When it comes to business planning, there are various types of plans that serve different purposes. From strategic plans to operational plans, feasibility plans to lean business plans, it can be overwhelming to figure out which plan is the right fit for your business. In this article, we will help you understand the different types of business plans and determine which one is best suited for your needs.
Start with the basics: Form follows function
The first step in determining the right business plan for your needs is to understand the function you want the plan to serve. Every business needs a lean plan to effectively run its operations. A lean plan is a concise collection of bullet points, lists, and forecasts that cover essential business functions such as strategy development, resource allocation, task management, and financial planning.
A lean plan typically includes bullet points for strategy, tactics, concrete specifics like milestones and responsibilities, and budgets for sales, expenses, and cash flow. This type of plan is essential for all businesses, regardless of their size or industry.
Lean plan for startups
Startups can benefit from a lean plan with an additional focus on starting costs and plans. Starting costs include expenses like legal fees, initial branding, and equipment purchases, while starting plans outline tasks and timelines for launching the business successfully.
A plan for external stakeholders
If you need to present your business plan to investors, banks, or potential buyers, you will need a more comprehensive plan that includes formal financial projections, detailed market analysis, and a strategic overview of your business. This type of plan should also include a strong executive summary, summaries, and explanations of key elements, and formal financial statements like profit and loss, cash flow, and balance sheets.
Stay focused on your business purpose
Your business plan should align with the specific goals and objectives of your business. Whether you are seeking funding, validating ideas, or building a strategy, your plan should be tailored to meet your business needs. Different stakeholders will have different expectations from your plan, so it’s important to customize it accordingly.
Plan, pitch, and summary memo
For business plan events, such as investor presentations or loan applications, you may need to create a summary memo and pitch presentation to accompany your formal business plan. These documents should summarize the key points of your plan and provide a compelling overview of your business to external stakeholders.
In conclusion, business plans come in various forms and serve different functions depending on the needs of your business. Whether you need a lean plan for internal management or a comprehensive plan for external stakeholders, it’s important to tailor your plan to meet your specific business objectives. By understanding the different types of business plans and their purposes, you can create a roadmap for success and effectively communicate your business strategy to key stakeholders.