MAIN TYPES OF BUSINESS PLANS WITH THEIR COMPONENTS
So you might want to ask “What type of Business plan does my business require?” This is a list of the 6 different types of business plans you can check out and determine which one works well or suits your business.
Most business owners, especially small-scale business owners always have the wrong notion that they do not need a business plan. And those that believe they need a business plan also have the conception that a single business plan will suit all kinds of businesses.
That’s just totally wrong. There are different types of business plans, in fact, there are about 6 different kinds of business plans.
Are there different types of a business plans? Well, a well-written business plan is not only needed when a business is about to be launched but also needed throughout the growth process. A business plan could be written to seek investors, get finances.
Whatever purpose you need the business plan for, it will surely come in handy and save you a lot of trouble in the course of running your business
A business plan will contain your business objectives as well as your prospects for growth. The important thing to understand is that a business plan will not be appropriate for all kinds of businesses.
So how many types of a business plans are there?
LIST OF DIFFERENT TYPES OF BUSINESS PLAN
- STANDARD BUSINESS PLAN: The standard business plan has undergone a lot of modifications in recent times. It is quite shorter nowadays than it used to be in those days. A standard business plan is expected to occupy the need of a business plan event, which is what it is called when you need to present a business plan to prospective investors, a bank, vendor, or partners. The standard business plan proceeds with the executive summary and will include different sections that cover the company, the products, and services that it offers to render, the market, strategy and goals, management team as well as the financial analysis and forecast.
- THE INTERNAL BUSINESS PLAN: The main target of the Internal Business plan is the audience within the business. It is written to evaluate a proposed project and also make a concrete description of the company’s current state, which must definitely include the operational costs as well as profitability. The internal business plan will also talk about the repayment plan of any capital needed for the business, gives detailed information on project marketing and costs of hiring and tech. Since the internal business plan will only be required for internal purposes and not for any form of external usage, it might not necessarily mention the management team or give a detailed and well-explained analysis of the business. The Internal business plan is very much likely to be shorter than a standard plan, but must surely include the goals and purposes of the business
- THE STRATEGIC BUSINESS PLAN: A strategic business plan discusses the detailed road map of the company’s goals and how they intend to achieve these goals. It also talks about setting a foundational plan for the overall organization with a focus on high-level opportunities as well as setting major priorities for the business, instead of on specific responsibilities for the entire team. There are 5 different elements of a strategic business plan:
- Business vision
- Strategies for achieving objectives
- Mission statement
- Critical success factors
- Implementation schedule
The strategic business plan culminates all cadres of business into the main picture, motivating the employees to work as a team to assist the company to achieve its goals and objectives.
- FEASIBILITY BUSINESS PLAN: A feasibility business plan is a major type of business plan that tends to determine what category of people will purchase the different products and services that the company wants to sell. And also determine if the whole business venture will turn out to be profitable. The sections of a feasibility business plan will include the need for the said products and services, required capital, and target demographics.
- THE OPERATIONAL BUSINESS PLAN: The operational business plan talks mostly about deadlines set for different projects and is designed by the frontline managers. They serve as implementation or benchmark markers. They are mostly incorporated as the 3rd aspect of the annual growth business plans. And they also highlight the different responsibilities of every employee within the organization.
- GROWTH BUSINESS PLAN: These types of business plan talks about the in-depth analysis of the planned growth and can be utilized for both external and internal purposes. The Growth Business plan assists your organization to monitor the expansion plans and any further investment that might be required for the same purpose. It is usually created as an annual growth plan and most of the time includes a marketing as well as a financial plan.
Any other type of business plan must incorporate every detail of the company to give potential investors maximum satisfaction about the growth potential of the company.
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