Every company needs a detailed, well-organized plan of action to develop and expand successfully. Depending on the goals, different business plans have different formats and contents that describe a course of action.
Here are the types of business plans.
A startup plan is a business plan that a new business presents to potential investors in order to secure startup capital. Startup plans serve as basic frameworks that companies might modify as they expand. A thorough plan will have the following details:
Overview of the business
Information about the product or service
Income and profit expectations
The strategies a business will employ to accomplish its ultimate objectives are described in a strategic business plan. The majority of strategic plans have these five key elements:
The mission and vision of the company
Key factors for company success
Strategies to meet goals
Deadline to implement the strategies
The majority of the time, strategic plans are solely used internally and serve as the framework for a complete firm. Using SWOT analysis, managers must evaluate the company’s strengths and identify opportunities for improvement while developing this kind of plan.
The strategic plan’s deadline implementation section describes how the selected strategies advance the business toward its specified milestones. This could include specifications for distributing resources and important dates for fulfilling certain goals.
When a business seeks a new business initiative, such as developing a new product in an existing market or selling current items to a new market, a feasibility plan is produced. This form of plan explains what market will want to purchase the good or service and whether the new business endeavor will provide a profit the company will find valuable.
Typically, feasibility business plans simply provide information on how well a product will sell or whether the target market is viable and will yield a high rate of return on investment. This kind of strategy can call for product testing or crowdsourcing market research to ascertain a product’s commercial feasibility.
An operations plan, also known as an annual plan, is a component of strategic planning that focuses on outlining the daily operational tasks a company must carry out to accomplish tactical goals. This type of strategy outlines the duties of management, divisions, and staff members, as well as how they contribute to the overall performance of the business. A typical operations plan includes:
Objectives of the organization
Activities required to complete these objectives
Methods to track the process of the company
In a company, when the operating budget needs to be increased, this plan is used to request it on an annual basis. It will display exactly where and why the operating cost needs to increase.
So far, we have seen four types of business plans. But it doesn’t end here; there are more. Let’s jump on to the next blog to find out about the rest of them!