This is our response to a recent Quota question that we thought readers of our blog might find helpful.
Two groups that particularly benefit from a business plan are:
- Those setting the strategic direction of the business, whether that be the owners, partners or board of directors.
- Stakeholders who invest or make loans to the business, whether that be banks, venture capitalists or shareholders.
For group 1 the process of producing the plan provides the opportunity to explore the business opportunities and threats, and to determine an potential path to competitive advantage. For group 2 the plan helps assess the risk and likelihood of making a return and/or being repayed.
There are of course other potential stakeholders who might find the plan helpfu!, including for example strategic partners who might enter into joint ventures and even strategic suppliers or customers that might work closely with the business. Perhaps sharing technologies or risk.
Lew Perren
Developer of Business Plan Quick Builder – a great business plan from an easy to use template
