Explain What A Business Plan Is, Its Focus, Types and Content

Name: Mission, Mercy G.
BSED-III
Subject: GEE 301- Entrepreneurial Mind
1. Explain what a business plan is, its focus, types and content.
A business plan is simply a "plan for the business," which may be a for-profit
corporation, a government agency, or a non-profit organization. A business plan may
also reflect a product line, a single product, a service product line, or another aspect of
a larger company.
Types of Business Plan:
Projects the Financial Future
For many people, the most interesting part of the business plan is a financial
forecast. For shareholders, investors, and potential investors, the strategy predicts the
company's future economic condition and financial results.
Identifies and Measures Risks
A comprehensive strategic strategy identifies and assesses major business risks.

These are occurrences that could result in a number of financial circumstances and
financial performance outcomes. As a result, the document must also provide methods
for coping with threats and mitigating risks.
Describes the Business Model
The company's business model is described and outlined in the business plan.
The model depicts how the organization plans to invest money, generate sales, and
gain profit margins .A quantitative Pro-forma Income Statement is also included in the
model, which estimates gross margin, operating margin, and profit margin.
Identifies Key Assumptions
A full strategic plan outlines the crucial assumptions and patterns that will guide
the company's potential financial performance. This may involve adjustments in
business volume, consumer demand, competitor behavior, or the prices of vital products
and services. As a result, senior managers keep a close eye on these developments
and update the strategy as needed.
Helps Prioritize Business Objectives
A complete business plan guides management in setting and prioritizing

business objectives. The business plan thereby provides a basis for:
 Setting financial targets for financial goals.
 Setting targets for key performance indicators for non-financial objectives.
 Setting targets for key performance indicators for non-financial objectives.
 Identifying contingencies and critical success factors critical for meeting
objectives.
Source for Budgeting
The business plan serves as the primary starting resource for developing budgets. The
business plan serves as the primary starting resource for developing budgets. In this
role, it is indispensable for budgetary work because it captures the company's forecasts
for spending and incoming revenues.
Serves as a Resource for Business Case Analysis
The business plan is a critical resource for those building or evaluating business case
analyses. Business Case Analysis is central for instance, for supporting capital
acquisitions, investments, product or marketing decisions, and project proposals.
Content of Business Plan
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.
 Planning is robust and realistic.
 Investors can expect a good return on their investment.
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.
 Management has the means and ability to implement an improvement plan.
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.
 Find ways to receive funds to cover expenses.
2. Distinguished business plan from feasibility plan?

Business plans map out the direction a company intends to take to reach its
revenue and profit objectives in the future. They are a compilation of numerous
decisions made by the management team about how the company should be run. A
business plan is done after a feasibility study has been carried out. If the
recommendation of the feasibility study says negative, then there will be no need to
venture into the business. Then if the feasibility study says the business will be feasible,
then a business plan is developed which will then map out plans and strategies to adopt
in order to achieve business goals including revenue generation, market penetration,
customer acquisition, marketing and sales strategies among others.
In short, a feasibility study gives a conclusion or recommendations while a
business plan gives the roadmap.

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Name: Mission, Mercy G.

Projects the Financial Future

Identifies and Measures Risks

A comprehensive strategic strategy identifies and assesses major business risks.

Describes the Business Model

Identifies Key Assumptions

Helps Prioritize Business Objectives

A complete business plan guides management in setting and prioritizing

Source for Budgeting

Serves as a Resource for Business Case Analysis

Content of Business Plan

Business Plan For a Startup Company

Founders of a business startup construct a business plan, intending to show potential

 The company's business prospects are good.

Business Plan for an Established Company

 Management understands the reasons for poor business performance.

Business Plan for Government and non-profit organizations

2. Distinguished business plan from feasibility plan?

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