Operational management and budgeting

The business plan can also provide the basis for the creation of business processes, job descriptions and operational budgets. It can also provide the basis for monitoring and analyzing performance. In this instance, the business plan will say little about strategic and tactical considerations and will focus on technical details, process descriptions and product specifications.

Other uses:

To get approval or finance for a project and to help manage it is the common reasons for producing a business plan. However, the process of preparing one can be used as a mechanism for reconciling conflicting views and building consensus, as well as communicating the vision, mission and goals of larger companies.

Business plans may also be prepared as part of attender process for the right to operate assets or services that are allocated by a government body. The tender process is sometimes referred to as a “beauty parade” as the companies must prepare a business plan that displays their technical, operational and business skills in the best light. A beauty parade might be used for the allocation of radio spectrum, or the right to administer a national lottery or operate rail services.

Who are they for?

In the same way that no two businesses are alike, no two readers will be looking for exactly the same issues or messages in the business plan. Indeed, the different needs of different audiences can be such that it may be necessary to create more than one version of the same plan.