Many people think that a business plan is the same as a business proposal but there is a clear difference between the two documents. A business plan has a different purpose and goal than that of a business proposal. Many people are today confusing the two documents, making them look as if they are the same thing and perform the same functions. But that is far from the case.
So what is a business plan?
A business plan is a detailed description of the business that you intend starting up or have already started and the prospects of the business. Business plans will also describe important things like your business’ structure, your market research and strategy. A business plan is not complete if it does not show into details the budget you have for the business and the financial projections for at least five years. Writing a business plan involves a lot of careful research and calculation. You just don’t get up one day and start writing a business plan; it needs thorough planning.
Business experts say that it takes roughly six weeks to come up with a proper business plan. We do not rush in making a business plan. A business plan can either make or break your business therefore it is imperative to take time to write your business plan. Some will say that it is the blueprint to success. Without a business plan you are bound to fail in your business. One of the main reasons why a business plan is prepared is because business owners want to secure loans to grow or start their businesses. Many banks and financial institutions will not give you a loan to start or grow your business unless you come along with a proper business plans. As a matter of fact I don’t think that any bank or moneylender will give you a loan if you do not have a good business plan.
What is a Business Proposal?
A Business Proposal on the other hand behaves differently from the business plan. The business proposal is a document which established or start up businesses can submit to other businesses proposing business deals to them in the hope of sealing the deals. The main reason for a business proposal is to look for business opportunities and grab them.
So you see that there is a clear difference between business plan and business proposal. A business proposal and a business plan is not the same and should ever be thought to be the same.