business plan

Also found in: Dictionary, Acronyms, Wikipedia.

Business Plan

A formal statement of what a business wants to accomplish and how it intends to accomplish it. A business plan includes a vision statement, which is a brief summary of the company's goals (usually some variation of "to make money by creating a superior product"). It also includes details of the products the company makes or intends to make, how it will sell them, and how much they will cost. A business plan nearly always includes a budget. Such plans are important to investors, who want to know how their money is supposed to be used, and to management to help keep a company on track.

business plan

a detailed statement of the objectives, proposed operations, resource requirements, financial forecasts etc. of a completely new business or an established business which is being developed further. It is particularly important to draw up such a plan not only to ensure that the owners/ managers of the business themselves understand clearly what is required to make a success of the venture but also that external parties, in particular providers of capital and loan facilities, can evaluate the viability of what is being attempted.

There is no set formula for a business plan but typical elements would include:

* name, address, products and objectives of the business; what product is to be supplied

* market analysis – customer needs, competitors, size of market etc. and proposed marketing/competitive strategy

* operations analysis – production, purchasing, selling etc.

* financial analysis – profit and loss forecasts, cash flow forecasts, capital expenditure requirements

* management information/business controls – recording procedures, monitoring progress. See BUSINESS STRATEGY.

References in periodicals archive ?
Comprehensive business plan templates, resources and articles available online at www.
The new International and National Business Plans are ground-breaking, powerful additions to our mobile plans for SMEs.
Second, the concept of the business plan is notoriously loose.
For a new venture, a business plan is the means used for communicating to investors what the business is about, what its opportunities are, what amount of investment is needed, how the money will be utilized, and how it will be paid back (Bangs, 2002; Hodges, 1997).
This article describes the major steps we followed to develop a business plan and the key marketing efforts that helped us achieve it.
The Winners of the 2006 FedNor Secondary School Business Plan Challenge include:
Access to information demonstrates the organizational skills and competence necessary to present the investment and business plan to the potential investors and the financial community.
It is now time to present the business plan and get stakeholder approval and resources to launch the new venture.
A business plan should be approached in a logical, honest manner, avoiding unrealistic claims as evidence may be required to support the plan.
It is with these interests in mind, that NAVSUP 07/NAVICP-OF 07 Strategic Business Plan was developed, a plan that seeks to establish a cohesive path to achieving the vision and interests of these different, but related, constituencies by leveraging NAVICP-OF talent, expertise, relationships, and resources.
If all has gone as it should, a market research-based business plan and powerful mission statement (see "Igniting a Turnaround" MODERN CASTING, February 2002 for more on this subject) have been created.

Full browser ?