Business Plan Challenge Policy Research Paper
The process of preparing and developing a business plan is an interactive one that involves every functional area of a company.
Successful business plans are usually the result of team effort, in which all employees provide input based on their special areas of expertise and technical skill.
Once potentially troublesome areas have been identified, proposed solutions and contingency plans can be incorporated into the business plan.
Business plans also cover such areas as marketing opportunities and future financing requirements that require management attention.
Business owners and managers provide overall support for the planning process as well as general guidelines and feedback on the plan as it is being developed.
Some companies make the planning process an ongoing one.
The business plan documents the company's cash flow requirements and provides a detailed description of its assets, capitalization, and projected financial performance.
Ideally, everyone in the company will use the information contained in the company's business plan, whether to set performance targets, guide decision-making with regard to ongoing operations, or assess personnel performance in terms of the their ability to meet objectives set forth in the business plan.
In addition, workers who are informed about the business plan can evaluate and adjust their own performance in terms of company objectives and expectations.
Business plans can also be used in the restructuring or reorganization of a business.
In other cases, such as for a business acquisition, it may be necessary to prepare a business plan on short notice.
The process can be expedited by determining what information is needed from each area of a company.