A business plan is a formal statement of business goals, reasons they are attainable, and plans for reaching them. It may also contain background information about the organization or team attempting to reach those goals. Business plans may target changes in perception and branding by the customer, client, taxpayer, or community.

Plan a new venture

When the existing business is to assume a major change or when planning a new venture, a 3 to 5 year business plan is required, since investors will look for their investment return in that timeframe. Business plans may be internally or externally focused. They typically have detailed information about the organization or team attempting to reach the goals. With for-profit entities, external stakeholders include investors. An internal business plan is often developed in conjunction with a balanced scorecard or a list of success factors.