Typically, a business plan is a document that describes an organisation's management, business concepts and corporate objectives (both short term and long term).

It is a vital tool for any person or company seeking bank loans or any other type of outside investment funding, but it can also be of great value in clarifying the realities for the owners of the enterprise themselves.

A business plan should include:

• details of the finance being injected by the proprietors
• the expected internal rate of return on those funds
• an assessment of the target market
• an assessment of the likely competition
• a summary of the board and management team and their experience and expertise
• brief job descriptions for the key employees and a summary of their contractual arrangements
• details of any keyman insurance held
• balance sheet, profit and loss and cash flow projections
• the attractions of the product or service for potential customers
• details of the premises to be used and of any leases
• the company's marketing plans
• details of any proposed Internet presence

and so on (as appropriate for the particular case).

Naturally, not all of the above suggestions will be relevant in every case.

There is also a separate aspect that deserves mention.

A business plan such as one produced by a new company or a business that is seeking to expand is not often thought of as a public relations document. Admittedly, the target audience for such a plan is usually small - probably only two or three bank managers who are approached for loan funds and a select group of friends and relatives who are invited to become shareholders. But it is an important PR item nevertheless.