This module will lead you though the steps of preparing a formal business plan. A business plan is a formal statement of the goals of your business. It describes in detail the strategies to be used in achieving those goals.
Business plans are developed for both internal and external audiences. Internally, a formal plan can clarify the objectives for the business and provide a measuring stick for the managers to evaluate performance. The plan takes a realistic look at strengths and the weaknesses or challenges facing the business.
Externally, the business plan is used by financial institutions, business partners, key managers, investors, and anyone else who requires an in-depth summary of the business. The plan explains the objectives of management, how those objectives will be met, and how outsiders’ interests will be served.
The business plan will need to be revisited and updated regularly to adapt to both internal changes and external factors influencing the business. The business world is dynamic and the best managers regularly adjust their formal plan to shifts in markets, technology and the evolution of the business over time.