Type of Business Plans

 

Business plans come in all shapes and sizes, but the main purpose of any business plan is to provide a roadmap for business owners and managers to follow as they grow their companies. For example, if you are looking for investment in your business or planning on going to a bank to seek capital, you may want to opt for a more detailed and comprehensive business plan. On the other hand, if you are a small business owner who is looking to create a plan to help you stay organized and on track, a basic business plan may be sufficient. It is important to create a business plan that suits your specific needs and objectives.

All basic business plans should at the very least include an executive summary, a description of the business, a market analysis, a competitive analysis, a description of the products and services offered, a marketing plan, an operations plan, financial projections, and an appendix. When it comes to creating a business plan, there are several types that you can consider that should suit the needs of your organization. Each type of business plan has different advantages and disadvantages, depending on your company’s goals and objectives.

We've picked below for your review four common types of business plans that you may consider for your next or current business needs.

Traditional Business Plan

The traditional business plan is the most used type of business plan. This type of plan typically includes an executive summary, a description of the business, market analysis, organizational structure, product or service information, financial projections, and an appendix with additional supporting documents. This type of plan is often used for businesses that are seeking external financing or venture capital funding.  Traditional business plans are suitable for businesses that have a well-defined product or service, a clear target market, and a long-term business strategy. They are also suitable for businesses that need to demonstrate their ability to manage and execute a business plan in order to attract investors or lenders.  Traditional business plans may also include either as part of the document or as references other plans such as the operational plan, strategic plans, tactical plans and contingency or risk plans.

Lean Business Plan

A lean business plan is a shorter version of a traditional business plan. It does not contain as much detail as a traditional business plan but still provides a roadmap for the company’s future. A lean business plan typically includes an executive summary, mission statement, market analysis, product or service information, financial projections, and an appendix with additional supporting documents. This type of plan is often used by startups or businesses that do not need external financing or venture capital funding.
This plan is a more modern approach to business planning and focuses on the key elements of the business, such as the product or service, target market, and competitive landscape. It also includes an analysis of the customer needs and how the business will meet those needs. This type of plan is often used for businesses that are starting with limited resources and need to focus on getting to market quickly.  Advantages of using a lean business plan are that the plans are quicker to develop and easier to update, focus on key elements of the business, help to identify potential risks and opportunities, can subject to needs be used to secure funding from early investors and provides a roadmap for the future of the business.

One-Page Business Plan

A one-page business plan is exactly what it sounds like: a single page that outlines the essential elements of a business plan in an easy-to-read format. This type of plan does not include detailed information about the company or its products or services; instead, it focuses on the major points and provides an overview of the company’s goals and objectives. The one-page format makes it easy to share with potential investors or partners quickly and easily.   You can use the one-page business plan as a base to either develop a more detailed plan or in conjunction with supplementary documentation such as financial projections, market research, and competitive analysis.

Seven core areas to include in one-page business plans 1.    Executive Summary: This section should provide a brief overview of the company, its mission, and its goals. 2.    Company Description: This section should provide a brief description of the company, including its history, products or services offered, target market, and competitive advantages. 3.    Market Analysis: This section should include an analysis of the target market, including size and growth potential. It should also include an analysis of the competition and any potential barriers to entry. 4.    Financial Plan: This section should include an overview of the company’s financials, including revenue projections, expenses, and capital requirements. 5.    Strategic Plan: This section should outline the company’s strategic plan for achieving its goals and objectives. It should include a timeline for implementation and any key milestones. 6.    Management Team: This section should provide an overview of the company’s management team and their qualifications.

Startup Business Plan

A startup business plan is specifically tailored to entrepreneurs who are starting a new venture. This type of business plan typically includes detailed information about the company’s products or services, target market analysis, financial projections, exit strategy and management team bios. This type of business plan can help entrepreneurs identify potential risks associated with their businesses and develop strategies to mitigate those risks.  Startup business plans are ideal for entrepreneurs who are looking to secure funding from investors or lenders and are developed in such a way that they are not only organization friendly, but investor friendly.  Investors when looking at startup business plans expect to see a well-thought-out plan that includes a clear vision and strategy for the business, a detailed market analysis, financial projections, and an exit strategy. Additionally, investors want to see that the management team has the experience and knowledge necessary to execute the plan.  Remember, when writing a startup business plan, it needs to be written in such a way that investors are convinced that the business is worth investing in and are sold on your product or service offering.