Generally, people have two misconceptions about business plans. The first one is that businesses only need one business plan. The second one is that one plan suits all businesses. In reality, every business is different and has distinct needs, thus they need different business plans.
Also, with time these business plans need modifications and amendments. They may need to switch to a new type of business plan when there is a need. Therefore, it is necessary to know in detail the types and their purposes.
A business plan is a written document which includes various components of a business. Some of them are strategies, the plan of action, funding, and ways to succeed.
What do you think whenever you hear and think of a business plan? The first thing most people think of is a long, more than 40 pages detailed description of the business. Some may think that it comprises the past, present, and future of a business.
But this is very crucial for every business operating in the market. This necessary tool comes with a range of formats, different styles, content requirements, and more. This data is required to address the business objectives and various stages of business development.
To find and select the right plan for your business you need to understand your goal. Whether you are opening a startup, expanding it, launching a new product, or self-assessing. But before that, you have to understand the potential benefits and applications of each type of business plan.
There are several types of business plans used in the market depending on the needs & goals of a business. Here, you’ll get to know about the unique features, advantages, and clear breakdown of four common business plans.
It is always best to get in contact with an expert in a specific field before creating the content for that field. For instance, LeCiel Technologies can guide you accurately when it comes to the marketing of a business.
Therefore, if anyone asks you to provide them a business plan, you should know two things. It is better to clarify the accurate requirements of clients and their expectations before creating a plan for them.
Before understanding the types of business plans, it is helpful to go through a few business-plan terms.
Business plans can be both internal and external. Both differentiate with a trait i.e. business audience. An internal plan is designed for the employees or specific departments working in the company. This requires less information of the company’s background may have a narrower financial view.
On the other hand, an external plan is designed for people outside the business. This generally serves the purpose to impress external parties to invest or work with your business. This type includes complete detail about the company, financials, and strategies that work best for both parties. It is more formal than an internal plan.
Business plans can be classified according to the scope of the enterprise.
A lean business plan comprises main points/highlights (perhaps 10 pages total). On the other hand, a standard business plan covers the full picture of a business (perhaps 40 or more pages in total).
The attributes of both plans are associated with the target audiences. Most external plans fall under the standard scope and the internal plans can fall in any category depending on businesses’ needs.
A lean plan helps you track the progress of your company. It focuses on deadlines, budget, cash flow, and tactics to implement strategies and achieve goals. The standard plan gives a comprehensive view of the enterprise and helps you increase sources of funding.
Business plans vary in formats and content needs depending on the purposes and objectives. Some of them are:
Target audience – External
Goal: Develop a roadmap to build a successful business & secure funding
A startup plan aims to build a blueprint that includes various stages of development. This shows how a startup will be launched, run, and achieve the objectives. It is a framework for the successful future of a business and also a purpose to secure funding from external sources. This plan comprises detailed business information such as background info, products/services, management responsibilities, market and industry analysis, and more.
Target audience: Usually internal
Scope: Usually lean
Goal: To explore the viability of a new product/service
It is also known as ‘a feasibility study’. It is more of a decision-making plan and is made when people think of launching a business or product/service in the market. It helps you know the chances of getting success and if you should proceed with the plan or not.
It focuses on the assessment approach and includes content related to proposed growth, market analysis, target demographics, and capital required for the feasibility.
Target audience: Internal or external
Scope: Lean or standard
Goal: Build a framework for proposed business growth/expansion
This is also like a startup plan made for new segments of a business. Whether made internal or external and made with a scope of lean or standard, it adds complete detail. It encompasses new venture detail, capital needs, financial projections, analysis of the budget, and milestone details.
An external growth plan will require general descriptions of the business, background, product, industry, and management with a broad financial outlook.
Target audience: Outside
Goal: To give a brief description of the company and prospects
If the lean plan offers highlights from a standard plan then this one-page plan gives highlights of a lean plan. It is also called ‘a business pitch’ and is a snapshot of the business. It is made for the ones who want a quick overview of the enterprise. The ones who do not have that much amount to go through the book version of your business, products, detailed strategies, and approaches. This one-page plan encompasses content that gives a brief and powerful description of the business. The products/services, market, timings, sales, and other details are included in the highlights.
The plans that are explained in this guide are mostly related to small businesses. But there are several variations in business plans. You can choose the one that best suits your business needs and objectives. Therefore, select and create the perfect business plan for the growth of your business.
You can get in touch with us by calling us at +91-935-508-8080 to get more detail about business growth.