Planning is a process for setting goals on the basis of objectives and resources. It is a blue print of business growth and a road map of development, a set of intended action through which one expects to achieve a goal. Planning combines forecasting of developments with the preparation of scenarios of how to react to them. Just as no two organizations are alike, no two plans are alike. It is important to prepare a plan keeping in view the necessities of the goal. A plan serves the following three critical functions:

• Helps management clarify, focus, and research their project’s development;
• Provides a considered and logical framework within which a business can develop;
• Offers a benchmark against which actual performance can be measured and reviewed.