good example of an effective executive summary.

Another important issue for a successful strategic business plan is the way that data is applied and the manner in which it is communicated through the plan. Top management is interested in the specific targets to be achieved and will not tolerate statements with inadequate information, or which give rise to ambiguities or worse still are very generic in approach. Exhibit E compares and contrasts two different statements, illustrating what quality of data conveys in an effective manner, the message of the plan. Notice how the first statement is full of generic fluff, which does not mean a thing, and worse still, leaves the reader completely more perplexed than when he/she started.

But perhaps, the focus of the business plan user should be directed on the financial analysis and projections that support the scenarios being proposed by the plan. The financial analysis provides the effects of the strategic business plan into numbers that could be crunched. What should form part of this integral and important financial section of the plan?

-Only a Summary

-Historical performance and how it relates to the proposed scenarios

-Comments on the accuracy of previous plans, profit/loss trends, fixed costs patterns, cash flows

-An exercise in sensitivity analysis of possible scenarios

-Justification of assumptions

-Risk guarantees to investors

Other data demonstrating that the proposed plan is financially sound, cost effective and a profit motivator.

Besides the above elements, we must not over assess the other parts of the plan, especially the marketing, management and operational aspects. The team must ensure that they are able to produce a cohesive, well structured plan that will definitely deliver the message. The need for good business planning is therefore evidenced by the need for the organisation to maintain a truly effective thrust in the treacherous business environment it operates in. Business planning is a highly specialised and skilled form of determining the strategic direction, which demands and deserves some good quality effort. Without a business plan, the organisation, like an armoured tank without any ammunition, will flounder in the face of any weak opposition. Adherence to strategic business planning disciplines is not a bad indicator of those businesses likely to survive and those destined for the scrap heap.

EXHIBIT A

The Critical Success Factors

SENIOR SUPPORT

The top people should “walk the talk”. The board of directors and the senior managers should present the concept of business planning to all levels, in all programmes, to all functional support units, to financial officers, personnel officers and operational managers

ACCOUNTABILITY

Ultimate accountability for the strategic business plan being developed, carried out and evaluated lies with top management. The maxim is to ensure that each person is responsible for achieving each goal stated by the business

OWNERSHIP

In simple language this means that the managers should be responsible and accountable for the content, time frames and deliverables for the specific area they supervise

MECHANISMS

It is important that the strategic planning process is seen as a “hierarchical” process that links the higher to the lower levels of the business structure. It begins with the long-term business objectives and moves down into individual performance objectives and targets

FEEDBACK

Strategic business planning must be INTERACTIVE – it can only improve through trial, evaluation and feedback. Important milestones are periodic meetings at top management levels to assess and, if necessary correct the plan

REWARD/RECOGNITION PROGRAMME

Employees need to be motivated and encouraged to ensure an efficient cost/benefit approach. Recipients of rewards/recognition will signify to their colleagues that this kind of behaviour is what the organisation wants

EXHIBIT B

The Benefits Of Business Planning

Provides guidance and direction to the business itself

Promotes cross fertilisation opportunities, for example sharing of resources/knowledge and cost ascertainment initiatives

Enhances managerial alertness to change and opportunities

Creates, fosters and energises a results-oriented climate

Provides managers with a rationale for evaluating competing interests regarding budget requests, staffing allocations, critical proposals

Steers resources where they are most needed

Helps to unify the myriad of decisions made throughout the business, by providing horizontal and vertical links

Co-ordinates disparate and diverse activities

Encourages pro-active thinking and responsive programme delivery

Provides a business culture throughout the organisation which facilitates the flow of information up and down its hierarchy

EXHIBIT C

The 8 Rules of Business Planning

Open with a summary

Should be no longer than a page and ensure reader’s attention. It enumerates the key points; gives some facts for the overall case.

Focus on the audience and the final result

It must arouse the reader’s interest, leaving out details which may be relevant only to yourself.

Avoid ambiguity

Use plain language. Organise your message through references, clear figures and illustrations and make good use of graphs and tables.

Project your achievements

A business plan backed by good, solid management is what the reader looks for. Highlight important achievements of management.

Use clear narrative and figures

The reading must be interesting, logical and provide clear flow through to the end.

Do not forget the underlying evidence

The data (both external and internal) should be of high quality, relevant and easily communicated to the reader.

Provide for feedback

Involve the active participation of the reader through his/her comments, enquires and explanations.

Ensure senior support

Most business plans originate at the bottom echelons of the management structure. The champion of the plan must be supported by a mentor on the board of directors.

EXHIBIT D

An Effective Executive Summary

o Booboo Ltd is a family-owned confectionery business established 50 years ago by the father of the present owner. Turnover has grown rapidly over the past five years to $750,000 and pre-tax profits to $150,000. A new outlet has been opened this year, to make up for the increased demand. This has also reduced operating costs by 10%.

o Present market analysis indicates that there is demand to increase the number of outlets by another two. These will be serviced and controlled by the Main Area Outlet. Management believes that they could win business from local competitors who cannot compete on neither price nor quality.

o The investment cost involved in setting up the two units is $300,000, whilst average running costs at to-day’s prices will amount to around $85,000 annually. The funds required will be financed as to 30% from the additional funds invested by the owner and the rest by means of an assets-secured 10-year bank loan.

o This investment together with a projected increase of 8% on present day turnover would boost up the pre-tax return from the present 19.6% to 25% of turnover.

