A business plan is an essential part of your business strategy for three primary reasons:
It gives business owners a current assessment of the business as well as a roadmap for the future.
It helps a business grow, both organically and through outside funding.
It is essential to have an up to date business plan in order to secure financing, ranging from an overdraft facility or bank loan to venture capital funding.
The objectives of the business plan are first to develop and communicate a plan of action that will achieve the company's strategic objective. Then, to provide a means of monitoring progress towards that objective and of stimulating alternative action if the objective is unlikely to be met by the original plan. These cannot be achieved unless the plan defines the strategic objective and includes benchmarks or performance measures at key stages during the year.
The main areas covered in New Product Development are: