The business plan must reflect the shareholders intentions with the business. The board should establishes a planning process that involves all relevant parts of the company. Based on the business plan, the board makes the necessary strategic decisions. It is then up to the management to execute plan.
The shareholders have to understand if it is a good investment owning shares in the company. A vital part of the business plan is therefore a financial model summarized in an income statement and a balance sheet.
In addition to a profit & loss forecast, an analysis of the cash flow is needed to see what funding is required at different stages of the development. Does the company have a positive, free cash flow? Is there a surplus that may be distributed to the shareholders? Or does the business require a capital injection?
The board and management must allocate enough qualified time for strategic discussions and decisions, to be able to contribute to the business development. Often boards have established a recurring, annual strategy meeting, where the board together with the management team review selected strategic issues. The board then ask the management to update and execute the business plan. The planning horizon is usually a rolling time period of three to five years.