A business is an activity or entity, normally engaged in the provision of products and or services, for commercial gain, extending to non-commercial organizations that may or may not be profit oriented. This is irrespective of the size and autonomy. With this definition, non-governmental organizations, private, public service sector like schools and hospitals are regarded as 'businesses’. Meanwhile, a plan is a statement of calculated intention to organize effort and resource to achieve an outcome. This may or may not be in written form, but essentially comprising explanations, justifications and relevant numerical and financial statistical data.
Business can be classified into the following groups but not limited to: a small company; a large company; a corner shop; a local business; a regional business; a multi-million naira business, multi-national corporation; a charity organization, a Federal, State or Local Government Ministry, Agency or Department, an hospital, a joint-venture; a project within a business or department; a business unit, division, or department within another bigger organization or company, a profit centre or cost centre within an organization or venture, an individual or joint ventures, etc
Business plan therefore could be referred to as the activities and aims of any entity, individual, group or organization with the purpose of converting efforts to results. It is a formal statement of a set of business goals, the reasons why they are believed attainable, and the plan for reaching those goals. It may also contain background information about the organization or team attempting to reach those goals. Business plans may also target changes in perception and branding by the customer, client, taxpayer or larger community. When the existing business is to assume a major change or when planning a new venture, a 3 to 5 year business plan is required, since investors will look for their returns within that timeframe. Invariably, the business plan simply serves as the detailed map of the venture that will guarantee a steady start up, a steady but gradual growth and vitality of the business.
The process of determining all the goals, strategies and projected actions that you intend taking to promote and ensure the survival and progress of your business within a given time frame is referred to as business planning process. This characteristically has two key aspects, one focused on making profits and the other focused on dealing with risks that might negatively impact the business. Business plan serves as a blueprint to guide the organization’s policies and strategies which are continually modified as conditions change and new opportunities or threats appear. If this is prepared for external audience like lenders and prospective investors; it has to include details of the past, the present, and a forecasted performance of the business. Typically, this also contains pro-forma balance sheet, income and cash flow statements to show how the required fund shall positively affect the financial position of the business.
