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 outlined four common types of business plans below for your review.

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 with a well-defined product or service, a clear target market, and a long-term business strategy. They may also include other plans as references, 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 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 plan is often used by startups or businesses that do not need external financing. It focuses on key elements such as the product or service, target market, and competitive landscape. Advantages of a lean business plan include faster development, ease of updating, and focusing on essential business elements.

One-Page Business Plan

A one-page business plan outlines the essential elements of a business plan in a single page, making it easy to share with potential investors or partners. It provides an overview of the company’s goals and objectives without going into detailed information.

                                   

Seven Core Areas to Include in One-Page Business Plans                                    Executive Summary: Brief overview of the company, mission, and goals.                     Company Description: Brief description including history, products, target market, and competitive advantages.                     Market Analysis: Analysis of the target market, size, growth potential, competition, and barriers to entry.                     Financial Plan: Overview of revenue projections, expenses, and capital requirements.                     Strategic Plan: Outline of goals, objectives, timeline, and milestones.                     Management Team: Overview of qualifications of the management team.

Startup Business Plan

A startup business plan is tailored to entrepreneurs who are starting a new venture. It typically includes detailed information about products or services, target market analysis, financial projections, exit strategy, and management team bios. This type of plan can help identify potential risks and develop mitigation strategies. Startup business plans are ideal for securing funding from investors or lenders, and they should demonstrate a clear vision, detailed market analysis, and an exit strategy. Investors look for a well-thought-out plan, experience in the management team, and a convincing product or service offering.