business analysis business plan

Introduction & Guidance To Business Analysis Planning and Monitoring

More often than not, the outcome of the business analysis project is directly dependent on proper planning.

The business analysis planning and monitoring activity lays out the groundwork necessary for the successful completion of the whole project.

Monitoring also plays a key role in evaluating the business analysis work during the project. Detailed planning and close monitoring are essential for delivering the desired outcomes.

Table of Contents

Introduction – business planning and monitoring.

They determine how changes are requested and analysed and determine the right approach that will satisfy the need of the organisation. 

Also, they evaluate how business analysis performance has contributed to the implementation of the solution . As for the stakeholders , the BA’s job is to analyse their needs and characteristics to ensure proper planning and monitoring. 

Furthermore, at this stage, they need to conduct performance analysis so the planned activities will deliver a satisfying value to the business. 

All of this would not be possible without ensuring a complete understanding of the organisational context and developing the right analysis approach.

The BABOK guide includes five tasks that BAs should perform as a part of the business analysis planning and monitoring knowledge area. 

These tasks focus on organising and coordinating analysts and stakeholders, planning the approach to specific parts of a project, and defining the roles. They should produce outputs that can serve as a foundation for tasks in other knowledge areas.  We’ll take a closer look at all five of these tasks.

Plan Business Analysis Approach

The plan business analysis approach task defines and creates methods that will be used while performing business analysis activities.

The outputs produced here are a groundwork for the tasks form all of the other knowledge areas. It determines the timeline of the projects, what and when will be performed, and which deliverables are expected.

Also, planning the business analysis approach identifies suitable techniques and tools which will be used over the course of the project.

Some organisations already have established and formalised procedures and approaches and the analyst will have to work within these standards.  Of course, this doesn’t necessarily mean that some of these approaches won’t have to be adjusted as the project progresses.

In organisations without set procedures, the BA will work with stakeholders to devise the most suitable approach.

The main inputs of planning a business analysis approach are the needs of a specific organisation – problems or opportunities that the organisation is facing.

The business analyst must have a full understanding of the organisational needs as he starts the planning and be aware that those needs may change during the project. 

The expected output of this task is to define the business analysis activities and approach necessary for achieving the desired goals, determine work timeline and sequencing, decide on techniques to be used, and determine expected deliverables.

Plan Stakeholder Engagement

Planning the stakeholder engagemen t includes establishing and maintaining a fruitful collaboration with stakeholders, understanding their roles and relevance, and identifying their needs. To communicate in the best possible way, the business analyst must perform a thorough analysis of all of the crucial stakeholders and their characteristics.

The more stakeholders are involved, the more complex the task becomes, the inclusion of every new stakeholder may require the use of a different technique or the adjustment to the existing approach.

Similar to the previous task the main input of planning the stakeholder engagement is the organisational need. If the analyst has an understanding of the needs, proper identification of key stakeholders will be much easier. Another significant input is the overall business analysis approach as it ensures better stakeholder analysis and communication.

Planning stakeholder engagement should provide a stakeholder engagement approach as an output, containing information on the number of stakeholders, their characteristics, roles, and assignments.

The main elements of the task of planning stakeholder engagement are:

• Performing stakeholders analysis – identifying roles, attitudes, decision-making authority, level of power or influence;
• Defining stakeholder collaboration;
• Stakeholder communication needs.

Guidelines and tools that a business analyst will lean on while planning stakeholder engagement are business analysis performance assessment, change strategy, and current state description.

The key stakeholders for this task are customers, domains subject matter expert, end-user, project manager, regulator, sponsor, and supplier.

Plan Business Analysis Governance

To plan business analysis governance is to define business analysis components that will serve as a support of governing function in an organisation. It’s defining how decisions are made on all aspects of the business, including designs, requirements, reviews, changes, and prioritisation.

For the organisation to function properly, the process of governance should be clear and unambiguous. All of the decision-makers and their competencies must be clearly identified. Also, the information needed to make the decision should be precisely defined.

The primary inputs in planning business analysis governance are business analysis approach which ensures consistency in planning and stakeholder engagement approach which provides information on stakeholders, their characteristics, needs, and roles.

When performed in the right way the planning of business analysis governance should provide an output of governance approach which contains information on decision making stakeholders and their authority and responsibility.

The business analysis governance planning includes the following key elements:

• Decision making;
• Change control process;
• Plan prioritisation approach;
• Plan for approvals.

Guidelines and tools that will come useful for planning business analysis governance are business analysis performance assessment, business policies, the current state description, and legal/regulatory information.

Stakeholders of significance for business analysis governance planning are domain subject matter expert, project manager, regulator, and sponsor.

Plan Business Analysis Information Management

The role of business analysis information management planning is to define the way information gathered during the business analysis process will be captured, stored, accessed, and integrated with other available information. This includes all information elicited, created, and compiled over the course of the business analysis process.

The amount of information obtained this way can be enormous and proper handling is essential for its future use. All of the information should be optimised and easily accessible for whatever period it is needed.

Business analysis information management planning uses all of the outputs from previous tasks as its input. This includes the business analysis approach, stakeholder engagement approach, and governance approach. The main expected output is the information management approach which defines the state of information upon the completion of the change.

The key elements of planning the business analysis information management task are:

• Organisation of business analysis information;
• Level of abstraction;
• Planning a traceability approach;
• Planning for requirement reuse;
• Storage and access;
• Requirements attributes.

Guidelines and tools used during this task are business analysis performance assessment, business policies, information management tools, and legal/regulatory information.

The main stakeholders with the role to play at this stage are domain subject matter expert, regulator, and sponsor.

Identify Business Analysis Performance Improvements

Identifying business analysis performance improvement s include monitoring and management of business analysis performance in order to ensure the realisation of improvements and securing continuous opportunities.

It’s the assessment of the work that the business analyst has done and serves as a guideline for implementing improvements where needed. This task consists of establishing performance measures, conduction analysis based on those measures, reporting, and identifying potential necessary actions.

The primary inputs are business analysis approach and performance objectives which are the external goals set by an organisation. The output of this task is the business analysis performance assessment. It details puts actual performance against the planned one, identifies potential issues, and proposes solutions.

Identifying business analysis improvements includes a few key elements:

• Performance analysis;
• Assessment measures;
• Analysing the results;
• Recommending actions for improvement,

The main tool used here is the organisation performance standard including performance metrics or organisational expectations.

For this business analysis planning and monitoring task, the main stakeholders are domain subject matter expert, project manager, and sponsor.

Business Analysis Approach Template

Having a set of business analysis planning and monitoring templates will help you provide the groundwork for the successful completion of your whole project.

Conclusion – Business Analysis Planning and Monitoring

In all business analysis projects whether waterfall or agile the business analyst will need to understand and review their business analysis planning and monitoring approach to suite the context of their project (and also when they arrived in the project).

This article has provided an introduction to the business analysis planning and monitoring activities necessary for the successful completion of the whole project.

Learn more about the other IIBA business analysis knowledge areas:

Jerry Nicholas

Jerry continues to maintain the site to help aspiring and junior business analysts and taps into the network of experienced professionals to accelerate the professional development of all business analysts. He is a Principal Business Analyst who has over twenty years experience gained in a range of client sizes and sectors including investment banking, retail banking, retail, telecoms and public sector. Jerry has mentored and coached business analyst throughout his career. He is a member of British Computer Society (MBCS), International Institute of Business Analysis (IIBA), Business Agility Institute, Project Management Institute (PMI), Disciplined Agile Consortium and Business Architecture Guild. He has contributed and is acknowledged in the book: Choose Your WoW - A Disciplined Agile Delivery Handbook for Optimising Your Way of Working (WoW).

Recent Posts

Introduction to Train the Trainer for a Business Analyst

No matter the industry, modern professionals need to continuously improve themselves and work on up skilling and re-skilling to maintain satisfactory success within their field. This is particularly...

CliftonStrengths for a Business Analyst | Be You

Today, the job of a business analyst is probably more challenging than ever. The already intricate landscape of modern business analysis has recently gone through various shifts, mainly due to the...

The Ultimate Guide to Business Analysis Planning

Why proper planning prevents poor performance.

