business planning and evaluation

Business Plan Evaluation

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What is Business Plan Evaluation?

A business plan evaluation is a critical process that involves the assessment of a business plan to determine its feasibility, viability, and potential for success. This process is crucial for entrepreneurs, investors, and other stakeholders as it helps them make informed decisions about the business. The evaluation process involves analyzing various aspects of the business plan, including the business model, market analysis, financial projections, and management team.

The purpose of a business plan evaluation is to identify strengths and weaknesses in the plan, assess the feasibility of the business idea, evaluate the potential for profitability, and determine the likelihood of achieving the business objectives. The evaluation process also helps identify areas where improvements can be made to enhance the chances of success. This process is particularly important for solopreneurs who are solely responsible for the success or failure of their business.

Importance of Business Plan Evaluation

The evaluation of a business plan is an essential step in the business planning process. It provides an opportunity for the entrepreneur to critically examine their business idea and identify potential challenges and opportunities . The evaluation process also provides valuable insights that can help improve the business plan and increase the chances of success.

For investors, a business plan evaluation is a crucial tool for risk assessment. It allows them to assess the viability of the business idea, the competence of the management team, and the potential for return on investment. This information is vital in making investment decisions.

For Solopreneurs

For solopreneurs, the evaluation of a business plan is particularly important. As they are solely responsible for the success or failure of their business, it is crucial that they thoroughly evaluate their business plan to ensure that it is feasible, viable, and has the potential to be profitable.

The evaluation process can help solopreneurs identify potential challenges and opportunities, assess the feasibility of their business idea, and determine the likelihood of achieving their business objectives. This information can be invaluable in helping them make informed decisions about their business.

For Investors

Investors use the evaluation process to determine whether or not to invest in a business. They look at various aspects of the business plan, including the business model, market analysis, financial projections, and management team, to assess the potential for success. If the evaluation reveals that the business plan is solid and has a high potential for success, the investor may decide to invest in the business.

Components of a Business Plan Evaluation

A business plan evaluation involves the analysis of various components of the business plan. These components include the executive summary, business description, market analysis, organization and management, product line or service, marketing and sales, and financial projections.

Each of these components plays a crucial role in the overall success of the business, and therefore, they must be thoroughly evaluated to ensure that they are realistic, achievable, and aligned with the business objectives.

Executive Summary

The executive summary is the first section of a business plan and provides a brief overview of the business. It includes information about the business concept, the business model, the target market, the competitive advantage, and the financial projections. The executive summary is often the first thing that investors read, and therefore, it must be compelling and persuasive.

In the evaluation process, the executive summary is assessed to determine whether it clearly and concisely presents the business idea and the plan for achieving the business objectives. The evaluator also assesses whether the executive summary is compelling and persuasive enough to attract the attention of investors.

Business Description

The business description provides detailed information about the business. It includes information about the nature of the business, the industry, the business model, the products or services, and the target market. The business description also provides information about the business's competitive advantage and how it plans to achieve its objectives.

In the evaluation process, the business description is assessed to determine whether it provides a clear and comprehensive description of the business. The evaluator also assesses whether the business description clearly outlines the business's competitive advantage and how it plans to achieve its objectives.

Methods of Business Plan Evaluation

There are several methods that can be used to evaluate a business plan. These methods include the SWOT analysis, the feasibility analysis, the competitive analysis, and the financial analysis. Each of these methods provides a different perspective on the business plan and can provide valuable insights into the potential for success.

It's important to note that no single method can provide a complete evaluation of a business plan. Therefore, it's recommended to use a combination of these methods to get a comprehensive understanding of the business plan.

SWOT Analysis

SWOT analysis is a strategic planning tool that is used to identify the strengths, weaknesses, opportunities, and threats related to a business. This method involves examining the internal and external factors that can affect the success of the business.

In the evaluation process, a SWOT analysis can provide valuable insights into the potential for success of the business. It can help identify the strengths and weaknesses of the business plan, as well as the opportunities and threats in the market.

Feasibility Analysis

A feasibility analysis is a process that is used to determine whether a business idea is viable. This method involves assessing the practicality of the business idea and whether it can be successfully implemented.

In the evaluation process, a feasibility analysis can provide valuable insights into the feasibility of the business plan. It can help determine whether the business idea is practical and whether it can be successfully implemented.

In conclusion, a business plan evaluation is a critical process that involves the assessment of a business plan to determine its feasibility, viability, and potential for success. This process is crucial for entrepreneurs, investors, and other stakeholders as it helps them make informed decisions about the business.

The evaluation process involves analyzing various aspects of the business plan, including the business model, market analysis, financial projections, and management team. The purpose of a business plan evaluation is to identify strengths and weaknesses in the plan, assess the feasibility of the business idea, evaluate the potential for profitability, and determine the likelihood of achieving the business objectives.

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What Is a Business Plan?

Understanding business plans, how to write a business plan, common elements of a business plan, the bottom line, business plan: what it is, what's included, and how to write one.

Adam Hayes, Ph.D., CFA, is a financial writer with 15+ years Wall Street experience as a derivatives trader. Besides his extensive derivative trading expertise, Adam is an expert in economics and behavioral finance. Adam received his master's in economics from The New School for Social Research and his Ph.D. from the University of Wisconsin-Madison in sociology. He is a CFA charterholder as well as holding FINRA Series 7, 55 & 63 licenses. He currently researches and teaches economic sociology and the social studies of finance at the Hebrew University in Jerusalem.

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A business plan is a document that outlines a company's goals and the strategies to achieve them. It's valuable for both startups and established companies. For startups, a well-crafted business plan is crucial for attracting potential lenders and investors. Established businesses use business plans to stay on track and aligned with their growth objectives. This article will explain the key components of an effective business plan and guidance on how to write one.

Key Takeaways

• A business plan is a document detailing a company's business activities and strategies for achieving its goals.
• Startup companies use business plans to launch their venture and to attract outside investors.
• For established companies, a business plan helps keep the executive team focused on short- and long-term objectives.
• There's no single required format for a business plan, but certain key elements are essential for most companies.

Investopedia / Ryan Oakley

Any new business should have a business plan in place before beginning operations. Banks and venture capital firms often want to see a business plan before considering making a loan or providing capital to new businesses.

Even if a company doesn't need additional funding, having a business plan helps it stay focused on its goals. Research from the University of Oregon shows that businesses with a plan are significantly more likely to secure funding than those without one. Moreover, companies with a business plan grow 30% faster than those that don't plan. According to a Harvard Business Review article, entrepreneurs who write formal plans are 16% more likely to achieve viability than those who don't.

A business plan should ideally be reviewed and updated periodically to reflect achieved goals or changes in direction. An established business moving in a new direction might even create an entirely new plan.

There are numerous benefits to creating (and sticking to) a well-conceived business plan. It allows for careful consideration of ideas before significant investment, highlights potential obstacles to success, and provides a tool for seeking objective feedback from trusted outsiders. A business plan may also help ensure that a company’s executive team remains aligned on strategic action items and priorities.

While business plans vary widely, even among competitors in the same industry, they often share basic elements detailed below.

A well-crafted business plan is essential for attracting investors and guiding a company's strategic growth. It should address market needs and investor requirements and provide clear financial projections.

While there are any number of templates that you can use to write a business plan, it's best to try to avoid producing a generic-looking one. Let your plan reflect the unique personality of your business.

Many business plans use some combination of the sections below, with varying levels of detail, depending on the company.

The length of a business plan can vary greatly from business to business. Regardless, gathering the basic information into a 15- to 25-page document is best. Any additional crucial elements, such as patent applications, can be referenced in the main document and included as appendices.

Common elements in many business plans include:

• Executive summary : This section introduces the company and includes its mission statement along with relevant information about the company's leadership, employees, operations, and locations.
• Products and services : Describe the products and services the company offers or plans to introduce. Include details on pricing, product lifespan, and unique consumer benefits. Mention production and manufacturing processes, relevant patents , proprietary technology , and research and development (R&D) information.
• Market analysis : Explain the current state of the industry and the competition. Detail where the company fits in, the types of customers it plans to target, and how it plans to capture market share from competitors.
• Marketing strategy : Outline the company's plans to attract and retain customers, including anticipated advertising and marketing campaigns. Describe the distribution channels that will be used to deliver products or services to consumers.
• Financial plans and projections : Established businesses should include financial statements, balance sheets, and other relevant financial information. New businesses should provide financial targets and estimates for the first few years. This section may also include any funding requests.

Investors want to see a clear exit strategy, expected returns, and a timeline for cashing out. It's likely a good idea to provide five-year profitability forecasts and realistic financial estimates.

2 Types of Business Plans

Business plans can vary in format, often categorized into traditional and lean startup plans. According to the U.S. Small Business Administration (SBA) , the traditional business plan is the more common of the two.

• Traditional business plans : These are detailed and lengthy, requiring more effort to create but offering comprehensive information that can be persuasive to potential investors.
• Lean startup business plans : These are concise, sometimes just one page, and focus on key elements. While they save time, companies should be ready to provide additional details if requested by investors or lenders.

Why Do Business Plans Fail?

A business plan isn't a surefire recipe for success. The plan may have been unrealistic in its assumptions and projections. Markets and the economy might change in ways that couldn't have been foreseen. A competitor might introduce a revolutionary new product or service. All this calls for building flexibility into your plan, so you can pivot to a new course if needed.

How Often Should a Business Plan Be Updated?

How frequently a business plan needs to be revised will depend on its nature. Updating your business plan is crucial due to changes in external factors (market trends, competition, and regulations) and internal developments (like employee growth and new products). While a well-established business might want to review its plan once a year and make changes if necessary, a new or fast-growing business in a fiercely competitive market might want to revise it more often, such as quarterly.

What Does a Lean Startup Business Plan Include?

The lean startup business plan is ideal for quickly explaining a business, especially for new companies that don't have much information yet. Key sections may include a value proposition , major activities and advantages, resources (staff, intellectual property, and capital), partnerships, customer segments, and revenue sources.

A well-crafted business plan is crucial for any company, whether it's a startup looking for investment or an established business wanting to stay on course. It outlines goals and strategies, boosting a company's chances of securing funding and achieving growth.

As your business and the market change, update your business plan regularly. This keeps it relevant and aligned with your current goals and conditions. Think of your business plan as a living document that evolves with your company, not something carved in stone.

University of Oregon Department of Economics. " Evaluation of the Effectiveness of Business Planning Using Palo Alto's Business Plan Pro ." Eason Ding & Tim Hursey.

Bplans. " Do You Need a Business Plan? Scientific Research Says Yes ."

Harvard Business Review. " Research: Writing a Business Plan Makes Your Startup More Likely to Succeed ."

Harvard Business Review. " How to Write a Winning Business Plan ."

U.S. Small Business Administration. " Write Your Business Plan ."

SCORE. " When and Why Should You Review Your Business Plan? "

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The importance of knowing how to evaluate a strategic plan

Now that you know more precisely what strategic planning is and what it is for – with the help of Peter Drucker’s ideas – let’s take a look at some strategic planning objectives.

3 main objectives of strategic planning

Below are the main objectives and benefits of monitoring your organization’s strategic plan:

1- Ensuring that activities are being performed within the defined parameters

During the development of strategic planning, for each activity planned for the organization, necessary parameters for their accomplishment are considered.

Costs, execution time, financial, material and human resources needed, among others.

Now, while the plan is being put in place, the manager must make sure that all activities are being carried out within the proper parameters.

Rather than assessing, the manager must look at whether a change of course is required, and whether the parameters for any activity need to be rethought.

Ensuring activity progress helps set performance standards that indicate progress towards long-term goals, assesses people’s performance, and provides input for feedback.

2- Ensuring activities are consistent with company DNA

The soul of the organization is closely linked to its vision, mission and values.

Monitoring strategic planning is also a way to ensure that activities are being developed in accordance with the values that guide the organization and its organizational culture.

Since they are directly related to the organizational climate and the corporate image of the company.

Check out this unique Siteware infographic that shows the consequences of a misaligned organizational culture of strategic planning:

3- Assessing ability to achieve goals and identify problems

Analyzing both the internal and external workforce and the exchange of ideas is also important in measuring how well a company is able to achieve what was set for the period.

By comparing performance data with established standards, it is possible to visualize or anticipate possible bottlenecks in corporate daily life.

Why is monitoring strategic planning important?

When a company monitors its strategic planning closely, it ensures that its teams are doing a good job, committed to maintaining progress, and with proper records so they can be evaluated.

Here is another quote from a master, Ram Charan , to illustrate how monitoring strategic planning is critical.

“ 70% of strategies fail due to ineffectiveness. They rarely fail due to lack of intelligence or vision.”

That is, at the time of executing the plan, it is crucial to carry out strategic monitoring and evaluation of the planning systematically and constantly.

After all, if 70% of planning activities fail in execution, only strategic planning control and evaluation – with metrics – will allow errors to be detected and adjustments made.

The metrics a company uses to measure also indicate the quality of the year or period the company is in.

If necessary, from what is evaluated, it is possible to correct the current path, make investments, hire staff, seek technological tools, build partnerships, among many other solutions.

Monitoring is part of the strategic planning system primarily to keep track of what is happening.

And this is usually done through an analysis of regular operational and financial reports on a company’s activities.

The results of a strategic planning follow-up are:

• Incentive for continuous improvement;
• Provision of data on the impact of activities;
• Information for decision making.

The monitoring of strategic planning should be carried out based on the same indicators used when preparing strategic planning.

This also allows for process review as the company realizes that activities, internal and external relationships, customer approaches, etc. need to be modified.

Is it clear to you how important strategic planning and the control of action plans and activities are?

Examples of strategic planning indicators

You have seen that there is no way to monitor strategic planning without the use of indicators.

There are actually three types of indicators to consider in a company:

• Strategic Indicators:  They point to the future, the path the company is expected to follow, and are linked to the mission and vision of the business. They will be reached in the long term, between 3 and 5 years. After an analysis of internal and external scenarios and company differentials, with the help of SWOT analysis, strategic indicators are usually defined.
• Tactical Indicators:  are related to the actions of each area of the company. They make up an action plan that is effective in a shorter period than the strategic objectives, but should contribute to it. If tactical indicators are being met, there is a good chance that strategic objectives will also be met successfully.
• Operational Indicators:  short term. They are directly linked to the day-to-day operations in a company and the progress of the processes. Operational indicators are assigned to each employee to achieve the desired performance level that will make it possible to achieve tactical and strategic goals.

How do you define strategic planning indicators, anyway?

We have seen in the paragraphs above that strategic indicators have the following characteristics:

• Point to the future
• Achieved in the long term
• Linked to a company’s mission and vision
• Based on competitive differences

So, for example, it would make no sense to define strategic indicators like the following:

• Improve the efficiency of our production line by 15% next year.
• Increase sales by 10% by the end of June
• Hire new talent to fill 6 positions on the board by year’s end

These are typical examples of tactical indicators.

To get examples of strategic planning indicators, one must think of changes more linked to the company’s DNA, its mission to society.

Here is a short list of examples of strategic planning indicators:

• Launch 3 new product lines each year over the next 4 years to gain 35% more Share in Market X.
• Create a corporate university that meets our needs within a maximum of 2 years and institute university study support plans to enable our employees to have 85% of the workforce with a college degree and 50% with a postgraduate degree. 5 years.
• Deactivate business units with less than 20% profitability and use the proceeds from the sale of these assets to start an international expansion project by opening 1 unit in countries X, Y and Z and 3 units in country W within 4 years.

Challenges of following strategic planning

Now that it’s clear to you how to evaluate a strategic plan, let’s look at the challenges inherent in doing it.

If we consider that strategic planning is the consolidation of ideas, it is in the implementation of these ideas that the organization will obtain its results, as Charan pointed out.

That’s why it needs to be constantly reevaluated and rethought as corporate progresses.

The biggest challenge of strategic management is related to the ability to move the organization and keep it connected with what was proposed by the strategic plan, with the adaptability that this process requires.

