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However, a business plan is used to present the entrepreneur’s ideas to a bank.Another way to grasp the difference is by understanding the difference in ‘scale’ between a strategic plan and a business plan.Using some financial modelling tools we can prepare ‘what if’ calculations so you know your best and worst case scenarios. Business Description – You need to provide an overview of your business operations but you should try and keep it simple and assume the reader has virtually no knowledge of your industry or operations.
Larger organizations with multiple business units and a wide variety of products frequently start their annual planning process with a corporate-driven strategic plan.
It is often followed by departmental plans and marketing plans that work down from the Strategic Plan.
You should also explain how they achieved their status and how you intend to win a share of the market.
Be realistic but conservative with your estimates and paint the picture based on best, worst and likely scenarios. Marketing - Provide a detailed description of the marketing techniques you plan to use to achieve your projected sales figures.
It should instil confidence in your business and management skills to convince your bank, financier or investors to lend you the necessary funds.
To raise substantial capital for your privately held business your business plan must be clear, complete and realistic.
To fund your business start up or expansion you’re almost certainly going to need a business plan to convince the bank or investors that your business is a good financial risk.
A business plan should demonstrate how much money you need, why you need it and when your investors are likely to get repaid.
Whereas a business plan could be for new businesses and entrepreneurs who are startups.
A strategic plan is used to provide focus, direction and action in order to move the organization from where they are now to where they want to go.