Consultant Proficiency Resources How to Series continues with "How to" effectively devise a business plan for your business. Compared to the twenty century, more than ten business plan templates can be applied to a business today. According to experts, the business plan of choice may depend on the specific use and the leader's intent.
One of the most popular business plans is the startup business plan. The startup plans contain a thorough approach to starting and growing a business. It is different from all other business plans because of its nature; The details are taken into consideration right from the business's inception; the until the growth stage, along with the vision of at least five years.
With this business plan, new businesses (1-3 years) need to detail the steps they need to take while starting a business. This document typically includes sections describing the company, the product or service the business will supply, market evaluations, and the intended projected management team. Startup business plans can equally be used by established companies to launch a new product line or to enter an entirely new business segment in the market. Conglomerates use this plan if they are launching a new business.
Below are other types of business plans that can be considered for your business:
1. Internal Business Plan
As the name suggests, the internal business plan is for the internal stakeholders of the business. This type of business plan helps to evaluate specific projects. It contains strategies and ways to improve the current business working and suggests a new pattern for growth.
2. Strategic Business Plan
A strategic business plan provides a high-level view of a company’s goals and how it will achieve them, laying out a foundational plan for the entire company. While the structure of a strategic plan differs from company to company, most include five elements: business vision, mission statement, definition of critical success factors, strategies for achieving objectives, and an implementation schedule. A strategic business plan also helps create internal efficiency for the best results.
3. Feasibility Business Plan
A feasibility business plan answers two primary questions about a proposed business venture: who, if anyone, will purchase the service or product a company wants to sell and if the venture can turn a profit. Feasibility business plans include but are not limited to, sections describing the need for the product or service, target demographics, and required capital. A feasibility plan ends with recommendations for going forward.
4. Operations Business Plan
An Operations plan is an internal plan comprising elements related to company operations. An Operations plan specifies implementation markers and deadlines for the coming year. The operations plan outlines employees’ responsibilities. Operational business plans are typically tiny because they are cut down to a year’s worth of information.
5. Growth/Expansion Business Plans
You might consider Growth Business plans if you have been in business for five years or more. Growth or expansion plans are in-depth descriptions of proposed business growth written for internal or external purposes. If a company’s growth requires investment, a growth plan may include complete descriptions of the company, its management, and its o, officers. The plan must provide all company details to satisfy potential investors. If a growth plan needs no capital, the authors may forego obvious company descriptions but will include financial sales and expense projections. Growth business plans are internal and external facing.
Internal growth plans are a lean version of a strategic business plan. You’ll use them if your company’s growth or expansion is being funded internally, such as launching a new product line from the last product line’s revenue.
For an external or investor-facing growth plan, you will need different information. An external growth plan assumes that the bank, investor, or individual you’re pitching doesn’t know much about your business. Hence more details are required.
6. The Lean Plan
Businesses use the Lean business plan to manage strategy, tactics, dates, milestones, activities, and cash flow. The Lean Plan is faster, easier, and more efficient than a formal business plan because it doesn’t include summaries, descriptions, and background details that you and your partners or employees already know. A Lean Plan includes specific deadlines and milestones and the budgets allotted for meeting them. A lean startup format might be preferred if you want to explain or start your business quickly, your business is relatively simple, or you plan to change and refine your business plan regularly.
7. The Mini-plan or concise plans
Many recipients prefer the mini-plan because they can read it or download it quickly to read later on their iPhone or tablet. You include most of the same ingredients that you would in a longer plan, but you cut to the highlights while telling the same story. For a small-business venture, it's typically all that you need. For a more complex business, you may need a mini-plan or a longer version of a mini-plan.
8. The Presentation Plan or decks
PowerPoint presentations changed how business plans can be presented. One form of presenting your business plan in the form of a deck. The presentation business plan is about 20 minutes in duration. The time afforded allows the presenter to cover all key points and tell your story from concept and mission statement through financial forecasts. In the Presentation plan, key questions about who, what, where, why, when, and how must be answered.
9. The Working Plan
A working plan is a tool to be used to operate your business. It has to be long in detail but may be short on presentation. This plan is intended strictly for internal use and may also omit some elements you need not explain. Likewise, you probably don't need to include an appendix with resumes of key executives. Nor would a working plan especially benefit from product photos. The Working plan is equated to an old pair of khakis you wear to the office on Saturdays or that one old delivery truck that never seems to break down. It's there to be used, not admired. It's what CPR calls your go-to Waze system.
10. The What-If Plan
When you face unusual circumstances, you need a variant on the working plan. A contingency plan is based on the worst-case scenario you can imagine your business surviving—loss of market share, heavy price competition, and deleting a key management team member. A contingency plan can soothe the fears of a banker or investor by demonstrating that you have indeed considered more than a rosy scenario.
Your business may be considering an acquisition, so a pro forma business plan (some call this a what-if plan) can help you understand what the acquisition is worth and how it might affect your core business. What if you raise prices, invest in staff training, and reduce duplicative efforts? Such what-if planning doesn't have to be as formal as a presentation plan. Perhaps you want to mull over the chances of a significant expansion. A what-if plan can help you spot the increased need for space, equipment, personnel, and other variables so you can make good decisions.
According to the Small Business Administration (SBA), every business should have a minimum of four business plan formats, including the Traditional or Working plan, Mini-plan, presentation plan, and the What plan. As a business, it is important to remain in a state of readiness; this equates to preparation, preparation, preparation. For assistance, be sure to reach out to CPR.
Warm Regards,
CeeCee