Target Business Plan:
Were you aware that business plans have targets aimed at two different audiences? A target business plan can be aimed at an internal audience or an external audience. An internal audience would be for the people that actually work for the company. Internal business plans may focus on an upcoming expansion, and agenda of goals for a specific department, new products or services, or any facet of operations that can be measured. To use the world of academia as a comparison, an internal business plan is part report card and part syllabus for the upcoming terms.
An external business plan lays out goals that would generally be targeted at stakeholders in the company. Investors love to know how their money is working for them, and a business plan provides a depth and wealth of information a ledger simply cannot. It fills in the gaps a ledger crates so that investors better understand the how and why of expenditures. If an investor understands how a business is operating, they will tend to keep their money invested even when rough patches are hit. Happy investors are worth the price of ten business plans!
While internally designed business plans will generally remain internal, at times, a company may choose to share them with their investors. Likewise, external business plans may be shared internally – employees like to feel secure and know that a company is moving forward and not sinking fast. How each is used is as always up to the corporate executives, but it is nice to know that internal and external business plans can ably serve a dual purpose. A professional business plan writer can effectively target your plan to both audiences.