Basic Business Plans

Basic Business Plan is defined as the business plans driving both small businesses and large corporations. Basic business plans are sometimes externally focused and some business plans are internally focused. External business plans contains information important to the financial stakeholders of the company while internal business plans concentrate on the development of a new product, new service, restructuring of the company as a whole or a financial restructuring of the company. In the context of a Basic Business Plan, a business plan example can is necessary. Crucial at each stage of decision making, business plan example is defined as systematic assessment of all the factors which are critical to the business goals and strategies.

The primary value of a basic business plan is to create a written outline plan that encompasses all the aspects of the economic viability of the business venture including a description and analysis of the business prospects. Business plans are generally structured to meet the financial goals of the company but various non-profit goals such as service goals for the community as a whole.

A basic business plan attempts to integrate all the aspects of a business’ activities which can serve as a systematic tool for problem solving and product development strategies of the business which can help the business reach its long term objectives of expansion, growth and product diversification. Basic business plans includes the strengths and weaknesses of the business, the nature of competition faced from prospective business rivals and the identity of the customers of the product concerned and whether it will be able to cater to their expectations.

The long term objectives of the business or organization in terms of its strategic goals of capturing a greater market share and reaching out to consumers from far flung areas is an integral part of the basic business plan of a company. Undertaking a strategic plan involves an appraisal of the strengths and weaknesses of the company, the opportunities that the future holds and reviewing the threats posed by competing business rivals. Strategic business plan is especially necessary for small businesses for survival as they are found to be competing with larger corporations in this world of increasing competition. Basic business plan for small businesses is the roadmap for its success and should be made in accordance with careful planning and supervision. Small businesses run by entrepreneurs do not undertake proper writing of the business plans which does not help the business reach its true potential.
Writing of a business plan forces the individuals or entrepreneurs to objectively develop and evaluate tactical and strategic plans, taking into account the opportunities and risks involved. This is also applicable in cases of basic business plans for large businesses that also have to look at long-range objectives in terms of maintaining their already established market share of the company and allowing their shareholders to get a continuous and steady return from their investments.

Basic business plans for large corporations will involve price strategies such as undercutting which will enable them to grab a larger share of the market concerned. Mergers and acquisitions, not generally on the radar of small businesses, are of fundamental importance for the basic business plans of large business organizations and many companies around the world are going for international acquisitions which allow them to cater to a global audience and further expand their consumer base. An important component in the basic business plans of companies worldwide is the rapid diffusion of technological advancements around the world which are forcing them to revolutionize and adapt their business strategies depending on the current situation.

Most importantly, the raising of capital for the business is one of the pillars of the basic business plan for a small or large business organization. Raising equity by venture capital can be useful towards this end. Venture capital is private equity capital provided by outside sources such as investors to finance a new or struggling business. Basic business plan can be more effective if all the employees of a business are involved in the process. They can thus share the long-term goals of the organization. A reasonable and coherent strategic plan also helps to convince bankers and financial institutions who put down money in the business. Money is essential for the expansion of the business and the sustained growth in sales and earnings of the company.