6 Types of Business Plans
6 Types of Business Plans
What is a business plan?
A business plan is a document that outlines objectives and the activities necessary to attain a certain business goal. Business plans are utilized to create a road to success for a company’s growth, from start-up to expansion.
- Internal Business Plan:
The internal business plan, as the name implies, is for the company’s internal stakeholders. These forms of business plans aid in the evaluation of individual initiatives and keep the team informed about the company’s present position. The company has a better chance of succeeding if everyone on the team is on board, which is why the internal business plan has chosen to focus on internal stakeholders rather than external stakeholders.
Is the business expanding or contracting? Is it necessary to alter, improve, or modify the operating pattern? Internal business strategies provide answers to questions like these. The major goal of the internal business plan is to manage the firm as smoothly as possible, rather than to demonstrate the balance sheet of the company’s financial condition to external stakeholders. It includes methods and suggestions for improving present corporate operations, as well as a new growth pattern.
- Strategic Business Plan:
Internal business plans include strategic business plans incorporated in them, which implies they are a part of it. The strategic business plan’s main goal is to pave the route forward and answer questions like “What are you going to get and how are you going to get it?” These responses are nothing more than the team’s approach for achieving the goals, which incorporates the team’s strengths, limitations, and opportunities.
These plans include more detailed financial information and critical milestones for investors. Internal efficiency is achieved by strategic business plans that ensure the best results for the team. The strategic business plan also includes a business vision, mission statement, goal-setting methodologies, success criteria, and timelines for implementation. A strategic business plan lays out how a corporation will attain its overarching objectives. The majority of strategic plans have five primary components:
- The mission statement of the company
- The company’s mission
- Success considerations for a business
- Goal-setting strategies
- Deadline for implementation
Internally, strategic plans are typically used only as a basic strategy for a complete organization. Using a SWOT analysis, managers must examine the company’s strengths and identify opportunities for improvement while establishing this type of plan. A SWOT analysis, which stands for Strengths, Weaknesses, Opportunities, and Threats, allows businesses to gain a better understanding of the elements that influence their actions. Management can identify which strategies to apply to utilize its strengths, choose the correct opportunities, and overcome any problems discovered by the evaluation by conducting a SWOT analysis. The strategic plan’s deadline implementation section explains how the company’s chosen tactics will help it reach its goals. This could include resource allocation guidelines and deadlines for fulfilling specific objectives.
- Operational Business Plan:
It’s also known as an Annual Business Plan, and the name implies that the plan is for a single year. These forms of business plans, rather than the typical business plans, are more vital for startups. Their numbers have been reduced because they only have a year’s worth of data.
An operations plan is a type of strategic planning that focuses on sketching out the day-to-day operational actions that a corporation must execute to reach tactical goals. This plan type outlines management’s, departments’, and employees’ duties, as well as how they contribute to the company’s overall success. The following items are included in the operations plans:
- Organizational goals
- Objectives must be met through activities.
- Activities will require resources.
- Personnel requirements
- Deadlines for implementation
- Processes for tracking progress
Operations plans can also be used to justify an increase in operational budgets, which are typically sought once a year.
They do not intend to detail the profit plan for the following five years to the investors, but they do include a strategic plan for the next 365 days. The annual plan serves as an internal business plan as well. There was once a time when there was a need to recruit early investors at the start of a business. These business plans are appropriate for firms who need to make significant changes in a short period of time.
READ ALSO: SEVEN BUSINESS PLAN ERRORS THAT BUSINESS OWNERS COMMIT IN NIGERIA
6 Types of Business Plans
- Growth Business Plan:
Because it involves the opening of a new site or the launch of a new product, a growth business plan is also known as an expansion business plan. These company strategies are hyper-focused and lean in nature, but they are not the only option for companies. Depending on the nature of the audience, primary development plans are separated into two categories: internal and external growth plans. These business plans are typically employed when a firm need to raise funds internally or when a new product is being launched. Internally, Radha, there should be no need for a product explanation because the funding is already known and the product line is already established. Instead, the focus should be on projecting revenues and expenses. The strategy for the expansion plan that incorporates investor finance is to use a variety of different facts, some of which may be fairly detailed.
This strategy takes into account the bank investor as well as any other elements that a new business plan would take into account. The plan is written in such a way that the investor has no prior knowledge of the product, thus everything must be presented in the business plan, making it far more comprehensive. It is treated as a startup, with additional information about growth and expansion, and it is viewed as a single plan with two essential sub-business plans. Market growth, financial projections, funding requests, and expenses will all be included in this company plan. It is critical to ensure that the project clearly establishes the relevance of the business in order to answer the issue of why this particular business and not another should be pursued. The data on competitors is an important aspect of this company plan.
For example, if you’re launching a new phone brand, the project should describe how it differs from existing phones, what unique characteristics it has that make it better than the iPhone, why the public needs this phone when there are so many phones, and so forth.
- Feasibility Business Plan:
When a company wants to start a new business venture, such as producing a new product in an existing market or selling current items to a new market, a feasibility plan is developed. This plan type describes what market will want to acquire the product or service, as well as whether or not the new venture will be profitable for the company. Normally, feasibility business plans simply include information about how well a product would sell or whether the projected market exists and will generate a good return on investment. To evaluate a product’s feasibility in the marketplace, this type of plan may necessitate market research in the form of crowd-funding or product testing.
These business plans define who will buy the company’s service or product, as well as whether or not the enterprise will be lucrative. These business plans also include parts that define the demand for a product or service, as well as the target demographics and financials needed to get the company off the ground. The final section of a feasibility business plan is future recommendations.
- Startup Business Plan:
These are the types of business plans that are utilized by newly established businesses. The startup business plans outline a comprehensive strategy for launching and growing the company. Because of its unique character, it differs from all other company plans in that it considers all specifics from the beginning to the end, as well as a five-year vision.
Established organizations can also employ startup business plans to launch a new product line or cater to a completely new market group. When a conglomerate wants to start a new firm, they employ this strategy. This plan, however, will not be useful if the Conglomerates intend to buy an existing business; instead, a concise starting business plan will be required in those circumstances in order to examine the previously established industry in relation to the market competition.
If you need a service of a Professional Business plan writer, then Dayo Adetiloye Business Hub is the place to go Call or WhatsApp us now on 081 0563 6015, 080 7635 9735 or send an email to dayohub@gmail.com and we will solve any of your business plan problems.
Hope you enjoy this article?
Share your thoughts in the comment session.
Contact us today for your business consultancy and business advisory services. We can help you fine-tune your idea, structure your business, market your business, train your staff, consult on your retirement plan, coach you for financial success. We also write a business plan and help with fundraising strategies and Grant applications. We can help you start, grow, and expand your business.
Call or WhatsApp us now on 081 0563 6015, 080 7635 9735 or send an email to dayohub@gmail.com and we will solve any of your business problems.
Related