There is quite a lot of confusion between Strategic Plan and Business Plan. Please check our introduction to Strategic Plan, which clarifies the difference. In a nutshell, both plans are necessary, but once you have a strategic plan, the basic material of the business plan is already there, the financial plan and market analysis just need to be expanded.
A business plan generally communicates to outsiders (sponsors, investors, loan officers, strategic partners, potential key employees, etc.) what your business is about, where your business is going over a set period of time (at least three years), and how you are going to get there, in detail. The plan discusses what's going to happen and when? Who's going to do it? How much will it cost? How many sales will this produce? It includes metrics and numbers, otherwise you cannot determine if you are on track or not. It is therefore the base for your yearly budget and your budget versus actual analysis.
Unfortunately, many people think of strategic plans and business plans only when they are starting a new business or applying for a loan. But planning is part of the ongoing process that is fundamental for running a successful business, to look ahead, align resources, focus on key initiatives.
Your plan depends on your specific situation. Often we are asked for a sample or template of a typical business plan. But such a document does not exist. Each business is unique and therefore each business plan is different. But a business plan should include the following:
• An Executive Summary describes your business is in brief terms, it’s market, and why your product or service is the best solution for your customers. It contains elements of your strategic plan including mission and vision as well as overview of your leadership team.
• A Company Summary which describes the structure, ownership, location, etc.
• The Company’s Products or Services.
• A Market Analysis based on the target market, the industry and competition analysis.
• Strategy and Implementation Plan which includes your competitive edge, your marketing and sales strategy, and the sales forecast and the milestones.
• A Management Summary with the personnel plan
• The Financial Plan: Assumptions, Break-even Analysis, Projected Profit & Loss, Projected Cash Flow, Projected Balance Sheet, Business Ratios.
This language can be a bit daunting, but in fact developing the above is not difficult if you have an experienced coach who can lead you through the process. At Synergic we give a FREE initial consultation for developing your business plan. Click here if you wish to be contacted by us, with no obligations.
