business plan
Introduction
A business plan is a formal document of business objectives, which is constituted as a projection and evaluation phase. It is used internally by the administration to plan tasks, and the need to resort to banks or potential investors is evaluated to provide financing to the consortium.
The business plan can be a commercial representation of the model that the company will follow. Gather verbal and graphic information about what the business is or will have to be. It is also considered a summary of how the owner of a business, administrator or entrepreneur will try to organize a business effort and carry out the necessary and sufficient activities for it to be successful. The plan is a written explanation of the business model of the company to be launched.
Business plans usually become obsolete, so a common practice is to constantly renew and update them. A common belief within business circles is about the true value of the plan, since it is underestimated too much, however it is believed that the most important thing is the planning process, through which the manager acquires a better understanding of the business and the available options.
The prototype of the business plan is:
Unlike an Investment Project, which has been a typical economic-financial analysis document of the latter part of the 20th century, the business plan is less focused on the quantitative and engineering aspects, although it contains them, and is more focused on the strategic issues of the new venture, as a way of ensuring its consistency in the sense of Arieu (strategic consistency).
Business plan vs business model
Steve Blank explains the difference between a business plan and a business model:
That is, a business plan is a strategic and static document about the steps that the company will follow in the coming years and about what it intends to achieve at the business level, while the business model is dynamic and allows its modification over time while the initial or previous hypotheses are validated (or not).