Business Plan - Step-by-Step Planning Templates

 

business planning meaning

A business plan is a formal written document containing business goals, the methods on how these goals can be attained, and the time frame within which these goals need to be achieved. It also describes the nature of the business, background information on the organization, the organization's financial projections, and the strategies it intends to implement to achieve the stated targets. Planning Definition: Planning is the fundamental management function, which involves deciding beforehand, what is to be done, when is it to be done, how it is to be done and who is going to do involveoqshz.ml is an intellectual process which lays down an organisation’s objectives and develops various courses of action, by which the organisation can achieve those objectives. Aug 20,  · In its simplest form, a business plan is a guide—a roadmap for your business that outlines goals and details how you plan to achieve those goals. Here's what a business plan entails, and how to choose what type is right for your business/5(4).


What is business planning? definition and meaning - involveoqshz.ml


A business plan is a formal written document containing business goals, the methods on how these goals can be attained, and the time frame within which these goals need to be achieved. It also describes the nature of the business, background information on the organization, the organization's financial projections, and the strategies it intends to implement to achieve the stated targets.

In its entirety, this document serves as a road map that provides direction to the business planning meaning. Business plans may be internally or externally focused, business planning meaning. Externally-focused plans draft goals that business planning meaning important to outside stakeholders, business planning meaning, particularly financial stakeholders.

These plans typically have detailed information about the organization or the team making effort to reach its goals. With for-profit entities, external stakeholders include investors and customers, [2] for non-profits, external stakeholders refer to donors and clients, [3] for government business planning meaning, external stakeholders are the tax-payers, higher-level government agencies, and international lending bodies such as the International Monetary Fundthe World Bankvarious economic agencies of the United Nationsand development banks.

Internally-focused business plans target intermediate goals required to reach the external goals. They may cover the development of a new product, a new service, a new IT system, a restructuring of finance, the refurbishing of a factory or a restructuring of the organization.

An internally-focused business plan is often developed in conjunction with business planning meaning balanced scorecard or a list of critical success factors.

This allows success of the plan to be measured using non-financial measures. Business plans that identify and target business planning meaning goals, but provide only general guidance on how they will be met are called strategic plans.

Operational plans describe the goals of an internal organization, working group or department. They may also address the project's place within the organization's larger strategic goals, business planning meaning. Business plans are decision-making tools. The content and format of the business plan is determined by the goals and audience. For example, a business plan for a non-profit might discuss the fit between the business plan and the organization's mission.

Banks are quite concerned about defaults, so a business plan for a bank loan will build a convincing case for the organization's ability to repay the loan. Venture capitalists are primarily concerned about business planning meaning investment, feasibility, and exit valuation. A business plan for a project requiring equity financing will need to explain why current resources, upcoming growth opportunities, and sustainable competitive advantage will lead to a high exit valuation.

Preparing a business plan draws on a wide range of knowledge from many different business disciplines: financebusiness planning meaning, human resource management, business planning meaning, intellectual property management, supply chain managementoperations management, and marketingamong others. The format of a business plan depends on its presentation context.

It is common for businesses, especially start-ups, to have three or four formats for the same business plan, business planning meaning. An " elevator pitch " is a short summary of the plan's executive summary. This is often used as a teaser to awaken the interest of potential investors, customers, business planning meaning strategic partners. It is called an elevator pitch as it is supposed to be content that can be explained to someone else quickly in an elevator.

The elevator pitch should be between 30 and 60 seconds. A pitch deck is a slide show and oral presentation that is meant to trigger discussion and interest potential investors in reading the written presentation.

The content of the presentation is usually limited to the executive summary and a few key graphs showing financial trends and key decision making benchmarks. If a new product is being proposed and time permits, a demonstration of the product may be included. A written presentation for external stakeholders is a detailed, well written, and pleasingly formatted plan targeted at external stakeholders.

An internal operational plan is a detailed plan describing planning details that are needed by management but may not be of interest to external stakeholders.

Such plans have a somewhat higher degree of candor and informality than the version targeted at external stakeholders and others. Typical structure for a business plan for a start up venture [10]. Typical questions addressed by a business plan for a start up venture [11]. Cost and revenue estimates are central to any business plan for deciding the viability of the planned venture. But costs are often underestimated and revenues overestimated resulting in later cost overruns, revenue shortfalls, and possibly non-viability.

During the dot-com bubble this was a problem for many technology start-ups. Reference class forecasting has been developed to reduce the risks of cost overruns and revenue shortfalls and thus generate more accurate business plans.

An externally targeted business plan should list all legal concerns and financial liabilities that might negatively affect investors, business planning meaning.

Depending on the amount of funds being raised and the audience to whom the plan is presented, failure to do this may have severe legal consequences. Non-disclosure agreements NDAs with third parties, non-compete agreementsconflicts of interest, privacy concerns, and the protection of one's trade secrets may severely limit the audience to which one might show the business plan. Alternatively, business planning meaning, they may require each party receiving the business business planning meaning to sign a contract accepting special clauses and conditions.

This situation is complicated by the fact that many venture capitalists will refuse to sign an NDA before looking at a business plan, lest it put them in the untenable position of looking at two independently developed look-alike business plans, both claiming originality. In such situations, one may need to develop two versions of the business plan: a stripped-down plan that can be used to develop a relationship and a detailed plan that is only shown when investors have sufficient interest and trust to sign a Non-disclosure agreement.

Traditionally business plans have been highly confidential and quite limited in audience. The business plan itself is generally regarded as secret. An open business plan is a business plan with unlimited audience. The business plan is typically web published and made available to all.

In the free software and open source business model, trade secrets, copyright and patents can no longer be used as effective locking mechanisms to provide sustainable advantages to a particular business and therefore a secret business plan is less relevant in those models. The business goals may be defined both business planning meaning non-profit or for-profit organizations, business planning meaning.

For-profit business plans typically focus on financial goals, such as profit or creation of wealth. Non-profit, as well as government agency business plans tend to focus on the "organizational mission" which is the basis for their governmental status or their non-profit, tax-exempt status, respectively—although non-profits may also focus on optimizing revenue. The primary difference between profit and non-profit organizations is that "for-profit" organizations look to maximize wealth versus non-profit organizations, which look to provide a greater good to society.

In non-profit organizations, creative tensions may develop in the effort to balance mission with "margin" or revenue. The business plan is the subject of many satires.

Satires are used both to express cynicism about business plans and as an educational tool to improve the quality of business plans. For example. From Wikipedia, the free encyclopedia.

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What is Planning? definition, characteristics, steps and importance - Business Jargons

 

business planning meaning

 

Aug 20,  · In its simplest form, a business plan is a guide—a roadmap for your business that outlines goals and details how you plan to achieve those goals. Here's what a business plan entails, and how to choose what type is right for your business/5(4). Planning Definition: Planning is the fundamental management function, which involves deciding beforehand, what is to be done, when is it to be done, how it is to be done and who is going to do involveoqshz.ml is an intellectual process which lays down an organisation’s objectives and develops various courses of action, by which the organisation can achieve those objectives. Business Plan. Definition: 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 also a road map that provides directions so a business can plan its future and helps it avoid bumps in the road.