The Business Plan

The Business Plan

Theresa Babecki

Davenport University

Management (MBA) 535

Keith B. Grant, Ph.D.

August 1, 2012

Abstract

A business plan is a formal document used as a way to managing your business better; also by describing what you plan to do and how you plan to do it. A business plan provides information that potential investors need in order to decide whether to invest (Wiley). This paper examines the 5 W’s (who, what, where, when, why and how much). Also, focuses on keeping your eyes on long-term and short-term at the same time – whether creating a document for others to read or not.

A business plan is an essential roadmap for business success.3 The business plan is a formal statement of a set of business goals, the reasons they are believed attainable, and the plan for reaching those goals.6 It may also contain background information about the organization or team attempting to reach those goals.6 This living, breathing document generally projects 3-5 years ahead and outlines the route a company intends to take to reach, maintain and grow revenues.3 A well thought out plan also helps you to step-back and think objectively about the key elements of your business venture and informs your decision-making.3

The benefits of planning provide a means for actively involving personnel from all areas of the business enterprise in the management of the organization. Company-wide participation improves the quality of the plans. Involvement in planning fosters a greater personal commitment to the plan and to the organization. These positive attitudes improve overall organizational morale and loyalty.5

There are three primary parts to a business plan:

First - is the business concept, where you discuss the industry, your business structure, your particular product or service, and how you plan to make your business a success.1

Second – is the marketplace section,...