Biz Plan Speak

For those participating in the TKM - Ernst & Young Big Business Idea Competition (www.kom.om/bbic) here are some business plan pointers that might be of use - a mini business plan lexicon if you will.

A Plan: A statement of intent - a calculated intention to organize effort and resource to achieve an outcome - in this context a plan is in written form, comprising explanation, justification and relevant numerical and financial statistical data. In a business context a plan's numerical data - costs and revenues - are normally scheduled over at least one trading year, broken down weekly, monthly quarterly and cumulatively.

A Business: An activity or entity, irrespective of size and autonomy, which is engaged in an activity, normally the provision of products and/or services, to produce commercial gain, extending to non-commercial organizations whose aim may or may not be profit.

A Business Plan: Today, this is a very general and flexible term, applicable to the planned activities and aims of any entity, individual group or organization where effort is being converted into results, for example: a small company; a large company; a shop in the souq; a local e-learning business; a multi-million Rial, multi-national corporation; a school; a hospital; the municipality; a ministry; a joint-venture; a project within a business or department; a business unit, division, or department within another organization or company, a profit centre or cost centre within an organization or business; the responsibility of a team or group or an individual.

The business entity could also be a proposed start-up, a new business development within an existing organization, a new joint-venture, or any new organizational or business project which aims to convert action into results. The extent to which a business plan includes costs and overheads activities and resources (eg., production, research and development, warehouse, storage, transport, distribution, wastage, shrinkage, head office, training, bad debts, etc) depends on the needs of the business and the purpose of the plan. Large 'executive-level' business plans therefore look rather like a 'predictive profit and loss account', fully itemised down to the 'bottom line'. Business plans written at business unit or departmental level do not generally include financial data outside the department concerned. Most business plans are in effect sales plans or marketing plans or departmental plans, which form the main bias of this guide.

Strategy: This term has military roots, in a business planning context strategy/strategic means/refers to why and how the plan will work, in relation to all factors of influence upon the business entity and activity, particularly including competitors, customers and demographics, technology and communications.

Marketing: Many believe that marketing means advertising or sales promotion. In reality, marketing means and covers everything from company culture and positioning, through market research, new business/product development, advertising and promotion, PR (public/media relations - in print and on the Web) and arguably all of the sales functions as well. Marketing is the process by which a business decides what it will sell, to whom, when and how and then does it.

Marketing Plan - logically a plan which details what a business will sell, to whom, when and how, implicitly including the business/marketing strategy. The extent to which financial and commercial numerical data is included depends on the needs of the business. The extent to which this details the sales plan also depends on the needs of the business.

Sales: This is the transactions between the business and its customers whereby services and/or products are provided in return for payment. Sales (sales department/sales team) also describes the activities and resources that enable this process, and sales also describes the revenues that the business derives from the sales activities.

Sales Plan: A plan describing, quantifying and phased over time, how the the sales will be made and to whom. Some organizations interpret this to be the same as a business plan or a marketing plan.

Service Contract: A formal document usually drawn up by the supplier by which the trading arrangement is agreed with the customer.

Strategic Business Plan: This is a business plan with strategic drivers - which actually all business plans should be.

Strategic Business Planning: Developing and writing a strategic business plan.

Philosophy, Values, Ethics, Vision: These are the fundamentals of business planning, and determine the spirit and integrity of the business or organisation.