Business owners usually have a business plan before starting their new business. Business plans often outline the business owner’s financial needs for starting the business, expected sales or profitability, and an analysis of the target market or consumer groups in the marketplace.
This information provides banks, lenders and investors with information they will need when loaning startup capital to the business. But business plans also provide a roadmap for operating the business.
Business strategies are specific long-term guidelines for achieving business goals or objectives. Business owners often outline their initial strategies in their business plans. As the company continues to grow and expand its concerns, business owners often develop additional strategies.
These strategies usually require some form of planning. However, business strategy planning is usually different than a regular business plan. Strategic planning involves the company’s economic analysis, business and advertising development and implementation. Strategies can include reducing production materials costs, acquiring new business facilities or equipment, and achieving higher market share by selling more products in the marketplace.
A business plan should include the state of your current business, its targeted market and your vision for future growth. How you will reach your market and the mechanisms that will cause growth are included in your business strategy.
Banks, lenders and investors may feel more comfortable lending money to business owners who have a clear outline on developing business strategies plus a long-term, fully developed business plan.