5 Important Types of Business Plans to Take Your Business towards Success
For any business owner, whether existing or future, a business plan is of utmost importance. A business plan guides the owner, investors and management when the business starts up and grows through steps of success. An existing or aspiring business owner has to write a business plan to explain each aspect of his business and should include goals to expect and prepare for success.
Expert business owners jot down a business plan to guide management and to raise investment capital. There are various types of business plans of which a few are given below to help you start your venture.
A start-up business plan should explain the steps to commence a new business. It should include sections with descriptions of the company, market evaluations, the product or service your business will provide, your proposed management team and if there are any lifetime deals available that will help you start the business. You should provide a financial analysis with spreadsheets that should describe financial areas such as profit and cash flows projections.
Internal business plans are designed for an audience within the business. It is written to assess a proposed project. It should describe the current status of the company, including profitability and operational costs. You should calculate if and how your business will pay back any capital required for the project. Give information about project marketing, tech and hiring costs. You should also include a market analysis explaining target demographics, size of the market and its positive effect on the income of the company.
A strategic business plan is the one that offers a detailed structure of the business’s goals and how it will accomplish them, setting up a foundational plan for the whole company. This plan includes five components:
- Vision of the business
- Mission statement of the business
- Strategies for accomplishing objectives
- Definition of critical success factors
- Schedule of implementation
Thus this plan presents all levels of the business as a big picture, thereby motivating employees to work as a team to achieve the company’s goals.
A feasibility business plan replies to two basic questions about a future business venture. This plan tries to decide who will buy the product or service of the company and if the business can get a profit. This plan includes sections that describe the requirement of the product or service, required capital and target demographics. A feasibility business plan concludes with suggestions for going forward.
This type of plan is an internal plan that contains components related to business operations. Such a plan describes implementation markers as well as deadlines for the next year. This plan defines responsibilities of the employees.
Thus you can understand how important it is for you to write a business plan. By writing down one you can understand important things about your business and how to take your business further towards success.