What Type of Business Plan Does Your Company Need?
Business plans are written road maps that guide business owners through the various stages of their business. Research supports the fact that businesses with a written and formalized business plan are more likely to achieve their financial viability goals compared to their non-planning peers. Writing a business plan can make a world of difference for entrepreneurs who desire external funding.
There are many forms of business plans that cater to various needs of the business. Here are 6 of the most common types of business plans:
Startups Business Plans
Many budding entrepreneurs start their companies without a business plan. They don’t know how to write one or think it’s too much work, but the truth is that having a plan always helps. A startup business plan outlines your ideas and strategies for launching, managing, and eventually exiting your new venture. Startup business plans usually include an executive summary, marketing strategy, financial information, and operational information. This plan focuses on the steps of a new business, which describes the company, the products or services, the market, the financials, and the management team. It will also include the business vision, mission statement, definition of success and implementation of objective schedules.
A detailed startup business plan helps you set milestones for measuring success. You can share the plan with investors who may want some reassurance on the viability of their investment in your company.
Internal Business Plans
Internal business plans target a specific audience within the business, for example, the marketing team who need to evaluate a proposed project. This plan will describe the company’s current state, including operational costs and profitability, then calculate if and how the business will repay any capital needed for the project. Internal business plans provide information about project market size and the market’s positive effect on the company income.
Strategic Business Plans
A strategic business plan provides a high-level view of a company’s goals and how it will achieve them, laying out a foundational plan for the entire company. While the structure of a strategic business plan differs from company to company, most include five elements: business vision, mission statement, definition of critical success factors, strategies for achieving objectives and an implementation schedule. These types of business plans are used to evaluate the company’s current state, operational costs, profitability and what the company wans to achieve for the near future.
A strategic business plan brings all levels of the business into the big picture, inspiring employees to work together to create a successful culmination to the company’s goals.
Feasibility Business Plan
A feasibility business plan answers two primary questions about a proposed business venture: who, if anyone, will purchase the service or product a company wants to sell, and can the venture turn a profit? Feasibility business plans include, but are not limited to sections describing the need for the product or service, target demographics, and required capital. A feasibility business plan ends with recommendations for going forward.
Operations Business Plan
Operations business plans are internal plans that consist of elements related to company operations. An operations business plan specifies implementation markers and deadlines for the company year. The operations business plan outlines employees’ responsibilities.
Growth Business Plan
Growth business plans are in-depth descriptions of proposed growth and are written for internal or external purposes. IF a company growth requires investment, a growth business plan may include complete descriptions of the company, its management and officers. The growth business plan must provide all company details to satisfy potential investors. If a growth business plan does not need capital, then the company descriptions will not be needed, but the growth business plan will include financial sales and expense projects.
Business plans are critical when you start a business, and you should not overlook t hem. Yearly business plans serve as a road map to each state of the business and are essential to securing funding and bringing in partners. Business plans can be very beneficial for your company but before you spend time and money on drafting one think about what type of plan your company really needs.
If you need help with your business plan, we can help.
Disclaimer: This information is made available by Bagla Law Firm, APC for educational purposes only as well as to give you general information and a general understanding of the law, and not to provide specific legal advice. This information should not be used as a substitute for competent legal advice from a licensed professional attorney in your state.
