Business planning - Power of relying on the right information to make micro business decisions

Jacqueline has been one of the most successful cereal vendor along Nyamakima street in Nairobi. She has been on it for over 13 years and learnt all major and key ropes on how to maximise profit from cereal business.

Jacqueline is truly admired and has been source of inspiration to fellow and other young traders working to emulate her.

She has made some millions from the business. You always see big lorries loaded with cereals at her business point every week. This is quite a high turnover.

Earlier the year, Jacqueline was approached by a person she term dear friend and informed her there is an opportunity for her to diversify the business and make her even more successful. She became interested and got to be introduced to business of importing electronics as fast as that.

She immediately started business of importing electronics and engaged herself fast and deep with huge cash investment so that to reap fullest and in short term. She did this relying on information from person who is not even in that business.

Eight months later, she lost over three quater of her cereal business money out of this electronic business. Left with alot of regrets and even losts energy to concentrate with her golden cereal business.

Planning To Get Right Information

This boils down to one simple but key pillar; where do you get information to make business decision. Also how do you filter the information to enable use it for decision. From raw to edible information.

It is notable that many micro businesses fail to grow because of draw backs they get because of using poor information in decision making by the owner. According to latest data,up to 90% of start up fail. Accross almost all industries, average failure rate for year one is 10%. However in years two through five staggering 70% of new businesses will fail.

Business Stagnation

Micro business do not stagnate because of lack of profit but because of repeated poor business decisions and one major contributor to this is lackof quality information and abilities to filter the available information.

These decisions could include; timing of diversification and growth, securing unwanted and costly capital, way of resolving long outstanding business issues and conflicts.

Conclusion

Quality planning helps in many things and among one of them is how and where to get quality information for business decisions. Simple example would be like planning how to locate and approach a worthwhile business mentor- what is called a bench.

As the business owner, desire to be a person who runs business based on well planning system. This will guarantee sustainability. Also keep learning how to sustain micro business.

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Gachoka