What should be established before beginning the business planning process?

Establishing a basic statement of purpose is essential before beginning the business planning process because it serves as the foundation for the entire plan. This statement articulates the vision, mission, and core values of the business, providing clarity on what the business aims to achieve and guiding its strategic direction. A clear statement of purpose helps to align the goals of the business with the actions that will be taken in the planning process, ensuring that all stakeholders are on the same page regarding the objectives and values that drive the organization.

Additionally, having a defined purpose allows for more focused decision-making and can foster motivation among team members, as they have a clear understanding of the business’s intentions and long-term aspirations. This clarity is crucial when moving forward to develop other components of the business plan, such as financial reports, marketing strategies, and SWOT analyses, as these elements will all revolve around the core mission and vision articulated in the statement of purpose.