School Business Plans

School Business Plans-58
An internal operational plan is a detailed plan describing planning details that are needed by management but may not be of interest to external stakeholders.Such plans have a somewhat higher degree of candor and informality than the version targeted at external stakeholders and others.

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A business plan is a formal written document containing business goals, the methods on how these goals can be attained, and the time frame within which these goals need to be achieved.

It also describes the nature of the business, background information on the organization, the organization's financial projections, and the strategies it intends to implement to achieve the stated targets.

A business plan for a project requiring equity financing will need to explain why current resources, upcoming growth opportunities, and sustainable competitive advantage will lead to a high exit valuation.

Preparing a business plan draws on a wide range of knowledge from many different business disciplines: finance, human resource management, intellectual property management, supply chain management, operations management, and marketing, among others. a good business plan can help to make a good business credible, understandable, and attractive to someone who is unfamiliar with the business.

Typical structure for a business plan for a start up venture Cost and revenue estimates are central to any business plan for deciding the viability of the planned venture.

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But costs are often underestimated and revenues overestimated resulting in later cost overruns, revenue shortfalls, and possibly non-viability.Banks are quite concerned about defaults, so a business plan for a bank loan will build a convincing case for the organization's ability to repay the loan.Venture capitalists are primarily concerned about initial investment, feasibility, and exit valuation.If a new product is being proposed and time permits, a demonstration of the product may be included.A written presentation for external stakeholders is a detailed, well written, and pleasingly formatted plan targeted at external stakeholders.Operational plans describe the goals of an internal organization, working group or department. The content and format of the business plan is determined by the goals and audience.For example, a business plan for a non-profit might discuss the fit between the business plan and the organization's mission.During the dot-com bubble 1997-2001 this was a problem for many technology start-ups.Reference class forecasting has been developed to reduce the risks of cost overruns and revenue shortfalls and thus generate more accurate business plans.An externally targeted business plan should list all legal concerns and financial liabilities that might negatively affect investors.Depending on the amount of funds being raised and the audience to whom the plan is presented, failure to do this may have severe legal consequences.

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