It’s vitally important to define the objectives of your business analysis project, and show how those objectives are going to be met. Upfront.

Before I became a business analyst, I was a spatial systems analyst. My major at university was geographic information systems and during that time I was very fortunate to win short-term contract with a research centre.

My role was to define the requirements and implement an online spatial database for a very large pastoral property in the Northern Territory. It was a pilot and, bearing in mind that this was many years ago, the technology was very new for that part of the world.

What was also very new to me was the concept of a structured approach to planning and execution. When I was asked to present my plan to the project board, I went way off the reservation. The feedback was embarrassing. I had spent a lot of time and effort in getting it all wrong.

I was no longer at university. This was real work in the real world, but I had no idea what I was doing and no idea of what questions to ask. Fortunately people who did know surrounded me, and I was put on the correct path.

Here’s the thing. It’s vitally important to define the objectives of your business analysis project, and show how those objectives are going to be met. Upfront. This is so you are correctly aligned with the expectations and aims of the desired outcome.

Also, every organisation usually has a set of defined procedures and methodologies that informs the way you plan and carry out your business analysis effort. Using the organisation’s framework in conjunction with an understanding of the steps in the business analysis process will help you define the scope, your approach and the primary objectives of your work.

Proper planning and preparation prevents poor performance.

Planning is crucial, and so is checking with your stakeholders that the proposal is on the right path and meets their expectations. It is important not to skip it, or imagine that you know what you’re doing. Like I did all those years ago.

If I hadn’t been realigned with my work, I may have wasted considerable time and resources to achieve an outcome that didn’t suit the needs of my employer and their clients.

3 reasons why you should plan your business analysis activities

If you want to be more effective on your next BA project, it’s worth investing some time in planning your activities and approach.

As Business Analysts we must understand the importance of planning.

Without a way to describe our approach, it’s easy to get waylaid on a tangent or stuck in analysis paralysis. Often the overarching project initiation plan – typically written by the project manager – does not adequately cover the business analysis components of a project. If the BA work is not clearly defined, it can present a risk to project outcomes and stakeholder perceptions.

One way to overcome this is to develop a Business Analysis Approach document which describes the activities, deadlines and approach to delivering your work. This document can work in conjunction with a project plan or as a standalone item.

Here are 3 reasons why you should plan your next Business Analysis effort.

1. You improve your communication.

A very important part of successfully completing your work is communication with your stakeholders. The BA Approach Document clearly describes what you will deliver and why. It sets the expectations on how you perform your work, the resources you need and the types of activities you will engage in, e.g. workshops and interviews. So everybody is on the same page! Planning also increases the transparency of your work as the small processes of your work are better understood. This helps when expectations have to change.

2. You’re better organised

In developing the Business Analysis Approach you’ve laid out all aspects of your work in front of you. Not only does this benefit your stakeholders, but you have a clear and agreed path to follow. This prevents tangents and over analysis. Having a plan also helps when you are working on multiple projects or activities. This is because you need to consider timeframes for your activities, and any other outside work that will impact on them.

3. You’re more focussed on the goal

A project plan is not only important for communication with your stakeholders, it’s also valuable to keep you on track. It’s a way of keeping your work aligned to the finished product. With every activity you perform, you should ask yourself if it is relevant to the end product. Ask yourself, “What value am I adding here? Is this relevant to what I’m delivering? Is this in the plan?”

The number one thing Business Analysts should avoid

By adequately considering the goals and objectives of a project, the problem you’re solving, and the desired organisational outcomes, you will be better placed to focus your activities in the right direction.

There’s a lot written on the topic of common mistakes made by business analysts. That’s because considerable thought is given to how good business analysis practice can add value to an organisation, which is important for sustainability and growth.

Some of the bigger issues for business analysts are:

• Failure to see the bigger picture and the problem that needs to be solved, which results in poorly aligned deliverables,
• Being too solutions focussed, which leads to requirements written for a solution that does not satisfactorily meet the needs of the organisation,
• Missing requirements in the specification or requirements are poorly expressed, which causes misinterpretation and wasted time in rework,
• Poorly managed requirements due to inadequate tool support (i.e. no traceability), and
• Inadequate stakeholder involvement, which results in signing off requirements without sufficient collaboration and verification from all user classes.

In my experience, the risk of these issues occurring can be significantly reduced with good planning . In my opinion, not planning your work is the one mistake that business analysts must avoid from the outset.

By adequately considering the goals and objectives of a project, the problem you’re solving, and the desired organisational outcomes, you will be better placed to focus your activities in the right direction. And you’ll mitigate the larger risk of some of those common business analysis mistakes occurring.

Of course there’s no guarantee, but you are putting your best foot forward by taking the time to think through your approach. And that gives you the comfort of knowing that you’ve done your best to communicate and mitigate any identifiable risks to the project at the level of your work.

Recommended resources

Business Analysis Approach Planning Template

Make a great start on your next project with the Business Analysis Approach Template. This template helps you set the expectations on how you perform your work, the resources you need and the types of activities you will engage in, e.g. workshops and interviews. So everybody is on the same page! Planning also increases the transparency of your work as the small processes of your analysis are better understood. This helps when expectations have to change. A well written plan will help you communicate exactly what’s required of you and your stakeholders to produce the necessary deliverables for your business analysis effort, and why.

• Skip to main content
• Skip to primary sidebar
• Skip to footer

Additional menu

6 business analysis techniques to use in your strategic plans

August 10, 2021 by MindManager Blog

By: Emily Finlay

For businesses, efficiency and effectiveness are key. Whether you’re executing a major project or determining the best ways to train new employees, it’s important to use best practices to achieve exceptional results.

Business analysis uncovers the strategies and processes that can help your business improve. You can find the flaws in your operations while determining what you need to change to fix them. Auditing and refining your business also offers the insights you and your leadership need to make informed decisions that will benefit your work moving forward.

Like any method, however, the power of business analysis depends on the methods used to execute it. In this guide, we’ll walk you through the top business analysis techniques. You’ll learn what each option offers and how you can use them to analyze your own processes.

What are business analysis techniques?

Business analysis techniques are the specific processes used to audit and improve business operations. These step-by-step procedures help analysts stay organized and make strategic decisions during the analysis.

What are the different types of business analysis techniques?

The most common types of business analysis include BPM, SWOT, MOST, CATWOE, PESTLE, and Six Hats Thinking. These planning methods can be used in a variety of industries and projects. From streamlining your operations to aligning your company’s purpose, these tactics can maintain your organization’s long-term success.

Business Process Modeling (BPM)

This technique, also known as business process mapping , creates a visual representation of the procedures a company uses. By visualizing the processes, teams and analysts can identify any problems. They can also see where efficiency is lost.

As you develop strategies to address these shortcomings, you can apply them to the model to see how they will affect the targeted process. This will also highlight any potential problems that these changes might create in other areas.

Business analysis steps: BPM

According to the International Institute of Business Analysis , here are the steps you should follow:

• Strategic planning – Start by researching and understanding the processes and problems you’re going to solve. Discover everything involved before creating your model.
• Business Model Analysis – Develop a model (such as mind mapping , flow charting, or diagramming) of the business processes with the information gained in step one. Analyze this visual and use it to guide your strategies.
• Define and design the process – Create the solutions you need and apply them to the model.
• Technical Analysis for complex business solutions – Use your visualization to analyze and improve the solutions.

Business analysis example: BPM

If a company is changing the way they produce a specific product, this technique can help them understand how adjusting that element will impact others. Rather than theorizing, they can use a visual flow to pinpoint obstacles and areas of improvement.

Strength, Weakness, Opportunities, Threats (SWOT)

These four elements define this technique, identifying internal (Strengths and Weaknesses) and external (Threats and Opportunities) factors. The most popular type of business analysis, SWOT drives informed decision making in nearly every area of business.

Business analysis steps: SWOT

Create a map with four quadrants, as outlined below, and use it guide your solutions and decisions:

• Strengths – What processes, resources, and other factors give us an advantage over competitors?
• Weaknesses – What holds us back from doing better and growing?
• Opportunities – What is happening outside the business that we can use to our advantage?
• Threats – What external factors can limit or hurt our success?

