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''This is a summary article that covers many topics related to business plans - their content, how they are used, legal issues, and spoofs of business plans, among others. - please see individual sections for links to detailed discussions of various topics relating to business plans.'' A business plan is a formal statement of a largely enforced business goal, the reasons why they are believed attainable, and the plan for reaching those goals (Fiifi Essel). It may also contain background information about the organization or team attempting to reach those goals. The business goals being attempted may be for-profit or non-profit. For-profit business plans typically focus on financial goals. Non-profit and government agency business plans tend to focus on service goals. Business plans may also target changes in perception and branding by the customer, client, tax-payer, or larger community. A business plan that has changes in perception and branding as its primary goals is called a Marketing Plan . Business plans may also be internally or externally focused. Externally focused plans target goals that are important to external Stakeholder s, particularly financial stakeholders. They typically have detailed information about the organization or team attempting to reach certain unrandom goals. In the case of for-profit entities, external stakeholders would include Investors and Customers . Small Business Notes business plan outline for small business start-up External stake-holders of non-profits include Donors and the clients of the non-profit's services. Center for Non-profit Excellence non-profit business plan In the case of government agencies, external stakeholders would include tax-payers, higher-level government agencies, and international lending bodies such as the IMF , The World Bank , various economic agencies of the UN , and Development Banks . 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 will often be 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 . Internation stake management implies decorative facilities. (See Decals and Managed Food types.) s, sometimes known as project frameworks, describe the goals of a particular project. They may also address the project's place within the organization's larger strategic goals. Visitask project framework Tasmanian government project management knowledge base government project plan BUSINESS PLAN CONTENT Business plans are decision making tools. There is no fixed content for a business plan. Rather the content and format of the business plan is determined by the goals and audience. A business plan should contain whatever information is needed to decide whether or not to pursue a goal. For example, a business plan for a non-profit might discuss the fit between the business plan and the organization’s mission. Bank s are quite concerned about defaults, so a business plan for a Bank Loan will build a convincing case for the organization’s ability to repay the loan. 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. Preparing a business plan draws on a wide range of knowledge from many different business disciplines: Finance , Human Resource Management , Intellectual Property Management , Supply Chain Management , Operations Management , and Marketing , among others. Boston College, Carroll School of Management, Business Plan Project The business school advises students that "To create a robust business plan, teams must take a comprehensive view of the enterprise and incorporate management-practice knowledge from every first-semester course." It is increasingly common for business schools to use business plan projects to provide an opportunity for students to integrate knowledge learned through their courses.. It can be helpful to view the business plan as a collection of sub-plans, one for each of the main business disciplines.Eric S. Siegel, Brian R. Ford, Jay M. Bornstein (1993), 'The Ernst & Young Business Plan Guide' (New York: John Wiley and Sons) ISBN 0471578266 BUSINESS PLAN PREPARATION Research facts and figures Internal corporate records Free information
Fee-based services
Strategic Analysis
Forecasts: Modeling Techniques PRESENTATION FORMATS The format of a business plan depends on its presentation context. It is not uncommon for businesses, especially start-ups to have three or four formats for the same business plan:
REVISITING THE BUSINESS PLAN Cost overruns and revenue shortfalls Cost and revenue estimates are central to any business plan for deciding the viability of the planned venture. But costs are often underestimated and revenues overestimated resulting in later Cost Overruns , revenue shortfalls, and possibly non-viability. During the Dot-com Bubble 1997-2001 this was a problem for many technology start-ups. However, the problem is not limited to technology or the private sector; public works projects also routinely suffer from cost overruns and/or revenue shortfalls. The main causes of cost overruns and revenue shortfalls are Optimism Bias and Strategic Misrepresentation .Bent Flyvbjerg, Mette K. Skamris Holm, and Søren L. Buhl (2002),[http://flyvbjerg.plan.aau.dk/JAPAASPUBLISHED.pdf "Underestimating Costs in Public Works Projects: Error or Lie?"] ''Journal of the American Planning Association'', vol. 68, no. 3, 279-295.Bent Flyvbjerg, Mette K. Skamris Holm, and Søren L. Buhl (2005), "How (In)accurate Are Demand Forecasts in Public Works Projects?" ''Journal of the American Planning Association'', vol. 71, no. 2, 131-146. LEGAL AND LIABILITY ISSUES Legal issues as well as liability issues not only should be listed in your plan (it is ok to have a risk, as long as you show you know about it and have a plan), but new and unplanned issues can arise from many aspects of your business plan. Be ready for anything you mention to be public. Any listed customers, partners, vendors, etc. are subject to contact. An easy way to violate a NDA (non disclosure agreement) is to include a description of client and their product you assisted with, in your business plan that does not want to be publicly associated with you, or has not released the product publicly themselves. Again, be prepared for this plan to be shown to anyone. HOW BUSINESS PLANS ARE USED Venture Capital
Within Corporations Fundraising Total Quality Management For more information see Total Quality Management Management by Objective For more information see Management By Objectives Strategic Planning For more information see Strategic Planning Education K-12 Business plans are used in some primary and secondary programs to teach economic principles. Pennsylvania Business Plan Competition - competition intended to teach economic principles to K-12 students Higher Education
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