Question

In what instances could a business plan be used?

Answer 1

A business plan be used in following ways -

Business Plan For a Startup Company

Founders of a business startup construct a business plan, intending to show potential investors or loan sources all of the following:

• The company's business prospects are good.
• Management and Directors are competent.
• Management understands the company's products, markets, and competition. And, the company's strategy is sound.

Business Plan for an Established Company

A business plan for an established company that is performing well will emphasize the same points as the plan for a startup company, above. By contrast, the business plan for a poorly performing company poorly will try to make these points:

• Management understands the reasons for poor business performance.
• Management has promising strategies for improving performance. One such approach, for instance, could be changing the business model

Business Plan for Government and non-profit organizations

Business plans for government and non-profit organizations can be very similar to those for companies in private industry sell goods and services. The similarity is necessary because governments and non-profit organizations still must:

• Deliver services.
• Recognize they have a "market" and "customers, " These organizations, in other words, have a population to serve.
• Create and operate within spending budgets.