Like every management function, this presupposes a permanent dynamic of planning, execution, monitoring, evaluation, adjustments and readjustments.

And if you want to know how to evaluate a strategic plan even more quickly and assertively, check out STRATWs One strategic planning software.

It enables a friendly view of your strategy map, making it easy to track indicators and goals and creating action plans for each one.

It makes it much easier to understand how to evaluate a strategic plan and monitor internal activities.

Revolutionize the management of your company with STRATWs One

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Strategy Evaluation Process: Comprehensive Guide + Examples

The process of strategy evaluation is often overlooked in the overall strategic management process . After the flurry of activity in the initial planning stages, followed by the reality check of executing your strategy alongside business-as-usual, strategy evaluation is often neglected.

When this happens, strategies quickly become outdated and out-of-sync with the changing face of the organization.

On the contrary, when an efficient strategy evaluation process is set in place, businesses can benefit from insights and learnings from past performance to inform more efficient decision-making .

What Is Strategy Evaluation?

Strategy evaluation is the process of analyzing a strategy to assess how well it's been implemented and executed. It’s an internal analysis tool and should be used as part of a broader strategic analysis for the organization when making strategic decisions.  

Typically, the strategy evaluation process involves answering questions such as:

• Are we moving forward towards achieving our core business metrics ?
• How much progress have we made towards our Vision ?
• Are our Strategic Focus Areas still relevant?
• Which of our Objectives have we completed?
• Do we have sufficient Projects to deliver incomplete Objectives?
• Are our KPIs still effective for measuring progress towards our Objectives?
• Where did we fall short of our targets? Why did this happen?

At the very least, you need to evaluate your strategy twice a year—or better yet, every quarter. Even if you feel as though your existing company strategy is 'too far gone' and needs a fresh start, you'll want to perform a thorough strategy evaluation to understand what went wrong and use this information for your new strategy.

The mistake that people often make when it comes to strategy execution , is thinking of their strategy as a linear set of steps. In reality, the strategic planning process requires constant iteration and evolution, with strategy evaluation serving as a pivotal factor in shaping strategy formulation.

💡 Pro Tip: A good strategy should never really 'end'. Rather, it should morph into something more ambitious and sophisticated as goals are met.

Steps For a Successful Strategy Evaluation Process

There is no one-size-fits-all in terms of strategy evaluation, so we encourage you to think about how your own process would look like. However, after working on countless strategies with our customers, these are the steps we suggest you follow for a successful evaluation process.

Step 1: Evaluation starts at the start

It may sound counter-intuitive, but ideally, you'll be kicking off your strategy evaluation process back in the planning stage . Strategy evaluation is essentially the process of figuring out:

• What did we do well?
• How can we improve upon what we did well?
• What did we learn about ourselves and the external environment along the way?

One of the best ways to answer these questions is by setting effective KPIs (Key Performance Indicators) in your planning stage so you’ll be able to clearly measure performance in the following stages.

Let’s look at an example:

Imagine "EcoWise," a company with a vision to lead global sustainable living. One of their core business metrics is market share , and they aim to expand their eco-friendly products into new international markets.

One of their focus areas could be “International Market Expansion” driven by the following objectives:

• Enter and secure a 5% market share in Europe.
• Launch at least five new eco-friendly products annually.

To understand progress towards the objectives, they set the following KPIs:

• Market Share Growth
• Product Adoption Rate
• Sustainability Ratings

By having clear KPIs that set a benchmark and allow to measure actual results, EcoWise will be able to answer fundamental questions during the strategy evaluation process:

• Did we meet our KPI?
• Why did we fall short?
• Was this even the right KPI?

👉🏻 How Cascade can help?

With Cascade’s planner feature, you can ensure you set all the important elements of your strategic plan with structure and ease and assign measurable targets at the initiative and project levels.

Step 2: Implement consistent processes and tools

Not to sound too much like a broken record, but effective strategy evaluation requires planning that goes beyond the setting of good KPIs. You'll also need to plan out your 'strategy rhythm'—things like:

• How often will we measure progress against our goals?
• What standardized set of reports will be used throughout the business?
• What level of detail shall we capture in our written commentary on progress against the plan?

💡 Pro Tip: It’s important to determine these types of things up front and implement a regime of meetings and reports throughout the organization.

We like to call this process your ' strategy rhythm ' as it should form the backbone of your organization's activities, and be maintained regularly and consistently throughout the year.

Here is an example you can use provided by Cascade’s team of experts:

Step 3: Empower teams to evaluate their own strategies

Empowerment plays a critical role in the strategy evaluation process. Rather than have the leadership team alone participate in your strategy evaluation, invite stakeholders from different areas and departments to prepare their own evaluation of how the team performed against the strategy.

Provide them with a simple framework to conduct the analysis and address essential questions like:

• Did we meet our goals?
• What was it that helped us to succeed?
• What challenges made us fall short?
• Were our goals well set, and have they brought us closer to achieving our overall vision?

Ideally, you'll have your teams present using the tools you defined in step 2 . This includes any strategic dashboards or standardized reports that you agreed on previously.

Cascade’s dashboards and reports in real-time give you and your teams an accurate picture of the strategic performance to aid in your strategy evaluation process.

Step 4: Take corrective action

Steps 4 and 5 (below) are somewhat intertwined and should be performed largely in conjunction with each other. If you find that you're not meeting one of your goals, you'll want to do two things:

• Start by figuring out if the goal is still the right one.
• If it is, take corrective action to address any shortcomings.

Assuming you're still convinced the goal you've set is the right one, you need to implement an action plan to get yourself back on track.

There are many reasons why you might be struggling to hit your goals, ranging from relatively simple issues such as:

• Lack of resource allocation (human or financial)
• Conflicting priorities
• Ineffective tracking of targets
• Misalignment or understanding of the goal

Or your challenges may be more complex and relate to:

• Increased competition
• A significant capital shortfall
• Regulatory pressures
• Lack of internal innovation

Whatever the case, the sooner you can identify these issues, the sooner you can start to take corrective action to ensure a more effective strategy implementation that will get you closer to achieving your desired results.

How to identify the issue?

There are tools and frameworks you can use during the strategy evaluation process that can give you more information about internal and/or external factors that may be hindering your progress.

For example, a SWOT analysis can be useful to reveal what you excel at and where you need improvement. Identifying your weaknesses is key to understanding what might be holding your strategy back.

Another best practice is conducting a competitive analysis to gain insights into what your competitors are doing better. By comparing your strengths and weaknesses against theirs, you can understand where you hold the competitive advantage and where you have gaps that need addressing.

Step 5: Iterate your plan

There are two scenarios where you'll want to iterate your plan as part of your strategy evaluation—one being significantly more positive than the other:

Scenario 1: When you achieve your goals

In an ideal world, your plan evolves because you've successfully checked off some or all of your strategic goals. Your plan isn't set in stone; it's flexible and can take unexpected turns.

For instance, you might reach certain goals much earlier than anticipated. When that happens, you shouldn't wait around for the entire plan to play out. Instead:

• If you've met all your goals, it's time to ask if your broader focus area is complete. If not, it's time for new goals within that focus area.
• Or, if you've successfully nailed all your focus areas, it's time to ponder if you're closer to your vision. If not, new focus areas should come into play.

Scenario 2: When you fall short of your goals

Now, let's consider a different scenario, where you didn't quite hit all your goals. But here's the thing: just because you missed a goal doesn't automatically mean you need to take immediate corrective action.

One of the key outcomes of effective strategy evaluations is the recalibration of Key Performance Indicators (KPIs).

Going back to the example in step 1 , let’s say that EcoWise effectively launched 5 new products, but this did not effectively translate into them gaining significant market share (which was the key metric they were aiming for).  

In this case, it suggests the original KPI might not have been quite right. But you wouldn't have known that without either the KPI in the first place or the process of strategic evaluation.

The platform allows for a flexible setup of your strategy to easily make changes to the plan if needed after the insights learned from your strategic evaluation process. By providing full visibility, your teams and other stakeholders will be aware of the changes in real-time!

Step 6: Celebrate successes

We've saved the most fun part of the strategy evaluation process for last—celebrating success.

Given that your strategy will never ‘finish,’ it’s important to celebrate the successes along the way to keep your teams motivated and engaged. The first time you achieve a KPI or even focus areas— enjoy it!

Celebrating the success of a strategic goal is not only great for morale, but it also sends a strong message that the execution of the plan really really matters .

Strategy Evaluation Framework Example

Let's imagine how a supply chain company could tackle the evaluation of its quarterly supply chain plan:

• KPIs analysis : First, they examine their KPIs to decipher which goals they've attained and which ones are still a work in progress.
• Team performance report : The teams get to work on crafting performance reports, offering insights into their achievements and areas requiring additional focus.
• Further analysis : When certain KPIs fall short, they conduct a deeper analysis to uncover the root causes of these performance gaps. In some cases, they even realize that the initial KPIs might not have been the best fit.
• KPI evolution : If they’ve successfully met a KPI, they adapt and introduce a new one to further advance toward key business metrics.
• Evolving the plan : With insights and learnings from their strategy evaluation, they refine their strategic plan, making tweaks and adjustments as needed.

Centralized Observability: The Key To Effective Strategy Evaluation

In the realm of strategic business management, the journey to success is all about adaptability, evolution, and continuous improvement. A pivotal aspect of this journey is the capability to gain a holistic, centralized view of your strategy.

Centralized observability plays a pivotal role in successful strategy evaluation, empowering organizations to:

• Monitor KPIs and goals in real time.
• Understand how teams work together toward achieving the overarching business goals.
• Quickly spot areas that may need adjustments.
• Foster a culture of transparency and accountability, as teams can see how their efforts impact the broader strategy.

This unified perspective simplifies the process of assessing strategy effectiveness and provides invaluable insights for more effective decision-making.

This is where Cascade , the world’s leading Strategy Execution Platform , comes into play as your strategic ally. Cascade enables centralized observability by offering key features for goal management, performance tracking, and strategy alignment. It streamlines the strategy evaluation process, providing real-time data for confident decision-making.

Discover how Cascade can help! Sign up today for free or book a guided 1:1 product tour with one of Cascade’s in-house strategy execution experts.

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How to Measure Your Business Performance

• 14 Nov 2023

Measuring your business’s performance is essential to its long-term success. By assessing its operations, you can make informed decisions, find ways to improve, and establish accountability in the workplace .

Despite these benefits, many businesses struggle to use the vast amounts of data they have access to. According to a report by data storage company Seagate , businesses act on just 32 percent of the data available to them—with the remaining 68 percent going unleveraged.

If you want to help your organization achieve its strategic objectives, here’s why it’s vital to measure business performance and how to do it.

Access your free e-book today.

Why Measure Your Business Performance?

Measuring business performance is critical to ensuring effective strategy formulation and implementation . It can also help identify obstacles and setbacks that impact your company’s success—similar to risk management .

According to the online course Strategy Execution , performance measurement comprises the formal, information-based routines and procedures managers use to maintain or alter patterns in organizational activities.

Engaging in performance measurement helps you and organizational leaders , investors, and employees understand how your roles and responsibilities relate to your business’s strategy—creating a culture of accountability and commitment to achieving its goals and objectives .

How to Measure Business Performance

Long-term business success doesn’t just result from effective strategy execution; it also relies on a holistic approach to monitoring, measuring, and evaluating performance. This involves creating objective and subjective measures—often called key performance indicators (KPIs) .

While objective measures—like revenue and profit margin—are crucial to assessing performance, subjective measures are often overlooked.

“If a measure is objective, you can independently verify it,” says Harvard Business School Professor Robert Simons, who teaches Strategy Execution . “You and I could look at the same set of data and draw the same conclusion. A subjective measure, by contrast, requires judgment.”

For example, measuring employee engagement can help gauge the amount of internal support for your business strategy. High employee engagement can also greatly impact your company’s bottom line—increasing profitability by up to 23 percent .

“These measures work well only when there's a high degree of trust between employees and managers,” Simons says in Strategy Execution . “Employees must feel confident that subjective measures are applied fairly.”

Using diagnostic control systems —information systems managers use to monitor organizational outcomes and correct negative performance—you can ensure consistency and standardization when measuring success.

Examples of diagnostic control systems include:

• Performance scorecards
• Project monitoring systems
• Human resources systems
• Standard cost-accounting systems

Before implementing such systems and measuring your business performance, here are three factors to consider.

3 Considerations When Measuring Business Performance

1. financial goals.

Measuring business performance starts with financial goals. This is largely because your company’s financial value is its first indicator of success or failure. Financial goals also help ensure your diagnostic control systems effectively monitor profitability and provide insight into how to fix problems.

To set financial goals, you can use a profit plan —a summary of a specific accounting period’s anticipated revenue inflows and expense outflows—presented in the form of an income statement . Profit plans serve several purposes; their most important is creating control systems that place responsibility on management.

“Individual managers can be held accountable for achieving specific revenue and expense targets and the overall profitability of the business,” Simons says in Strategy Execution .

To confirm that your profit plan holds you and others accountable for your organization’s financial health , Simons suggests asking the following:

• Does the business create enough profit to cover costs and reinvest in future endeavors?
• Does the business generate enough cash to remain solvent through the year?
• Does the business create sufficient financial returns for investors?

“Once managers have completed the profit planning process,” Simons says, “people throughout the organization will be in agreement about the direction of the business and the assumptions that underpin the forecasts.”

Related: 7 Financial Forecasting Methods to Predict Business Performance

2. Non-Financial Goals

While financial metrics are critical to assessing short-term profitability, non-financial goals can impact your business’s long-term success.

Objectives like improving customer satisfaction, boosting employee engagement, and enhancing ethical practices can all drive business performance—even financially.

“An organization that's focused just on financial goals will rarely achieve those goals for a long period of time,” says Tom Polen, CEO and president of medical technology company Becton Dickinson, in Strategy Execution . “It's all the other goals that are going to feed into the financial goals.”

In the course, Polen says he consistently communicates his organization’s strategic objectives to employees and uses an incentivization system to reward those working to support non-financial goals.

“As a health care provider, the most important thing—bar none—is quality,” Polen says. “While we’re focused on financial goals, our quality goals—which cut across manufacturing, regulatory, marketing, and medical—contribute to making sure that we have quality products at the end of the day. And we’ll never sacrifice a quality goal for a financial goal.”

3. Intangible Assets

Your goals aren’t the only thing you can use to measure your company’s performance. Intangible assets—non-physical assets your business significantly values—can also help.

Examples of intangible assets include:

• Research capabilities
• Brand loyalty
• Customer relationships

“These are among the most valuable assets in many of today's businesses,” Simons says in Strategy Execution . “But you won't find them anywhere on an income statement or balance sheet .”

Since you can’t monitor these assets using traditional accounting systems, you can instead use a balanced scorecard —a tool designed to help track and measure non-financial variables.

“The balanced scorecard combines the traditional financial perspective with additional perspectives that focus on customers, internal business processes, and learning and development,” Simons says in Strategy Execution . “These additional perspectives help businesses measure all the activities essential to creating value.”

For example, if your business strategy focuses on improving an intangible asset, like brand loyalty, you can use a balanced scorecard to track customer satisfaction through surveys and reviews.

In this way, the balanced scorecard offers a comprehensive view of business performance, helping you make informed decisions to protect and enhance intangible assets’ value.

Start Measuring Your Business Performance

Measuring business performance doesn’t have to be difficult. By implementing the appropriate metrics and control systems, you can seamlessly track strategic initiatives’ progress.

By enrolling in an online course, such as Strategy Execution , you can be immersed in a dynamic learning experience featuring real-world examples of businesses that have employed performance measurement strategies to secure long-term success.

Do you need help measuring your business performance? Explore Strategy Execution —one of our online strategy courses —and download our e-book to discover how to think like a top strategist.

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Philanthropy

Strategic planning and evaluation: tools for realizing results.

To enable significant impact, organizations should ask three key questions and decide if formal planning and evaluation are the right approaches to finding the answers.

