A. BUSINESS PLAN BASICS
For rapidly growing companies, a business plan
is a key management tool that can be used for a
variety of reasons:
Attract debt or equity financing
Promote relationships with joint venture
partners and large customers, suppliers, and
Provide strategic guidance, operating tactics
Furnish a standard against which to judge
future business decisions and results.
Evaluate strengths and weaknesses and
identify viable alternative strategies
Establish the operational and financial
structure of a management buy-out
Regardless of the exact impetus, a business plan
is a fundamental requirement for all start-up and
rapidly growing businesses.
Due to the array of business plan goals and the
endless variety of circumstances, there is no such
thing as a standard business plan.
a business plan should not be static.
Over its lifetime, a business typically goes
through several stages.
Although the number
and names of these stages vary by economist, it is
safe to speak of at least three stages: start-up,
growth, and maturity.
Generally, each stage in
the life of a business represents an increase in
revenues and employees -- and perhaps in
product lines, assets, etc. -- and requires a greater
delegation of routine functions.
The transition to
a new stage represents a critical phase in the life
of a business.
This transition, along with changes
inherent in a business's growth, changing market
conditions, evolving company strategies, and
actual financial results, signals the need to
update the business plan.
The outline presented below has been formulated
based on PricewaterhouseCoopers LLP's
experience with start-up ventures and rapidly
You will need to make
certain modifications to your business plan
depending on whether your company is in the
technology, manufacturing, service, retail or
However, the basics are the
Regardless of your business, it is
important to remember that this outline should
be used as a guide, not as a rigid, all-
Developing The Business Plan For Your Rapidly