5 Year Business Plan

Business Plan Articles

Many may argue that forming a business plan for the next five years is overly optimistic and full of too many assumptions. Projecting too far into the future in a very dynamic market will only result in a strategy that necessarily diverts from its normal path. However, a 5 year business plan is often created as a method of determining the future potential of the company given a set of scenarios and have an idea of how it will grow. Much like adults planning for retirement, the same logic applies that if steps are made well in advance, that they will be more likely to achieve an end result immediately. Contact Pro Business Plans to learn more about its 5 year business plan.

year business plan

5 Year Business Plan

The timeline of a five year business plan is designed to provide investors and internal management with the information needed in order to stay on track and remain focused around the future of the company. It is often very easy to wildly change the business model and for established companies, this can often be very hazardous. Short-term trends can blind long-term vision and the company's success may be a risk to goals and objectives that would otherwise not be held to high regard.

Five Year Business Model

Most established companies rarely ever change their business model, but Startup companies can change several times over the course of the first five years. General Electric is one company that shifted from manufacturing household appliances to diversification in several sectors, but it is a rare for a company that size to change. Younger companies should remain dynamic, but project their present strategy over a period of five years. For instance, a manufacturer that wishes to add several new product lines over the course of the next three years should have an actionable plan to achieve this. The business model should be dynamic, but placed in the plan as a projection of its current state.

Five Year Marketing Plan

A marketing plan for a 5-year business plan is designed to communicate the overall branding and market positioning of the company, while focusing on the more immediate term strategies. For instance, a company that is entering the market might concentrate on the initial product launch, but communicate what marketing channels is will use as communication conduits. A long-term marketing strategy helps the company to remain focused on its brand identity and not get confused by more immediate trends in the ever dynamic market.

Five Year Financial Projections

A 5 year business plan is most notably differentiated by the projection term of its financial statements. This may be particularly important in cases where changes to a business model will take several years to reflect. For instance, the acquisition of a new company may take four to five years for the synergies to reduce the cost of goods sold for a manufacturer. For a new technology, it may take several years to draw a profit with heavy investments into marketing and research. Therefore, profitability may only emerge after the fourth year, which would not be reflected in a business plan of a shorter term. A 5 year business plan may be requested by investors with the intention to better understand how these scenarios are reflected.

What is Included in Our Custom 5 Year Business Plan?

  • Marketing Plan
  • SWOT Analysis
  • Competitive Analysis
  • Profitability Analysis
  • Personnel Plan
  • Organizational Chart
  • Company Valuation
  • Executive Summary
  • Company Description
  • Keys to Success
  • Three Year Objectives
  • Product or Service Description
  • Market Research
  • Fundraising Support
  • 12 Month & 3 Year Profit & Loss
  • 3 Year Balance Sheet
  • 12 Month & 3 Year Sales Forecast
  • 12 Month & 3 Year Cash Flows
  • Break-Even Analysis
  • Financial Ratio Analysis
  • Management Team

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