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By Paul Carttar Mar. 21, 2014

Nonprofit organizations are a stunningly diverse bunch, with assets ranging from hundreds of dollars to billions, service areas as varied as neighborhoods and the entire planet, and missions that encompass the full scope of human imagination and experience. But for all their differences, they are united in their desire to accomplish real results and in their need for funding—often from philanthropic individuals and institutions—to succeed in that ambition.

In a world where problems will always exceed the resources available to address them, philanthropy has a special responsibility to allocate its resources as effectively as possible to achieve significant social impact. With so many options and so much at stake, funding decisions will inevitably generate spirited debate, as is apparent in the simmering controversy over the significant increase in recent years of foundation support for formal processes such as strategic planning and evaluation. In particular, critics have made two major arguments against that funding choice: 1) that these processes simply cost too much, absorbing resources that would be better allocated to nonprofit programs that actually generate social impact, and 2) that many, if not most, of these efforts rely too heavily on simplistic goals and metrics that do not capture the true complexity and character of the intended social benefits.

Acknowledging that I am a planner by profession and that I previously headed up an Obama Administration program dedicated in large part to expanding the use of formal evaluations, I want to make three points.

First, despite their seemingly esoteric nature, strategic planning and evaluation are simply tools for optimizing performance. Used properly, they establish clarity around critical, basic questions that every nonprofit or foundation seeking impact should be highly motivated to confront:

• What social impact are we trying to achieve?
• What activities should we pursue to achieve our intended impact?
• How will we know if we’re succeeding?

I would argue that any nonprofit or foundation that can’t provide well-reasoned answers to these questions—however they determine those answers—has very dim prospects for accomplishing anything of real value to society, unless by chance.

Second, formal strategic planning and evaluation are not necessarily for everybody. Although all nonprofits and philanthropies should have solid answers to the questions above, there is no compelling reason for why they all should rely on systematic planning and evaluation processes to arrive at the answers. Those processes can be costly, though they’re not inherently so. Both encompass a wide range of approaches, from informal and intuitive assessments performed by internal staff to formal, rigorous analyses led by outside consultants. Whatever their degree of formality, their objective is the same: to enable nonprofits and philanthropies to develop increased confidence that their efforts are making a difference in the world.

So given their extraordinary diversity, when does it make most sense for nonprofits and foundations to undertake more formal, analytically rigorous, and, yes, costly strategic planning and evaluation processes? While there are many reasons for why impact-seeking organizations might desire greater confidence around resource-allocation decisions, the most compelling is simply scale. Put simply, the more money a nonprofit aspires to raise or a foundation contemplates providing for a particular program or intervention, the higher the opportunity cost—to the organizations involved and society overall—of being wrong about what approaches actually drive results. Plus, as scale grows, the real cost of systematic planning and evaluation, at least on a per-beneficiary basis, may become quite low.

The scale factor is particularly compelling, I believe, when the decision-maker is not actually the donor. It’s one thing for individuals to dedicate their own hard-earned money to support a given charitable pursuit. It’s another thing altogether when the people making funding decisions are using other people’s money. That, of course, is the case at many large private foundations (and all government agencies, for that matter). In such situations, fiduciaries and other stakeholders (and taxpayers) have a right to demand a high level of confidence that the organization’s decision-makers are deploying money wisely and to good effect.

Ultimately, nonprofits and foundations must decide based on their own circumstances what degree of formality their evaluation requires—or whether they value these processes at all. Following the logic laid out above, for example, where organizations are focused on pursuing more subtle or multifaceted changes in small-scale settings like neighborhoods and using the money of the people actively engaged in driving that change, the case for formal, rigorous strategic planning and evaluation simply doesn’t seem compelling.

Third, effective strategic planning and evaluation processes should yield robust, quantitative goals and metrics. Because the core purpose of these processes is to enable organizations to take productive actions, the goals and metrics that frame those actions must capture their most important elements and make it possible to monitor and measure them. And by definition, the metrics should be clear, precise, and quantitative whenever possible. That’s not always an easy task, but there can be no doubt that ambiguity is an enemy of focus, accountability, and learning.

Fortunately, a wide array of the most common social programs and interventions that philanthropies support at significant scale—job training, education, health services, home visitation, and teen pregnancy prevention, to name a few—are relatively straightforward and can be accurately assessed using discrete, quantifiable goals and metrics. Even where they are not—as might be the case with more complex or conceptual outcomes such as individual well-being, civic engagement, or social justice—skilled planners and evaluators can and must directly confront this complexity, possibly disaggregating concepts into elements that they can specify, track and measure in ways that still enable successful action while also respecting the organization’s true intent.

All that said, it’s inevitable that some strategic planning and evaluation processes will yield goals and metrics that may seem superficial or non-productive, and those interested in improving social sector effectiveness need to call them out and improve them. But organizations can’t abandon altogether the search for reliable metrics simply because the challenge of getting it right is arduous.

Still, the question remains: Are foundations and nonprofits overinvesting in strategic planning and evaluation? It’s possible that the pendulum has swung too far in some circumstances. But if so, this would still be a welcome change from prior decades when information about philanthropic aims and outcomes was scarce and rigorous strategic planning and evaluation hard to come by. Indeed, it’s sobering to contemplate how much money the social sector has wasted over the years because foundations or nonprofits unknowingly funded ineffective programs and interventions. When all is said and done, it is that specter that should inspire us to help our very diverse community of nonprofits and philanthropies find their best paths forward.

Support  SSIR ’s coverage of cross-sector solutions to global challenges.  Help us further the reach of innovative ideas.  Donate today .

Read more stories by Paul Carttar .

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Effective Business Evaluation: A Comprehensive Guide

At its core, business evaluation involves a systematic assessment of various aspects of a company’s operations, financial health, and market presence. It encompasses the collection and analysis of data from multiple sources, enabling decision-makers to gain a comprehensive view of their organization. The benefits of business evaluation are multi-fold, ranging from enhanced operational efficiency and optimized resource allocation to the identification of potential risks and the formulation of effective growth strategies. By harnessing the insights derived from business evaluation, companies can position themselves for long-term success in an ever-evolving business landscape.

Business evaluation stands as a pivotal practice that enables companies to navigate the complex challenges of today’s business world. It provides a structured framework for critically analyzing a company’s performance and making well-informed decisions based on tangible data and insights. As markets evolve, consumer behaviors shift, and technologies advance, businesses must adapt and evolve to remain competitive. Business evaluation equips leaders with the tools they need to understand their current position, identify areas for improvement, and capitalize on emerging opportunities.

Essential Data Collection and Analysis

Importance of accurate data for evaluation.

Accurate and reliable data serve as the bedrock upon which informed decisions are built. Whether it’s assessing financial performance, gauging operational efficiency, or identifying market trends, the quality of data directly impacts the validity of evaluation outcomes. Inaccurate or outdated data can lead to flawed conclusions and misguided strategies, potentially hindering a company’s growth trajectory. Therefore, meticulous attention to data accuracy, validity, and relevance is paramount in ensuring the effectiveness of the evaluation process.

Types of Data: Financial, Operational, Market

Successful business evaluation necessitates the collection and analysis of a diverse range of data. Financial data, including income statements, balance sheets, and cash flow statements, offer insights into a company’s fiscal health and profitability. Operational data delves into the efficiency and effectiveness of internal processes, shedding light on potential bottlenecks and areas for improvement. Market data, encompassing customer behavior, competitive landscape, and industry trends, provides a holistic view of the external forces shaping a business’s environment. By combining these different data streams, decision-makers can develop a comprehensive understanding of their organization’s strengths and vulnerabilities.

Analyzing Financial Health

The financial health of a business serves as a critical barometer of its overall well-being and potential for growth. This section delves into the key concepts and methods involved in assessing a company’s financial performance, equipping you with the tools to dissect financial statements, interpret key ratios, and draw meaningful conclusions.

Key Financial Ratios

Financial ratios are fundamental tools that enable decision-makers to gain insights into various aspects of a company’s financial health. Liquidity ratios, such as the current ratio and quick ratio, assess a company’s ability to meet short-term obligations. Solvency ratios, including the debt-to-equity ratio and interest coverage ratio, shed light on the company’s long-term financial stability and its capacity to manage debt. Profitability ratios, such as gross profit margin and net profit margin, provide insights into the company’s ability to generate profits from its operations. Efficiency ratios, including inventory turnover and receivables turnover, gauge the effectiveness of resource utilization.

Evaluating Liquidity, Solvency, and Profitability

Liquidity ratios help determine a company’s ability to cover its short-term liabilities, ensuring smooth day-to-day operations and financial stability. Solvency ratios, on the other hand, provide insights into the company’s capacity to manage long-term debt and meet its obligations over time. These ratios play a pivotal role in evaluating the company’s financial risk and its ability to weather economic downturns. Profitability ratios reveal how efficiently the company generates profits relative to its revenue and costs, indicating its potential for sustained growth and value creation.

Operational Efficiency

Operational efficiency is a critical driver of a company’s success and competitive advantage. This section explores the essential components of operational evaluation, guiding you through the process of identifying bottlenecks, optimizing workflows, and enhancing overall efficiency to propel your business forward.

Process Bottlenecks and Inefficiencies

Every business consists of a complex web of processes, from production and supply chain management to customer service and administrative tasks. Identifying bottlenecks and inefficiencies within these processes is key to streamlining operations and maximizing productivity. Bottlenecks, where resources are constrained and processes slow down, can hinder timely delivery and customer satisfaction. Uncovering these bottlenecks requires a thorough examination of workflows, resource allocation, and potential chokepoints.

Operational Improvements and Overall Performance

Efficiency improvements in specific operational areas have a cascading effect on the overall performance of the company. Optimizing processes not only enhances productivity but also reduces costs, shortens lead times, and improves the quality of products or services. Moreover, streamlined operations free up valuable resources that can be redirected toward innovation and growth initiatives. By connecting operational improvements to broader business goals, you create a virtuous cycle of continuous enhancement.

SWOT Analysis for Strategic Insights

A SWOT analysis stands as a powerful tool for gaining a comprehensive understanding of your business’s internal strengths, weaknesses, as well as external opportunities and threats. This section will guide you through the process of conducting a SWOT analysis, enabling you to unearth valuable insights that can shape your strategic decisions and pave the way for growth.

Exploring Internal Strengths and Weaknesses

Internal factors form the core of a SWOT analysis, encompassing the strengths and weaknesses inherent to your organization. Strengths are the attributes and capabilities that give your business a competitive edge – it could be a strong brand, a dedicated workforce, or proprietary technology. Conversely, weaknesses are areas where your business may lag – perhaps limited resources, outdated processes, or a lack of expertise. Identifying these internal factors provides a clear picture of your company’s current standing and where it can improve.

Identifying External Opportunities and Threats

External factors involve the opportunities and threats presented by the broader business environment. Opportunities are trends, market shifts, or emerging technologies that you can capitalize on to propel your business forward. Threats, on the other hand, encompass external forces like competition, regulatory changes, or economic fluctuations that could potentially hinder your progress. By identifying these external factors, you gain a holistic view of the challenges and possibilities that lie ahead.

Informed Decision-Making and Continuous Improvement

The insights derived from a comprehensive business evaluation serve as a compass that guides decision-makers through the complex landscape of choices and possibilities. When faced with critical decisions such as resource allocation, expansion strategies, or new product launches, the data-driven insights from evaluation provide a solid foundation upon which to build informed choices. By minimizing guesswork and relying on objective analysis, decision-makers can enhance the likelihood of positive outcomes and mitigate potential risks.

Business evaluation is not a one-time event, but rather an ongoing practice that fuels continuous improvement. As markets evolve, consumer preferences shift, and technologies advance, businesses that remain stagnant risk falling behind. Embracing a culture of ongoing evaluation enables companies to adapt swiftly to changing circumstances, capitalize on emerging opportunities, and address evolving challenges proactively. By regularly assessing performance, identifying areas for enhancement, and fine-tuning strategies, businesses position themselves for sustained growth and resilience.

Key TakeAway

Harnessing the power of business evaluation.

The knowledge acquired through business evaluation is not meant to reside within spreadsheets and reports; it is meant to inform action. By translating evaluation insights into strategic initiatives, you can harness your company’s strengths, address its weaknesses, and seize the opportunities that lie on the horizon. Whether it’s optimizing operations, exploring new markets, or refining customer experiences, the data-driven approach derived from evaluation serves as the bedrock of strategic success.

The business landscape is a dynamic arena, subject to shifts and transformations. To thrive in this environment, businesses must embrace the ethos of continuous improvement. Ongoing business evaluation becomes the cornerstone of this philosophy, enabling you to stay nimble, responsive, and attuned to emerging trends and challenges. Just as a ship’s captain adjusts the sails to navigate changing winds, so too must businesses adapt their strategies based on the insights garnered from constant evaluation.

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How to Write a Business Plan: Step-by-Step Guide + Examples

Noah Parsons

24 min. read

Updated July 29, 2024

Writing a business plan doesn’t have to be complicated. 

In this step-by-step guide, you’ll learn how to write a business plan that’s detailed enough to impress bankers and potential investors, while giving you the tools to start, run, and grow a successful business.

• The basics of business planning

If you’re reading this guide, then you already know why you need a business plan . 

You understand that planning helps you: 

• Raise money
• Grow strategically
• Keep your business on the right track 

As you start to write your plan, it’s useful to zoom out and remember what a business plan is .

At its core, a business plan is an overview of the products and services you sell, and the customers that you sell to. It explains your business strategy: how you’re going to build and grow your business, what your marketing strategy is, and who your competitors are.

Most business plans also include financial forecasts for the future. These set sales goals, budget for expenses, and predict profits and cash flow. 

A good business plan is much more than just a document that you write once and forget about. It’s also a guide that helps you outline and achieve your goals. 

After completing your plan, you can use it as a management tool to track your progress toward your goals. Updating and adjusting your forecasts and budgets as you go is one of the most important steps you can take to run a healthier, smarter business. 

We’ll dive into how to use your plan later in this article.

There are many different types of plans , but we’ll go over the most common type here, which includes everything you need for an investor-ready plan. However, if you’re just starting out and are looking for something simpler—I recommend starting with a one-page business plan . It’s faster and easier to create. 

It’s also the perfect place to start if you’re just figuring out your idea, or need a simple strategic plan to use inside your business.

Dig deeper : How to write a one-page business plan

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• What to include in your business plan

Executive summary

The executive summary is an overview of your business and your plans. It comes first in your plan and is ideally just one to two pages. Most people write it last because it’s a summary of the complete business plan.

Ideally, the executive summary can act as a stand-alone document that covers the highlights of your detailed plan. 

In fact, it’s common for investors to ask only for the executive summary when evaluating your business. If they like what they see in the executive summary, they’ll often follow up with a request for a complete plan, a pitch presentation , or more in-depth financial forecasts .

Your executive summary should include:

• A summary of the problem you are solving
• A description of your product or service
• An overview of your target market
• A brief description of your team
• A summary of your financials
• Your funding requirements (if you are raising money)

Dig Deeper: How to write an effective executive summary

Products and services description

This is where you describe exactly what you’re selling, and how it solves a problem for your target market. The best way to organize this part of your plan is to start by describing the problem that exists for your customers. After that, you can describe how you plan to solve that problem with your product or service. 

This is usually called a problem and solution statement .

To truly showcase the value of your products and services, you need to craft a compelling narrative around your offerings. How will your product or service transform your customers’ lives or jobs? A strong narrative will draw in your readers.

This is also the part of the business plan to discuss any competitive advantages you may have, like specific intellectual property or patents that protect your product. If you have any initial sales, contracts, or other evidence that your product or service is likely to sell, include that information as well. It will show that your idea has traction , which can help convince readers that your plan has a high chance of success.

Market analysis

Your target market is a description of the type of people that you plan to sell to. You might even have multiple target markets, depending on your business. 

A market analysis is the part of your plan where you bring together all of the information you know about your target market. Basically, it’s a thorough description of who your customers are and why they need what you’re selling. You’ll also include information about the growth of your market and your industry .

