Posted in Marketing and Strategy Terms, Total Reads: 1420
Definition: Business Plan
A Business Plan is a document which defines the business in which an organisation is involved or intended to start. It also describes the goals of the business and the detailed action plan in order to achieve them.
Usually a business plan consists of the following items:
(i) Overview of the business
(ii) Goals of the business
(iii) Action plan to achieve the goals
(iv) Product/ Service involved in the businesss
(v) Market Study (Competition/ Strategy)
(vi) Operations (Technology, Staffing, Material sourcing)
(vii) Financial Study (Current & Projected Statements)
A business plan can be for a new business that is yet to be started or it can be for an already existing business that is to be developed further. It is used by management to review the performance against the goals that were set and to find out the reasons for deviation.
In case of a new business, the business plan is essential to order to raise funds through loan or through equity. We could often find such documents especially when a company enters the stock market through IPO.