View License Agreement not for distribution or resale Description This type or organizational structure has fewer levels of middle management less vertical hierarchy.
Audience[ edit ] Business plans may be internally or externally focused. Externally-focused plans draft goals that are important to outside stakeholders, 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,  for non-profits, external stakeholders refer to donors and clients,  for government agencies, 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 a 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 internal 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.
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 initial 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.
Please help improve this article by adding citations to reliable sources. Unsourced material may be challenged and removed. August Learn how and when to remove this template message 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.
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, or 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. 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. 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  cover page and table of contents.A business process map shows the steps involved in reaching a particular outcome.
It may also include information about who is responsible for which parts of the process or . How a business accomplishes and coordinates work activities is determined by the company's interrelationships.
These relationships reflect business leaders' decisions regarding chain of command, work specialization, authority and span of control.
The business plan is the key ingredient for a successful business and is often ignored.
This session shows you how to create an individualized business plan, and provides the tools to make it easy. The primary value of your business plan will be to create a written outline that evaluates all aspects.
BUSINESS start-up & Resource guide selecting and using professionals 22 selecting a business location 24 minimizing your risks 25 legal considerations & requirements 26 regulatory requirements 26 tax information 28 insurance 31 protecting intellectual property 31 employer responsibilities 32 legal structure of your business 33 develop your business plan A business plan gives an outline of your business, the market in which it will operate and how it aims to make money - and should answer this question: why will your business .
An organizational chart (org chart) is a visual aid used to clarify who reports to whom and who is responsible for what in your organization.
See examples and tools that can be used to create free org .