business plan

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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 ?
There is no set format, but a business plan can include a variety of components: an executive summary, a company overview, a description of products/services, a marketing plan, financial statements, and an analysis of the company's strengths, weaknesses, opportunities, and threats.
Last year, we set out to encourage every business to develop a business plan.
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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:
However, as a rule, it is recommended that a business plan should be reviewed at least every six months or during times of major change.
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.

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