A formal statement concerning a plan for business goals, the reason why they can be attained, and the plan that will be followed in reaching those goals is what’s known as a business plan. A business plan may also have information concerning background information on the team or organization trying to reach those goals.These plans can also aim at changes in opinion and branding by the larger community, tax payer, client or customer. A three to five year business plan is important when a current business goes through a major change or when a new business venture is planned.
Business plans can focus both externally and internally. Plans that are externally focused aim at goals that are essential to external stakeholders, mainly financial stakeholders. They usually have specific information concerning the team or organization trying to reach the goals. External stakeholders include customers and investors with for- profit entities. Clients of the non- profits services and donors are external stakeholders of non-profits. External stakeholder in government agencies include international lending agencies, higher level government organizations, and tax payers.
Business plans that are internally focused aim at intermediate goals needed to achieve the external goals. They can cover a restructuring of the organization, the renovating of a factory, restructuring of finance, a new IT system, a new service, or a new product. This type of plan is usually developed together with a list of vital success aspects or a balanced scorecard. This means the plans success is measures by non financial means. Strategic plans are Business plans that target and identify goals but only provide broad guidance on how it is to be met. Goals of a department, working group, or internal office are what are known as operational plans. Plans that describe the goals of a certain project are called project plans often referred to as project frameworks.