Strategic Plans By Rolfe Larson on May 1, There is often a great deal of confusion about the difference between business plans and strategic plans. And, frankly, they are similar in many ways, and since each plan has to be tailored to the organization it is prepared for, one can easily blur into the other. What sets a business plan apart is its singular focus on market and operational feasibility. In contrast, a strategic plan clarifies the long term direction of the organization; most business plans look at a shorter period of time, typically years, and drills down thoroughly how the work will get done and dollars will be earned.
Management Financials The format can be modified depending on certain factors. For instance, the purpose of the plan could be to raise money for a project, to find a strategic partner, or to give confidence to lenders. The audience is another factor that can change the format of a business plan.
They could be stakeholders, investors or lenders, potential key employees, or strategic partners. Also, the format of the plan can change with respect to the maturity of the business.
It could be a start up, a growing business, a mature business, or a declining or distressed business.
The business plan is the first thing that your audience will want to see if they are asked to invest in your company or vest their interest in it in some other way.
The reader will judge your business based on the clarity, simplicity, consistency, uniqueness, and completeness of your business planning.
In short, your business plan tells the reader what you are doing, how you are doing it, where you are going, how you will get there, and if they are investors, how and when they will get paid back for their investment in the business.
On a final note, from the explanations given above, the following deductions can be pulled out: Business Plan Vs Strategic Plan — What is the Difference A strategic plan is used for implementing and managing the strategic direction of an existing business, but a business plan is used to start a new business.
A business plan is used to catch the interest of investors or other potential stakeholders, but a strategic plan is used to prioritize available resources. A business plan assesses the viability of a business idea, but a strategic plan focuses on building a competitive advantage.Understanding strategic planning vs.
operational planning doesn’t mean you choose between them! To be a strategy-focused company, you need a strategic plan and departmental operational plans.
If you’re sighing and thinking, “Great, one more thing I have to start doing ”, hold up! A business plan is used to initially start a business, obtain funding, or direct operations. The two plans cover different timeframes as well. A strategic plan generally covers a period of 3 to 5+ years, whereas a business plan is normally no more than one year.
The business plan is related to the nuts and bolts; it uses the information from the strategic plan and determines what it will take to implement the priorities effectively from a financial and business .
Aug 08, · Business Plans vs. Strategic Plans: What’s the Difference? by: Helena Hauk managing. Many business owners know and understand the value of a business plan.
The business plan is a key component of the loan process and serves as a foundation for your organization. First, lets look at the difference between a business and strategic plan. In /5(78). What is the Difference Between a Business Plan and a Strategic Plan?
By Jeff Brunings While a strategic plan is a type of business plan, there are several important distinctions between the .
Planning is an important activity, performed by the management, keeping in view, the vision, mission, goals and objectives of the enterprise.
It implies thinking in advance, what we need to do in future and creates a rough draft, so as to fulfill the business objectives.