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 businesses get funding or bring on new business partners. They are often required to obtain a bank loan or other kind of financing. Templates and guides, such as the ones offered in the United States by the Small Business Administration, can be used to facilitate producing a business plan. Although theyre especially useful for new businesses, every company should have a business plan.
