All businesses need business plans. They are not only for start-ups but established businesses too. Business plans help you define your strategic goals that will enable you to hit or surpass your financial and non-financial business goals. However, a business plan is not a budget. It is an annual plan on how you will reach your financial and business goals based on strategic information such as competitors, target customers, geographic expansion and so on. A budget is a management tool that breaks down in detail by month how you will achieve the plan. The budget is used to compare actual performance against budgeted performance so that you can take immediate action when things go off track.
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