A business plan is a documented set of business goals, objectives, target market information and financial forecasts. The business plan is usually relevant to a specific period of time such as one or two years.
Preparation of a business plan is particularly important when establishing a business, although it should also be regularly reviewed and updated as required.
How do you lay a foundation for success? By creating an effective business plan – it should come together like a blueprint, providing clarity on all aspects of your business.
A business plan is usually developed to set up a business, whereas a strategic plan is used for implementing and managing the strategic direction of the organisation.
Another type of plan is an operational plan. Operational plans are detailed plans used to provide a clear picture of how a team, section or department will contribute to the achievement of the organisation’s strategic goals.
It is written by taking specific strategies from the company’s strategic plan, and adapting them to short term goals. An operational plan is usually informed and defined by a strategic plan.