Financial Education - Basic elements and principles of business planning

There are four basic and important elements or conditions for business planning to be effective, in the professional exercise the following can be found: planning must be systematic, it must be projected into the future, it must have a time limit, and have a cost-benefit relationship, it has to do with the purpose to be achieved.

Now as for the principles of planning, we present the principles of planning that correspond to the level of commitment, flexibility, and objectivity, so I would like to expand the details as follows.

a) Principle of commitment: Planning must be defined in time, setting a date for the start, execution and completion of activities.

b) Principle of flexibility: The plans must have sufficient flexibility to be able to take different directions from those initially foreseen, when circumstances require it.

c) Principle of the limiting factor: Objectivity must prevail over illusion or excessive optimism, when having to choose among several alternatives or courses of action to achieve an objective, being the search for the limit factor of permanent planning.