Try to be as specific as possible when you describe your market. 

Include information such as age, income level, and location—these are what’s called “demographics.” If you can, also describe your market’s interests and habits as they relate to your business—these are “psychographics.” 

Related: Target market examples

Essentially, you want to include any knowledge you have about your customers that is relevant to how your product or service is right for them. With a solid target market, it will be easier to create a sales and marketing plan that will reach your customers. That’s because you know who they are, what they like to do, and the best ways to reach them.

Next, provide any additional information you have about your market. 

What is the size of your market ? Is the market growing or shrinking? Ideally, you’ll want to demonstrate that your market is growing over time, and also explain how your business is positioned to take advantage of any expected changes in your industry.

Dig Deeper: Learn how to write a market analysis

Competitive analysis

Part of defining your business opportunity is determining what your competitive advantage is. To do this effectively, you need to know as much about your competitors as your target customers. 

Every business has some form of competition. If you don’t think you have competitors, then explore what alternatives there are in the market for your product or service. 

For example: In the early years of cars, their main competition was horses. For social media, the early competition was reading books, watching TV, and talking on the phone.

A good competitive analysis fully lays out the competitive landscape and then explains how your business is different. Maybe your products are better made, or cheaper, or your customer service is superior. Maybe your competitive advantage is your location – a wide variety of factors can ultimately give you an advantage.

Dig Deeper: How to write a competitive analysis for your business plan

Marketing and sales plan

The marketing and sales plan covers how you will position your product or service in the market, the marketing channels and messaging you will use, and your sales tactics. 

The best place to start with a marketing plan is with a positioning statement . 

This explains how your business fits into the overall market, and how you will explain the advantages of your product or service to customers. You’ll use the information from your competitive analysis to help you with your positioning. 

For example: You might position your company as the premium, most expensive but the highest quality option in the market. Or your positioning might focus on being locally owned and that shoppers support the local economy by buying your products.

Once you understand your positioning, you’ll bring this together with the information about your target market to create your marketing strategy . 

This is how you plan to communicate your message to potential customers. Depending on who your customers are and how they purchase products like yours, you might use many different strategies, from social media advertising to creating a podcast. Your marketing plan is all about how your customers discover who you are and why they should consider your products and services. 

While your marketing plan is about reaching your customers—your sales plan will describe the actual sales process once a customer has decided that they’re interested in what you have to offer. 

If your business requires salespeople and a long sales process, describe that in this section. If your customers can “self-serve” and just make purchases quickly on your website, describe that process. 

A good sales plan picks up where your marketing plan leaves off. The marketing plan brings customers in the door and the sales plan is how you close the deal.

Together, these specific plans paint a picture of how you will connect with your target audience, and how you will turn them into paying customers.

Dig deeper: What to include in your sales and marketing plan

Business operations

The operations section describes the necessary requirements for your business to run smoothly. It’s where you talk about how your business works and what day-to-day operations look like. 

Depending on how your business is structured, your operations plan may include elements of the business like:

• Supply chain management
• Manufacturing processes
• Equipment and technology
• Distribution

Some businesses distribute their products and reach their customers through large retailers like Amazon.com, Walmart, Target, and grocery store chains. 

These businesses should review how this part of their business works. The plan should discuss the logistics and costs of getting products onto store shelves and any potential hurdles the business may have to overcome.

If your business is much simpler than this, that’s OK. This section of your business plan can be either extremely short or more detailed, depending on the type of business you are building.

For businesses selling services, such as physical therapy or online software, you can use this section to describe the technology you’ll leverage, what goes into your service, and who you will partner with to deliver your services.

Dig Deeper: Learn how to write the operations chapter of your plan

Key milestones and metrics

Although it’s not required to complete your business plan, mapping out key business milestones and the metrics can be incredibly useful for measuring your success.

Good milestones clearly lay out the parameters of the task and set expectations for their execution. You’ll want to include:

• A description of each task
• The proposed due date
• Who is responsible for each task

If you have a budget, you can include projected costs to hit each milestone. You don’t need extensive project planning in this section—just list key milestones you want to hit and when you plan to hit them. This is your overall business roadmap. 

Possible milestones might be:

• Website launch date
• Store or office opening date
• First significant sales
• Break even date
• Business licenses and approvals

You should also discuss the key numbers you will track to determine your success. Some common metrics worth tracking include:

• Conversion rates
• Customer acquisition costs
• Profit per customer
• Repeat purchases

It’s perfectly fine to start with just a few metrics and grow the number you are tracking over time. You also may find that some metrics simply aren’t relevant to your business and can narrow down what you’re tracking.

Dig Deeper: How to use milestones in your business plan

Organization and management team

Investors don’t just look for great ideas—they want to find great teams. Use this chapter to describe your current team and who you need to hire . You should also provide a quick overview of your location and history if you’re already up and running.

Briefly highlight the relevant experiences of each key team member in the company. It’s important to make the case for why yours is the right team to turn an idea into a reality. 

Do they have the right industry experience and background? Have members of the team had entrepreneurial successes before? 

If you still need to hire key team members, that’s OK. Just note those gaps in this section.

Your company overview should also include a summary of your company’s current business structure . The most common business structures include:

• Sole proprietor
• Partnership

Be sure to provide an overview of how the business is owned as well. Does each business partner own an equal portion of the business? How is ownership divided? 

Potential lenders and investors will want to know the structure of the business before they will consider a loan or investment.

Dig Deeper: How to write about your company structure and team

Financial plan

Last, but certainly not least, is your financial plan chapter. 

Entrepreneurs often find this section the most daunting. But, business financials for most startups are less complicated than you think, and a business degree is certainly not required to build a solid financial forecast. 

A typical financial forecast in a business plan includes the following:

• Sales forecast : An estimate of the sales expected over a given period. You’ll break down your forecast into the key revenue streams that you expect to have.
• Expense budget : Your planned spending such as personnel costs , marketing expenses, and taxes.
• Profit & Loss : Brings together your sales and expenses and helps you calculate planned profits.
• Cash Flow : Shows how cash moves into and out of your business. It can predict how much cash you’ll have on hand at any given point in the future.
• Balance Sheet : A list of the assets, liabilities, and equity in your company. In short, it provides an overview of the financial health of your business. 

A strong business plan will include a description of assumptions about the future, and potential risks that could impact the financial plan. Including those will be especially important if you’re writing a business plan to pursue a loan or other investment.

Dig Deeper: How to create financial forecasts and budgets

This is the place for additional data, charts, or other information that supports your plan.

Including an appendix can significantly enhance the credibility of your plan by showing readers that you’ve thoroughly considered the details of your business idea, and are backing your ideas up with solid data.

Just remember that the information in the appendix is meant to be supplementary. Your business plan should stand on its own, even if the reader skips this section.

Dig Deeper : What to include in your business plan appendix

Optional: Business plan cover page

Adding a business plan cover page can make your plan, and by extension your business, seem more professional in the eyes of potential investors, lenders, and partners. It serves as the introduction to your document and provides necessary contact information for stakeholders to reference.

Your cover page should be simple and include:

• Company logo
• Business name
• Value proposition (optional)
• Business plan title
• Completion and/or update date
• Address and contact information
• Confidentiality statement

Just remember, the cover page is optional. If you decide to include it, keep it very simple and only spend a short amount of time putting it together.

Dig Deeper: How to create a business plan cover page

How to use AI to help write your business plan

Generative AI tools such as ChatGPT can speed up the business plan writing process and help you think through concepts like market segmentation and competition. These tools are especially useful for taking ideas that you provide and converting them into polished text for your business plan.

The best way to use AI for your business plan is to leverage it as a collaborator , not a replacement for human creative thinking and ingenuity. 

AI can come up with lots of ideas and act as a brainstorming partner. It’s up to you to filter through those ideas and figure out which ones are realistic enough to resonate with your customers. 

There are pros and cons of using AI to help with your business plan . So, spend some time understanding how it can be most helpful before just outsourcing the job to AI.

Learn more: 10 AI prompts you need to write a business plan

• Writing tips and strategies

To help streamline the business plan writing process, here are a few tips and key questions to answer to make sure you get the most out of your plan and avoid common mistakes .  

Determine why you are writing a business plan

Knowing why you are writing a business plan will determine your approach to your planning project. 

For example: If you are writing a business plan for yourself, or just to use inside your own business , you can probably skip the section about your team and organizational structure. 

If you’re raising money, you’ll want to spend more time explaining why you’re looking to raise the funds and exactly how you will use them.

Regardless of how you intend to use your business plan , think about why you are writing and what you’re trying to get out of the process before you begin.

Keep things concise

Probably the most important tip is to keep your business plan short and simple. There are no prizes for long business plans . The longer your plan is, the less likely people are to read it. 

So focus on trimming things down to the essentials your readers need to know. Skip the extended, wordy descriptions and instead focus on creating a plan that is easy to read —using bullets and short sentences whenever possible.

Have someone review your business plan

Writing a business plan in a vacuum is never a good idea. Sometimes it’s helpful to zoom out and check if your plan makes sense to someone else. You also want to make sure that it’s easy to read and understand.

Don’t wait until your plan is “done” to get a second look. Start sharing your plan early, and find out from readers what questions your plan leaves unanswered. This early review cycle will help you spot shortcomings in your plan and address them quickly, rather than finding out about them right before you present your plan to a lender or investor.

If you need a more detailed review, you may want to explore hiring a professional plan writer to thoroughly examine it.

Use a free business plan template and business plan examples to get started

Knowing what information to include in a business plan is sometimes not quite enough. If you’re struggling to get started or need additional guidance, it may be worth using a business plan template. 

There are plenty of great options available (we’ve rounded up our 8 favorites to streamline your search).

But, if you’re looking for a free downloadable business plan template , you can get one right now; download the template used by more than 1 million businesses. 

Or, if you just want to see what a completed business plan looks like, check out our library of over 550 free business plan examples . 

We even have a growing list of industry business planning guides with tips for what to focus on depending on your business type.

Common pitfalls and how to avoid them

It’s easy to make mistakes when you’re writing your business plan. Some entrepreneurs get sucked into the writing and research process, and don’t focus enough on actually getting their business started. 

Here are a few common mistakes and how to avoid them:

Not talking to your customers : This is one of the most common mistakes. It’s easy to assume that your product or service is something that people want. Before you invest too much in your business and too much in the planning process, make sure you talk to your prospective customers and have a good understanding of their needs.

• Overly optimistic sales and profit forecasts: By nature, entrepreneurs are optimistic about the future. But it’s good to temper that optimism a little when you’re planning, and make sure your forecasts are grounded in reality. 
• Spending too much time planning: Yes, planning is crucial. But you also need to get out and talk to customers, build prototypes of your product and figure out if there’s a market for your idea. Make sure to balance planning with building.
• Not revising the plan: Planning is useful, but nothing ever goes exactly as planned. As you learn more about what’s working and what’s not—revise your plan, your budgets, and your revenue forecast. Doing so will provide a more realistic picture of where your business is going, and what your financial needs will be moving forward.
• Not using the plan to manage your business: A good business plan is a management tool. Don’t just write it and put it on the shelf to collect dust – use it to track your progress and help you reach your goals.
• Presenting your business plan

The planning process forces you to think through every aspect of your business and answer questions that you may not have thought of. That’s the real benefit of writing a business plan – the knowledge you gain about your business that you may not have been able to discover otherwise.

With all of this knowledge, you’re well prepared to convert your business plan into a pitch presentation to present your ideas. 

A pitch presentation is a summary of your plan, just hitting the highlights and key points. It’s the best way to present your business plan to investors and team members.

Dig Deeper: Learn what key slides should be included in your pitch deck

Use your business plan to manage your business

One of the biggest benefits of planning is that it gives you a tool to manage your business better. With a revenue forecast, expense budget, and projected cash flow, you know your targets and where you are headed.

And yet, nothing ever goes exactly as planned – it’s the nature of business.

That’s where using your plan as a management tool comes in. The key to leveraging it for your business is to review it periodically and compare your forecasts and projections to your actual results.

Start by setting up a regular time to review the plan – a monthly review is a good starting point. During this review, answer questions like:

• Did you meet your sales goals?
• Is spending following your budget?
• Has anything gone differently than what you expected?

Now that you see whether you’re meeting your goals or are off track, you can make adjustments and set new targets. 

Maybe you’re exceeding your sales goals and should set new, more aggressive goals. In that case, maybe you should also explore more spending or hiring more employees. 

Or maybe expenses are rising faster than you projected. If that’s the case, you would need to look at where you can cut costs.

A plan, and a method for comparing your plan to your actual results , is the tool you need to steer your business toward success.

Learn More: How to run a regular plan review

How to write a business plan FAQ

What is a business plan?

A document that describes your business , the products and services you sell, and the customers that you sell to. It explains your business strategy, how you’re going to build and grow your business, what your marketing strategy is, and who your competitors are.

What are the benefits of a business plan?

A business plan helps you understand where you want to go with your business and what it will take to get there. It reduces your overall risk, helps you uncover your business’s potential, attracts investors, and identifies areas for growth.

Having a business plan ultimately makes you more confident as a business owner and more likely to succeed for a longer period of time.

What are the 7 steps of a business plan?

The seven steps to writing a business plan include:

• Write a brief executive summary
• Describe your products and services.
• Conduct market research and compile data into a cohesive market analysis.
• Describe your marketing and sales strategy.
• Outline your organizational structure and management team.
• Develop financial projections for sales, revenue, and cash flow.
• Add any additional documents to your appendix.

What are the 5 most common business plan mistakes?

There are plenty of mistakes that can be made when writing a business plan. However, these are the 5 most common that you should do your best to avoid:

• 1. Not taking the planning process seriously.
• Having unrealistic financial projections or incomplete financial information.
• Inconsistent information or simple mistakes.
• Failing to establish a sound business model.
• Not having a defined purpose for your business plan.

What questions should be answered in a business plan?

Writing a business plan is all about asking yourself questions about your business and being able to answer them through the planning process. You’ll likely be asking dozens and dozens of questions for each section of your plan.

However, these are the key questions you should ask and answer with your business plan:

• How will your business make money?
• Is there a need for your product or service?
• Who are your customers?
• How are you different from the competition?
• How will you reach your customers?
• How will you measure success?

How long should a business plan be?

The length of your business plan fully depends on what you intend to do with it. From the SBA and traditional lender point of view, a business plan needs to be whatever length necessary to fully explain your business. This means that you prove the viability of your business, show that you understand the market, and have a detailed strategy in place.

If you intend to use your business plan for internal management purposes, you don’t necessarily need a full 25-50 page business plan. Instead, you can start with a one-page plan to get all of the necessary information in place.

What are the different types of business plans?

While all business plans cover similar categories, the style and function fully depend on how you intend to use your plan. Here are a few common business plan types worth considering.

Traditional business plan: The tried-and-true traditional business plan is a formal document meant to be used when applying for funding or pitching to investors. This type of business plan follows the outline above and can be anywhere from 10-50 pages depending on the amount of detail included, the complexity of your business, and what you include in your appendix.

Business model canvas: The business model canvas is a one-page template designed to demystify the business planning process. It removes the need for a traditional, copy-heavy business plan, in favor of a single-page outline that can help you and outside parties better explore your business idea.

One-page business plan: This format is a simplified version of the traditional plan that focuses on the core aspects of your business. You’ll typically stick with bullet points and single sentences. It’s most useful for those exploring ideas, needing to validate their business model, or who need an internal plan to help them run and manage their business.

Lean Plan: The Lean Plan is less of a specific document type and more of a methodology. It takes the simplicity and styling of the one-page business plan and turns it into a process for you to continuously plan, test, review, refine, and take action based on performance. It’s faster, keeps your plan concise, and ensures that your plan is always up-to-date.

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

A business plan covers the “who” and “what” of your business. It explains what your business is doing right now and how it functions. The strategic plan explores long-term goals and explains “how” the business will get there. It encourages you to look more intently toward the future and how you will achieve your vision.

