Browse Definitions :
Definition

business plan

A business plan is a document demonstrating the feasibility of a prospective new business and providing a roadmap for its first several years of operation. 

Business plans are an important part of creating new businesses, whether as a startup or an offshoot of an existing business. Business plans for startups are often shared with funding agencies, potential investors and venture capitalists to obtain the necessary funding.

Although the specifics may vary, here are the typical components of a business plan for a new business:

  1. The executive summary is a nutshell version of the entire plan, briefly covering the essentials.
  2. The business description describes the proposed new endeavor, explains its purpose and its target market.
  3. The plan's market analysis section describes the industry and the market environment of the proposed business, including a profile of the competition.
  4. The organizational and managerial section explains how you envision the structure of your business, what types of positions and departments it will encompass. 
  5. The products (or services) section details what you're offering. This section should include a full description of  the products you'll sell and your plan for product lifecycle management (PLM).
  6. The marketing and sales section explains your strategies for branding, marketing and selling your product or service. 
  7. The funding request will differ according to what type of information is required by the funding party. 
  8. The financial projection covers the expected performance and milestones over the first years of operation, usually five years. For an existing business, historical financial data should be included.
  9. An appendix can include useful information that doesn't belong in any of the other sections.

A business plan is similar to a business model. However, the latter is a representation of how an existing business works, rather than how a prospective business can work. 

This was last updated in August 2018

Continue Reading About business plan

SearchCompliance
  • compliance risk

    Compliance risk is an organization's potential exposure to legal penalties, financial forfeiture and material loss, resulting ...

  • information governance

    Information governance is a holistic approach to managing corporate information by implementing processes, roles, controls and ...

  • enterprise document management (EDM)

    Enterprise document management (EDM) is a strategy for overseeing an organization's paper and electronic documents so they can be...

SearchSecurity
  • session key

    A session key is an encryption and decryption key that is randomly generated to ensure the security of a communications session ...

  • data breach

    A data breach is a cyber attack in which sensitive, confidential or otherwise protected data has been accessed and/or disclosed ...

  • computer forensics (cyber forensics)

    Computer forensics is the application of investigation and analysis techniques to gather and preserve evidence from a particular ...

SearchHealthIT
SearchDisasterRecovery
  • risk mitigation

    Risk mitigation is a strategy to prepare for and lessen the effects of threats faced by a business.

  • call tree

    A call tree is a layered hierarchical communication model that is used to notify specific individuals of an event and coordinate ...

  • Disaster Recovery as a Service (DRaaS)

    Disaster recovery as a service (DRaaS) is the replication and hosting of physical or virtual servers by a third party to provide ...

SearchStorage
  • cloud storage

    Cloud storage is a service model in which data is transmitted and stored on remote storage systems, where it is maintained, ...

  • cloud testing

    Cloud testing is the process of using the cloud computing resources of a third-party service provider to test software ...

  • storage virtualization

    Storage virtualization is the pooling of physical storage from multiple storage devices into what appears to be a single storage ...

Close