Sometimes, a new business plan is prepared for an established business that is moving in a new direction.A business plan is a fundamental tool any startup business needs to have in place prior to beginning its operations.Although they're especially useful for new companies, every company should have a business plan.
Financial statements, balance sheets, and other financial information may be included for already-established businesses.
New businesses may include targets for the first few years of the business and any potential investors.
Products and services: Here, the company can outline the products and services it will offer, and may also include pricing, product lifespan, and benefits to the consumer.
Other factors that may go into this section include production and manufacturing processes, any patents the company may have, as well as proprietary technology.
A complete business plan must include a set of financial projections for the business.
These forward-looking projected financial statements are often called pro-forma financial statements or simply the "pro-formas." They include the overall budget, current and projected financing, a market analysis, and its marketing strategy approach.A good business plan should outline all the costs and the downfalls of each decision a company makes.Business plans, even among competitors in the same industry, are rarely identical.They also act as a means to get people to work with and invest in the business.Although there are no right or wrong business plans, they can fall into two different categories—traditional or lean startup.These tend to be much longer and require a lot more work.Lean startup business plans, on the other hand, use a standard structure even though they aren't as common in the business world.The length of the business plan varies greatly from business-to-business.All of the information should fit into a 15- to 20-page document.But they all tend to have the same elements, including an executive summary of the business and a detailed description of the business, its services and/or products.It also states how the business intends to achieve its goals.