This chapter has established the scope and value of the business plan and has outlined the steps in its preparation. The business plan may be read by employees, investors, lenders, suppliers, customers, and consultants. The scope of the plan will depend on who reads it, the size of the venture, and the specific industry for which the venture is intended.

The business plan is essential in launching a new venture. The result of many hours of preparation will be a comprehensive, well-written, and well-organized document that will serve as a guide to the entrepreneur and as an instrument to raise necessary capital and financing.

Before beginning the business plan, the entrepreneur will need information on the market, manufacturing operations, and financial estimations. This process can be viewed as an upside-down pyramid, beginning with a very broad based analysis down to specific market positioning and the determination of specific goals and objectives. The Internet represents a low-cost service that can provide valuable information on the market, customers and their needs, and competitors. This information should be evaluated based on the goals and objectives of the new venture. These goals and objectives also provide a framework for setting up controls for the business plan.

The chapter presents a comprehensive discussion and outline of a typical business plan. Each key element in the plan is discussed, an information-gathering process is described, and examples are provided. Control decisions are presented to ensure the effective implementation of the business plan. In addition, some insights as to why business plans fail are discussed.