Business Strategy and Business Plan

A business plan refers to a formal set of business goals, the grounds they are considered attainable, and the arrangement for attaining those goals (Vitez, 2009). Business proprietors usually come up with a business plan before beginning their business venture. Business plans frequently outline the business owner’s ideas, financial requirements for starting the business, projected profitability or sales, and a breakdown on the demographic groups in the financial marketplace or the target market. This information gives lenders, banks and shareholders with information when making choices concerning loaning set up capital to the business. Business plans also give a roadmap for carrying the operations of the business (Vitez, 2009).
Business strategies, on the other hand, are precise long-term ideals for achieving business objectives or goals (Vitez, 2009). Strategies can give guidance for diverse departments or divisions in the business. Business proprietors normally outline their business strategies in their respective business plans (Pinson, 2006). As the business continues to develop and expand its operations, its owners frequently develop more strategies than the initial ones. Business strategies regularly require some kind of planning. Therefore, a business strategy is different whether compared to a business plan (Vitez, 2009).

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