Burkhardt & Larson on Business Planning
Burkhardt and Larson explains
that business
planning is a process that involves the creation of a mission or goal for a
company, as well as defining the strategies that will be used to meet those
goals or mission. The process of business planning can be very broad,
encompassing each aspect of the operation, or be focused on particular
functions within the overall corporate
structure. Often, business planning involves the utilization of resources
within the company as well as engaging the services of consultants to assist in
designing and implementing the plan.
Burkhardt and Larson sheds light
that there are several points in the life of a business when the process of
business planning is an essential task. Burkhardt and Larson
knows that starting up a new company involves performing at least rudimentary
business planning in order to address such factors as defining the goals of the
company, obtaining operating licenses, incorporating the business if
appropriate, and defining the basic structure for the new business. Along with
these factors, business planning will also address the issue of what goods and
services to offer and how to go about producing those core products.
Burkhardt and Larson goes on to
explain that a second stage when business planning comes into play is when an
existing company wishes to expand operations. The business planning will
determine what is needed in order to manage the expansion process, especially
in regards to financing new facilities, expanding sales and
marketing efforts, or designing a new communications infrastructure to meet
the needs of the expansion. It is not unusual for consultants to be called
during this type of business planning, as the process often involves a drastic
overhaul of the company’s operations, states Burkhardt and Larson.
Burkhardt and Larson goes on to
explain that business planning may also be advantageous in the event of
acquisitions. For example, Company A decides to buy Company B and integrate
their operations into the overall company structure. Burkhardt and Larson
further states that this will often mean developing a business plan that
addresses issues such as negotiating new service contracts with vendors to
include the acquired company, combining some functions or physical locations in
order to maximize efficiency, and rearranging departmental functions and the
personnel who will staff those departments. Burkhardt and Larson
further explains that as with expansion, it is not unusual to call in
consultants that specialize in various areas to help give the business planning
a logical flow and develop a plan for completing the merger of facilities and
other assets in a timely manner.
In general, any type of business plan requires
investigation, careful evaluation of all known factors, and projecting
potential results of different options that are open to the company. Burkhardt
and Larson finds that this open-ended process can take on a number of
forms, some of them relatively simplistic, while others are extremely detailed
and complicated. However, the basic task of business planning is necessary for
the entrepreneur starting a new business, as well as the established company
that wishes to expand through the launch of new products or by acquisition of
competitors.
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