Business analysis example: SWOT

You can apply this technique to performance reviews, using the information you gain to help employees make improvements and celebrate strengths.

Mission, Objectives, Strategies, and Tactics (MOST)

If you want to make sure your company is maintaining its main goals through every decision and transition, MOST is the best tactic to use. By analyzing your business based on the following elements, you can turn big-picture objectives into achievable actions.

• Mission – Your overarching purpose that defines everything you do.
• Objectives – The goals necessary to accomplish your mission.
• Strategies – What you need to do to reach your objectives.
• Tactics – How everyone in the organization can execute your strategies.

Business analysis steps: MOST

Starting from the top down, define these four elements for your business. Then, use them to create processes that prioritize your main goals throughout the organization.

Business analysis examples: MOST

When rebranding a company, the MOST technique helps you discover and refine the heart of your organization. You can realign your processes, products, and marketing efforts to reflect your goals more accurately. If your company has strayed from these primary values or shifted to new ones, MOST will help you clearly define your views and objectives.

Customers, Actors, Transformation, Worldview, Owner, Environmental constraints (CATWOE)

Your individual stakeholders’ viewpoints affect your goals and processes. Every change also affects all of your stakeholders. With CATWOE, you can understand how any action impacts your organization, customers, leadership, and more.

Business analysis steps: CATWOE

This technique should be used at the start of the project or strategizing process. Begin by defining these parties and asking these questions:

• Customers – Who benefits from your work and products? How does this issue or the proposed solution affect them?
• Actors – Who is directly involved in this process? How will they affect it?
• Transformation – What are the ultimate changes that will occur by implementing this solution or new procedures?
• Worldview – How will this change affect the organization’s mission and big picture?
• Owner – Who is responsible for the affected system and how are they related to it?
• Environmental constraints – On every level, what are the limitations that affect the solution?

Once you have these answers, use them to guide your strategies and final solutions.

Business analysis examples: CATWOE

If a development company wanted to build a new shopping center, they could use this technique to understand the impact it would have on the company, their future customers, and the people living in the surrounding community.

Political, Economic, Social, Technological, Legal, Environmental (PESTLE)

Decisions and changes aren’t made in a vacuum. PESTLE identifies outside factors that will affect the decisions made within an organization, as well as how the company’s changes will impact other factors. This technique allows businesses to plan for any potential threats that might develop and strategize for seizing new opportunities.

Business analysis steps: PESTLE

Walk through the following list to determine the forces that can impact your organization.

• Political – How do government policies, initiatives, and financial support affect your business and your proposed solution?
• Economical – What is the economic climate and how does it affect you?
• Social – How do trends and attitudes concerning population, media, culture, lifestyle, and education affect the business?
• Technology – What is the rate of technological development, particularly for information and communication, and how does it impact your changes?
• Legal – Do local and national regulations and employment standards affect your work? How?
• Environmental – Are weather, pollution, waste, and recycling factors a concern for your organization? What is their impact?

Use this information to prepare for threats and opportunities that might affect your business’ ongoing performance.

Business analysis examples: PESTLE

When using the SWOT technique to evaluate your company’s direction and future, you can use PESTLE to develop and analyze each element of the process. This will help you create a more detailed understanding of your business, particularly concerning threats and opportunities.

Six Thinking Hats

Often, teams lack enough diverse viewpoints to find and understand the issues that are keeping them from full success. With the Six Thinking Hats technique , you can use different ways of thinking to uncover new perspectives. Using these new insights during brainstorming sessions can hone your team’s ideas for better results.

Business analysis steps: Six Thinking Hats

In your meetings, consider the problem and possible solutions with the type of thinking dictated by each “hat” and step.

• Start with the White Hat, which focuses on hard data and logic. What information do you know or need?
• Move to the Yellow Hat, which stands for brightness and positivity. Look for the possible values and benefits through optimistic thinking
• Now play devil’s advocate with the Black Hat of judgment. Find potential problems, obstacles, and threats.
• The Red Hat focuses on intuition. Share your feelings, fears, hunches, and emotions associated with the solution or process.
• Use the Green Hat of creativity to consider possibilities, thoughts, and ideas. Try to think outside the box.
• With the Blue Hat, you will bring your brainstorming back to earth. Consider the big picture of the project or changes. Ensure your ideas fit your operations and procedures.
• Use this process to hone your solutions and approach to problems.

Business analysis example: Six Thinking Hats

The next time you think your project needs fresh eyes, gather your team for a Six Thinking Hats brainstorming session. You will be able to view your work in a new light and uncover ways to improve.

There isn’t a “right” technique for business analysis. Instead, use these tactics as they best fit your objectives. And don’t be afraid to combine these techniques for a single problem. As you analyze your business through different lenses, you can find the solutions that will offer the greatest benefits.

Ready to take the next step?

MindManager helps boost collaboration and productivity among remote and hybrid teams to achieve better results, faster.

Why choose MindManager?

MindManager® helps individuals, teams, and enterprises bring greater clarity and structure to plans, projects, and processes. It provides visual productivity tools and mind mapping software to help take you and your organization to where you want to be.

Explore MindManager

Small Business Trends

How to create a business plan: examples & free template.

This is the ultimate guide to creating a comprehensive and effective plan to start a business . In today’s dynamic business landscape, having a well-crafted business plan is an important first step to securing funding, attracting partners, and navigating the challenges of entrepreneurship.

This guide has been designed to help you create a winning plan that stands out in the ever-evolving marketplace. U sing real-world examples and a free downloadable template, it will walk you through each step of the process.

Whether you’re a seasoned entrepreneur or launching your very first startup, the guide will give you the insights, tools, and confidence you need to create a solid foundation for your business.

Table of Contents

How to Write a Business Plan

Embarking on the journey of creating a successful business requires a solid foundation, and a well-crafted business plan is the cornerstone. Here is the process of writing a comprehensive business plan and the main parts of a winning business plan . From setting objectives to conducting market research, this guide will have everything you need.

Executive Summary

The Executive Summary serves as the gateway to your business plan, offering a snapshot of your venture’s core aspects. This section should captivate and inform, succinctly summarizing the essence of your plan.

It’s crucial to include a clear mission statement, a brief description of your primary products or services, an overview of your target market, and key financial projections or achievements.

Think of it as an elevator pitch in written form: it should be compelling enough to engage potential investors or stakeholders and provide them with a clear understanding of what your business is about, its goals, and why it’s a promising investment.

Example: EcoTech is a technology company specializing in eco-friendly and sustainable products designed to reduce energy consumption and minimize waste. Our mission is to create innovative solutions that contribute to a cleaner, greener environment.

Our target market includes environmentally conscious consumers and businesses seeking to reduce their carbon footprint. We project a 200% increase in revenue within the first three years of operation.

Overview and Business Objectives

In the Overview and Business Objectives section, outline your business’s core goals and the strategic approaches you plan to use to achieve them. This section should set forth clear, specific objectives that are attainable and time-bound, providing a roadmap for your business’s growth and success.

It’s important to detail how these objectives align with your company’s overall mission and vision. Discuss the milestones you aim to achieve and the timeframe you’ve set for these accomplishments.

This part of the plan demonstrates to investors and stakeholders your vision for growth and the practical steps you’ll take to get there.

Example: EcoTech’s primary objective is to become a market leader in sustainable technology products within the next five years. Our key objectives include:

• Introducing three new products within the first two years of operation.
• Achieving annual revenue growth of 30%.
• Expanding our customer base to over 10,000 clients by the end of the third year.

Company Description

The Company Description section is your opportunity to delve into the details of your business. Provide a comprehensive overview that includes your company’s history, its mission statement, and its vision for the future.

Highlight your unique selling proposition (USP) – what makes your business stand out in the market. Explain the problems your company solves and how it benefits your customers.

Include information about the company’s founders, their expertise, and why they are suited to lead the business to success. This section should paint a vivid picture of your business, its values, and its place in the industry.

Example: EcoTech is committed to developing cutting-edge sustainable technology products that benefit both the environment and our customers. Our unique combination of innovative solutions and eco-friendly design sets us apart from the competition. We envision a future where technology and sustainability go hand in hand, leading to a greener planet.