However, when approached correctly, your business plan can actually function as a strategic plan as well. If kept lean, you can define your business, outline strategic steps, and track ongoing operations all with a single plan.

Noah is the COO at Palo Alto Software, makers of the online business plan app LivePlan. He started his career at Yahoo! and then helped start the user review site Epinions.com. From there he started a software distribution business in the UK before coming to Palo Alto Software to run the marketing and product teams.

Table of Contents

• Use AI to help write your plan
• Common planning mistakes
• Manage with your business plan

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How Should You Review Your Business Plan?

Ultimate Guide On Writing A Business Plan

• May 25, 2024

When was the last time you reviewed your business plan?

If you can’t recall, it’s possibly long enough, and by now your plan might not even offer a realistic blueprint for your business.

You see, writing a business plan is not enough. It’s much more important to review and update it time and again to keep it relevant and useful.

Now, the question is how and how often should the business plan be reviewed. Well, we will cover all that in this blog post but before that, let’s understand what exactly is a business plan review .

What is a business plan review?

A business plan review is a structured evaluation of your business plan to identify its strengths and weaknesses so that you can take remedial steps to improve its effectiveness.

A business plan review process evaluates the feasibility and assumptions of the plan and enhances its overall clarity to help make it more presentable to potential investors.

Why should you regularly review your business plan?

Whether you have just written your business plan or yours is sitting on the shelf collecting dust—it is important to revisit it regularly to ensure that it remains useful and relevant.

Many businesses review their business plans regularly, and if you don’t, here are all the reasons why you should.

• A rigorous review ensures that your plan includes all the relevant and essential information for stakeholders. It identifies gaps in your plan and removes inessential fluff to make it crisp and qualitative.
• Regular review realigns your business strategies with the changing market conditions. This will ensure that your plan remains relevant, effective, and in line with your long-term objectives.
• The review analyzes resource allocation and helps you make essential changes to ensure that none of the resources get over or underutilized.
• Critiquing your plan allows you to see your business objectively. You can see the faults that are otherwise invisible and make essential changes to strengthen your business’s position.
• Reviewing your plan pushes you to reevaluate your financials, making sure they aren’t impractical or unrealistic.

Plan review is therefore essential for everyone— a new business as well as an established one to drive a business in a forward direction.

How to review your business plan?

Reviewing a business plan requires an eye for detail. While we are not suggesting a microanalysis of the plan, thorough reviewing should ensure that every aspect of the plan is properly covered and presented, the facts quoted are corrected, and there is negligible scope for confusion.

Here is a quick step-by-step guide to reviewing business plans:

1. Read the business plan

After you write a business plan , read it at least twice to find critical errors, gaps in information, lack of depth, and irrelevant information. Start making notes wherever you find room for improvement.

2. Put yourself in the investors’ shoes

As you review your plan, think from an investor’s perspective. Evaluate if the plan has sufficient information about a business model and financial aspects to aid decision-making. If not, rework and focus on aspects that show the business’s potential to make money.

3. Assess your business strategy

While reviewing, reassess your market research and analysis. Ensure that the target market and competitors’ edge are explicitly explained.

Think from the customers’ perspective while analyzing your products and service section . Do you see the benefits or USPs that would make the target customers want your products and services? If not, rework the section and present your offerings in a stronger light.

Also, check your marketing and sales strategies to see that they are clearly laid out.

4. Evaluate the management team

Assess the management section to see if it strongly reflects the potential of your people to execute business strategies. If not, the section needs rework. Focus on highlighting their achievements, skills, and expertise.

As a new business, you might still be building your team. However, the section must acknowledge the gaps in your talent team and offer strategic ways to overcome them.

5. Reassess your financial projections

Scrutinize your financial and profit projections to identify missed costs and overly optimistic profits and revenue. Ensure that you offer a logical and easy-to-follow explanation to help prospective investors assess the practicality of your projections.

Following these steps will ensure that the business plan is effectively critiqued.

How often should a business plan be reviewed?

A business plan is a living document that needs regular reviewing and a thorough update every now and then. However, the question is how often?

Ideally, a business plan should be reviewed at least once every year to keep it relevant and useful. However, most successful businesses follow a review cycle of 45 days to 6 months to increase their adaptability to market changes, emerging trends, consumer shifts, and government regulations.

It’s okay if you cannot conduct a regular review of your business plan, month after month. However, if there are major industrial or market changes in your business landscape, you should reassess the plan and make essential changes immediately.

Now, you and your partners can determine the review cycle for these living documents. However, as long as your plan represents the current situation of the business landscape, the review can be carried out on an annual basis.

Things to consider when reviewing a business plan

Now, here’s a list of things you should keep in mind or bear as a checklist while reviewing your small-business business plan.

• Ensure that the business plan covers information about all the essential business plan components . This includes sections for executive summary, company overview, market analysis, products and service offerings, sales and marketing plan, operations plan, management team, and financial plan.
• Ensure that there is a verifiable source for every data you present or the claim you make.
• Remove all extra information that is irrelevant to the context. Focus on simple, concise language with no complicated jargon.
• Reassess your competitors’ section and check if it highlights your competitive advantage.
• Ensure that the plan offers a clear understanding of your target market and the market share.
• Check your financial projections to make sure they aren’t conservative or overly optimistic.
• Add a table of contents if the plan is extremely detailed.
• Evaluate the business strategies and ensure they are in line with your business goals.
• Reassess the plan from your audience’s point of view.
• Recheck for any factual, grammatical, or content errors.

Mark this checklist as you review your business plan to ensure full assessment.

Review your Business Plan with Upmetrics

When was the last time you checked your plan? If you can’t remember this is probably the time to review it and make necessary updates so that it continues to serve as a realistic guide for your business.

No excuses about how tiring or exhausting updating your business plan can be. With the right Business planning software , you can review and update your plan in no time.

Its AI business plan writing feature allows you to quickly draft/rewrite sections of your business plan and reassess your financial projections to ensure that no expense, costs, or revenue streams remain unaccounted for.

However, if your plan needs a complete makeover, consider rewriting it using our AI business plan creator . All it takes is 15 minutes for this tool to create a plan based on the details and answers you offer.

Build your Business Plan Faster

with step-by-step Guidance & AI Assistance.

Frequently Asked Questions

Who should review my business plan.

Since no one understands your business better than you, you should be the one reviewing your business plan. However, if you find someone more experienced from your industry to help you review your plan, an external unhinged opinion can be of great help.

Business plans should be reviewed at least once a year to keep them relevant. However, you should be reviewing your operational, financial, and strategic plans every few months to keep up with the changing trends and industrial shifts.

What should I do after a business plan review?

After reviewing your business plan, focus on implementation. Communicate the changes in strategies to your internal team, adjust your financial projections, and test your strategies in the actual world.

About the Author

Upmetrics Team

Upmetrics is the #1 business planning software that helps entrepreneurs and business owners create investment-ready business plans using AI. We regularly share business planning insights on our blog. Check out the Upmetrics blog for such interesting reads. Read more

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• What is strategic planning? A 5-step gu ...

What is strategic planning? A 5-step guide

Strategic planning is a process through which business leaders map out their vision for their organization’s growth and how they’re going to get there. In this article, we'll guide you through the strategic planning process, including why it's important, the benefits and best practices, and five steps to get you from beginning to end.

Strategic planning is a process through which business leaders map out their vision for their organization’s growth and how they’re going to get there. The strategic planning process informs your organization’s decisions, growth, and goals.

Strategic planning helps you clearly define your company’s long-term objectives—and maps how your short-term goals and work will help you achieve them. This, in turn, gives you a clear sense of where your organization is going and allows you to ensure your teams are working on projects that make the most impact. Think of it this way—if your goals and objectives are your destination on a map, your strategic plan is your navigation system.

In this article, we walk you through the 5-step strategic planning process and show you how to get started developing your own strategic plan.

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What is strategic planning?

Strategic planning is a business process that helps you define and share the direction your company will take in the next three to five years. During the strategic planning process, stakeholders review and define the organization’s mission and goals, conduct competitive assessments, and identify company goals and objectives. The product of the planning cycle is a strategic plan, which is shared throughout the company.

What is a strategic plan?

A strategic plan is the end result of the strategic planning process. At its most basic, it’s a tool used to define your organization’s goals and what actions you’ll take to achieve them.

Typically, your strategic plan should include: 

Your company’s mission statement

Your organizational goals, including your long-term goals and short-term, yearly objectives

Any plan of action, tactics, or approaches you plan to take to meet those goals

What are the benefits of strategic planning?

Strategic planning can help with goal setting and decision-making by allowing you to map out how your company will move toward your organization’s vision and mission statements in the next three to five years. Let’s circle back to our map metaphor. If you think of your company trajectory as a line on a map, a strategic plan can help you better quantify how you’ll get from point A (where you are now) to point B (where you want to be in a few years).

When you create and share a clear strategic plan with your team, you can:

Build a strong organizational culture by clearly defining and aligning on your organization’s mission, vision, and goals.

Align everyone around a shared purpose and ensure all departments and teams are working toward a common objective.

Proactively set objectives to help you get where you want to go and achieve desired outcomes.

Promote a long-term vision for your company rather than focusing primarily on short-term gains.

Ensure resources are allocated around the most high-impact priorities.

Define long-term goals and set shorter-term goals to support them.

Assess your current situation and identify any opportunities—or threats—allowing your organization to mitigate potential risks.

Create a proactive business culture that enables your organization to respond more swiftly to emerging market changes and opportunities.

What are the 5 steps in strategic planning?

The strategic planning process involves a structured methodology that guides the organization from vision to implementation. The strategic planning process starts with assembling a small, dedicated team of key strategic planners—typically five to 10 members—who will form the strategic planning, or management, committee. This team is responsible for gathering crucial information, guiding the development of the plan, and overseeing strategy execution.

Once you’ve established your management committee, you can get to work on the planning process. 

Step 1: Assess your current business strategy and business environment

Before you can define where you’re going, you first need to define where you are. Understanding the external environment, including market trends and competitive landscape, is crucial in the initial assessment phase of strategic planning.

To do this, your management committee should collect a variety of information from additional stakeholders, like employees and customers. In particular, plan to gather:

Relevant industry and market data to inform any market opportunities, as well as any potential upcoming threats in the near future.

Customer insights to understand what your customers want from your company—like product improvements or additional services.

Employee feedback that needs to be addressed—whether about the product, business practices, or the day-to-day company culture.

Consider different types of strategic planning tools and analytical techniques to gather this information, such as:

A balanced scorecard to help you evaluate four major elements of a business: learning and growth, business processes, customer satisfaction, and financial performance.

A SWOT analysis to help you assess both current and future potential for the business (you’ll return to this analysis periodically during the strategic planning process). 

To fill out each letter in the SWOT acronym, your management committee will answer a series of questions:

What does your organization currently do well?

What separates you from your competitors?

What are your most valuable internal resources?

What tangible assets do you have?

What is your biggest strength? 

Weaknesses:

What does your organization do poorly?

What do you currently lack (whether that’s a product, resource, or process)?

What do your competitors do better than you?

What, if any, limitations are holding your organization back?

What processes or products need improvement? 

Opportunities:

What opportunities does your organization have?

How can you leverage your unique company strengths?

Are there any trends that you can take advantage of?

How can you capitalize on marketing or press opportunities?

Is there an emerging need for your product or service? 

What emerging competitors should you keep an eye on?

Are there any weaknesses that expose your organization to risk?

Have you or could you experience negative press that could reduce market share?

Is there a chance of changing customer attitudes towards your company? 

Step 2: Identify your company’s goals and objectives

To begin strategy development, take into account your current position, which is where you are now. Then, draw inspiration from your vision, mission, and current position to identify and define your goals—these are your final destination. 

To develop your strategy, you’re essentially pulling out your compass and asking, “Where are we going next?” “What’s the ideal future state of this company?” This can help you figure out which path you need to take to get there.

During this phase of the planning process, take inspiration from important company documents, such as:

Your mission statement, to understand how you can continue moving towards your organization’s core purpose.

Your vision statement, to clarify how your strategic plan fits into your long-term vision.

Your company values, to guide you towards what matters most towards your company.

Your competitive advantages, to understand what unique benefit you offer to the market.

Your long-term goals, to track where you want to be in five or 10 years.

Your financial forecast and projection, to understand where you expect your financials to be in the next three years, what your expected cash flow is, and what new opportunities you will likely be able to invest in.

Step 3: Develop your strategic plan and determine performance metrics

Now that you understand where you are and where you want to go, it’s time to put pen to paper. Take your current business position and strategy into account, as well as your organization’s goals and objectives, and build out a strategic plan for the next three to five years. Keep in mind that even though you’re creating a long-term plan, parts of your plan should be created or revisited as the quarters and years go on.

As you build your strategic plan, you should define:

Company priorities for the next three to five years, based on your SWOT analysis and strategy.

Yearly objectives for the first year. You don’t need to define your objectives for every year of the strategic plan. As the years go on, create new yearly objectives that connect back to your overall strategic goals . 

Related key results and KPIs. Some of these should be set by the management committee, and some should be set by specific teams that are closer to the work. Make sure your key results and KPIs are measurable and actionable. These KPIs will help you track progress and ensure you’re moving in the right direction.

Budget for the next year or few years. This should be based on your financial forecast as well as your direction. Do you need to spend aggressively to develop your product? Build your team? Make a dent with marketing? Clarify your most important initiatives and how you’ll budget for those.

A high-level project roadmap . A project roadmap is a tool in project management that helps you visualize the timeline of a complex initiative, but you can also create a very high-level project roadmap for your strategic plan. Outline what you expect to be working on in certain quarters or years to make the plan more actionable and understandable.

Step 4: Implement and share your plan

Now it’s time to put your plan into action. Strategy implementation involves clear communication across your entire organization to make sure everyone knows their responsibilities and how to measure the plan’s success. 

Make sure your team (especially senior leadership) has access to the strategic plan, so they can understand how their work contributes to company priorities and the overall strategy map. We recommend sharing your plan in the same tool you use to manage and track work, so you can more easily connect high-level objectives to daily work. If you don’t already, consider using a work management platform .  

A few tips to make sure your plan will be executed without a hitch: 

Communicate clearly to your entire organization throughout the implementation process, to ensure all team members understand the strategic plan and how to implement it effectively. 

Define what “success” looks like by mapping your strategic plan to key performance indicators.

Ensure that the actions outlined in the strategic plan are integrated into the daily operations of the organization, so that every team member's daily activities are aligned with the broader strategic objectives.

Utilize tools and software—like a work management platform—that can aid in implementing and tracking the progress of your plan.

Regularly monitor and share the progress of the strategic plan with the entire organization, to keep everyone informed and reinforce the importance of the plan.

Establish regular check-ins to monitor the progress of your strategic plan and make adjustments as needed. 

Step 5: Revise and restructure as needed

Once you’ve created and implemented your new strategic framework, the final step of the planning process is to monitor and manage your plan.

Remember, your strategic plan isn’t set in stone. You’ll need to revisit and update the plan if your company changes directions or makes new investments. As new market opportunities and threats come up, you’ll likely want to tweak your strategic plan. Make sure to review your plan regularly—meaning quarterly and annually—to ensure it’s still aligned with your organization’s vision and goals.

Keep in mind that your plan won’t last forever, even if you do update it frequently. A successful strategic plan evolves with your company’s long-term goals. When you’ve achieved most of your strategic goals, or if your strategy has evolved significantly since you first made your plan, it might be time to create a new one.

Build a smarter strategic plan with a work management platform

To turn your company strategy into a plan—and ultimately, impact—make sure you’re proactively connecting company objectives to daily work. When you can clarify this connection, you’re giving your team members the context they need to get their best work done. 

A work management platform plays a pivotal role in this process. It acts as a central hub for your strategic plan, ensuring that every task and project is directly tied to your broader company goals. This alignment is crucial for visibility and coordination, allowing team members to see how their individual efforts contribute to the company’s success. 

