| Whether you create a business plan for external | | | | charge, it is more important to review the |
| sources (generally potential investors, lenders, or | | | | responsibilities of each manager and the organizational |
| partners) or for internal guidance for your | | | | chart showing the hierarchy of reporting relationships. |
| management and staff, the outline of required sections | | | | This should be a time to clarify unclear relationships |
| is generally the same. However, there are some key | | | | and overlaps in responsibilities which may have caused |
| differences between these two types of plans. | | | | tensions in the past. |
| Focus on Control Mechanisms | | | | Financial Plan Differences |
| While important that the operations plan mention to | | | | Investors are focused on the returns that they will see |
| some extent how quality and financial controls will be in | | | | from the business through appreciation of their |
| place for a funder plan, it is extremely important for an | | | | ownership shares and/or dividends. An internal plan |
| internal plan. A business plan is only as good as the | | | | looks at maximizing profits and does not generally |
| company's means to insure that it is put into practice. | | | | concern itself with the cash flows to owners. |
| The systems of controls, including both technological | | | | Therefore, the financial section does not need the |
| and human elements should be covered in detail. | | | | same kind of summary of investor returns. Also, as |
| Management Qualifications | | | | the plan is not being used to raise outside capital, it |
| For an externally-focused business plan, it is important | | | | should describe how internal funds are allocated |
| to sell the qualifications of the management team to | | | | between projects and departments (i.e. new products, |
| potential funders to prove that they can execute the | | | | marketing, sales, information technology, and human |
| outlined plans. For an internal plan, the management is | | | | resources). This is part of the pro forma income |
| already generally a given. Rather than detail who these | | | | statement or budget, rather than a separate chart |
| managers are and why they are qualified to be in | | | | showing the sources and uses of funds. |