The Concept of Business Plan and Strategic Plan

Subject: Organizational Planning
Pages: 2
Words: 294
Reading time:
< 1 min

An executive summary is an essential component of any business plan because it is the element that almost everyone interested in the project will read when receiving a complete business plan. Because of this, executive summaries need to be brief, concise and include the most vital and enticing information about a specific business plan.

Any business starts with the idea that should be revisited and refined continuously to arrive at a final vision of how a company will sell products or services that it offers. Then, a business plan should be developed for identifying the main purpose, the target audience of the plan, main financial capabilities, and so on. A well-written business plan will eliminate many mistakes that most start-ups make.

In order to pitch present a business idea, a short and action-oriented speech should be presented to the audience with the intention to spark interest and sell the idea. The presenter should be specific about what the business is about, what is the unique business proposition and at what stage is the business at the moment of the pitch.

The main difference between a strategic and business plan is associated with the stage of a company’s development. While a business plan is needed for new companies and entrepreneurs that are only starting up, a strategic plan is used by established businesses to choose a new direction for growing their organization.

Business risks expose organizations to any kind of potential loss, ranging from reputational to financial. The assessment of risks is necessary for identifying important risks to consider since knowing of these risks for making plans and predictions for future changes in directions.