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!
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!