BUSINESS PLAN

A Business plan is a formal written document containing the goals of a business, the methods for attaining those goals, and the time frame for the achievement of the goals.it also describes the nature of the business, background information on the organization, the organization’s financial projections, and the strategies it intends to implement to achieve the stated targets.

Written business plans are often required to obtain a bank loan or financing. Templates and guides, such as the ones offered in the United States by the small business administration can be used for facilities producing a business plan.

Business plans may be internally and externally focused. Externally focused plans draft goals that are important to outside stakeholders, particularly financial stakeholders. These plans typically have detailed information about the organization or the team making efforts to reach its goals.

TYPICAL STRUCTURE FOR A BUSINESS PLAN FOR A START-UP VENTURE

Traditionally business plan has been highly confidential and quite limited in the audience. The business plan itself is generally regarded as a secret. An open business plan is a business plan with an unlimited audience. The business plan is typically webs published and made available to all.

In the free software and open-source business model, trade secrets, copyright and patents can no longer be used as effective locking mechanisms to provide sustainable advantages to a particular business and therefore a secret business plan is relevant in those models.

USES OF BUSINESS PLAN

An externally targeted business plan should list all legal concerns and financial liabilities that might negatively affect investors. Depending on the number of funds being raised and the audience to whom the plan is presented, failure to do this may have severe legal consequences.

Non-disclosure agreements with third parties, non-compete agreements, conflicts of interest, privacy concerns, and the protection of one’s trade secrets may severely limit the audience to which one might show the business plan to sign a contract accepting special clauses and conditions.

This situation is complicated by the fact that many venture capitalists will refuse to sign an NDA before looking at a business plan, lest it put them in the untenable position of looking at two independently developed look-alike business plans, both claiming originality. In such situations, one may need to develop two versions of a business plan: a stripped-down plan that can be used to develop a relationship and a detailed plan that is only shown when investors have sufficient interest and trust to sign a non-disclosure agreement.

 

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