Getting Started
Both business and strategic plans begin with an environmental scan tailored to the organization. However, the business plan focuses solely on the organization’s market and operations. The business plan seeks to take the reader on a tour of the operations of the organization. Beginning with the mission and objectives, it moves through the requirements necessary to achieve them. The table below examines some of the differences between the two types of plans (Olsen, 2018).
Strategic Plan | Business Plan |
|---|---|
Used for implementing and managing strategic direction. | Used to start up a new business or line of service, obtain funding, or direct operations. |
3-5 years in scope. | 1 year or less in scope. |
Provides focus, direction, and action in order to move organization forward. | Provides structure for ideas and resources. |
Critical to prioritizing resources. | Critical to obtaining funding. |
Builds on competitive advantage. | Assesses viability of a business opportunity. |
Futuristic in nature. | Tactical in nature. |
Used to communicate the direction of the organization to staff and stakeholders. | Used to communicate ideas to investors and lenders. |
Upon successful completion of the course material, you will be able to:
- Develop a business plan for use in strategic planning process.
- Evaluate information to support decisions or recommendations.
- Demonstrate critical thinking through critical analysis.
- Demonstrate systems thinking in the strategic planning process.
Resources
- Textbook: Essentials of Strategic Planning in Healthcare (2nd ed.)
Instructions
- Read Chapter 7 in Essentials of Strategic Planning in Healthcare: Strategic planning and the healthcare business plan.
- Review the Coastal Medical Center Comprehensive Cast Study.
- Using the information provided in chapter seven and the CMC case study, develop a business plan for CMC’s potential new physical therapy clinic. Use the information provided in Exhibits 7.3, 7.4, and 7.5 as the data for the business plan. Make sure the plan includes the following (See Exhibit 7.1):
- Executive Summary
- Statement of Purpose
- Description of the Business
- Financial Data
- Alternatives
- Recommendation
- When you’ve completed your assignment, save a copy for yourself and submit a copy to your instructor by the end of the workshop.
Expert Solution Preview
Q: What is the purpose of a business plan?
A: The purpose of a business plan is to provide structure for ideas and resources for starting up a new business or line of service, obtaining funding, or directing operations. It outlines the mission and objectives of an organization as well as the requirements necessary to achieve them. It also helps prioritize resources and assess the viability of a business opportunity.
Q: What is the difference between a strategic plan and a business plan?
A: While both plans begin with an environmental scan tailored to the organization, a strategic plan is used for implementing and managing strategic direction while a business plan is used to start up a new business or line of service, obtain funding, or direct operations. Strategic plans are typically 3-5 years in scope and provide focus, direction, and action to move the organization forward, while business plans are 1 year or less in scope and provide structure for ideas and resources. Strategic plans are critical to prioritizing resources, building on competitive advantage, and communicating the direction of the organization to staff and stakeholders, while business plans are critical to obtaining funding and assessing the viability of a business opportunity.
Q: What will students be able to do upon successful completion of the course material?
A: Upon successful completion of the course material, students will be able to develop a business plan for use in the strategic planning process, evaluate information to support decisions or recommendations, demonstrate critical thinking through critical analysis, and demonstrate systems thinking in the strategic planning process.
