When entrepreneurs initially hear the word “business plan,” they associate it with a blueprint that will help them launch a new company. Although writing a business plan is undoubtedly beneficial for new ventures, there are other kinds of business plans that can benefit entrepreneurs and other stakeholders at different phases of their company’s development.
It’s a good idea to lay out your objectives and the strategy your business will use to achieve them. This is true whether you’re starting a brand-new company or trying to grow an existing one with a long history. Business plans occasionally have the added benefit of drawing in investors and assisting your company in being eligible for specific kinds of business funding.
The six forms of business plans that are most frequently used by companies are listed below. Find out how these tools can assist your company in creating a successful business strategy.
1. Startup Plan
Startup business plans can be helpful for new companies that are getting ready to go public, are searching for outside investment, or are seeking startup finance. Startup plans often prioritize the company’s finances, the goods and services the company will offer, and in-depth market analysis. Other sections of this kind of business strategy could be:
- Executive summary
- Company overview
- Management background
- Marketing plan
- Competitive analysis
- Financial projections
Remember that the core audience should be your focus when writing your business strategy. Startup plans are helpful for management and owners of businesses, but they are also frequently read by lenders, banks, and potential investors as external papers.
2. One-Page Business Plan
A one-page business plan is a document you create with external audiences in mind, just like a beginning company plan. However, a one-page strategy is more akin to a synopsis that you utilize to present your company’s salient features to prospective lenders, investors, partners, and vendors. Important information including your company’s products and services, target market, revenue projection, and significant milestones should all be included in this kind of strategy.
3. Strategic Plan
A strategic business plan is another kind of business plan that you should draft for your organization. This kind of strategic plan aims to arrange a high-level approach that your firm can employ to assist in accomplishing important business goals.
SWOT analysis is frequently the first step in strategic company strategy. NOTE: Strengths, Weaknesses, Opportunities, and Threats is an acronym for these elements. Once the management or owner of the company has finished the SWOT analysis and determined which areas the company needs to improve, most strategic plans consist of these five elements:
- Mission statement
- Business vision
- Key factors that determine success
- Strategies for achieving business objectives
- Implementation schedule
Strategic plans are typically internal documents. These are the kinds of business plans that you create with owners, managers, and staff in mind, not for external users.
4. Feasibility Plan
A feasibility plan could be a useful tool if your firm is getting ready to enter a new market or if it intends to launch a new product or service. Feasibility plans are meant to assist businesses in providing answers to important queries such as:
- Does your new product or service have a market?
- How much money would the company require to get started?
- Will the suggested goods or services be purchased by the market?
- What are the prospective earnings for the suggested business venture?
You might need to carry out in-depth competitor analysis, product testing, and market research in order to respond to these (and other) inquiries. A feasibility plan typically ends with a suggestion regarding whether launching a new product or breaking into a new market would be a worthwhile endeavor. This kind of business plan is intended for internal use only.
Discover: Business Models
5. Growth Plan
A growth strategy, sometimes referred to as an expansion strategy, can be advantageous for companies getting ready to enter new markets. Internal growth plans can help your business identify the tasks it needs to accomplish in order to grow, as well as the best time and method for doing so.
Of course, plans for expansion frequently call for more funding as well. An external expansion plan can also be required in these circumstances. Include the following information in your business growth plan to increase the likelihood that your firm will obtain the funding it need, regardless of whether your goal is to draw in investors or take out loans to grow.
- Company Description
- Overview of Products and Services
- Management Background
- Market Research
- Financial Reports
- Financial Projections
- Funding Request
6. Operations Plan
An organization can utilize an operations plan, also known as an annual plan, as an internal business tool to schedule important daily tasks for the following year. The duties of different employees, supervisors, and even the company owners themselves are outlined in this kind of plan. Operational plans can also assist teams in staying on course to meet deadlines established by the organization and critical milestones and business objectives.
Many operations plans contain the following elements.
- Business objectives
- List of required activities to reach objectives
- Resources needed
- Staffing requirements
- Progress tracking
Many operational plans may be created by a firm for various departments within the organization. For instance, the shipping department may be striving to fulfill its operations strategy, while the customer care department may have one.
People also read: Business Location Checklist: Navigate Your Success
It’s crucial to ask yourself a few vital questions before you start writing a business strategy. First, think about the plan’s objective. What goals are you attempting to achieve? You should think about the audience next. The business plan will be read by whom?
Making a company plan is a perfectly acceptable way to ensure that your daily goals are met. However, it’s acceptable to draft a business plan with the intention of assisting you in identifying the most advantageous funding sources for your tiny company. You’ll be in a better position to develop the precise kind of resource your firm requires once you’ve established the objective of your business strategy.