Business Plan

A business plan is an official and formal-style statement comprised of a company’s business goals and overall plan for achieving business success. Business plans have a fairly standardized format that is expected, informing investors and venture capitalists on the background of the company and entrepreneurs, how the business will benefit the customers, clients, tax-payers and overall community as a whole and the strategy the company plans to employ to most effectively reach these benefits. Most companies have more than one business plan, as they can be directed towards different audiences. Some are internally focused and centered on strategies necessary within the company, while others are externally focused and explain to those investing in the business why they should trust the entrepreneurial judgment. Having active ideas is an imperative part of any business plan; the plan must consist of strategies, detailed operational guidelines and individual project plans. A good business plan will outline three to five years of the company’s lifespan.

The content of a business plan depends on which audience is receiving the presentation. The most common types of plans that are created are internal plans for the company’s team members to focus on and external plans for banks that are offering loans or investors that are offering venture capital. Both of these plans would consist of largely the same material, just tweaked to suit a different audience. An overall vision of the company as a whole is necessary, as are descriptions of experience and understanding of finances and marketing techniques. A business plan should also include necessary information regarding human resources and legal information. These can be presented in a three-minute summary commonly called an “elevator pitch,” a written or oral presentation, or as an internal operational plan given out as a memo.

As previously mentioned, there is a fairly standardized format to the business plan. The overall tone should support the notion of the business success that is to come. External presentations should be entertaining while still maintaining appropriate business etiquette. All presentations, even oral ones, should have some form of a cover page with a table of contents, as proper organization is key. This is followed by an executive summary of the overarching team and the business description with vision plans, as well as a description and analysis of the environment in which the business is starting. You must make your case for investment by stating your background in the industry and how the industry is successful overall, as well as assessing how to overcome the competition and why the market is lucrative. Your business plan should sum up with a clear operational outline, management description and tools and a detailed financial plan. A compelling argument made with clear data is sure to get the investment capital that is necessary.