A company exhibits strategic intent when it pursues ambitious strategic objectives and concentrates its competitive actions and energies on achieving that objective. The strategic intent of a small company may be to dominate a market niche. The strategic intent of an up-and-coming company may be to overtake the market leaders. The strategic intent of a technologically innovative company may be to create a new product.
Introduction[ edit ] A business plan is a formal statement of a set of business goals, the reasons why they are believed attainable, and the plan for reaching those goals. It may also contain background information about the organization or team attempting to reach those goals. The business goals being attempted may be for-profit or non-profit.
For-profit business plans typically focus on financial goals. Non-profit and government agency business plans tend to focus on service goals. Business plans may also target changes in perception and branding by the customer, client, tax-payer, or larger community.
A business plan that has changes in perception and branding as its primary goals is called a marketing plan. Business plans may also be internally or externally focused.
Externally focused plans target goals that are important to external stakeholders, particularly financial stakeholders. They typically have detailed information about the organization or team attempting to reach the goals. In the case of for-profit entities, external stakeholders would include investors and customers.
External stake-holders of non-profits include donors and the clients of the non-profit's services. In the case of government agencies, external stakeholders would include tax-payers, higher-level government agencies, and international lending bodies such as the IMF, the world bank, various economic agencies of the UN, and development banks.
Internally focused business plans target intermediate goals required to reach the external goals. They may cover the development of a new product, a new service, a new IT system, a restructuring of finance, the refurbishing of a factory or a restructuring of the organization.
An internal business plan will often be developed in conjunction with a balanced scorecard or a list of critical success factors. This allows success of the plan to be measured using non-financial measures.
Business plans that identify and target internal goals, but provide only general guidance on how they will be met are called strategic plans. Operational plans describe the goals of an internal organization, working group or department.
Project plans, sometimes known as project frameworks, describe the goals of a particular project. They may also address the project's place within the organization's larger strategic goals. Business plans are decision making tools.
There is no fixed content for a business plan. Rather the content and format of the business plan is determined by the goals and audience. A business plan should contain whatever information is needed to decide whether or not to pursue a goal.
Venture capitalists are primarily concerned about initial investment, feasibility, and exit valuation. A business plan for a project requiring equity financing will need to explain why current resources, upcoming growth opportunities, and sustainable competitive advantage will lead to a high exit valuation.
Preparing a business plan draws on a wide range of knowledge from many different business disciplines: It can be helpful to view the business plan as a collection of sub-plans, one for each of the main business disciplines.
The format of a business plan depends on its presentation context. It is not uncommon for businesses, especially start-ups to have three or four formats for the same business plan: This is often used as a teaser to awaken the interest of potential funders, customers, or strategic partners.
The content of the presentation is usually limited to the executive summary and a few key graphs showing financial trends and key decision making benchmarks.
If a new product is being proposed and time permits a demonstration of the product may also be included.The financial part of a business plan includes various financial statements that show where your company currently is financially, and where it intends to be.
This information helps you determine.
Find out how to assess your business's goals and objectives, then create a draft for your business plan. The Elements of a Business Plan: First Steps for New Entrepreneurs Elements of a Business Plan Section 1.
Business Description As an introduction to your business, this section should provide an overview of the business and its objectives. Readers of your business plan will want to know why this business should exist.
Having a mission. One of the primary responsibilities of the CEO of any major corporation is to articulate the company’s financial goals as a tangible focus for its business mission and strategy.
Financial data is always at the back of the business plan, but that doesn't mean it's any less important than up-front material such as the business concept and the management team. Jun 29, · Business Knowledge Source: The Importance of Setting Goals and Objectives for Your Small Business About the Author George N.
Root III began writing professionally in