EXIDBIT E

Good Quality Data

Not…This rapidly growing massive market will soon become absolutely vast and once we have conquered it in a few years time we will also start on the even enormous international market, where there is even more potential and no competition. And in any case, nobody can copy our unique product.

But…The local market is estimated to be worth around $4.5 million per annum and to be growing at about 12% per annum. If development follows the course for neighbouring states, the potential market size is around $7.6 million, which provides considerable room for growth. Trade sources suggest that current market players are finding difficulty meeting demand, with the current demand/supply ratio running at 1.15. This supports our sales forecasts.

We believe there are further opportunities for expansion in the international arena, where the market is approximately at a similar stage of development as it was two years ago. Our plans show a modest entry into other international markets within 18 months…

Our products have minor improvements compared with competitors, which are protected by both local and international registrations.

A detailed description of a new or existing business, including the company’s product or service, marketing plan, financial statements and projections and management principles, require a plan to be implemented. A document that spells out a company’s expected course of action for a specified period usually includes a detailed listing and analysis of risks and uncertainties. For the small business, it should examine the proposed products, the market, the industry, the management policies, the marketing policies, production needs and financial needs. Frequently, it is used as a prospectus for potential investors and lenders.

Think of it as a production line. What’s go in the start are raw materials and unfinished assemblies. Here, the raw materials include:

-Talent and initiative from employees

-Capital -Market position

-The company’s creditworthiness

-The firm’s earning capacity

-Assessment of changes in the marketplace.

It should have four major aspects:

- Its contribution to purpose and objectives

- Its primacy among the manager’s tasks

- Its pervasiveness

- The efficiency of resulting plans.

The Contribution of Planning to Purpose and Objectives: Every plan and all its supporting plans should contribute to the accomplishment of the purpose and objectives of the enterprise.

The Primacy of Planning Manager must plan in such a way that it leads to proper organizing, staffing, leading and controlling which support the accomplishment of enterprise objectives. Planning and controlling are inseparable. Any attempt to control without a plan is meaningless, since there is no way for people to tell whether they are going where they want to go. Plans thus furnish the standards of control.

The Pervasiveness of Planning: Planning is a function of all managers, which vary with each manager’s authority and with the nature of the policies and plans assigned by superiors. If managers are not allowed to a certain degree of discretion and planning responsibility, they are not truly managers.

The Efficiency of Plans: The effectiveness of plan refers to its contribution to the purpose and objectives. Plan is efficient if it achieves its purpose at a reasonable cost, when cost is measured not only in terms of time or money or production but also in the degree of individual and group satisfaction.

Procedures: Procedures are plans that establish a required method of handling future activities. They are chronological sequences of required actions. They are guides to action rather than to thinking and they detail the exact manner in which certain activities must be accomplished.

Rules: Rules are unlike procedures in that they guide action without specifying a time sequence. In fact, a procedure might be looked upon as a sequence of rules. Rule may be a part of procedure.

Programs: Programs are a complex of goals, policies, procedures, rules, task assignments, steps to be taken, resources to be employed and other elements necessary to carry out a given course of action; further supported by budgets.

Budgets: Budget is a statement of expected results expressed in numerical terms. Financial operating budget is often called a “profit plan”. This budget can be expressed in financial terms, in terms of labor- hours, units of product or machine hours or in any other numerically measurable term.

Steps in Planning: Being aware of opportunities, a manager should take a preliminary look at possible future opportunities and see them clearly and completely know where they stand in light of their strengths and weaknesses, understand what problems they wish to solve, and why and know what they expect to gain. Planning requires a realistic diagnosis of the opportunity situation.

Establishing objectives: This is to be done for the long term as well as for the short term. Objectives specify the expected results and indicate the end points of what is to be done, where the primary emphasis is to be placed and what is to be accomplished by the network of strategies, policies, procedures, rules, budgets and programs. Objectives form a hierarchy.

Developing premises: There are assumptions about the environment in which the plan is to be carried out. It is important for all managers involved in planning to agree on the premises. Forecasting is important in premising: what kind of markets will there be? What volume of sales? What prices? What products? What technical developments? What costs? What wage rates? What tax rates and policies? What new plans? How will expansion be financed? What are the long-term trends? Because the future is so complex, it would not be profitable or realistic to make assumption about every detail of the future environment of a plan.

Determining alternative courses: The more common problem is not finding alternatives but reducing the number of alternatives so that the most promising may be analyzed. The planner must usually make a preliminary examination to discover the most fruitful possibilities.

Evaluating alternative courses: From the various alternatives available proper evaluation should be done which may involve ash flow.

Selecting a course: The best alternative should be selected.

Numbering plans by budgeting Final step is giving them meaning by converting them into budgets. The overall budgets of an enterprise represent the sum total of income and expenses, with resultant profit or surplus and the budgets of major balance sheet items such as cash and capital expenditures.