Define Your Target Market

Defining Your Target Market is critical for tailoring your business strategy effectively. This section should describe your ideal customer base in detail, including demographic information (such as age, gender, income level, and location) and psychographic data (like interests, values, and lifestyle).

Elucidate on the specific needs or pain points of your target audience and how your product or service addresses these. This information will help you know your target market and develop targeted marketing strategies.

Example: Our target market comprises environmentally conscious consumers and businesses looking for innovative solutions to reduce their carbon footprint. Our ideal customers are those who prioritize sustainability and are willing to invest in eco-friendly products.

Market Analysis

The Market Analysis section requires thorough research and a keen understanding of the industry. It involves examining the current trends within your industry, understanding the needs and preferences of your customers, and analyzing the strengths and weaknesses of your competitors.

This analysis will enable you to spot market opportunities and anticipate potential challenges. Include data and statistics to back up your claims, and use graphs or charts to illustrate market trends.

This section should demonstrate that you have a deep understanding of the market in which you operate and that your business is well-positioned to capitalize on its opportunities.

Example: The market for eco-friendly technology products has experienced significant growth in recent years, with an estimated annual growth rate of 10%. As consumers become increasingly aware of environmental issues, the demand for sustainable solutions continues to rise.

Our research indicates a gap in the market for high-quality, innovative eco-friendly technology products that cater to both individual and business clients.

SWOT Analysis

A SWOT analysis in your business plan offers a comprehensive examination of your company’s internal and external factors. By assessing Strengths, you showcase what your business does best and where your capabilities lie.

Weaknesses involve an honest introspection of areas where your business may be lacking or could improve. Opportunities can be external factors that your business could capitalize on, such as market gaps or emerging trends.

Threats include external challenges your business may face, like competition or market changes. This analysis is crucial for strategic planning, as it helps in recognizing and leveraging your strengths, addressing weaknesses, seizing opportunities, and preparing for potential threats.

Including a SWOT analysis demonstrates to stakeholders that you have a balanced and realistic understanding of your business in its operational context.

• Innovative and eco-friendly product offerings.
• Strong commitment to sustainability and environmental responsibility.
• Skilled and experienced team with expertise in technology and sustainability.

Weaknesses:

• Limited brand recognition compared to established competitors.
• Reliance on third-party manufacturers for product development.

Opportunities:

• Growing consumer interest in sustainable products.
• Partnerships with environmentally-focused organizations and influencers.
• Expansion into international markets.
• Intense competition from established technology companies.
• Regulatory changes could impact the sustainable technology market.

Competitive Analysis

In this section, you’ll analyze your competitors in-depth, examining their products, services, market positioning, and pricing strategies. Understanding your competition allows you to identify gaps in the market and tailor your offerings to outperform them.

By conducting a thorough competitive analysis, you can gain insights into your competitors’ strengths and weaknesses, enabling you to develop strategies to differentiate your business and gain a competitive advantage in the marketplace.

Example: Key competitors include:

GreenTech: A well-known brand offering eco-friendly technology products, but with a narrower focus on energy-saving devices.

EarthSolutions: A direct competitor specializing in sustainable technology, but with a limited product range and higher prices.

By offering a diverse product portfolio, competitive pricing, and continuous innovation, we believe we can capture a significant share of the growing sustainable technology market.

Organization and Management Team

Provide an overview of your company’s organizational structure, including key roles and responsibilities. Introduce your management team, highlighting their expertise and experience to demonstrate that your team is capable of executing the business plan successfully.

Showcasing your team’s background, skills, and accomplishments instills confidence in investors and other stakeholders, proving that your business has the leadership and talent necessary to achieve its objectives and manage growth effectively.

Example: EcoTech’s organizational structure comprises the following key roles: CEO, CTO, CFO, Sales Director, Marketing Director, and R&D Manager. Our management team has extensive experience in technology, sustainability, and business development, ensuring that we are well-equipped to execute our business plan successfully.

Products and Services Offered

Describe the products or services your business offers, focusing on their unique features and benefits. Explain how your offerings solve customer pain points and why they will choose your products or services over the competition.

This section should emphasize the value you provide to customers, demonstrating that your business has a deep understanding of customer needs and is well-positioned to deliver innovative solutions that address those needs and set your company apart from competitors.

Example: EcoTech offers a range of eco-friendly technology products, including energy-efficient lighting solutions, solar chargers, and smart home devices that optimize energy usage. Our products are designed to help customers reduce energy consumption, minimize waste, and contribute to a cleaner environment.

Marketing and Sales Strategy

In this section, articulate your comprehensive strategy for reaching your target market and driving sales. Detail the specific marketing channels you plan to use, such as social media, email marketing, SEO, or traditional advertising.

Describe the nature of your advertising campaigns and promotional activities, explaining how they will capture the attention of your target audience and convey the value of your products or services. Outline your sales strategy, including your sales process, team structure, and sales targets.

Discuss how these marketing and sales efforts will work together to attract and retain customers, generate leads, and ultimately contribute to achieving your business’s revenue goals.

This section is critical to convey to investors and stakeholders that you have a well-thought-out approach to market your business effectively and drive sales growth.

Example: Our marketing strategy includes digital advertising, content marketing, social media promotion, and influencer partnerships. We will also attend trade shows and conferences to showcase our products and connect with potential clients. Our sales strategy involves both direct sales and partnerships with retail stores, as well as online sales through our website and e-commerce platforms.

Logistics and Operations Plan

The Logistics and Operations Plan is a critical component that outlines the inner workings of your business. It encompasses the management of your supply chain, detailing how you acquire raw materials and manage vendor relationships.

Inventory control is another crucial aspect, where you explain strategies for inventory management to ensure efficiency and reduce wastage. The section should also describe your production processes, emphasizing scalability and adaptability to meet changing market demands.

Quality control measures are essential to maintain product standards and customer satisfaction. This plan assures investors and stakeholders of your operational competency and readiness to meet business demands.

Highlighting your commitment to operational efficiency and customer satisfaction underlines your business’s capability to maintain smooth, effective operations even as it scales.

Example: EcoTech partners with reliable third-party manufacturers to produce our eco-friendly technology products. Our operations involve maintaining strong relationships with suppliers, ensuring quality control, and managing inventory.

We also prioritize efficient distribution through various channels, including online platforms and retail partners, to deliver products to our customers in a timely manner.

Financial Projections Plan

In the Financial Projections Plan, lay out a clear and realistic financial future for your business. This should include detailed projections for revenue, costs, and profitability over the next three to five years.

Ground these projections in solid assumptions based on your market analysis, industry benchmarks, and realistic growth scenarios. Break down revenue streams and include an analysis of the cost of goods sold, operating expenses, and potential investments.

This section should also discuss your break-even analysis, cash flow projections, and any assumptions about external funding requirements.

By presenting a thorough and data-backed financial forecast, you instill confidence in potential investors and lenders, showcasing your business’s potential for profitability and financial stability.

This forward-looking financial plan is crucial for demonstrating that you have a firm grasp of the financial nuances of your business and are prepared to manage its financial health effectively.

Example: Over the next three years, we expect to see significant growth in revenue, driven by new product launches and market expansion. Our financial projections include:

• Year 1: $1.5 million in revenue, with a net profit of $200,000.
• Year 2: $3 million in revenue, with a net profit of $500,000.
• Year 3: $4.5 million in revenue, with a net profit of $1 million.

These projections are based on realistic market analysis, growth rates, and product pricing.

Income Statement

The income statement , also known as the profit and loss statement, provides a summary of your company’s revenues and expenses over a specified period. It helps you track your business’s financial performance and identify trends, ensuring you stay on track to achieve your financial goals.

Regularly reviewing and analyzing your income statement allows you to monitor the health of your business, evaluate the effectiveness of your strategies, and make data-driven decisions to optimize profitability and growth.

Example: The income statement for EcoTech’s first year of operation is as follows:

• Revenue: $1,500,000
• Cost of Goods Sold: $800,000
• Gross Profit: $700,000
• Operating Expenses: $450,000
• Net Income: $250,000

This statement highlights our company’s profitability and overall financial health during the first year of operation.