By leveraging such a platform, you not only streamline workflow and enhance team productivity but also align every action with your strategic objectives—allowing teams to drive greater impact and helping your company move toward goals more effectively. 

Strategic planning FAQs

Still have questions about strategic planning? We have answers.

Why do I need a strategic plan?

A strategic plan is one of many tools you can use to plan and hit your goals. It helps map out strategic objectives and growth metrics that will help your company be successful.

When should I create a strategic plan?

You should aim to create a strategic plan every three to five years, depending on your organization’s growth speed.

Since the point of a strategic plan is to map out your long-term goals and how you’ll get there, you should create a strategic plan when you’ve met most or all of them. You should also create a strategic plan any time you’re going to make a large pivot in your organization’s mission or enter new markets. 

What is a strategic planning template?

A strategic planning template is a tool organizations can use to map out their strategic plan and track progress. Typically, a strategic planning template houses all the components needed to build out a strategic plan, including your company’s vision and mission statements, information from any competitive analyses or SWOT assessments, and relevant KPIs.

What’s the difference between a strategic plan vs. business plan?

A business plan can help you document your strategy as you’re getting started so every team member is on the same page about your core business priorities and goals. This tool can help you document and share your strategy with key investors or stakeholders as you get your business up and running.

You should create a business plan when you’re: 

Just starting your business

Significantly restructuring your business

If your business is already established, you should create a strategic plan instead of a business plan. Even if you’re working at a relatively young company, your strategic plan can build on your business plan to help you move in the right direction. During the strategic planning process, you’ll draw from a lot of the fundamental business elements you built early on to establish your strategy for the next three to five years.

What’s the difference between a strategic plan vs. mission and vision statements?

Your strategic plan, mission statement, and vision statements are all closely connected. In fact, during the strategic planning process, you will take inspiration from your mission and vision statements in order to build out your strategic plan.

Simply put: 

A mission statement summarizes your company’s purpose.

A vision statement broadly explains how you’ll reach your company’s purpose.

A strategic plan pulls in inspiration from your mission and vision statements and outlines what actions you’re going to take to move in the right direction. 

For example, if your company produces pet safety equipment, here’s how your mission statement, vision statement, and strategic plan might shake out:

Mission statement: “To ensure the safety of the world’s animals.” 

Vision statement: “To create pet safety and tracking products that are effortless to use.” 

Your strategic plan would outline the steps you’re going to take in the next few years to bring your company closer to your mission and vision. For example, you develop a new pet tracking smart collar or improve the microchipping experience for pet owners. 

What’s the difference between a strategic plan vs. company objectives?

Company objectives are broad goals. You should set these on a yearly or quarterly basis (if your organization moves quickly). These objectives give your team a clear sense of what you intend to accomplish for a set period of time. 

Your strategic plan is more forward-thinking than your company goals, and it should cover more than one year of work. Think of it this way: your company objectives will move the needle towards your overall strategy—but your strategic plan should be bigger than company objectives because it spans multiple years.

What’s the difference between a strategic plan vs. a business case?

A business case is a document to help you pitch a significant investment or initiative for your company. When you create a business case, you’re outlining why this investment is a good idea, and how this large-scale project will positively impact the business. 

You might end up building business cases for things on your strategic plan’s roadmap—but your strategic plan should be bigger than that. This tool should encompass multiple years of your roadmap, across your entire company—not just one initiative.

What’s the difference between a strategic plan vs. a project plan?

A strategic plan is a company-wide, multi-year plan of what you want to accomplish in the next three to five years and how you plan to accomplish that. A project plan, on the other hand, outlines how you’re going to accomplish a specific project. This project could be one of many initiatives that contribute to a specific company objective which, in turn, is one of many objectives that contribute to your strategic plan. 

What’s the difference between strategic management vs. strategic planning?

A strategic plan is a tool to define where your organization wants to go and what actions you need to take to achieve those goals. Strategic planning is the process of creating a plan in order to hit your strategic objectives.

Strategic management includes the strategic planning process, but also goes beyond it. In addition to planning how you will achieve your big-picture goals, strategic management also helps you organize your resources and figure out the best action plans for success. 

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Business Evaluation Template: A Step-By-Step Guide

A business evaluation template provides a systematic approach to analyze a company’s performance. It breaks down the assessment process into manageable steps for a comprehensive review.

Starting a business evaluation without a plan can leave blind spots in your analysis, potentially leading to misguided business decisions. Having a clear, step-by-step guide ensures you cover all aspects of your business, from financial health to market position, objectively and thoroughly.

A well-crafted template streamlines the evaluation process, making it easier to identify areas of strength and opportunities for improvement. Tailoring it to your specific needs enhances the relevance and actionability of the results. This essential tool aids business owners, investors, and stakeholders in making data-driven decisions that can steer the company towards sustainable growth and success. Whether you’re evaluating for performance tweaking, selling, or mergers, the right framework can make all the difference.

The Importance Of Business Evaluation

Evaluating a business is crucial for understanding its true value. This process not only provides insight into the company’s financial health but also unveils opportunities for growth and potential risks. An accurate business evaluation is indispensable for informed decision-making, whether for selling your company, seeking investments, or strategic planning.

Determining The Value Of Your Business

Knowing the worth of your company is essential. It affects many areas, such as:

• Sale price : Sets realistic expectations for market value.
• Investment attraction : Appeals to potential investors.
• Partnership opportunities : Entices business partners.
• Mergers and acquisitions : Guides negotiations and decisions.

Business valuation combines an analysis of financial statements, market conditions, asset values, and comparable company valuations to arrive at a fair value. Such an analysis should be meticulous and all-encompassing.

Key Reasons For Conducting A Business Evaluation

Here’s why regular business evaluations are vital:

• Strategy Planning : Aligns objectives with the company’s actual performance.
• Risk Management : Identifies and mitigates potential business threats.
• Performance Assessments : Determines if goals are met and where improvements are needed.

Additionally, evaluations help with estate planning and compliance with tax reporting requirements. They also provide leverage during loan applications and insurance assessments.

Components Of A Business Evaluation Template

Evaluating your business effectively starts with a comprehensive template. This template breaks down various elements that paint the full picture of your company’s overall health and potential. A detailed business evaluation provides insights for informed decisions. Let’s explore the essential components of a business evaluation template.

Financial Performance Metrics

Financial performance metrics show a company’s health. Key figures like revenue, profit margins, and cash flow stand out. Look at these numbers over time to see trends.

Operational Analysis

Operational analysis looks inside your business. It reviews workflows, staff productivity, and operations costs.

• Workflow Efficiency: Smooth processes save time and money.
• Employee Performance: High performers drive success.
• Operational Costs: Lower costs mean higher profits.

Market Positioning

Market positioning gauges your standing among competitors. Analyze market share, brand recognition, and customer loyalty.

• Analyze market share—shows competitive strength.
• Assess brand recognition—important for marketing.
• Understand customer loyalty—predicts future sales.

Asset And Liability Assessment

Understanding what you own versus what you owe is crucial. Asset and liability assessment balances these sheets. Valuable assets mean a strong foundation. Controlled liabilities protect against risk.

• Total Assets: Everything the company owns
• Total Liabilities: All company debts and obligations
• Equity: The true value of your company

Preparing For The Evaluation Process

Before diving into a business evaluation, preparation is key . Think of it as laying the groundwork for a successful assessment. You’ll collect vital information, understand where your business stands, and recognize all assets. Let’s explore these steps further.

Gathering Necessary Documentation

To start, let’s look at the documents you will need:

• Financial statements: These include balance sheets, income statements, and cash flow statements from the past 3-5 years.
• Legal documents: Gather all contracts, leases, and any legal agreements.
• Operational records: Manuals, processes, and customer records fall into this category.

Understanding The Business Lifecycle

Recognize which stage your business is in:

• Renewal or decline

Each stage affects your business’s value differently.

Recognizing Intangible Assets

Intangible assets can be a major part of your business worth:

Step-by-step Guide To Applying The Template

Embarking on a business evaluation may seem complex at first glance. Yet, with the right template and a clear step-by-step guide, it transforms into a navigable process. The essence of this guide lies in meticulous approach and attentive application.

Initiating The Business Evaluation

Begin by gathering core information about the business. Define the purpose of the evaluation and set clear goals. Collect essential documents including financial statements, tax returns, and business plans.

• Business purpose and evaluation goals
• Documentation for financial overview
• Operational details reflecting business structure

Analyzing Quantitative Data

Focus next on the numbers that give your business value. Analyze revenue streams, expenses, assets, and liabilities. Use tables to juxtapose historical data with current figures, highlighting growth trends .

Evaluating Qualitative Factors

Qualitative aspects profoundly impact value. Scrutinize the brand reputation , customer loyalty, and workforce skill. Consider leadership, company culture, and market position to create a comprehensive qualitative profile.

• Brand strength and market positioning
• Customer base loyalty and feedback
• Team expertise and company culture

Applying Industry Multipliers And Valuation Techniques

Lastly, apply relevant industry multiples and standard valuation methods like EBITDA or Discounted Cash Flow (DCF) . These techniques adjust raw financial figures, affording a more accurate business worth.

Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA)

Interpreting The Results

Interpreting the results of your business evaluation need not be a complex ordeal. With your filled-out business evaluation template in hand, it’s time to dive into what these numbers and sections mean for your company’s trajectory. Let’s explore how to draw actionable insights from the data you’ve gathered, beginning with identifying your business’s core strengths and weaknesses.

Identifying Strengths And Weaknesses

Understanding the highs and lows within your business structure is crucial. Analyze the data with an objective lens to highlight where your business stands tall and where it may need a helping hand or a change of strategy.

• Strengths : List out what your company excels at. It may be your brand, your customer service, or innovation.
• Weaknesses : Spot areas that require improvement such as operating procedures, market reach, or product features.

Strategic Decision-making Based On Evaluation

The findings from your evaluation must inform future decisions for your company. Use the identified strengths to capitalize on opportunities and address weaknesses before they become crippling.

Implement a strategic plan to stay on top or get ahead. Prioritize resources and efforts to lead to the best outcomes.

Preparing For Potential Sale Or Investment Opportunities

When it’s time to take a big step, like selling your business or seeking investors, your evaluation becomes a key document. It shows where your business shines and reassures potential buyers or investors of its value.

• Update your financial statements and highlight positive trends.
• Showcase your customer satisfaction metrics to prove market fit.
• Develop a growth strategy that speaks to the business’s potential.

With a comprehensive evaluation, get your business ready for the next big leap forward.

Utilizing The Evaluation For Improvement And Growth

A thorough business evaluation can unlock a treasure trove of insights. Using this data strategically fosters not just improvement, but robust growth. The right template streamlines this process. Let’s dive into how to leverage this goldmine for setting goals and planning.

Setting Realistic Business Goals

Goals give direction. But they must be achievable. Start by reviewing past data from your business evaluations. Identify patterns and key areas of strength and weakness. This information is crucial for setting realistic and meaningful objectives.

• Review past performance to inform goal setting.
• Align goals with core business capabilities and market opportunities.
• Use SMART criteria: Specific, Measurable, Achievable, Relevant, Time-bound.

Benchmarking And Performance Monitoring

Benchmarking against competitors helps define success. Performance monitoring then tracks your progress. Integrating benchmarking and monitoring into your evaluation ensures continuous improvement.

Leveraging Evaluation For Future Plans

Use what you learn from evaluations to build stronger strategies. Data helps predict trends and prepare for market changes. Each evaluation is a step towards a more strategic, data-driven future.

• Analyze evaluation findings for decision-making.
• Identify opportunities for innovation and expansion based on data.
• Adjust business plans to stay ahead of the curve.

Common Challenges And Best Practices

Embarking on a business valuation journey can be complex. Understanding common challenges and best practices is crucial for a successful evaluation. This step-by-step guide helps you through the process. Let’s ensure the foundation of your business evaluation is robust by addressing these key areas.

Handling Subjectivity In Business Valuation

Business values are not one-size-fits-all . Different analysts might give different numbers. Why? Because there’s subjectivity in valuation . When considering assets, cash flow, and prospects, opinions can vary. To combat this:

• Use multiple methods : Don’t rely on just one valuation technique.
• Analyze industry standards : What do similar businesses sell for?
• Document your assumptions : Make them transparent and defendable.

Maintaining Objectivity And Accuracy

Objectivity is key in business valuation. You want your numbers to be believable and fair. How do you stay accurate? Here are some tips:

• Follow a structured template : It guides your analysis and keeps you consistent.
• Peer review : Let another expert check your work.
• Use historical data when available: It can guide your future projections.

Navigating Market Volatility And Unexpected Events

Market changes happen . Crises arise. Such factors can impact your valuation. Preparation and flexibility can help. Use these best practices:

Frequently Asked Questions

How do you write a business evaluation.

To write a business evaluation, start by outlining your company’s objectives. Analyze financials, assess market position, review competitive advantages, and quantify achievements versus goals. Consider also customer feedback and internal processes for a comprehensive assessment.

What Are The 7 Steps Of A Business?

The seven steps of a business include identifying your niche, market research, business planning, establishing structure, acquiring capital, product development, and marketing your brand.

What Are 7 Steps To A Perfectly Written Business Plan?

Begin with an executive summary. Outline your business objectives. Describe your products or services. Conduct a market analysis. Detail your marketing and sales strategies. Explain your organizational structure. Include financial projections and funding requests.

How Do You Make An Evaluation Sheet?

To create an evaluation sheet, first define your criteria and scale. Next, design a template with sections for each aspect being assessed. Include a scoring system, and leave space for comments. Ensure clarity and simplicity for effective use.

Navigating through the complexities of business evaluation need not be a daunting task. Armed with this comprehensive step-by-step guide, you’re now better equipped to understand and employ effective evaluation strategies. Remember that regular assessment using a structured template is crucial for sustaining growth and addressing challenges in your business’s journey.

Embrace the process, and you’ll pave the way for continued success and improvement.

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Online Car Rental – 3 Statement Financial Model with 5 years Monthly Projection

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Catering Financial Model Excel Template

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Clothing Manufacturing Business Plan Financial Model Excel Template

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3 Statement Financial Modeling with DCF & Relative Valuation – Self Learning Kit

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Solar (PV) Power Plant – Project Finance Model

Project Finance Model providing forecast and profitability analysis for a development and operating scenario of a Solar (PV) Power Plant.

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Discounted Cash Flow DCF Valuation Model Template (Mining Company)

Financial model that performs a DCF & Relative valuation on Mining Company.

Food Delivery Financial Model Excel Template

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Gym Financial Model Excel Template

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Architecture Firm Financial Model Excel Template

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Manufacturing Startup/Existing Business Financial Projection 3 Statement Model

3 statement 5 year rolling financial projection Excel model for a startup /existing manufacturing business

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Car Wash Tunnel – 5 Year Financial Projection

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Veterinary Financial Model Excel Template

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Shipping Vessel Financial Model

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Monthly Recurring Revenue SaaS Financial Model Excel Template

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Port Operator Financial Model

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Cloud Services Financial Model Excel Template (Fully-Vetted and Ready-to-Use)

Fully-Vetted Comprehensive Cloud Services Financial Model + Video Series + eBook

Subscription Business – 10 Year Financial Model

Financial Model providing a 10-year financial plan for a startup or operating Subscription Business.

Greenhouse Start Up Model Template in Excel

Excel model for a start up Greenhouse business for you to download and use.

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Franchisor Licensing: Financial Model with Cap Table / 3-Statements

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Mobile Home Park / Community Financial Feasibility – Up to 40 Parks

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Nightclub Financial Model Excel Template

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Vending Machines Financial Model Excel Template

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Car Wash Service Financial Model Excel Template

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How to Evaluate a Business Plan

by Evangeline Marzec

Published on 16 Oct 2019

Whether you're an investor, an entrepreneur or a business skills teacher, you'll be exposed to a wide variety of business plans and should have a solid, somewhat standard approach to conducting a business plan assessment. Analyze each section individually, and then look at the plan as a whole to determine the viability of the business and the likelihood of its success in the manner proposed. Also consider the writing skills and attention to detail that went into formulating the plan.

