WHAT

IS
BUSINESS PLAN?
 A written document describing the nature of the
business, the sales and marketing strategy, and the
financial background, and containing a projected
profit and loss statement .

A written document describing the nature

of the business, the sales and marketing
strategy, and the financial background, and
containing a projected profit and loss
statement .
A BUSINESS PLAN is a guide for your business that
outlines goals and details how you plan to achieve
those goals.

Your business plan should conform to generally

accepted guidelines regarding form and content. Each
section should include specific elements and address
relevant questions that the people who read your plan
will most likely ask.
 What
are the
IMPORTANCE
of a
BUSINESS PLAN?
 BUSINESS PLAN can help perform a
number of task for those who write and
read them. They’re used by investment-
seeking entrepreneurs to convey their
vision to potential inventors. They may also
be used by firms that are trying to attract
key employees, prospect for new business,
deal with suppliers or simply to understand
how to manage their companies better.
 A business plan is a very important
strategic tool for entrepreneurs. A
good business plan not only helps
entrepreneurs to focus on the specific
steps necessary for their to make
business ideas succeed, but it also
helps them to achieve both their short-
term and long-term objectives.
 To raise money for your
business
Potential investors or lenders want a written
business plan before they give you money.
A mere description of your business
concept is not enough. Instead, ensure you
have a thorough business and financial plan
that demonstrates the likelihood of success
and how much you will need for your
business to take off.
 To make sound
decisions
As an entrepreneur, having a business plan
helps you to define and focus on your
business ideas and business strategies. You
not only concentrate on financial matters,
but also on management issues, human
resource planning, technology and creating
value for your customer.
 To help you identify
potential weaknesses
Having a business plan helps you to identify
potential pitfalls in your idea. You can also
share the plan with others who can give you
their opinions and advice. Identify experts
and professionals who are at a position to
give you invaluable advice, and share your
plan with them.
 To communicate your
ideas with stakeholders
A business plan is a communication tool
that you can use to secure investment
capital from financial institutions or
lenders. It can also be used to convince
people to work for your enterprise, to
secure credit from suppliers, and to attract
potential customers.
 A business plan is an important tool for
managing and growing your business. A
well-designed plan lays out a vision of
growth and the steps needed to get there. A
plan is also an essential communications
tool for attracting financing for your
business as well as managers and staff as
your business grows.
 Clarify Direction
The primary purpose of a business plan is to
define what the business is or what it intends to
be over time. Clarifying the purpose and direction
of your business allows you to understand what
needs to be done for forward movement.
Clarifying can consist of a simple description of
your business and its products or services, or it
can specify the exact product lines and services
you'll offer, as well as a detailed description of
your ideal customer.
 Future Vision
Businesses evolve and adapt over time, and
factoring future growth and direction into the
business plan can be an effective way to plan for
changes in the market, growing or slowing
trends, and new innovations or directions to take
as the company grows. Although clarifying
direction in the business plan lets you know
where you're starting, future vision allows you to
have goals to reach for.
 Attract Financing
The Small Business Administration states, "The
development of a comprehensive business plan
shows whether or not a business has the potential
to make a profit." By putting statistics, facts,
figures and detailed plans in writing, a new
business has a better chance of attracting
investors to provide the capital needed for getting
started.
 Attract Team Members
Business plans can be designed as a sale tool to
attract partners, secure supplier accounts and
attract executive level employees into the new
venture. Business plans can be shared with the
executive candidates or desired partners to help
convince them of the potential for the business,
and persuade them to join the team.
 Manage Company
A business plan conveys the organizational
structure of your business, including titles of
directors or officers and their individual
duties. It also acts as a management tool that
can be referred to regularly to ensure the
business is on course with meeting goals,
sales targets or operational milestones.
 WHAT ARE
THE TYPES OF
BUSINESS PLAN?
 6 Types
Of
Business Plans
 Business plans guide owners, management and
investors as businesses start up and grow through
stages of success. A business owner or prospective
business owner writes a business plan to clarify
each aspect of his business. A business plan
includes objectives to anticipate and prepare for
growth. Savvy business owners write a business
plan to guide management and to promote
investment capital. Types of business plans
include, but are not limited to, start-up, internal,
strategic, feasibility, operations and growth
plans.
 1.Start-Up Business Plans
Detail the steps to start a new business with a
start-up business plan. Include sections
describing the company, the product or service
your business will supply, market evaluations and
your projected management team. Provide a
financial analysis with spreadsheets describing
financial areas including, but not limited to,
income, profit and cash flow projections.
 2. Internal Business Plans
Internal business plans target an audience within the
business. Write an internal business plan to evaluate a
proposed project. Describe the company’s current state,
including operational costs and profitability. Calculate
if and how the business will repay any capital needed
for the project. Provide information about project
marketing, hiring and tech costs. Include a market
analysis illustrating target demographics, market size
and the market’s positive effect on the company
income.
 3.Strategic Business Plans
Strategic business plan provides a detailed map of a
company’s goals and how it will achieve them, laying out a
foundational plan for the entire company. According to the
website, Clean Washington Center, a strategic business plan
includes five elements: business vision, mission statement,
definition of critical success factors, strategies for
achieving objectives and an implementation schedule. A
strategic business plan brings all levels of the business into
the big picture, inspiring employees to work together to
A
create a successful culmination to the company’s goals.
 4. Feasibility Business Plans
Feasibility business plan answers two primary
questions about a proposed business venture.
According to the University of Colorado Leeds School
of Business, feasibility plans attempt to determine who,
if anyone, will purchase the service or product a
company wants to sell, and if the venture can turn a
profit. Feasibility business plans include, but are not
limited to, sections describing the need for the product
or service, target demographics and required capital. A
feasibility plan ends with recommendations for going
forward.
5. Operations Business Plans
Operations plans are internal plans that consist of
elements related to company operations. An
operations plan, according to BPlans.com,
specifies implementation markers and deadlines
for the coming year. The operations plan outlines
employees’ responsibilities.
 6. Growth Business Plans
Growth plans or expansion plans are in-depth
descriptions of proposed growth and are written for
internal or external purposes. According to BPlans.com,
if company growth requires investment, a growth plan
may include complete descriptions of the company, its
management and officers. The plan must provide all
company details to satisfy potential investors. If a
growth plan needs no capital, the authors may forego
obvious company descriptions, but will include
financial sales and expense projections.