Cash Flow Statement

A cash flow statement is a crucial part of a financial business plan that shows the inflows and outflows of cash within your business. It helps you monitor your company’s liquidity, ensuring you have enough cash on hand to cover operating expenses, pay debts, and invest in growth opportunities.

By including a cash flow statement in your business plan, you demonstrate your ability to manage your company’s finances effectively.

Example:  The cash flow statement for EcoTech’s first year of operation is as follows:

Operating Activities:

• Depreciation: $10,000
• Changes in Working Capital: -$50,000
• Net Cash from Operating Activities: $210,000

Investing Activities:

•  Capital Expenditures: -$100,000
• Net Cash from Investing Activities: -$100,000

Financing Activities:

• Proceeds from Loans: $150,000
• Loan Repayments: -$50,000
• Net Cash from Financing Activities: $100,000
• Net Increase in Cash: $210,000

This statement demonstrates EcoTech’s ability to generate positive cash flow from operations, maintain sufficient liquidity, and invest in growth opportunities.

Tips on Writing a Business Plan

1. Be clear and concise: Keep your language simple and straightforward. Avoid jargon and overly technical terms. A clear and concise business plan is easier for investors and stakeholders to understand and demonstrates your ability to communicate effectively.

2. Conduct thorough research: Before writing your business plan, gather as much information as possible about your industry, competitors, and target market. Use reliable sources and industry reports to inform your analysis and make data-driven decisions.

3. Set realistic goals: Your business plan should outline achievable objectives that are specific, measurable, attainable, relevant, and time-bound (SMART). Setting realistic goals demonstrates your understanding of the market and increases the likelihood of success.

4. Focus on your unique selling proposition (USP): Clearly articulate what sets your business apart from the competition. Emphasize your USP throughout your business plan to showcase your company’s value and potential for success.

5. Be flexible and adaptable: A business plan is a living document that should evolve as your business grows and changes. Be prepared to update and revise your plan as you gather new information and learn from your experiences.

6. Use visuals to enhance understanding: Include charts, graphs, and other visuals to help convey complex data and ideas. Visuals can make your business plan more engaging and easier to digest, especially for those who prefer visual learning.

7. Seek feedback from trusted sources: Share your business plan with mentors, industry experts, or colleagues and ask for their feedback. Their insights can help you identify areas for improvement and strengthen your plan before presenting it to potential investors or partners.

FREE Business Plan Template

To help you get started on your business plan, we have created a template that includes all the essential components discussed in the “How to Write a Business Plan” section. This easy-to-use template will guide you through each step of the process, ensuring you don’t miss any critical details.

The template is divided into the following sections:

• Mission statement
• Business Overview
• Key products or services
• Target market
• Financial highlights
• Company goals
• Strategies to achieve goals
• Measurable, time-bound objectives
• Company History
• Mission and vision
• Unique selling proposition
• Demographics
• Psychographics
• Pain points
• Industry trends
• Customer needs
• Competitor strengths and weaknesses
• Opportunities
• Competitor products and services
• Market positioning
• Pricing strategies
• Organizational structure
• Key roles and responsibilities
• Management team backgrounds
• Product or service features
• Competitive advantages
• Marketing channels
• Advertising campaigns
• Promotional activities
• Sales strategies
• Supply chain management
• Inventory control
• Production processes
• Quality control measures
• Projected revenue
• Assumptions
• Cash inflows
• Cash outflows
• Net cash flow

What is a Business Plan?

A business plan is a strategic document that outlines an organization’s goals, objectives, and the steps required to achieve them. It serves as a roadmap as you start a business , guiding the company’s direction and growth while identifying potential obstacles and opportunities.

Typically, a business plan covers areas such as market analysis, financial projections, marketing strategies, and organizational structure. It not only helps in securing funding from investors and lenders but also provides clarity and focus to the management team.

A well-crafted business plan is a very important part of your business startup checklist because it fosters informed decision-making and long-term success.

Why You Should Write a Business Plan

Understanding the importance of a business plan in today’s competitive environment is crucial for entrepreneurs and business owners. Here are five compelling reasons to write a business plan:

• Attract Investors and Secure Funding : A well-written business plan demonstrates your venture’s potential and profitability, making it easier to attract investors and secure the necessary funding for growth and development. It provides a detailed overview of your business model, target market, financial projections, and growth strategies, instilling confidence in potential investors and lenders that your company is a worthy investment.
• Clarify Business Objectives and Strategies : Crafting a business plan forces you to think critically about your goals and the strategies you’ll employ to achieve them, providing a clear roadmap for success. This process helps you refine your vision and prioritize the most critical objectives, ensuring that your efforts are focused on achieving the desired results.
• Identify Potential Risks and Opportunities : Analyzing the market, competition, and industry trends within your business plan helps identify potential risks and uncover untapped opportunities for growth and expansion. This insight enables you to develop proactive strategies to mitigate risks and capitalize on opportunities, positioning your business for long-term success.
• Improve Decision-Making : A business plan serves as a reference point so you can make informed decisions that align with your company’s overall objectives and long-term vision. By consistently referring to your plan and adjusting it as needed, you can ensure that your business remains on track and adapts to changes in the market, industry, or internal operations.
• Foster Team Alignment and Communication : A shared business plan helps ensure that all team members are on the same page, promoting clear communication, collaboration, and a unified approach to achieving the company’s goals. By involving your team in the planning process and regularly reviewing the plan together, you can foster a sense of ownership, commitment, and accountability that drives success.

What are the Different Types of Business Plans?

In today’s fast-paced business world, having a well-structured roadmap is more important than ever. A traditional business plan provides a comprehensive overview of your company’s goals and strategies, helping you make informed decisions and achieve long-term success. There are various types of business plans, each designed to suit different needs and purposes. Let’s explore the main types:

• Startup Business Plan: Tailored for new ventures, a startup business plan outlines the company’s mission, objectives, target market, competition, marketing strategies, and financial projections. It helps entrepreneurs clarify their vision, secure funding from investors, and create a roadmap for their business’s future. Additionally, this plan identifies potential challenges and opportunities, which are crucial for making informed decisions and adapting to changing market conditions.
• Internal Business Plan: This type of plan is intended for internal use, focusing on strategies, milestones, deadlines, and resource allocation. It serves as a management tool for guiding the company’s growth, evaluating its progress, and ensuring that all departments are aligned with the overall vision. The internal business plan also helps identify areas of improvement, fosters collaboration among team members, and provides a reference point for measuring performance.
• Strategic Business Plan: A strategic business plan outlines long-term goals and the steps to achieve them, providing a clear roadmap for the company’s direction. It typically includes a SWOT analysis, market research, and competitive analysis. This plan allows businesses to align their resources with their objectives, anticipate changes in the market, and develop contingency plans. By focusing on the big picture, a strategic business plan fosters long-term success and stability.
• Feasibility Business Plan: This plan is designed to assess the viability of a business idea, examining factors such as market demand, competition, and financial projections. It is often used to decide whether or not to pursue a particular venture. By conducting a thorough feasibility analysis, entrepreneurs can avoid investing time and resources into an unviable business concept. This plan also helps refine the business idea, identify potential obstacles, and determine the necessary resources for success.
• Growth Business Plan: Also known as an expansion plan, a growth business plan focuses on strategies for scaling up an existing business. It includes market analysis, new product or service offerings, and financial projections to support expansion plans. This type of plan is essential for businesses looking to enter new markets, increase their customer base, or launch new products or services. By outlining clear growth strategies, the plan helps ensure that expansion efforts are well-coordinated and sustainable.
• Operational Business Plan: This type of plan outlines the company’s day-to-day operations, detailing the processes, procedures, and organizational structure. It is an essential tool for managing resources, streamlining workflows, and ensuring smooth operations. The operational business plan also helps identify inefficiencies, implement best practices, and establish a strong foundation for future growth. By providing a clear understanding of daily operations, this plan enables businesses to optimize their resources and enhance productivity.
• Lean Business Plan: A lean business plan is a simplified, agile version of a traditional plan, focusing on key elements such as value proposition, customer segments, revenue streams, and cost structure. It is perfect for startups looking for a flexible, adaptable planning approach. The lean business plan allows for rapid iteration and continuous improvement, enabling businesses to pivot and adapt to changing market conditions. This streamlined approach is particularly beneficial for businesses in fast-paced or uncertain industries.
• One-Page Business Plan: As the name suggests, a one-page business plan is a concise summary of your company’s key objectives, strategies, and milestones. It serves as a quick reference guide and is ideal for pitching to potential investors or partners. This plan helps keep teams focused on essential goals and priorities, fosters clear communication, and provides a snapshot of the company’s progress. While not as comprehensive as other plans, a one-page business plan is an effective tool for maintaining clarity and direction.
• Nonprofit Business Plan: Specifically designed for nonprofit organizations, this plan outlines the mission, goals, target audience, fundraising strategies, and budget allocation. It helps secure grants and donations while ensuring the organization stays on track with its objectives. The nonprofit business plan also helps attract volunteers, board members, and community support. By demonstrating the organization’s impact and plans for the future, this plan is essential for maintaining transparency, accountability, and long-term sustainability within the nonprofit sector.
• Franchise Business Plan: For entrepreneurs seeking to open a franchise, this type of plan focuses on the franchisor’s requirements, as well as the franchisee’s goals, strategies, and financial projections. It is crucial for securing a franchise agreement and ensuring the business’s success within the franchise system. This plan outlines the franchisee’s commitment to brand standards, marketing efforts, and operational procedures, while also addressing local market conditions and opportunities. By creating a solid franchise business plan, entrepreneurs can demonstrate their ability to effectively manage and grow their franchise, increasing the likelihood of a successful partnership with the franchisor.

