Difference Between Scorecards & a Business Plan
- Business plans outline a company's management structure, operations, financing and sales goals. A balanced scorecard is an analysis tool used by managers to assess all aspects of a company.
- The four areas measured by a balanced scorecard include: financial, customer, business and growth processes. Income, business costs, customer satisfaction and retention, procurement and employee retention are all measured under the balanced scorecard.
- Business plans may include a section regarding the analysis techniques management will use when reviewing its business operations. This section is important because it shows outside investors and lenders the knowledge and skills retained by company management.
- Companies that create a business plan before starting operations may have a greater chance for success because they have clearly defined goals. Properly managing the company using a balanced scorecard can increase the opportunities for growth.
- Business start-ups may use a consulting firm or management company to help write a business plan. Law firms or public accounting firms usually provide start-up services for new businesses.