The result of this process is a business plan that serves as a guide for management to run the company. Describing the most critical tasks that must be completed and the time frame for completion, a business plan allows companies to allocate resources to accomplish goals.

• Interests and hobbies.
• Customer surveys.
• Brainstorming and dreams.
• Franchises.
• Mass media.
• Personal experience and talents.
• Trade fairs and exhibitions.

Business basically creates three types of utility:
1.  Form utility: It is created by changing the raw materials into final goods.
2. Place utility : It is created when goods are transported from one place to another.
3. Time utility : When goods are stored in warehouses so that they can be used later creates time utility.

Importance of Business Planning

Planning is an important function of management, it tells the manager where the organization should be headed. It also helps the organization reduce uncertainty. Let us take a look at some important functions of planning.

1] Planning provides a sense of Direction: Planning means coming up with a predetermined action plan for the organization. It actually states in advance what and how the work is to be done. This helps provide the workers and the managers with a sense of direction, a guidance in a way. Without planning their actions would be uncoordinated and unorganized.

2] Planning reduces Uncertainty: Planning not only sets objectives but also anticipates any future changes in the industry or the organization. So it allows the managers to prepare for these changes, and allow them to deal with the uncertainties. Planning takes into consideration past events and trends and prepares the managers to deal with any uncertain events.

3] Planning reduces Wastefulness: The detailed plans made keep in mind the needs of all the departments. This ensures that all the departments are on the same page about the plan and that all their activities are coordinated. There is clarity in thought which leads to clarity in action. All work is carried out without interruptions or waste of time or resources,

4] Planning invokes Innovation: Planning actually involves a lot of innovation on the part of the managers. Being the first function of management it is a very difficult activity. It encourages the manager to broaden their horizons and forces them to think differently. So the managers have to be creative, perceptive and innovative.

5] Makes Decision=Making Easier: In business planning the goals of the organization have been set, an action plan developed and even predictions have been made for future events. This makes it easier for all managers across all levels to make decisions with some ease. The decision-making process also becomes faster.

6] Establishes Standards: Once the business planning is done, the managers now have set goals and standards. This provides the manager’s standards against which they can measure actual performances. This will help the organization measure if the goals have been met or not. So planning is a prerequisite to controlling.

Franchising helps the start-ups in following ways:

1.  Working: Franchising changed the working of the start-ups because already the product carriers a name in the market already. The start-ups pay royalty to the franchisor. Start-ups save struggling time and money involved in the process.
2.  Training: Start-ups take up trainingto understand the product. Franchisors make franchises fully known with the product/services. Start-ups are the sales person. And franchisors charge a fee for this purpose.
3.  Fast growth: The start-ups can grow fast without having to increase cost through increasing labour, operating costs, etc. because normally buyers straight away contact them.
4.  One plus one eleven: Franchises work for the benefit of franchisors i.e. they turn up one plus one eleven. Both are open to help each other. Franchisors’ efforts to boast their franchises are always real and sincere. No clash of interest arises.

Branding: It is the process of giving a name of or a sign or a symbol to a product. Such as Polo, LG etc.
A good brand name should contain the following characteristics:
Simple and Short: A brand name should be simple and short so that there is no complication or oddity
related to its name. For example, the brand names like LUX, BATA, BINACA and DALDA have these
qualities.
Easily Pronounceable: A brand name should be easily pronounceable. For example, TATA, BATA, FIFTY-
FIFTY etc.
Suggestive: Brand name should be self-explanatory thereby suggesting the inherent quality of the
product. For example, HAJMOLA indicates the curing of an in-digestive system and the product like UJALA
suggests more whiteness and brightness.
Distinctive: Brand should be so distinctive that it highlights itself in the group of other brand names. Such
as, Tide, Cinthol, Perk, Nirala etc.