Business Planning

A business plan is a planning tool for management and for potential investors. It defines the mission and goals of the organization together with the accompanying strategies and objectives. It is a step-by-step outline of projected sales and the resources needed in order to achieve them. It includes past, and projected, financial statements and expected financial returns. The benefits to management and to potential investors are:

MANAGEMENT PLANNING:

• Set future goals and define realistic targets
• Marketing/Sales programs
• Operations/Manufacturing
• Financial Analysis and Budgeting
• Reevaluate achievements (annual Business Plan Update)

(POTENTIAL) INVESTORS:

• Evaluate management planning skills
• Review key business strategies
• Assess profitability
• Used for buyers/sellers to establish prices