The standard business plan a standard business plan

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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 implementation details. 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.

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