The business plan is termed by different names by its different intended interest audience.
For example, when presented to a bank, it may be called ‘loan proposal.’ a venture capital group might call it the ‘venture plan’ or ‘investment prospects’ and a common man may term it ‘project report.’ Let it be called by any name, its basic purpose is the same, i.e.
If you were to sit down with a potential partner, investor or banker, this document contains the answers to the key questions they are bound to ask.
It not only accurately summarizes what your business is all about, but why it’s a viable proposition.
It’s often the founding document of a new business.
There’s a lot of overlap between the two, but there are also some crucial differences you should understand. Its purpose is to define where you want to take your business.A comprehensive plan written by a potential or current small-business owner who is attempting to obtain venture capital financing, a bank loan, or other financing.The business plan is a blueprint for how the company intends to perform.Therefore, it must contain an action plan with specific activities, due dates and who is responsible for each activity.A strategic plan ensures any growth initiative is undertaken in a coordinated, systematic and informed way, for the best possible odds of success.In simple words, business plan is a written statement of what an entrepreneur proposes to take up.It is a kind of guide frost or course of action what the entrepreneur hopes to achieve in his business and how is he going to achieve it. It includes your company’s organizational structure, marketing plan and financial projections.A strategic plan, on the other hand, answers "how will I do it? It includes a detailed action plan for the next few years to achieve your company’s goals.The business plan and the strategic plan are both essential planning tools for your business.Where one may provide more value than the other depends on your stage of growth and what you’re trying to achieve.