Using Business Plan Software

Creating a comprehensive business plan can be intimidating, but business plan software can streamline the process and help you produce a professional document. These tools offer a number of benefits, including guided step-by-step instructions, financial projections, and industry-specific templates. Here are the top 5 business plan software options available to help you craft a great business plan.

1. LivePlan

LivePlan is a popular choice for its user-friendly interface and comprehensive features. It offers over 500 sample plans, financial forecasting tools, and the ability to track your progress against key performance indicators. With LivePlan, you can create visually appealing, professional business plans that will impress investors and stakeholders.

2. Upmetrics

Upmetrics provides a simple and intuitive platform for creating a well-structured business plan. It features customizable templates, financial forecasting tools, and collaboration capabilities, allowing you to work with team members and advisors. Upmetrics also offers a library of resources to guide you through the business planning process.

Bizplan is designed to simplify the business planning process with a drag-and-drop builder and modular sections. It offers financial forecasting tools, progress tracking, and a visually appealing interface. With Bizplan, you can create a business plan that is both easy to understand and visually engaging.

Enloop is a robust business plan software that automatically generates a tailored plan based on your inputs. It provides industry-specific templates, financial forecasting, and a unique performance score that updates as you make changes to your plan. Enloop also offers a free version, making it accessible for businesses on a budget.

5. Tarkenton GoSmallBiz

Developed by NFL Hall of Famer Fran Tarkenton, GoSmallBiz is tailored for small businesses and startups. It features a guided business plan builder, customizable templates, and financial projection tools. GoSmallBiz also offers additional resources, such as CRM tools and legal document templates, to support your business beyond the planning stage.

Business Plan FAQs

What is a good business plan.

A good business plan is a well-researched, clear, and concise document that outlines a company’s goals, strategies, target market, competitive advantages, and financial projections. It should be adaptable to change and provide a roadmap for achieving success.

What are the 3 main purposes of a business plan?

The three main purposes of a business plan are to guide the company’s strategy, attract investment, and evaluate performance against objectives. Here’s a closer look at each of these:

• It outlines the company’s purpose and core values to ensure that all activities align with its mission and vision.
• It provides an in-depth analysis of the market, including trends, customer needs, and competition, helping the company tailor its products and services to meet market demands.
• It defines the company’s marketing and sales strategies, guiding how the company will attract and retain customers.
• It describes the company’s organizational structure and management team, outlining roles and responsibilities to ensure effective operation and leadership.
• It sets measurable, time-bound objectives, allowing the company to plan its activities effectively and make strategic decisions to achieve these goals.
• It provides a comprehensive overview of the company and its business model, demonstrating its uniqueness and potential for success.
• It presents the company’s financial projections, showing its potential for profitability and return on investment.
• It demonstrates the company’s understanding of the market, including its target customers and competition, convincing investors that the company is capable of gaining a significant market share.
• It showcases the management team’s expertise and experience, instilling confidence in investors that the team is capable of executing the business plan successfully.
• It establishes clear, measurable objectives that serve as performance benchmarks.
• It provides a basis for regular performance reviews, allowing the company to monitor its progress and identify areas for improvement.
• It enables the company to assess the effectiveness of its strategies and make adjustments as needed to achieve its objectives.
• It helps the company identify potential risks and challenges, enabling it to develop contingency plans and manage risks effectively.
• It provides a mechanism for evaluating the company’s financial performance, including revenue, expenses, profitability, and cash flow.

Can I write a business plan by myself?

Yes, you can write a business plan by yourself, but it can be helpful to consult with mentors, colleagues, or industry experts to gather feedback and insights. There are also many creative business plan templates and business plan examples available online, including those above.

We also have examples for specific industries, including a using food truck business plan , salon business plan , farm business plan , daycare business plan , and restaurant business plan .

Is it possible to create a one-page business plan?

Yes, a one-page business plan is a condensed version that highlights the most essential elements, including the company’s mission, target market, unique selling proposition, and financial goals.

How long should a business plan be?

A typical business plan ranges from 20 to 50 pages, but the length may vary depending on the complexity and needs of the business.

What is a business plan outline?

A business plan outline is a structured framework that organizes the content of a business plan into sections, such as the executive summary, company description, market analysis, and financial projections.

What are the 5 most common business plan mistakes?

The five most common business plan mistakes include inadequate research, unrealistic financial projections, lack of focus on the unique selling proposition, poor organization and structure, and failure to update the plan as circumstances change.

What questions should be asked in a business plan?

A business plan should address questions such as: What problem does the business solve? Who is the specific target market ? What is the unique selling proposition? What are the company’s objectives? How will it achieve those objectives?

What’s the difference between a business plan and a strategic plan?

A business plan focuses on the overall vision, goals, and tactics of a company, while a strategic plan outlines the specific strategies, action steps, and performance measures necessary to achieve the company’s objectives.

How is business planning for a nonprofit different?

Nonprofit business planning focuses on the organization’s mission, social impact, and resource management, rather than profit generation. The financial section typically includes funding sources, expenses, and projected budgets for programs and operations.

Image: Envato Elements

Your email address will not be published. Required fields are marked *

© Copyright 2003 - 2024, Small Business Trends LLC. All rights reserved. "Small Business Trends" is a registered trademark.

Strategic Business Analysis Plan Template

What is a Strategic Business Analysis Plan?

A strategic business analysis plan outlines a systematic approach to thoroughly examine a business or organization's current state, assess the external environment to identify opportunities and threats, and set objectives to reach desired goals. The plan also outlines the strategies, tactics, and measurable targets that will help the business reach its goals.

What's included in this Strategic Business Analysis Plan template?

• 3 focus areas
• 6 objectives

Each focus area has its own objectives, projects, and KPIs to ensure that the strategy is comprehensive and effective.

Who is the Strategic Business Analysis Plan template for?

This strategic business analysis plan template is designed to help business analysts and teams outline a plan for conducting in-depth business analysis, gathering insights, and making informed strategic decisions. It can be used to ensure that all key stakeholders are on the same page and that all data-driven decisions are backed by data-driven insights.

1. Define clear examples of your focus areas

A focus area is a broad category or topic that is necessary to achieve the desired strategic goals. It is important to identify and define focus areas in order to set specific objectives and measurable targets that can help achieve the desired goals. Examples of strategic focus areas that could fall under a Strategic Business Analysis Plan could be: Comprehensive Data Collection and Analysis, Stakeholder Engagement and Collaboration, and Process Optimization and Efficiency.

