Overview

A business plan is a document that serves the operational and financial purpose of a business. It is a written description of the future of the business, a road map to the successes of your business. A business plan consists of detailed plans and a budget showing how to meet the stated objective for the business.

There should be a business plan for each business, either for the purpose of attracting investors or to provide direction to the business. A business plan plays an important role in the success of your business.

Definition

A business plan is a document that shows information related to the future operating and financial purpose of the business, detailed plans and budgets, and how to realize the items. If a business is thinking about starting, it is always recommended to outline the basics of the business, product and services, the target market for the business, the target set for the business. All this information can be prepared in a single document, and is called a business plan..

Placse of business plan

The only person who is not going into business doesn’t need business plan; you don’t A business plan is needed to start a regular job or hobby, as long as no one is starting or expanding an enterprise, which will consume resources of money, energy or time and expect profits, A business plan should be drafted for a smooth functioning.

Startups

• A business plan forces you to think about all aspects of a startup

  The main reason for business planning for startups, basically startups focus primarily on big ideas rather than execution. A business plan maps the business and guides growth; It is a permanent solution to the plan / plan of activities.

• Business plans help convincing investors

  An entrepreneur who is seeking funds for the venture must have a business plan to convince the investor. This is useful for companies at every stage of their existence, whether they are seeking financing or how to invest surplus.

• Set objectives for Mangers

  A startup can progress successfully with the good management, as setting objectives, tracking and follow – up. If managers work according to pre-sett business plan, helps them to achieve targets in a more organized manner.

• Cash flow management

  To make any business work efficiently, cash flow management is one of the fundamental activity. A fully planned assessment will help monitor current funds, future needs, cash flows and outflows.

• Profitable and strategic exit

  Valuing a firm is very difficult, with a business plan all the investment possibilities can be highlighted. Therefore, if at any time the owners of the enterprise decide to close the business, a better evaluation may lead to a more successful exit.

For Established Firms

• For the growth of existing business

  Business planning will help to establish a strategy and allocate resources according to strategic priority.

• Business evaluation

  Business valuation means the total value of your business. The plan will tell the valuation expert about your business, what it is doing, when, why, how much value it will give and how much the business will produce.

• Alliance to Develop

  Companies can use a business plan to set targets for new alliances, and selected parts of your plan to liaise with those alliances.

• To sell business

  The business plan plays an important part in selling the business. You can help buyers understand what you have, it's value and why they should buy it.

Content of Business Plan

The general business plan consists of three primary parts which are mentioned below;

• Business Concept
• Marketplace Section
• Financial Section

Further, these parts can be separated into eight major components;

• Executive Summary
• Business Description
• Market Strategies
• Competitive Analysis
• Design and Development Plan
• Service and Products
• Operation and Management Plan
• Financial Factors

Types of Business Plan

The business plan is broadly divided into six types;

Startup Business Plan

Startups should expand the steps when starting a new venture with a startup business plan. The business plan usually includes sections that describe the company, product, or service startup that the management team and market are going to offer. Potential investors will need a financial analysis with a spreadsheet, which will provide detailed information about financial sectors, including but not limited to income, profit and cash flow estimates.

internal business plan

An internal business plan has been drafted to target specific audiences within the business, for example, the marketing team needs to analyze the proposed project. An internal business plan is to describe the current state of the company including calculations about operating costs, profitability, and whether the business will repay any capital required during the project. Such plans also provide information about project marketing, hiring and other technology costs. Typically, internal business plans include a market analysis that clarifies the target demographics, market size, and positive impact on company revenue.

Strategy Business Plan

A high-level view of the company's goal and how that set goal will be achieved can be drafted under a strategic business plan. The plan for laying out a basic plan for a company is known as a strategic business plan. The strategic business plan varies from company to company. Most of the company has incorporated the following five elements in its strategic business plan.

• Business Vision
• Mission Statement
• Success Factor
• Strategies for achieving the objectives
• Implementation Schedule

A strategic business plan brings down the larger goals of the company, inspiring employees to work together towards the success of the company. / />

feasibility business plan

Such a plan answers two inquiries about the proposed business venture; Who is selling services or production to the company, and if the company can make a profit. The feasibility business plan includes sections describing the product or service company offering, target demographics, and capital requirements. Such plans always end with recommendations on how to proceed.

Operational Business Plan

These business plans are internal plans describing elements related to company operations. The operational business plan summarizes employee responsibility.

Development Business Plan

Such schemes are also known as in-depth descriptions of the proposed development designed for internal and external purpose. The growth business plan includes a complete description of the company, if the company requires any investment for its growth, a brief description of the company's management and executives. The plan should provide detailed information to satisfy the potential investor. In the case where the company is not subject to the requirement under any investor plan, it will include details related to financial sales and expense estimates.

The business plan guides the investors, owners of the company and management through the various successive stages of the company.