Business planning is the process of justifying, choosing, researching and a course of action for a business startup. This process is generally includes the preparing of a formal business plan, channel around the requirements of its intended investors or readers. In any case, if the plan is for a existing or new business seeking capital investment, it must have a focus on investors or external funders. If the business plan is a strategic document for internal uses, that could be less formal. Either way, a business plan should be all encompassing enough to make its implementation possible.
Setting a Plan of Attack of Business
A business plan is, in pointed sense, a plan of attack for the captain of industry or the management of the business to follow. This special plan of attack guides the management to know if they are making progress, its serves as a “map”, informs outside investor or partners (such as funders) of what the company is heading to, also serves as a means to evaluate the success and progress of the company along the way. Business planning should begin with a great deal of research and analysis, but must always end with an actionable plan which managers of the company can use as their marching orders.
Proving Return on Investment
Whether the plan is for investors who are external or internal to the business, there is a need for a clearly prove the case for a reasonable return on investment for the resources used or to be use by the company. This may be funding in the form of cash from investors or lenders, the time committed “sweat equity” by founders, or other assets of the business itself. The business plan should explain the background of the business opportunity that exists and provide support for this opportunity. Must then explain the methods the company will use to take advantage of this opportunity and show the means which the company has in the form of brand, equipment, intellectual property, and management staff to march forward with the plan.
The plan must show the future financial results expected and, in the case of an external plan, how the financial returns will flow back to the funders or investors.
Non-Profits Organization Business Plan
A non-profit organization must use the same kind of process for business planning. However, the financial aim is not the primary return in a non-profit organization. The outcome is generally in the form of the creation of some type of public good for individuals or businesses. Nonetheless, there should be strong focus quantify the expectations of these results.