Read and Understand the Executive Summary

The first step in a business plan assessment is reading the business' executive summary. This should be a concise "elevator pitch", not a summary of the business plan. In one or two pages, it should convey the market opportunity and the uniquely compelling features of the business that will help it meet that opportunity. The executive summary should excite you and make you want to turn to the next page. If it doesn't, the entrepreneur might lack marketing or writing skills, or it may indicate that the idea itself is not going to fly.

Analyze Opportunity in the Market

Evaluate the market opportunity. Ideally, the market should be growing at least 10% per year and have a substantial potential relative to the size of the business and investment. For example, a small company seeking an investment of $50,000 should see a potential market of $5 million.

The larger the potential market and the faster it is growing, the greater the opportunity in the market. Look to the exhibits and appendices to ensure that the business actually has done the necessary market research and can back up any claims.

Evaluate the Company's Business Strategy

Examine the company strategy for capturing its market. The plan must clearly describe the problem the company is solving or need it is meeting for customers, and then propose a solution. This is the crux of a business plan assessment.

Closely examine the alignment between problem and solution. Will the company actually address that need? This evaluation must take into account the product or service being offered, the operational capacity and efficiency with which the business actually can produce its product, and the quality of the proposed marketing efforts.

Examine the Business Environment

The business plan should describe the competitive landscape in which the company operates, preferably by referencing Porter's 5 Forces or another well-established tool. Look for detailed breakdowns and analyses of each of it competitors, and of how the company is different and better than the competition in a particular niche. This section should include the regulatory environment and mention any costs or necessary delays associated with regulations.

Porter's 5 Forces is an evaluation model that looks closely at the five competitive forces at play in the business landscape. These forces are present in every industry and by evaluating how they manifest in an individual industry, one can gauge that industry's strengths and weaknesses. Porter's 5 Forces are:

• Competition in the industry
• Potential of new entrants in the industry
• Power of suppliers
• Power of customers
• Threat of substitutes

Evaluate the Leadership Team

Look for experience, integrity and passion in the executive team. Read bios and brief highlights of each executive's strengths and expertise should accompany standard business information such as headquarters and corporate structure. The company should have experienced advisers, either formally or informally.

It is paramount that the principals involved in the business convey their passion and drive toward success with this project. If the founders haven't invested their own capital into the business, or plan on keeping their “day jobs” while running the business, they might lack faith in the project.

Crunch the Numbers and Understand the Finances

Ensure that the financial projections are both promising and realistic. Most entrepreneurs vastly overstate their company's potential, starting with the market size and market share. Financial figures should be based on historical data if available, or very conservative projections if the company is not yet profitable. Entrepreneurs that project capturing 20% market share in the first two years probably have unrealistic expectations.

Investigate the returns provided by the investment. Good business plans include exit strategies for pulling the initial investment back out of the company, and have a realistic valuation of their shares.

View the Business Plan as a Living Document

Evaluate the business plan as a whole document, and as a reflection of a real-world company. Determine whether the market need is adequate, the company's offerings are compelling, the management team experienced and committed, and the financial statements realistic. Does this company as a whole have a chance of success?

Evaluating a Business Plan

• What You'll Learn
• Career Programs
• What Students Say

Evaluating a Business Plan Overview

Evaluating a Business Plan Learning Objectives

• Understand how to develop a business plan
• Perform qualitative and quantitative analysis
• Explain crucial business plan concepts
• Learn how to evaluate the business plan of a company (case study)

Who should take this course?

Approx 3h to complete

100% online and self-paced

What you'll learn

Course introduction, executive summary & funding request, company description, management and operations, services or product lines, market analysis, marketing and sales, financial projections, qualified assessments, this course is part of the following programs.

Why stop here? Expand your skills and show your expertise with the professional certifications, specializations, and CPE credits you’re already on your way to earning.

Commercial Banking & Credit Analyst (CBCA®) Certification

• Skills Learned Financial Analysis, Credit Structuring, Risk Management
• Career Prep Commercial Banking, Credit Analyst, Private Lending

What Our Members Say

Ralph tsang, suresh yeraballi, chukwuebuka obele, miguel angel bonilla martinez, moubana abdel kabir, aubrey sibanyoni, venugopal rajamanuri, waleed badughaish, arvind kumar, nabiryo salima, fotaw chambeng vivian, john marthin ginting, sherian emmanuel, rajaram kasuladevi, kazi zunaid zaman, hendra rakhmawan, folasade omoboye, abhishek arora, paula forrest, irving anggasta kristiawan, armel djengue, colby evans, sanjit kumar moharana, frequently asked questions.

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10 Best Business Evaluation Tools to Assess Projects in 2024

Engineering Team

May 11, 2024

Start using ClickUp today

• Manage all your work in one place
• Collaborate with your team
• Use ClickUp for FREE—forever

Rushed and unconsidered choices are the biggest hazard for small and mid-size companies in today’s competitive business landscape. One mistake can make or break an organization, so careful planning and evaluation are crucial.

Business evaluation tools are your secret weapons for making informed decisions about your company’s future . They empower you to assess your strengths, identify areas for improvement, and determine whether your business is on the right track.

So, let’s explore these tools and discover how they can be your North Star in the world of business evaluation. 🌟

What Should You Look for in Business Evaluation Tools?

2. toladata, 3. adobe captivate, 4. open as app company evaluation app, 5. exitadviser, 7. bizex business valuation calculator, 9. valuadder, 10. zoho learn.

Picking the right evaluation tool can be challenging because of the multitude of options. Even though the choice depends on your organization’s particular needs and state of affairs, you can follow some general guidelines to find the most suitable software. When choosing business evaluation tools, consider the following key elements:

• Comprehensive analysis : Look for tools that offer a comprehensive evaluation, including multiple valuation methods (asset, income, market), risk assessment, and benchmarking against industry peers
• User-friendly interface : The tool should have an intuitive and user-friendly interface to make the evaluation process efficient and accessible to users with varying levels of expertise
• Customization : Ensure the tool allows customization to adapt to your business’s requirements, whether it’s industry-specific benchmarks or unique evaluation criteria
• Data accuracy : Accuracy is critical. The tool should provide reliable data sources and transparent calculations to support informed decision-making
• Reporting and visualization : Robust reporting features and data visualization capabilities help you communicate results effectively to stakeholders
• Integration : Consider whether the tool integrates with your existing software and systems to streamline data input and analysis

The 10 Best Business Evaluation Tools to Use in 2024

Business evaluation tools will help you assess projects, make informed decisions, and stay ahead in today’s dynamic business environment. From valuation and performance assessment to impact and project management , these 10 tools are your trusted allies on your path to success.

ClickUp is a versatile business evaluation tool that simplifies data collection through its Form view feature. It empowers you to effortlessly gather information from customers , employees, or any target audience.

ClickUp’s Form view offers a wide range of field types , extensive customization options , and the ability to create tasks automatically from form responses. It allows you to tailor your data collection process to your needs.

Whether you require detailed responses, unique field options, or streamlined task creation, Form View optimizes data gathering, ensuring that you receive and manage information in the most valuable and convenient way.

The added value lies in its seamless integration with project management tasks, allowing you to convert form responses into actionable tasks. Using ClickUp’s Project Assessment Template , you can track and present your project’s progress and results with professional-grade visuals, conveniently consolidated in one place. 💯

This comprehensive approach streamlines your evaluation processes , enabling efficient optimization, idea development, and enhanced decision-making within a single, trusted platform.

ClickUp best features

• Provides visual insights into project progress , team performance, and key metrics
• Simplifies data collection with customizable forms and automatic task creation from responses
• Sets and monitors business goals, ensuring alignment with evaluation objectives
• Seamlessly connects with third-party tools and apps for comprehensive data analysis and evaluation
• Allows you to add custom data fields to tasks and projects for specific evaluation criteria

ClickUp limitations

• Learning curve can be challenging for new users due to its extensive features and customization options

ClickUp pricing

• Free Forever
• Unlimited : $7/month per user
• Business : $12/month per user
• Business Plus : $19/month per user
• Enterprise : Contact for pricing
• ClickUp AI is available on all paid plans for $5 per Workspace member per month

*All listed prices refer to the yearly billing model

ClickUp ratings and reviews

• G2 : 4.7/5 (8,000+ reviews)
• Capterra : 4.7/5 (3,000+ reviews)

TolaData offers a web-based monitoring and evaluation platform tailored for non-profit organizations , delivering a robust project tracking, management, and reporting toolkit. Its standout features encompass comprehensive indicator management, aiding in data collection , planning , and monitoring against targets. 🎯

The platform boasts an intuitive interface with a user-friendly layout and customizable dashboards for reporting results. Along with budget tracking and stakeholder engagement, it also excels at activity and task management. TolaData is a priceless resource if you’re looking for an effective and transparent evaluation of your non-profit projects, thanks to improved collaboration and transparency as well as seamless integration with third-party tools for data harmonization.

TolaData best features

• Robust set of tools for managing project indicators
• Provides customizable dashboards that empower users to visualize and report project results effectively
• Integration capabilities with third-party tools facilitate data collection and harmonization from various sources

TolaData limitations

• Limited graphs
• No targets for disaggregated data

TolaData pricing

• Starter : $99/2 users per month
• Small : $229/5 users per month
• Medium : $449/10 users per month
• Large : $999/25 users per month

TolaData ratings and reviews

• G2 : No reviews
• Capterra : 4.9/5 (5+ reviews)

If you think Adobe tools are only for editing images, you’re wrong. Adobe Captivate is a fantastic tool for business evaluation , and here’s why it’s so helpful.

It’s user – friendly , so even beginners can quickly create engaging eLearning content . The ease of use is crucial when evaluating training programs or sharing information efficiently. The interactive features, like customizable interactions and knowledge check questions, boost learner engagement and understanding. It is excellent for assessing how well your training materials work and whether your audience is getting the message. 💌

Plus, Adobe Captivate offers virtual reality experiences , which can give you a unique way to evaluate how immersive your training is. This tool is valuable for HR and people ops agencies and instrumental in implementing new processes within an organization. The latter can help you assess and determine the impact of specific changes on the overall productivity of your team.

Adobe Captivate best features

• Numerous interactive features, including customizable interactions, automated branching, and knowledge check questions
• Virtual reality experience
• Fast and user-friendly eLearning content creation

Adobe Captivate limitations

• Steep learning curve for new users
• Frequent crashes, according to some reviewers

Adobe Captivate pricing

• Subscription : $33.99/month
• Edu Discount : $399
• Full License $1299

*Subscription prices refer to the yearly billing model

Adobe Captivate ratings and reviews

• G2 : 3.9/5 (100+ reviews)
• Capterra : 4.5/5 (100+ reviews)

Open as App Company Evaluation App makes business evaluation more effective and accessible to you. With a few clicks, you can enter your assumptions and business plans, and the app will provide critical insights such as financial charts and discounted cash flows . This saves you time and allows you to make decisions promptly. 🌪️

Plus, the tool lets you visualize your business plans and keep stakeholders and investors in the loop about your company’s estimated business value. You can also share this information as a PDF for clear communication.

Open as App Company Evaluation App best features

• Streamlines company valuation with a few clicks
• Allows the visualization of business plans with financial charts
• Facilitates immediate information sharing via PDF for clear communication

Open as App Company Evaluation App limitations

• Link to the calculator has a long intro

Open as App Company Evaluation App pricing

• Free Version
• Business : $80/month per 10 users
• Enterprise : Contact the company

Open as App Company Evaluation App ratings and reviews

ExitAdviser assists you in evaluating and improving your company’s market position. This analysis gives you the information to make informed decisions about potential changes or new strategies. All you need to do is enter the company’s net profit from the most recent fiscal year and anticipate its sales growth to receive an evaluation.

ExitAdviser provides critical data, including competitor tax payments, employee benefits, and employee satisfaction ratings, alongside industry-specific benchmarks. This comprehensive information gives you a holistic view of your competitive landscape , aiding in strategic planning and decision-making for your business . 💼

ExitAdviser best features

• Provides data on competitor tax payments and employee benefits
• Allows you to compare your company’s performance to competitors
• Provides industry-specific benchmarks for strategic planning

ExitAdviser limitations

• Outdated design

ExitAdviser pricing

• One-time purchase : $99 per user

ExitAdviser ratings and reviews

• Capterra : 4.5/5 (2 reviews)

CalcXML offers a thorough assessment of your company’s financial well-being . It dives into crucial details like cash flow and debt ratios, helping you pinpoint areas that need improvement or potential opportunities to capitalize on . 📈

One of the best aspects of the tool is that CalcXML data can be easily incorporated into other applications like QuickBooks Online. As a result, you can improve your financial planning and decision-making and make wiser choices regarding the available funds.

This tool is simple and works with Google Sheets and Microsoft Excel . Regardless of your level of accounting experience, you can easily access and analyze your financial data without having to be an expert in complex spreadsheet software.

CalcXML best features

• Provides a detailed evaluation of your company’s financial health, including cash flow and debt ratios
• Integrates with Microsoft Excel and Google Sheets
• Allows data to be seamlessly imported into other tools

CalcXML limitations

• Lack of qualitative analysis

CalcXML pricing

• Contact the company

CalcXML ratings and reviews

• G2 : 5/5 (1 review)

BizEx is a robust platform for business evaluation, focusing on the ‘Multiple of Earnings’ method, which is most widely used in valuing small businesses. The multiple is comparable to the discounted cash flow or capitalization rate mostly used by top business appraisers and analysts, but BizEx streamlines it for small company owners. What sets it apart is the sophistication of its Business Valuation Calculator , which surpasses most free models. 🧮

A comprehensive analysis of the company’s discretionary income and multiple earnings lets you swiftly generate valuation ranges based on various factors . BizEx goes the extra mile by offering the free option to discuss these numbers with a broker, ensuring you have expert guidance for a well-informed business evaluation.

BizEx Business Valuation Calculator best features

• Provides a detailed breakdown of discretionary income and earnings multiples, aiding in instant valuation range generation
• Has an option to connect to a broker
• Calculator offers comprehensive and reliable results

BizEx Business Valuation Calculator limitations

Bizex business valuation calculator pricing, bizex business valuation calculator ratings and reviews.

• Capterra : No reviews

Sopact is a comprehensive solution designed for impact-driven organizations seeking to enhance their impact measurement and management practices .

With Sopact’s evaluation software, you get an all-in-one tool that makes measuring your impact a breeze. No more complicated Excel sheets or surveys that devour your time. Instead, you have a simple dashboard that tracks your progress , helps you spot areas to improve, and lets you share your impact stories easily.

Even better, Sopact uses AI technology to provide real-time insights and continually fine-tune your impact , enabling you to adapt quickly to changes and reach your goals faster. 🤖

Sopact best features

• User-friendly dashboard makes it easy to track progress, identify areas for improvement, and communicate impact to stakeholders
• AI technology supports real-time insights
• Offers a complete solution for measuring and managing the impact of your organization, simplifying the evaluation process

Sopact limitations

Sopact pricing.

• Starting plan : $99/month

Sopact ratings and reviews

• G2 : 5/5 (2 reviews)

Valuadder employs three standard approaches—asset, income, and market—to thoroughly assess your business’s value . After you download the software, you can calculate value based on earnings and capitalization rates, gaining insights into your financial health and potential. 🤑

Valuadder also assesses goodwill and risk , ensuring you understand all facets of your business. By comparing your business to industry peers, you can set valuable benchmarks, calculate price ranges, averages, and medians, and create in-depth appraisals. These features will help you make data-driven decisions , enhance your competitiveness, and maximize the value and profitability of your business.

Valuadder best features

• Compare your business to industry peers for valuable insights and competitive positioning
• Calculate price ranges, averages, and medians to optimize pricing strategies
• Use net present value and internal rate of return calculations to make informed investment decisions.

Valuadder limitations

• No free trial
• Complex pricing structure
• Only available for computers

Valuadder pricing

Valuadder ratings and reviews.

