Unformatted text preview: of plan is good for deciding whether or
not to proceed with a full-blown plan, to tell if there is a business worth pursuing. However, it is not
enough to run a business with. I’ll talk more about this in Chapter 3: Initial Assessment. The “Standard” Business Plan
A standard business plan, one that follows the advice of business experts and is prepared for formal
presentation to outsiders such as a bank, investors, or corporate managers, includes an expected
and customary set of elements. It should start with an executive summary. It should describe the
company, its background and history, what it sells, its market, its strategy, its management team, and
its ﬁnancial projections. 2.2 HURDLE: THE BOOK ON BUSINESS PLANNING Your plan depends on your speciﬁc situation. For example, if you’re developing a plan for internal use
only, not for sending out to banks or investors, you may not need to include all the background details
that you and everyone in your company already knows. Description of the management team is very
important for investors, while ﬁnancial history is most important for banks. Make your plan match its
business purpose. What’s Most Important in a Plan?
It depends on the case, but usually what’s most important is the cash ﬂow analysis and speciﬁc
Cash ﬂow is important because it is both vital to a company and hard to follow. Cash is usually
misidentiﬁed as proﬁts. They are, however, very different. Proﬁts don’t guarantee cash in the bank.
Lots of proﬁtable companies go under because of insufﬁcient cash, due, for example, to having to wait
for customers for pay invoices. It just isn’t intuitive.
Implementation details are important because that’s what makes things happen. Your brilliant
strategies and beautifully formatted planning documents are just theory unless you assign
responsibilities, with dates and budgets, and lots of following up and tracking of results. Business
plans are really about getting results, and improving yo...
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This note was uploaded on 01/26/2014 for the course BUINESS 102 taught by Professor Unknown during the Winter '09 term at University of Phoenix.
- Winter '09