what is a business plan

11 months ago 36
Nature

A business plan is a formal written document that outlines a companys objectives and how it plans to achieve them. It serves as a roadmap that provides direction to the business and guides it through each stage of starting and managing the business. A business plan typically includes the following elements:

  • Goals: The goals of the business are defined in detail, including the time-frame for achieving them.
  • Methods: The methods for attaining the goals are described, including marketing, financial, and operational strategies.
  • Nature of the business: The document describes the nature of the business and provides background information on the organization.
  • Financial projections: The organizations financial projections are included.
  • Audience: A business plan can be internally or externally focused. Externally-focused plans draft goals that are important to outside stakeholders, particularly financial stakeholders.

Business plans can help attract investment and secure lending from financial institutions. They can also serve to keep a companys executive team on the same page about strategic action items and on target for meeting established goals. While there is no right or wrong way to write a business plan, most business plans fall into one of two common categories: traditional or lean startup.