Business plans contain goals, guidelines, and instructions that a business needs to follow in order to accomplish its main purpose. These are usually created before a business is started, although they can often be reworked or re-implemented later on as the business encounters new challenges. Having a proper business plan in place is essential for the success of any business, especially newer small businesses.
Business plans should be clearly written and should contain information that will help the organization operate smoothly and efficiently. A thorough business plan should include:
- A clear statement of the business’ overall purpose and mission
- Delineations of specific business goals and aims
- Guidelines regarding business conduct and standards
- Names, contact info, and background of possible members and important parties
- Instructions regarding financing, loans, and various other business expenses/financial matters
- Provisions on how to resolve business conflicts, breaches of contracts, and legal disputes
- Instructions regarding business succession (i.e., selling/transferring business, dissolution)
- Change of leadership procedures
Ideally, the business plan should provide a clear map of where the business will be going and how it will develop. This is especially crucial for the first few years of the business’ existence.
In some cases, disputes over a business plan can arise. For instance, there may be dispute among the management regarding the overall aims of the business. Or, there may be conflicts involving very specific, technical instructions contained in the business plans. In many cases, the business has not actually been launched when these disputes are happening. However, the disputes can often affect a business member’s rights, profits, and role in the business.
Thus, it is often necessary to file a lawsuit in order to clarify business plan documents. In some cases, a damages award may result, especially if the business documents have already resulted in losses for a board member or other person. Also, legal action may be needed if the business plan violates the law or business standards.
A well-written business plan can help ensure the success of a business in the long run. You may need to hire a business lawyer if you need help creating, reviewing, or editing business plans. Your attorney can also provide you with legal advice and research if you have any questions about the business laws and rules in your area. Finally, your lawyer can represent you in court if you will be involved in a lawsuit or other legal proceeding.