Planning is one of the most essential components of business management. Planning is required to deal with future unknown events and contingencies. Without planning it may become impossible to keep a track of various business operations. Planning is required for each and every project, department and business process.
Business plan is generally developed to define the objectives of the organization, specify activities to be performed to achieve these objectives and to monitor the actual execution of these activities. Business plan can also be used to outline details of a particular project or raising funds for a particular project. It is interesting to note that there is no specified format for developing a business plan. However, all possible efforts should be made to cover important aspects of the business/project.
A business plan can also cover important aspects like strengths and weaknesses of the organization. It is essential to note that strengths and weaknesses are internal factors influencing day to day functioning of the organization.
Strengths And Weaknesses In Your Business Plan
What are Internal Strengths?
It is important for every organization’s management to ensure profitability and long term survival of the business. This objective can be achieved by capitalizing on organization’s internal strengths. It is important to mention all the internal strengths in the business plan. Further, it is essential to mention the steps to be taken to capitalize on these strengths in the business plan itself.
Example of Internal Strengths
An organization may not have latest machinery for manufacturing products, but it may have a team of efficient production supervisors and workers. Such a team may help in reducing overall production cycle time. Further, its quality department may be highly effective in identifying product defects and recommending product improvements. Therefore, it becomes important for the company to provide training and development opportunities to its production and quality department employees.
This step can help in enhancing the technical and managerial skills of the employees in different departments. Therefore, it is essential to mention “Efficient Production and Quality Staff” in the internal strengths section of the business plan. Further, “Training and Development Schedule” can also be included in the business plan as a measure to capitalize on this strength.
What are Internal Weaknesses?
Just like internal strengths, a company may have internal weaknesses. Internal weaknesses can also be included in the business plan. Further, measures to deal with such weaknesses can also be highlighted in the business plan.
Example of Internal Weaknesses
Non availability of latest production technology can be considered as an internal weakness. It is also possible that the company may have latest machinery (for manufacturing products), but it may not have technically qualified employees and workers to operate the machinery. Internal weaknesses are required to be identified by the management in order to take appropriate steps to minimize the impact of such weaknesses on the functioning of the business.
How to Include Strengths And Weaknesses In Business Plan?
Separate sections can be inserted in the business plan for describing internal strengths and weaknesses. A complete SWOT analysis can also be performed and included in the business plan to highlight external factors (opportunities and threats) in addition to internal factors.