...development. also used to communicate strategy and direction within the organisation and to elicit the confidence and support of shareholders and customers.

The process of drawing up a business plan gives an opportunity for business leaders to make an appraisal of the current situation, reach a common understanding of the challenges they face, set direction, and identify options for the future. The business plan also provides a framework for action and a yardstick against which to measure progress. In larger organisations it can form the basis for divisional or departmental plans.

National Occupational Standards for Management and Leadership

This checklist has relevance to the following standards: B: Providing direction, unit 3

Definition

A business plan is a written document which describes the business, sets out aims and objectives and makes a statement of intent for the future development of the business.

The preparation of a business plan involves:

* assessing the present position of the business and its prospects for the future

* setting short-term and long-term objectives

* establishing a framework for action to achieve objectives.

A business plan should cover the following elements:

* operations--including the supply of raw materials, technological requirements, key processes, resource needs, and production and delivery targets

* finance--an assessment of fixed and variable costs and minimum financial requirements

* marketing--how market intelligence will be gathered to...

NOTE: All illustrations and photos have been removed from this article.




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