The Business Plan is the final document that includes all of the analysis, strategy and tactical plan sections listed below. Together, the Business Plan components form a comprehensive statement of the business goals, the reasons the goals are achievable, the plan for reaching those goals, and all the background information on the organization attempting to reach those goals.
The Business Plan works as an informational resource to draw from when unforeseen events in the marketplace require adjustments to the direction the organization is headed. It is the ideal document to have handy (and up to date) when new people are added to the executive team and need to get up to speed as quickly as possible, when potential investors become interested in the company and want to assess its position, or when the organization needs financing from a bank or other lending institution.
An effective Business Plan is constantly evolving and being refined based on the most recent and accurate information available from its inter-related components. A common mistake many organizations make is thinking that a Business Plan is “done” when all the sections have been written and it’s been printed up, bounded and distributed to the leadership team. In reality, the usefulness of a Business Plan is dependent on time sensitive information and constantly evolving circumstances, making it effectively out of date the minute it is printed and distributed. Therefore, an organization should think of a Business Plan as a constant “work-in-progress”, with regular periodic updates (quarterly is recommended) to all of its components. All organizations should have someone (e.g. Director or VP of Strategy) designated to manage the research and production of each quarter’s updated Business Plan, and conduct regular live presentations / Q & A sessions regarding the evolution of the critical components.
An effective Methodology for writing Business Plans will start with defining the basic company information, identity and objectives. It will then flow from analysis components, to strategy components, and end with tactical plan components. See this graphical representation for details. Below are the key components of an effective Business Plan.
Cover Page (with publication date and the word “Confidential” clearly visible)
Table of Contents
Strategic Positioning / Competitive Advantage
Business Development / Partnership Strategy
VP of Strategy 
