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A business plan for a project requiring equity financing will need to explain why current resources, upcoming growth opportunities, and sustainable competitive advantage will lead to a high exit valuation.Preparing a business plan draws on a wide range of knowledge from many different business disciplines: finance, human resource management, intellectual property management, supply chain management, operations management, and marketing, among others. a good business plan can help to make a good business credible, understandable, and attractive to someone who is unfamiliar with the business.
Non-disclosure agreements (NDAs) with third parties, non-compete agreements, conflicts of interest, privacy concerns, and the protection of one's trade secrets may severely limit the audience to which one might show the business plan.
Alternatively, they may require each party receiving the business plan to sign a contract accepting special clauses and conditions.
Banks are quite concerned about defaults, so a business plan for a bank loan will build a convincing case for the organization's ability to repay the loan.
Venture capitalists are primarily concerned about initial investment, feasibility, and exit valuation.
With for-profit entities, external stakeholders include investors and customers, for government agencies, external stakeholders are the tax-payers, higher-level government agencies, and international lending bodies such as the International Monetary Fund, the World Bank, various economic agencies of the United Nations, and development banks.
Internally-focused business plans target intermediate goals required to reach the external goals.
An externally targeted business plan should list all legal concerns and financial liabilities that might negatively affect investors.
Depending on the amount of funds being raised and the audience to whom the plan is presented, failure to do this may have severe legal consequences.
An "elevator pitch" is a short summary of the plan's executive summary.
This is often used as a teaser to awaken the interest of potential investors, customers, or strategic partners.