Enterprise establishment requires a great deal of planning. The entrepreneur must carefully plan the objectives and the resources to accomplish these business objectives. Planning is an arrangement for doing something considered in advance. It involves determining
What is to be done and how
When and by whom it is to be done
It lays down the objectives and then chalks out a specific course of action to achieve it. According to Knoontz and O’Donnel, “Planning is deciding in advance what to do, how to do it, when to do it and who is to do it. It helps to bridge the gap from where we are to where we want to go. It makes it possible for things to occur which would not happen otherwise”. Alford and Beatly have said that “Planning is the thinking process, the organized foresight, the vision based on facts and experience that is required for intelligent action”.
An element of planning can be seen behind every business activity in any society and/or organization. This is due to ever growing competition, frequent fluctuations in demand, discovery of new products, new ways in which these can be used, and scarcity of resources. As such there is necessity for entrepreneurs to plan to make fullest use of their available resources. Failing to do so will lead to poor or no profits.
Participants