Business Plan Resource

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Having covered the main internal benefits that a business plan can provide, namely:

- Strength and Weakness Identification enabling customized adjustments;

- Communication of the expectations and priorities of management;

- A mechanism for evaluating performance against measureable standards;

- Guidance for making key decisions by inter-relating them with longer term goals;

- Coordination of all units and locations of the company toward focused objectives;

- Motivation and education of supervisors, managers and executives in line with business plan specifications.

In addition to these internally beneficial impacts on the company - there are also certain external advantages gained.

External Resource Advantages
Gained by having a Business Plan

The business plan is a valuable resource in dealing with significant outside relationships that the organization has. There are both financial and non-financial aspects to gaining the support of third parties by introducing the business plan to them.

First, it can be an educational tool. Shareholders can learn where their investment dollars are being focused on and why. At the very least it gives them the impression that management is aware of the business environment and the company's place in it. Investor confidence in the business results in lower stock ownership turnover and a stronger floor on the price of the stock. That's assuming the business plan coincides with their view of where the business should be heading.

Second, it can be used to demonstrate to lenders that their loans are well placed with competent managers.

Third, it can be a tool to educate or demonstrate compliance with regulatory bodies or governmental units. It can be especially useful where greater regulation costs or oversight is being considered that might have a negative impact on profitablility or efficiency.

In a franchisee-franchisor situation there can be improved effectiveness in making the most of the combined resource capability of the partners by clearly stating and coordinating the mutual efforts and goals in a business plan.

Business Plan Structure

While there is a general structure and content in a properly constructed business plan the objectives and uses of it vary by entity. The final version will be dictated by the type of business, professional expertise of management and the audience it is targetted toward. The plan is more than a document - a business plan is a resource that is the set of management decisions to detail what the firm will be doing to be successful.

Improve the Odds for Success - Use a Business Plan

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