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April 11, 2021
Business Life

Business Basics – Six Types of Business Plans You Should Know

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By Rositta Liosi – EMTV Online

Are you feeling very entrepreurial this year? Why not! Follow your dreams and find out what you need to know to go forward. Firstly, ever heard of a Business Plan? It’s quite important.

A business plan is a guide for the owners of a business, its management and investors as the business starts up and grows through stages of success. 

You’ll want to know all about Buiness Plans if you’re eager to persue your dreams in owning your own business. So let’s start here with a brief explanation about Business Plans.

Business plans should clarify each aspect of a business and includes objectives to anticipate and prepare for growth. 

A business savvy owner or prospective business owner will take the time to prepare a business plan in order to guide management and promote investment capital.

According to the smallbusinesses website, there are six (6) types of business plans: start up, internal, strategic, feasibility, operations and growth plan. Business plans however, are not limited to the listed to the ones below:

Start-Up

A start up business plan details steps to start a new business plan

It would include sections that describe the company, the product or service, market evaluations and your projected management team.

It should also include a financial analysis with spread sheets describing financial areas including but not limited to income, profit and cash flow projections.

Internal

An internal business plan targets an audience within the business itself.

The purpose of an internal business plan is to evaluate a proposed project.

It should include the company’s current state, including the current operational costs and profitability.

It should also include how the business will repay any capital needed for the proposed project. That is dependent on whether the business will need capital from an external source.

Subsequently, information about project marketing, hiring and technical support costs should be included.

A market analysis illustrating target demographics, market size and the markets positive effect on the company income should be present in an internal business plan.

Strategic

This type of business plan provides a detailed map of a company’s goals and how it will achieve them thus laying out the foundational map for the entire company.

A strategic business plan should bring together all levels of a business holistically, inspiring employees to work together to create a successful culmination to the company’s goals.

The five elements of a strategic business plan according to Clean Washington Center include business vision, mission statement, definition of critical success factors, strategies for achieving objectives and an implementation schedule.

Feasibility

The aim of feasibility plan is to answer two primary questions about a proposed business venture.

Firstly, to determine who, if anyone, will purchase the service or product a company wants to sell and secondly, if the venture can turn a profit.

The sections in a feasibility plan include but are not limited to, sections describing the need for the product or service, target demographics and the required capital.

Recommendations for going forward conclude a feasibility plan.

Operations Business Plan

This type of business plan is made up elements which are related to the company’s operations.

An operations plan according to BPlans.com specifies implementation indicators and deadlines for the coming year.

Employee responsibilities should also be outlined in an operations plan.

Growth (Expansion Plans)

Growth plans are in-depth descriptions of the proposed growth and are written for internal or external purposes.

A growth plan must provide all details relating to the company in order to satisfy potential investors. But, this is only required if business owners require capital from sources outside the business.

However, a growth plan must include financial sales and expense projections

For more information about business plans and the different types of business plans one could use visit the website within the article and see also, teamtreehouse, myownbusiness, and the Entrepreneur

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