Every type of business plan is necessary as they serve unique purposes. In order to get a hold of the business, it is essential to understand the types of business plans and where they can be used for proper planning and execution.
Previously, we saw the startup plan, strategic plan, feasibility plan, and operations plan. So now, let us look at the rest of the types of business plans.
When a business wants to expand, and the growth involves more resources, such as a financial investment, materials for new goods, and an enlarged workforce, an expansion or growth plan is utilized. Businesses can produce growth plans for internal or external factors, and they can contain a variety of data.
Plans for external growth are created when expansion necessitates funding from outside sources. For investors to decide whether to finance the company’s development, these plans include as much information about the company as feasible. A long list of details must be included in an external growth plan. Some specifics needed are:
Full description of the company
Detailed information about the company and services
Information about the management team
Market research and data analysis
Achievements of the company
External growth plans often incorporate everything a typical business plan includes plus more in-depth information, like a startup plan, to cover as much ground as possible. They are designed with the idea that a bank or investor has little to no knowledge about the company.
Plans for internal growth are created when a company’s expansion is financed by its own earnings. Without going into specifics about the business or product, this strategy must include predicted sales and estimated expenses.
This kind of strategy is created when a company is looking for funding, considering making an acquisition, or considering another potentially risky move and needs to have a plan in place in case unfavorable circumstances arise. What-if plans are less formal and more of a replacement for the original business strategy.
For instance, if a business needs financing, it would probably have a very thorough growth plan for prospective investors to review, but it would also have a backup plan that considers the least desirable scenario the business may face, such as a significant loss of market share, and how they would proactively and strategically react to avoid a crisis.
What-if business plans assist management in analyzing the possible outcomes of making important business decisions like growing its workforce, increasing product prices, or deciding to merge with another company.
A one-page plan, which summarises a business and draws attention to its key components, is used to introduce a company to possible partners and investors. This strategy comprises a sales estimate and details the company’s product or service as well as its target market. It also features a business summary that highlights the mission and values of the organization. This is often referred to as a sales pitch.
Investors encounter many startuppers who approach them with a sales pitch. So, they cannot put in a lot of time with every pitch in the early stages. That’s where the one-page plan comes in. It is brief and crisp. Investors can decide based on it whether they want to hear more about the startup or not.
Creating business plans and, all-in-all starting a business can be an overwhelming process. But the good news is, you don’t have to do it alone. Turnkey Tech Solutions can help you out with it!