2. Think about the objectives that could fall under that focus area

An objective is a goal that is specific, measurable, attainable, relevant, and time-bound (SMART). Objectives should be created for each focus area in order to define a clear path forward and measure progress toward the desired outcomes. Examples of some objectives for the focus area of Comprehensive Data Collection and Analysis could be: Gather Relevant Data, and Perform Thorough Data Analysis.

3. Set measurable targets (KPIs) to tackle the objective

A key performance indicator (KPI) is a measurable target that defines the success of an objective. KPIs should be quantitative, measurable, and meaningful. The KPIs should be set to ensure that objectives are achieved and that progress is being made toward the desired outcomes. An example of a KPI for the focus area of Comprehensive Data Collection and Analysis could be: Achieve 95% Data Relevance in Analysis.

4. Implement related projects to achieve the KPIs

A project (action) is an approach or solution to achieve a KPI. Projects should be specific, measurable, attainable, relevant, and timely (SMART). Projects should be identified for each KPI in order to ensure that progress is being made toward the desired outcomes. An example of a project related for Comprehensive Data Collection and Analysis could be: Utilize Advanced Analytical Tools.

5. Utilize Cascade Strategy Execution Platform to see faster results from your strategy

Cascade is the leading strategy execution platform for businesses of all sizes. Cascade helps teams align their goals and objectives, track progress, and measure success in order to achieve their desired outcomes faster. The platform provides an intuitive user experience and comprehensive analytics to help teams realize their vision and reach their goals.

+61-386-770-891

Business Analysis Blog

How to do a Business Analysis Approach and Plan?

Very often Business Analysts are placed on a project without getting much input or say in how the Business Analysis aspects of the project will be implemented. This is often due to the fact that there isn’t much awareness within the organization around formal Business Analysis planning activities. It is mostly assumed that the Project Manager should be doing all planning including the Business Analysis aspects of the projects. Some Business Analysts are not really aware that it is also part of their core role as Business Analyst to contribute, initiate and plan the Business Analysis approach for a particular project or initiative. This includes agreeing the Business Analysis approach, plan out the specific tasks and specific deliverables, which will form the plan to achieve the agreed Business Analysis outcome. Many Business Analysts have not been taught how to do a Business Analysis Approach and Plan in their educational backgrounds and it is often up to learning these skills within the workplace.

This blog article aims to provide an outline around the topic of Business Analysis Approaches and Planning to assist Business Analysts with getting more confident in developing these aspects of Business Analysis.

Before we look at some practical aspects around how to put together a Business Analysis Approach and Plan, it is important to take note of the following key points:

• Each Business Analysis Approach should be unique in the aspects, which mirrors the specific needs of the particular project. This means that although the Business Analyst can refer to a checklist of considerations or a toolset when preparing the Business Analysis Approach, it is imperative to realize there is no standard Business Analysis Approach to apply to every project in exactly the same way.
• The most successful Business Analysis Approaches are the ones where the Business Analyst has a holistic view of the project dimensions before starting to formulate the Business Analysis approach. These dimensions include the project environment, people, culture, the timeframes, budgets and nature of the desired Business Analysis outcomes.
• Agreeing the desired Business Analysis outcome for the project is probably the most important part of preparing for getting the Business Analysis Approach and Plan defined. This is based on the basic premise that you need to know what you are working towards, in order to know what you should do.

This brings us to the definition of what is a Business Analysis Approach and why it is important?

The Business Analysis Approach is simply the agreed plans for how the Business Analysis outcome will be achieved. If we consider a metaphor where you must prepare a lunch for a group of friends. The outcome in this scenario is to have lunch ready for a group of friends. The approach is all about how are you going to go about preparing this lunch? Will it be on a BBQ, in your own kitchen or perhaps in a restaurant? Who will be at the lunch? Do they have specific dietary requirements? When are they available for the lunch? Once you have determined which approach to take to get the lunch ready, you can start working out the tasks and steps you must take to make the lunch a success. With this example you should be able to clearly see that if you don’t know what your specific outcome should be you would find it hard to decide on a Business Analysis approach to take to achieve the outcome. This will make it even harder to work out what specifically to do, how to do it and when to do it! It is therefore essential to have a clear view of the outcome, consider the best approach using the information you have and collect about the project dimensions and then defined the plan in terms of tasks to perform.

STEP #1: Define and agree the expected outcome

The very first thing to determine is what is the expected Business Analysis outcome for your project? This will be different for every project because each project has it’s own unique objectives. What might be similar between projects is the type of Business Analysis artifact that you are delivering. The contents of the Business Analysis artifact will always be unique and should be developed optimally to meet the project’s objectives.

Once you have a clear view of what the project need in the form a Business Analysis outcome you are ready to start working out what approach to take to achieve that agreed Business Analysis outcome.

STEP #2: Take stock of the Project dimensions

Now that you know what the expected Business Analysis outcome is, you are ready to start delving into the different options for how you can approach the task to deliver that outcome. You now have to get an understanding of the project landscape. This involves various different aspects of which we will cover some of the most important factors here. The environment or organization to be more specific plays a key role in many aspects of your approach planning.

You need know the stakeholders you will have to work with. If you don’t know who your stakeholders will be yet, you should start by working out whom you would need to engage to achieve your Business Analysis outcome. Once you know who will be involved (and to what extent), you will have a lot to work with in terms of deciding how to approach the plans for execution.

For example, if you have stakeholders based in different offices around the city or country, you may need to think about having virtual requirements workshops rather than face-to-face sessions. This can be a cost saving for the project and this is when it is becomes important to also understand your timelines and budget for the requirements efforts. If you have a lot of time and money, you can perhaps afford to take a face-to-face requirements elicitation approach by having central workshops that people come to. If time and money is in fact limited you might need to take a different approach when eliciting requirements from those stakeholders.

Other factors you will need to consider is that general practice and culture of the organization. Do people expect to be included in the requirements detail or are you able to work at a higher level with most stakeholders. Do you need to engage a lot of people to ensure agreement and sign off of your Business Analysis artifacts or can you get away with only working with a small representative group? Are you able to obtain your approvals via email or do people expect formal structured walkthrough sessions. All these types of considerations will help you define what approach you should take to deliver the expected Business Analysis outcome in most successful way for that project in those particular circumstances.

There are many other factors that you should consider as part of formulating your Business Analysis approach and it is key to always do this in collaboration with the key project stakeholders. Once the key project stakeholders are in agreement with how you plan to approach the Business Analysis activities to achieve the expected Business Analysis outcome, you are ready to move to the next step of defining the Business Analysis activities for the project.

STEP #3: Create the Business Analysis Plan

At this point you know what approach you must take to deliver the Business Analysis outcome(s) for the project, however you must now take the time to create a specific Business Analysis Plan.

This is where you need to break down each key stage with their respective Business Analysis deliverables into specific tasks. Once you know what is required from a work breakdown perspective you are ready to estimate the effort required for the Business Analysis Plan. You will be able to present a specific Business Analysis Plan to the project stakeholders to demonstrate and outline the work involved and the number of Business Analysis resources you require (if you think you need more Business Analysts to help achieve the expected outcome within the timeframe and budget set).

In Conclusion

As an end result of doing your Business Analysis Approach and Plan you not only have a clear view of what the end goal will be but you know how you should go about it for that particular project. It demonstrates the value add of Business Analysis within the project environment in a very clear and pro-active way. As a Business Analyst you will most likely feel much more comfortable with working on a project with a clear Business Analysis outcome, an agreed Business Analysis Approach and all this supported with a specific and well suited Business Analysis Plan.

Have a look at our IIBA Endorsed Online Training Courses .

ONLINE TRAINING

• BABOK v3.0 Core Practitioner Course
• BA Practitioner Course
• BA Master Practitioner Course
• Agile BA Practitioner Course
• Business Process Fundamentals using BPMN v2.0 Course

Take your Business Analyst Skills to the next Level and Forge a Successful Path in a Growing Industry

Get in touch with us today.

