Types of Business Plans
Business plan is one of the keys to success when it comes to starting up or even during the midst of business dealings.
It is also referred to as strategic plans, expansion plans, investment plans, annual plans, operational plans, internal plans, feasibility plans, growth plans, and several other names. If you want to understand the types of business plans, here are some basic and helpful facts about it.
Internal Plan And Operational Plan
Start-up plan is the most common and standard types of business plan. This mainly defines as well as elaborately specifies the step by step process of starting a new venture. This plan covers the standard topics which include the service or the product, market, company, strategy, forecasts, management team, implementation milestones, and last is the financial analysis. With regards to the financial analysis, it normally includes the profit as well as the loss, the projected sales, cash flow, balance sheet, and in some cases a few types of tables. In this type of business plan, it usually begins with the executive summary of the business and ends up with the appendices that show the monthly projections that occurred during the company’s first year of business operation.
This type of business plan will not be applicable to outside investors and banks or even other kinds of third party in the business operations. In addition to this, it also does not include the specific description of the company as well as the management team. In terms of the specifications of the business’ financial projections, internal plan may include the details of it. But in other cases, it does not. All in all, what this plan really covers is that of the main points in bullet point during PowerPoint slideshows. As compared to operational plans, this type is more detailed. It focuses more on the specifics of the implementation milestones, deadlines, dates, and other responsibilities of the teams as well as the managers.
This type of business plan often covers the business’ subset or the business’ specific area. These plans sometimes include those of the internal plans or the new investments as well. This may not however include the specifications of the financial projections of the business for the entirety of the company. But it at least covers the detailed and well-explained forecasts of the sales as well as the expenses of the business which is usually meant for a new venture.
Feasibility plan is more of a start-up plan which covers the summary, keys to the business’ success, mission statement, costs’ preliminary analysis, and the analysis of the basic market. It also includes the probable expenses, pricing, as well as the costs.