Strategy Business Plan
Very detailed financial projections, which might extend much beyond one or at most two years, cannot be believed.
The description 'strategic business planning' may be confusing.
To convince the prospective finance providers that the seekers know what they are doing, they go into a lot of detail.
However, as the details become finer grained, the confidence we can put in the figures starts to fall.
The strategic plan is different from the business plan. If you must use the phrase strategic business planning, I urge you do it with a clear definition of strategic planning in mind.
Understand that a strategic plan differs from a business plan in three ways -I define strategic planning differently to some others. Begin with a clear understanding of and commitment to the enduring purpose of the organization.
When the business plan clearly expresses the corporate strategy, the process of preparing it may be 'strategic'. External audiences such as prospective investors can also use strategic business plans.
The usual ‘business plan’ details the past, present, and forecast performance of the business in financial terms.
Strategic business planning is the planning done by top managers to guide the progress of an organization as a whole.
Therefore, it usually contains pro-forma balance sheet, income statement, and cash flow statement.
This shows how the funds requested will affect the organization’s financial position.
If such business planning is business planning aligned with, and designed to implement corporate strategy there would not be much of a problem.
However, sometimes it is just a matter of trying to make the ordinary business planning sound a bit more important than just a budget!