Business plan process

The Business Plan Process

• The business plan process is simply the steps
you go through and actions you take when
producing a business plan.
• In effect, it describes how you produce your
business plan.
• While most people focus on the ‘final output’,
i.e. the business plan itself, the business
planning process is extremely important for
entrepreneurs.
 Business Plan Process

• The business plan process typically begins

with an event, be it the need to produce a
business plan when seeking investment, or to
obtain short-term financing from a bank.
• Once a business plan is needed, the
entrepreneur has to then decide how they are
going to go about producing the plan. 
 The plan
• Decide who is going to write the plan. (if not
themselves).
• Gain an understanding of what a business plan
contains.
• Decide how to write their plan (typically
using business planning software such
as Business Plan Pro).
• Ensure that they know the content for the
various sections of the business plan.
 The plan
• Collaborate with partners or with colleagues
from various departments (if the plan is for a
bigger firm).
• Make sure the financials are realistic and
accurate.
• Have someone review the plan.
• Print and bind the plan (if a formal document is
needed) and/ or produce a presentation.
• Submit the plan to the recipient.
• Update the business plan as new details emerge.
 Importance of plan
• The great thing about the business plan
process is that it forces the entrepreneur to
consider their company holistically, as well as
forcing them to consider their future, rather
than merely the present day-to-day
operations.
 Importance of plan
• Entrepreneurs who have spent the time
thinking about seasonality in their sales
forecasts, the implications of ordering and
storing large amounts of inventory, or the
short-term drop in productivity that comes
with new hires, are less likely to be caught
unawares by sudden cash shortfalls and other
typical business challenges.