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A Plan In Place

http://www.channeltimes.com/story/a-plan-in-place/

Even as the first fiscal quarter closes on a relatively happy note, much is happening on the global front that portends great things ahead for India Inc. After much drama, Mittal Steel finally acquired Arcelor to emerge as the largest steel player in the world - three times larger than its closest competitor. The Tatas announced the acquisition of EOC, the third largest coffee brand in the world, in its bid to position itself as the most admired beverage player globally.

These were just two of the several high-profile acquisitions announced in the last fortnight, heralding the arrival of the global Indian. For the channel partner, there are several lessons to be learned from these successes.

The scale of operations may differ. But what helped Mittal bring the deal to fruition despite stiff resistance from several quarters? The answer lies in the business plan he offered the stakeholders of the target company in question. Despite failure looming large, he was able to finally turnaround the deal thanks to a sound business plan. This serves to highlight the fact that investors back companies with a sound business plan in place.

A study of any successfully-run corporate will again stand testimony to this fact. Though a semblance of structure has crept into the IT channel business over the last couple of years, the fact remains that much of the business is conducted in a slipshod manner. A sound business plan is the need of the hour. Once a plan is in place, the channel partner might find it easier to monitor the progress and growth of his company.

And there are several other benefits. Growth calls for ample finance. However, many channel partners find it difficult to raise a business loan. A business plan helps put things in perspective - operational issues, finances, viability of new ventures, etc. This will, in turn, enable the partner to set specific goals and work toward them. The likelihood of a financial institution or bank extending a loan is much higher once you are able to convince them of your seriousness. And this is possible only if you have charted out a detailed plan.

A plan will also serve to help you redefine your existing strategies and innovate new ones to reach new heights. And more importantly, planning will open your mind to emerging opportunities that will help you further those goals.

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