Business acquisitions, franchise purchases and newly developed products are just some of the events that might prompt an existing business to create a business plan. Existing businesses use the business plan to monitor their expenses, define their strategies and benchmark their progress.
Audience[ edit ] Business plans may be internally or externally focused. Externally focused plans target goals that are important to external stakeholders, particularly financial stakeholders.
They typically have detailed information about the organization or team attempting to reach the goals.
With for-profit entities, external stakeholders include investors and customers.
Internally focused business plans target intermediate goals required to reach the external goals. They may cover the development of a new product, a new service, a new IT system, a restructuring of finance, the refurbishing of a factory or a restructuring of the organization. An internal business plan is often developed in conjunction with a balanced scorecard or a list of critical success factors.
This allows success of the plan to be measured using non-financial measures. Business plans that identify and target internal goals, but provide only general guidance on how they will be met are called strategic plans. Operational plans describe the goals of an internal organization, working group or department.
The content and format of the business plan is determined by the goals and audience. Venture capitalists are primarily concerned about initial investment, feasibility, and exit valuation. A business plan for a project requiring equity financing will need to explain why current resources, upcoming growth opportunities, and sustainable competitive advantage will lead to a high exit valuation.
Please help improve this article by adding citations to reliable sources. Unsourced material may be challenged and removed. August Learn how and when to remove this template message The format of a business plan depends on its presentation context.
It is common for businesses, especially start-ups, to have three or four formats for the same business plan.
This is often used as a teaser to awaken the interest of potential investors, customers, or strategic partners. It is called an elevator pitch as it is supposed to be content that can be explained to someone else quickly in an elevator.
The elevator pitch should be between 30 and 60 seconds. The content of the presentation is usually limited to the executive summary and a few key graphs showing financial trends and key decision making benchmarks.
If a new product is being proposed and time permits, a demonstration of the product may be included. An internal operational plan is a detailed plan describing planning details that are needed by management but may not be of interest to external stakeholders.
Such plans have a somewhat higher degree of candor and informality than the version targeted at external stakeholders and others. Typical structure for a business plan for a start up venture  cover page and table of contents.When the existing business is to assume a major change or when planning a new venture, a 3 to 5 year business plan is required, since investors will look for their investment return in that timeframe.
Jul 19, · In a five-year business plan, you should convince the reader that your products/services are marketable now and will continue to be popular in the coming years. Find and save ideas about 5 year plan on Pinterest.
| See more ideas about Year planning, Money challenge and Life plan. Answering a few questions can give you a map for your business success. The 5 - Minute Year Plan Excellent, simple source to help you map your dreams effectively.
The 5-Minute 5-Year Plan: How to Map Your . Jul 19, · In a five-year business plan, you should convince the reader that your products/services are marketable now and will continue to be popular in the coming years.
Clearly state sound reasons that. May 10, · How to Write a Basic Business Plan Three Parts: Determining Your Goals Writing a Business Plan Getting Help Community Q&A No matter your business idea, whether it’s selling jewelry, landscaping or grooming animals, a business plan is a good way to demonstrate the idea’s potential for success%(16).
The business plan is for five years, so it should include a projection of the company's income statement for this period. Give monthly figures for the first year and annual amounts for the next four years.