By this time of the year, many corporations have completed their Annual Strategic and Planning Sessions. The “book,” we assume, is now in the hands of line managers for the implementation by the first day of January, 2010.

Strategic Plans are not easy to prepare. It takes a lot of brainstorming, group discussions and presentations. Data, statistics , previous accomplishments and future forecasts are normally read and re-read, analyzed, revised several times before copies are finally printed.

Plans are so important they are enshrined in every manager’s personal file. Plans do not only provide the proper guidance for decision making but serve as a measurement tool when actual performance starts.

But what about the Entrepreneurs, specifically those new in their business endeavors? While there is a debate over the statement that real entrepreneurs do not plan, the trend is to teach entrepreneurs the value and importance of Business Plans.

How can they benefit from this annual exercise when only a mere 20% appreciate the significance of Planning? More often than not, most entrepreneurs play it through gut-feel and take the risk on the implementation of their action plans for the coming year. No book, no written business plan to be proud of, but always ready to face the coming year. Worse, majority plan for the more insignificant areas like design of Company Logo, Letterheads, new packaging and improvements of their administration site. Very few are concerned about the more important aspects of the business such as Organization and Management, the Manufacturing Operations, the Marketing Programs and the Financial aspect of the business.

How could Entrepreneurs adopt this tool? Well, Stephen Covey ,author of the book 7 Habits of Highly Effective People, recommends “Begin with the end in mind”.

Entrepreneurs should read what is happening around him, what the following year could bring to his business considering its election year and how will this national exercise affect his business, etc? This is equivalent to the SWOT analysis of most Corporations. After that, he should focus on his products or services and possible future innovations and determine if he will be able to cope with forecasted demand of his present and prospective customers. He should also think of more creative distribution and Marketing activities.

Lastly, since most of these activities translate to PESOS , he should look if his Finances are still adequate to meet current and future plans.

Speaking of Finances, the entrepreneur should also make a decision whether or not he will expand his business for the following year; in which case, he will need more Capital. The questions to ponder therefore are : Will he invite more equity investors to his business? Where will he source for his additional Capital? Where will he invest this Capital? Will it be earmarked to improve his production, expand his distribution network or enlarge his Organization?

Plans are not only used to guide but is the best preparation as most businesses grow from Start Up mode to their Growth Mode and ultimately to Maturity Mode. Plans are as important as the next sales.

As we end the year, this column would like to thank the Financial Executives Institute for the opportunity to share our thoughts on the subject of Entrepreneurship, this paper for the space twice a month and to many friends who believe that Entrepreneurs have a future in this country.