A business plan is a document that sum up the operational and financial objective of a business. It is a written description of the business's future, a road map to the successes of your business. A business plan contains detailed plans and a budget showing how to meet the objective being set for the business.
Every business needs to have a business plan, either for the purpose of attracting investors or to provide direction to the business. A business plan plays a important role in the success of your business.
Online Business Plan Definition
A business plan is that document which summarizes the operational and financial objective of business future, information related to detailed plans and budget, and showing how the objects are to be realized. If one is thinking about starting a business, it's always recommended to outline the basics of business, product and services, market targeted for business, goal set for the business. All this information can be drafted in one document, and that is called a business plan.
Who needs business plan?
The only person who is not going into business doesn’t need business plan; you don’t need a business plan for regular job or to start a hobby, unless anybody is starting or extending a venture which will consume resources of money, energy or time and expects profits, should draft a business plan for a smooth functioning.
A business plan forces you to think about all the aspects of startup
The main reason for startup to have a business plan, basically startup focuses primarily on the big ideas, rather than execution. A business plan maps out business and guide growth; it's a permanent solution to outline/plan of activities.
Business plans help in convincing investors
For an entrepreneur who is seeking funds for venture should have a business plan in order to convince the investor. It is useful for companies at every stage of their existence, whether they are seeking financing or figuring out how to invest the 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
For any business to work efficiently, cash flow management is one of the fundamental activity. Fully planned assessment will help in monitoring current funding, future requisites, cash inflow and outflow.
Profitable and Strategic Exit
Valuing of the firm is very difficult, with the business plan all likelihood of investments, can be highlighted. Hence, if any point of time venture owner decides to close the business, better valuation can lead to a more successful exit.
For Established Firms
For the growth of Existing Business
Business Plan will help to establish a strategy and allocate resources according to strategic priority.
Valuation Of Business
Valuation of Business means how much the net worth of your business is. The plan will let valuation expert know about your business, what is it doing, when, why, how much that will value, and how much business will produce.
For developing Alliance
Companies can use a business plan to set targets for new alliances, and the selected portion of your plan to liaise with those alliances.
For Selling Business
Business Plan plays a vital role in the part of selling a business. You can help buyers to understand what you have, it's worth and why they should buy it.
Ingredients of Business plan
In general Business plan consists of three primary parts which are mentioned below;
- Business Concept
- Marketplace Section
- Financial Section
Further, these parts can be segregated into eight key components;
- Executive Summary
- Business Description
- Market Strategies
- Competitive Analysis
- Design and Development plan
- Service and Product
- Operation and Management Plan
- Financial Factor
Types of Business Plan
Business Plan is roughly divided into six types;
Startup Business Plan
Startups should detail the steps while starting the new enterprise with a startup business plan. The business plan typically includes sections which describe the company, the product or the service startup is going to offer the management team and market evaluation. The potential investors will require financial analysis with spreadsheet giving detailed information about financial areas including but not limited to income, benifit and cash flow projections.
Internal Business plan
An internal business plan is drafted to target the specific audience within the business, as for example, the marketing team needs to analyze the proposed project. An internal business plan is supposed to describe the current position of the company that includes operational costs, profitability, and the calculations regarding if and how 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 the market analysis explaining targeted demographics, size of market and market's positive effect on the company's revenue.
Strategic Business plan
A high-level view of the company's goal and how that set goal will be achieved can be drafted under the strategic business plan. A plan laying the foundational plan for a company is known as Strategic Business plan. Strategic Business plan differs from company to company. Mostly the company's include the following five elements to their strategic business plan.
- Business Vision
- Mission Statement
- Success Factors
- Strategies for achieving objectives
- Implementation schedule
The strategic business plan brings down the big goals of the company, inspiring employees to work together towards the success of the company.
Feasibility Business Plan
This kind of plan answer two inquiries about a proposed business venture; who will purchase the services or production company is selling, and If the company can turn a profit. Feasibility Business plan includes sections describing what is need of product or service company offering, targeted demographics and capital required. Such plans always end up with the recommendations for going forward.
Operational Business Plan
These business plans are the internal plans describing the elements related to company operations. The operational business plan summarizes employee responsibility.
Growth Business Plan
Such plans are also known as an in-depth description of proposed growth, drafted for the internal and external purpose. Growth business plan includes a complete description of the company, if any investment required in the company for its growth, a brief description of about company's management and officers. The plan should provide detailed information to satisfy the potential investor. In the case where the company is not under the requirement of any investor than plan will include the details related to the financial sale and expense projections.
The business plan guides investors, owners of the company and management through various successive stages of the company.
Frequently Asked Questions
How to make a business plan is the biggest questions that come into the mind of business owners. Business plans need complete research of the market, whether it's a financial or research over the product and services company is offering. Main research starts when you know the intentions behind the writing of business plan if you need a business plan to impress the investor than the content of the business plan will be different and in the case of where a company is looking for any growth internally only the content of the business plan will vary. If you are also looking for any business plan writer contact us at Corpbiz, we have experts who are drafting a business plan according to the requirement of the company.
The answer is yes, you do. Though you have a clear idea of starting and developing the business, writing it on paper makes you more objectives and attentive towards every single detail. A business plan will help you to take relevant factors into account for the successful outcome of the business.
No. It's the mistake. Usually, company's think that the business plan is only required if a company is looking for any investment. The primary benefit of the business plan is for the owner. At the start of businesses, a comprehensive plan will help in getting realistic pictures of the company’s capabilities and feasible strategies. As your business grows, your drafted plan will help you in assessing if a company is meeting the goals, or a change of direction is needed.
There is no specific criteria to follow and how long your plan should be. The foremost thing in a Business plan which should be included in the plan, are all the relevant information for you to use it as a tool for assessing your progress. In furtherance, it should provide a complete picture of the company’s current financial state, grounded projections for future costs and revenues, future strategies, which will bring you closer to meeting your goals.
That will depend on an individual’s specific capabilities and background, but it's never wrong to have an accountant review your financial information. Even an attorney can also review the plan to avoid the legal issues which can affect it in future, such as the feasibility of obtaining certain necessary permits, any current or upcoming changes in the law that may harm your business model. In addition, if you are planning to submit your plan to potential investors, it’s better to seek help from a professional writer.
At Corpbiz, we ensure that each and every plan is customized for the client’s business. We have a team of experienced consultant and analyst who just not only high-quality documentation but also provides business consulting services to boost your idea. We have a team of dedicated consultants and analysts, which are allocated on the basis of client’s venture and industry.