• IIBA Certificate Courses Online
• Business Analysis Training Online
• Business Analysis Courses
• Business Analysis Short Courses
• Agile BA Courses
• CBAP Courses
• Babok Courses
• IT Business Analyst Courses
• IIBA Certification
• BABOK Certification
• Agile Business Analyst Certification
• Business Analyst Certification
• CCBA Certification
• CBAP Certification
• ECBA Certification
• ...Hide Popular Searches

FUTURE ANALYST 5.0

12 month analysis training membership, get on the waitlist.

& be the first to know when enrolment opens!

By signing up you’ll be added to our email list and will receive regular emails that include inspiration and advice and inform you of offers to help you build your career. We take care of your data in accordance with our privacy policy and you are free to unsubscribe at any time.

Request BA Group Information Pack

We will subscribe you to our informative newsletter. You can unsubscribe at any time.

Don't have a Shopify store?

How to Write a Business Plan in 9 Steps

Starting a business without a business plan is quite possible. But why would you risk that, especially when you are investing thousands of dollars to set up your startup?  

Whether you aim to secure funding, need a roadmap to achieve business objectives, or want to attract the attention of stakeholders—having a well-crafted business plan is like an indispensable asset for your business. 

But writing a business plan is not that easy. One needs strategic direction, a bit of writing flair, and a thorough understanding of what each section should include. 

A lot for someone who has never written a business plan earlier in their life. 

Well, having a useful guide like this blogpost can nudge you in the right direction and teach you how to write for different business plan components. 

Ready to get started? Let’s dive right in. 

9 Steps to Write Your Business Plan  

From creating your executive summary to conducting market research and preparing your financial plan—here is a step-by-step guide to writing your business plan. 

• Draft your executive summary

An executive summary is the first and most important section of your business plan. 

It is after this section that an investor will decide whether or not to proceed with your business proposal. 

Begin this section by introducing your business idea and then summarize the key essentials of a plan in a compelling narrative. Highlight information relating to the market, product, team, competitors, financials, and business goals to help investors get a macro but thorough perspective. 

Also, write your executive summary only after you are done writing for the other aspects of a business plan. This will help you distill essential information and present it appropriately. 

• Write a brief company overview

A company overview is a detailed summary describing your business and its future objectives. It offers you a chance to tell your business story to the readers, so make sure it is engaging. 

Begin this section by detailing your company’s information like its name, location, ownership, and business structure.

Clarify if the business would be registered as a sole proprietorship, partnership, LLC, or corporation. Also, introduce the partners if any, and discuss their profit-sharing ratio. 

In this section, you will also highlight the company’s vision statement, its business objectives, and future goals after evaluating your business fundamentals and core values. 

Lastly, don’t forget to talk about the milestones you have already achieved and the history of the company, if it has been operating for a long time. 

• Define your market research

Market research and analysis is a crucial part of your business plan. It shows that you have a thorough understanding of the market and the industry you are about to enter. 

In this section, you should talk about the market size and state of market in the current economy. Elaborate further by defining your Total Addressable Market (TAM), Serviceable Addressable Market (SAM), and Serviceable Obtainable Market (SOM) to help lenders get distilled clarity. 

Additionally, give an overview of your target market and create a buyer’s persona to show what your ideal customer looks like. Talk about the psychographic and demographic details of your ideal customer, i.e. age, gender, income, interests, pain points, behavioral pattern, etc. 

This is essential so that you can create strategies effective for your target market. 

Lastly, include details about the emerging trends in your industry and show how your product fits perfectly within that market. 

• Conduct competitor’s analysis

Competitor analysis is an aspect of market research that deeply studies the competitive landscape of your business. 

In this section of your business plan, you will identify your direct and indirect competition and analyze them on grounds of price, features, and target market. 

Such analysis will help you draw your competitive edge in the market. Not only that, it will show the lenders that competition will not come in the way of your business achieving its goals.   

• Describe your products and services

This section of your business plan explores your product and service offerings in great detail. 

Here, you will list down all the products and services that will bring money to your business. This includes all sorts of primary and secondary products/ services that are available for sale. 

For instance, if you are planning to start an online pet store, talk about all sorts of products, brands, and pet needs you will be catering to. Also, include the list of services like pet grooming, vet consultation, puppy training, and others you would be offering on your platform. 

When you list down the products also add a brief overview of those products and the prices to give lenders a thorough understanding. 

Instead of making this section purely textual, add infographics and HD images to it engaging and informative. 

• Explain your operational plan

This section of your business plan shows how you are going to run the business and turn the idea into a reality. 

It includes a detailed breakdown of each business procedure, right from the client acquisition, to training protocols, quality control practices, and everything else. 

It’s important that you take time and work on your operations plan as it most often works as a guidebook for running a business. 

Now if you are wondering what to include in your operations plan, here are a few things it must definitely have: 

• Standard operating procedures for running different business activities. 
• Logistics and distribution of products through different life cycles. 
• Production workflow, if applicable. 
• Details of supply chain like vendors and agreements. 
• Details about the physical location of your business, its dimensions, agreements, etc. 
• Equipment and technologies to perform everyday business activities and their details. 
• Staff and hiring plan and an understanding of who will perform what tasks. 

Also, include your long-term plans and show how you plan to reach there with streamlined operations. 

Again, try to add infographics, charts, and diagrams wherever possible to make this section easily absorbable for the readers.  

• Outline your marketing and sales strategies

The marketing and sales section of your business plan offers an in-depth overview of your sales and marketing strategies. 

In this section, you will talk about your sales goals, forecasts, and methods to achieve those sales goals. Explain your plans to attract new customers and retain existing clients and discuss your sales strategy in detail.

Further, describe your marketing plan, budget, and methods to track the progress of different marketing activities. 

Dive into detail and explain how you will implement different marketing strategies like print media, pay-per-click, email marketing, social media marketing, events/ launch, and others. 

Overall, offer an overview of your strategies to achieve the most important objective of your business, sales. 

• Introduce your management team

Lenders and investors want to know if you have the right people on the team to pull off your business idea. Well, this is your chance to tell them about solid people on your team. 

Introduce the CEO and members of managerial positions in this section. Talk about their experience, expertise, skill sets, achievements, and how they make the right fit for your business. 

Don’t you worry about bragging. This is absolutely the right time to brag about your star team. 

Further, introduce people at the middle and lower levels and explain the organizational hierarchy in your business through a diagram. Also, add the approximate salaries of the people to give the readers a more nuanced understanding.  

• Offer detailed financial forecasts

This is the most critical part of your business plan, especially if you are planning to seek funding from investors. 

Now, there are many things you can include in your financial plan. However, if there are 3 quintessential it must include, those are: 

• Income Statement
• Balance Sheet 
• Cash Flow Statement

While making the financial plan, include predictions and forecasts for up to 3-5 years so that investors can gauge the viability and feasibility of your business idea. 

Apart from these key statements, you can also include figures for start-up costs, the cost of goods sold (COGS), revenue forecasts, and break-even analysis in this section. 

Lastly, ensure that you add visual graphs, charts, and diagrams to make your finances easy to grasp and understand.

Let us now see if there is a way to write your business plan effectively without much effort.  

How does AI help in writing your Business Plan?

Writing a business plan from scratch without any assistance, template, or structure can be time-consuming. 

However, with AI making the rounds, it is easier than ever to perform creative and repetitive tasks, efficiently. Especially for someone who finds it difficult to transform their ideas into words, AI can make the task of writing a business plan much easier. 

Now, generative AI tools like Chat GPT and Bard can help you write the contents of your plan. However, they lack the understanding of specific nuances that a business plan must include. 

Using an AI business plan builder instead can be more effective as it structures and plans the contents specifically suited for a business plan. 

All you need to do is answer the questions relating to your business and let AI create a unique business ps easy to get a headstart and then make essential changes thereafter using AI assistance. 

AI will not only make the process less time-consuming, but it will also help in increasing the effectiveness of your business plan by working strategically on the content and structure. 

Business plans are quintessential for any business. Whether you are starting a new venture, expanding the current one, or seeking investment for your startup—having a solid business plan will give you a headstart in the right direction. 

Follow this step-by-step guide or get yourself an AI plan builder to write your business plan in no time. Get started now. 

Recover lost sales with proven Abandoned Cart Email series

• --> --> --> -->