Zoho Learn significantly aids business valuations with a robust knowledge management and training platform. It lets you create customized training programs and assessments , helping you assess your business effectively. With in-depth reports, you can measure the impact of training initiatives, providing valuable insights for business evaluation.

The platform includes reporting tools that enable you to analyze performance and course outcomes. Zoho Learn allows you to create highly customizable quizzes and assessments that can automatically evaluate and grade submissions, providing essential data for evaluation. It can be a valuable tool for assessing the impact and productivity of new processes on your team. 🌞

Zoho Learn best features

• Create engaging and interactive training programs tailored to your organization’s needs
• Evaluate learner performance and track the effectiveness of training programs
• Access comprehensive reports for insights into learner progress and training program effectiveness

Zoho Learn limitations

• Complex UI compared to other tools

Zoho Learn pricing

• Express : $1/month per user
• Professional : $3/month per user

*All listed prices refer to the monthly billing model

Zoho Learn ratings and reviews

• G2 : 4.2/5 (20+ reviews)
• Capterra : 4.7/5 (3 reviews)

Assess, Progress, and Impress

You can expedite your decision-making, review project success, and reach your goals more efficiently with these 10 business evaluation tools . Whether you want to examine your company’s financial health, monitor the effect of your projects, or improve your knowledge management and training efforts, ClickUp is definitely the one to consider. 👍

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Program evaluations should be planned strategically, rather than on an ad hoc basis. Strategic evaluation planning means that the evaluation activity first considers what evidence is needed to inform decision making, and what questions need to be answered to help the organization obtain the evidence to improve the way it does business.

Focusing on evidence needed, questions to be answered, and decisions to be made is an important first step toward strategically planning evaluations.

One way to have useful and cost-effective evaluations is to strategically plan evaluation activity so it supports management activity cycles for planning, budgeting, analysis, program implementation, and benefits reporting and communication.

In this way, evaluations generate information to feed into critical decision processes and continuous improvement. Planning evaluations strategically allows the program to phase in a full range of evaluation activities over a period of years, and to spread out the cost of evaluation over multiple years.

A Strategic Evaluation Plan (also referred to as a Learning Agenda or Evidence-Building Plan) is seen as a living document that can be modified as the program evolves and changes over time.

• Program evaluation information
• Performance monitoring and analysis findings
• Foundational fact-finding information (e.g., indicators, descriptive statistics). 

Taking a strategic view of evaluation means that you need to do the following:

• First, consider for your office or program what information is needed to provide evidence to support decision making (see  Informed Decisions ), and
• Develop an overall strategy and lay out a plan for collecting and analyzing data that will generate the information needed.

First, Consider Your Program's Decision Information Needs and Questions

Since the idea is to have all evaluative information working together, you might start by taking stock of your decision needs and questions that need to be addressed to obtain information necessary to support those decisions.

The illustrative table below is one way to begin to take stock of these considerations. Complete the second and third columns and decide what program areas require management attention and need to be evaluated (third column).

For your program, fill in the cells (with details on known decision points, timing needs, expected key audiences, type of evaluation, etc.) for the program areas for which you will need evaluation information to inform critical decisions.

Second, Develop an Overall Evaluation Strategy that Includes Use of Results

Ideally, an EERE Office should have an overall evaluation strategy and supporting multi-year evaluation plan that addresses each critical program area, including a schedule for the planned evaluation activities and the resources set aside for them.

A mix of  evaluation types  may be necessary. For instance, the decision information needs for R&D programs might require several different types of evaluation be performed over a multi-year period, going beyond peer reviews alone.

A Learning Agenda approach (illustrated below) could guide the effort to develop an evaluation plan that would be prepared strategically. 

(1) Formulate Prioritized Questions

After you have clarified the decisions to be informed and generally understand the evidence needed to inform the decisions, establish your program's prioritized questions that when answered will help inform the decisions.

Developing program logic models can be especially useful here. These help capture goals in a concise way and show how these goals will be achieved, thus highlighting key evaluation questions, as well as performance metrics.

The questions developed can be prioritized based on the organization/ office strategic goals and priorities. In this way, the questions will be aligned with organizational mission and operational priorities. As evaluation funding resources may be limited, you might have to focus on the top prioritized questions.

(2) Define and Execute Evaluation Activities

Try to identify the information/evidence gaps. Formulate a set of prioritized questions that must be answered to provide the evidence to inform decisions.

• Concentrate evaluation activities on areas in your program strategy where there are gaps in information/evidence needed to inform decisions.
• Surveys of probability sample populations
• Measurement and evaluation (M&V)
• Semi-structured interviews
• Expert elicitation
• Database mining
• Use of administrative data
• Evaluation research designs (e.g., Randomized Control Trials, Quasi-experimental, counterfactual analysis techniques)
• Statistical analysis
• Text analytics
• Regression discontinuity analysis
• Cluster analysis
• Discounted cash flow valuation method to estimate the economic value of an investment
• Mixed method analysis techniques
• Case study approach

(3) Produce and Disseminate the Results of the Evaluations Activity(ies)

Disseminating results/ findings from an evaluation activity could include publishing reports and making them publicly available; giving briefings to key stakeholders; preparing Infographics, and so on. Whatever the form of the communication, it must be tailored to stakeholders at the level of detail suitable to them to ensure that the communication would be consumed.

(4) Use the Results to Fill Evidence Gaps and Inform Decision Making

Results/findings should then be used to help inform decisions , such as:

• Decisions to make program improvements (e.g., modifications, redesign)
• Decisions to revise program goals and strategy
• Resource allocation decisions
• Decisions to communicate program strategy and value
• Operational decisions

Here is a simplified example of the Learning Agenda process, as it applies to an illustrative question:

Tips for Successful Strategically Planned Evaluations

• Plan for high quality, cost-effective evaluations
• Evaluation studies often take six months or more to complete and a schedule helps ensure that all program elements are assessed on a time scale that will provide information timely for decision points.
• Avoid the trap of unnecessarily limiting or constraining the scope of an evaluation study to meet a compressed time schedule. For example, in some cases, results from an evaluation may have to become available every other budget cycle if an in-depth scope of investigation is called for.
• Put in place standard procedures for gathering and validating as much data as possible as a routine part of program record-keeping.
• Combine efforts where you can. For example, do customer satisfaction surveys for all program customers at one time.
• Set aside budget resources for evaluation, including an amount for studies that cannot be predicted. In many Federal government agencies, evaluation activity typically comprises 1% to 10% of a program's budget.
• Establish a procedure to ensure the independence of the evaluation process.
• Have a quality assurance process in place that calls for external review of the study evaluation plan and the draft report and ensures data quality and consistency (especially when evaluation data comes from multiple sources).

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Often, evaluation is construed as part of a larger managerial or administrative process. Sometimes this is referred to as the planning-evaluation cycle . The distinctions between planning and evaluation are not always clear; this cycle is described in many different ways with various phases claimed by both planners and evaluators.

Usually, the first stage of such a cycle – the planning phase – is designed to elaborate a set of potential actions, programs, or technologies, and select the best for implementation. Depending on the organization and the problem being addressed, a planning process could involve any or all of these stages: the formulation of the problem, issue, or concern; the broad conceptualization of the major alternatives that might be considered; the detailing of these alternatives and their potential implications; the evaluation of the alternatives and the selection of the best one; and the implementation of the selected alternative. Although these stages are traditionally considered planning, there is a lot of evaluation work involved. Evaluators are trained in needs assessment, they use methodologies – like the concept mapping one presented later – that help in conceptualization and detailing, and they have the skills to help assess alternatives and make a choice of the best one.

The evaluation phase also involves a sequence of stages that typically includes: the formulation of the major objectives, goals, and hypotheses of the program or technology; the conceptualization and operationalization of the major components of the evaluation – the program, participants, setting, and measures; the design of the evaluation, detailing how these components will be coordinated; the analysis of the information, both qualitative and quantitative; and the utilization of the evaluation results.

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8.5 Performance Planning and Evaluation

• How are performance appraisals used to evaluate employee performance?

Along with employee orientation and training, new employees learn about performance expectations through performance planning and evaluation. Managers provide employees with expectations about the job. These are communicated as job objectives, schedules, deadlines, and product and/or service quality requirements. As an employee performs job tasks, the supervisor periodically evaluates the employee’s efforts. A performance appraisal is a comparison of actual performance with expected performance to determine an employee’s contributions to the organization and to make decisions about training, compensation, promotion, and other job changes. The performance planning and appraisal process is shown in Exhibit 8.9 and described below.

• The manager establishes performance standards.
• The employee works to meet the standards and expectations.
• The employee’s supervisor evaluates the employee’s work in terms of quality and quantity of output and various characteristics such as job knowledge, initiative, relationships with others, and attendance and punctuality.
• Following the performance evaluation, reward (pay raise) and job change (promotion) decisions can be made. If work is unsatisfactory, the employee may be put on a performance improvement plan, which outlines the behaviors or performance that must be improved, the milestones and time periods to improve performance, and what will occur if performance is not improved.
• Rewards are positive feedback and provide reinforcement, or encouragement, for the employee to continue improving their performance.

It was once common practice for performance appraisals to be conducted on an annual basis, but most companies have moved away from that standard. Instead, managers are encouraged to provide employees with continuous real-time feedback so that skill development and job performance can be improved more rapidly.

Information for performance appraisals can be assembled using rating scales, supervisor logs of employee job incidents, and reports of sales and production statistics. Regardless of the source, performance information should be accurate and a record of the employee’s job behavior and efforts. Table 8.3 illustrates a rating scale for one aspect of a college recruiter’s job. A rating of “9” is considered outstanding job behavior and performance; a rating of “1” is viewed as very poor to unacceptable.

Concept Check

• What are the steps in the performance planning and appraisal process?
• What purposes do performance appraisals serve?
• Describe some sources of information for the performance appraisal.

This book may not be used in the training of large language models or otherwise be ingested into large language models or generative AI offerings without OpenStax's permission.

Want to cite, share, or modify this book? This book uses the Creative Commons Attribution License and you must attribute OpenStax.

Access for free at https://openstax.org/books/introduction-business/pages/1-introduction

• Authors: Lawrence J. Gitman, Carl McDaniel, Amit Shah, Monique Reece, Linda Koffel, Bethann Talsma, James C. Hyatt
• Publisher/website: OpenStax
• Book title: Introduction to Business
• Publication date: Sep 19, 2018
• Location: Houston, Texas
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Why A Thoughtful Business Plan Is Essential For Success

Starting a business is an exciting journey, full of opportunities and challenges. For women entrepreneurs, particularly those transitioning from corporate life to entrepreneurship, the path can feel daunting. But with the right roadmap (a well-thought-out business plan), you can navigate the uncertainties and set your business up for success.

A business plan is more than just a document; it's your blueprint for building and growing your business. It outlines your goals, strategies, and the steps you need to take to achieve them. A strong business plan not only guides your decisions but also communicates your vision to potential investors, partners, and employees.

Here’s why a business plan is crucial and how you can create one that will steer your business toward success.

The Importance of a Well-Thought-Out Business Plan

1. clarifies your vision and objectives.

As you build out your business plan it forces you to think deeply about your business idea and if it’s a viable idea. What exactly are you trying to achieve? What are your short-term and long-term goals? By putting these thoughts on paper, you create a clear vision that will guide every decision you make.

2. Helps You Understand Your Market

Researching and writing a business plan requires you to analyze your market. Who are your competitors? Who is your target audience? What are the market trends? This understanding helps you position your business strategically and identify opportunities for growth.

3. Defines Your Strategy

A business plan includes your marketing strategy, sales approach, and operational plan and outlines how you will achieve objectives. This strategic framework ensures that your efforts are aligned and focused on achieving your goals.

4. Secures Funding

If you need financial support to start or grow your business, a well-prepared business plan is essential. Investors and lenders want to see a clear plan for how you will generate revenue and repay any loans. A business plan that demonstrates a thorough understanding of your industry and a solid strategy is more likely to attract funding.

5. Guides Your Decision-Making

A business plan serves as a reference point, helping you make informed decisions that align with your long-term goals. By consistently referring to your business plan, you ensure that every decision contributes to the overarching vision and objectives of your business, ultimately driving growth and success.

6. Tracks Your Progress

A business plan includes milestones and key performance indicators (KPIs) that allow you to track your progress. Regularly reviewing your business plan helps you stay on course, adjust your strategies as needed, and celebrate your successes.

The bottom line is that creating a business plan is a crucial step in turning your entrepreneurial dreams into reality. It’s your roadmap, guiding you through the complexities of starting and growing a business. For women entrepreneurs, especially those transitioning from a corporate career, a well-thought-out business plan can provide the clarity, confidence, and direction needed to succeed. Take the time to craft a business plan that reflects your vision and sets the foundation for a thriving, profitable business.

Launch Excellence Strategy Manager

About the role.

Major accountabilities:

• Deep dive in patient insights and connect the need of HCS stakeholders.
• Drive while collaborate with x-functions to evaluation of new assets prioritization, leverage insights obtained from patient, scientific, clinical, product, regulatory and access perspective.
• Develop a comprehensive long-term strategy to focus therapeutic areas, aligning it with the identified needs and opportunities.
• Foster strong collaboration with internal x -functional teams to ensure the strategy incorporates diverse perspectives and expertise.
• Form strategic partnerships with external stakeholders, including but not limited to healthcare providers, payers, and patient advocacy groups.
• Leverage these collaborations to co-create initiatives and programs that have a positive long-term impact on patients' benefits.
• Take a leading role in developing and implementing commercial strategies for new product launches.
• Drive the creation of robust initiatives that align with the company's objectives and market trends.
• Shape the business environment by identifying and capitalizing on opportunities to create something new from scratch.
• Contribute proactively to build a credible image and positive reputation for Novartis
• Work within any given legal framework, Novartis Ethics and Compliance policies

Key performance indicators:

• In-depth insight aggregation
• Commercial strategy effectiveness e.g. stakeholder awareness, sales forecasting, 5-yr P&L
• Alignment across cross-function teams and resource optimization
• Measure the effectiveness of the long-term strategy in terms of achieving identified needs and opportunities e.g., awareness trial usage (ATU), progress of must wins
• Evaluate the level of collaboration and engagement with internal and external stakeholders.
• Feedback from key stakeholders internally and externally
• 100% compliance

Minimum Requirements: Work Experience:

• At least 5-year experience in leading pharmaceutical product strategy
• Experience with cross-disease new product launch and planning in the past 3 years, preferably in the field of Nephrology, Cardiology, Immunology and Oncology
• In-depth understanding of the Pharma market including key dynamics, competitors, country regulatory, and market access environments (reimbursement and private)
• Experience in healthcare system engagement (e.g. market access, government affairs)
• Strong data planning and analysis capability
• Experience in evidence generation strategy
• English fluency and capability of above county communication
• Strong customer engagement skills
• Influential leadership in matrix teams, strong in teamwork, communication and able build alignments
• High learning agility and curiosity for innovation and exploring new concepts
• Analytical Thinking.
• Brand Awareness.
• Building Construction.
• Business Analytics.
• Cross-Functional Collaboration.
• Digital Marketing.
• Marketing Strategy.
• Media Campaigns.
• Project Management.
• Stakeholder Engagement.
• Stakeholder Management.
• Strategic Marketing.

Languages :

Why Novartis: Helping people with disease and their families takes more than innovative science. It takes a community of smart, passionate people like you. Collaborating, supporting and inspiring each other. Combining to achieve breakthroughs that change patients’ lives. Ready to create a brighter future together? https://www.novartis.com/about/strategy/people-and-culture

Join our Novartis Network: Not the right Novartis role for you? Sign up to our talent community to stay connected and learn about suitable career opportunities as soon as they come up: https://talentnetwork.novartis.com/network

Benefits and Rewards: Read our handbook to learn about all the ways we’ll help you thrive personally and professionally: https://www.novartis.com/careers/benefits-rewards

Novartis is committed to building an outstanding, inclusive work environment and diverse teams' representative of the patients and communities we serve.