Big companies write new business plans every year. The companies used the plans as a guide for steering the business in the right direction to accomplish their business targets in a systematic and most effective way.
The process of writing business plans involves gathering, compiling and analyzing historical information and forecasting the future. The task can be very complex and tedious for companies with big business operations, with multi subsidiary companies, with multiple branches or with multiple foreign currency businesses.
The preparation part becomes more complicated and take longer time to complete, if the company has high transaction volume such as banks, departmental stores, fast food restaurants, stock brokering firms which run into millions.
The details of the business plans may differ from company to company. However, most companies follow a few common guidelines and presentation formats when preparing them.
All the business plans aims to achieve a several objectives identified by the company. From my personal experience, I prepared them to accomplish the following either all or some of the following objectives:
1. To determine the feasibility of a particular venture or project.
2. To identify the required capital to start off new business or expansion of existing business.
3. To set the targets for the operations of the entire company which are usually categorized by cost or profit centers.
4. To set business targets for the company, which will later be translated into financial budgets and action plans.
5. Take the opportunity to identify operational weaknesses and formulate plans to remedy or minimize the impact to its profitability.
6. Identify new business opportunities and prepare plans on how to realize them.
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