While the strategic plan establishes broad objectives and goals over a long-range planning horizon the business plan specifies detailed objectives that can be accomplished within a single business year cycle. The strategic plan is complete once the objectives, goals and broad strategies are defined and approved.
The business plan always proceeds to the action or implementation stage for all defined strategic objectives. While the strategic plan is constructed based on explicitly stated assumptions about what will happen or not happen outside the organization (the environment), the business plan is developed as if the assumptions in the strategic plan were facts.
One of the many problems faced by any manager, investor or investment adviser is the complex question of what constitutes a good business plan. Those involved in the industry will always make their individual assessments about specific industrial sectors, rates of return, "comfort factors," views of management, business practices and the like.
A properly written business plan, outlining the past, current and future development of a company, must demonstrate that the company's product, service or technology is sufficiently developed and that there is a reasonable expectation of earnings from the company's business within the period of the business plan. A complete business plan is generally about 40-50 pages in length.