The business plan is an integral part of starting a company and critical to
ongoing business success. There are several different situations that may
require a business plan:
- A plan is needed to gain funding for an
entrepreneurial venture.
- A business plan provides the vision for other aspects of
planning and ongoing business operations, such as marketing plan development,
budgeting, and ongoing decision-making & management.
- Lenders or investors most likely will require a business plan in order
to process or complete a loan application.
- Potential business partners study the business plan in order to decide
whether to become affiliated with a business.
Definitions of a Business Plan
The
United States Small Business Administration says "a business plan precisely
defines your business, identifies your goals, and serves as your firm's resume.
The basic components include a current and pro forma balance sheet, an income
statement, and a cash flow analysis. It helps you allocate resources properly,
handle unforeseen complications, and make good business decisions."
Wikipedia's business plan
listing explains that "a business plan is a summary of how a business owner, manager, or
entrepreneur intends to organize an entrepreneurial endeavor and implement
activities necessary and sufficient for the venture to succeed. It is a written
explanation of the company's business model.
The
SBA
Online Women's Business Center defines the business plan as "a blueprint of
your company, presented in standard business format that is logical and well
documented. A good business plan is also: a strategic vision of
your company; your most important communication tool; a document to obtain
working capital and/or investments; a tool for planning, measuring and improving
performance; a basis for sound decision-making; and a way to motivate employees.
Writing a Business Plan
There are several ways to write a business plan. Generally, a business plan
includes sections such as an Executive Summary, Objectives, Missions, a
Marketing Plan, and a Financial Plan. Each section is filled with details and
the document contains supporting charts, tables, graphs, and references. To
understand how a finished business plan may look, review the following sample
business plans:
Export and Coffee Business,
Software Company,
Trade Association (nonprofit)
