Introduction to entrepreneurship/IENT102/Planning/Types

As you have seen, there is no one type of business plan. Business plans are different according to their purpose.

Those for internal use only tend to have less detail as the people using it already know lots of information about the company.

Those for external use need to have more detail (about key personnel for example) as the readers (e.g. investors) will not be so familiar with the business.

Business plans include but are not limited to the following :

(: SW - this is just a summary of the resource. Consider using an alternative resource or reducing the summary)

Startup plans

outline the steps that will be taken to start the business. Sections include:

• Description of the company
• Product or service
• Market evaluations
• Key personnel
• Financial analysis - income, profit and cash flow projections.

Internal business plans

are for use within the business. Sections may include:

• Evaluation of a proposed project
• Analysis the company’s current state
• Calculate if and how the business will repay any capital needed for the project
• Project marketing, hiring and tech costs
• Market analysis - target demographics, market size and company income.

A strategic business plan

as the name implies is a detailed map of a company’s goals and how it will achieve them.This type of plan brings all employees in the business into the big picture. Sections include:

• Business vision
• Mission statement
• Critical success factors
• Strategies for achieving objectives with schedule.

A feasibility business plan

answers two primary questions about a proposed product/service - who, if anyone, will purchase it, and can it turn a profit. Sections include:

• Description of the need for the product or service,
• Target demographics
• Required capital
• Recommendations for going forward.

Operations Business Plans

are internal plans that specify implementation markers and deadlines for the coming year. The operations plan outlines employees’ responsibilities.

Growth plans

also known as expansion plans are in-depth descriptions of proposed growth and are written for internal or external purposes. Sections include:

• Complete descriptions of the company
• Management team and officers
• Details to satisfy potential investors
• Financial sales and expense projections.

WEnote

Do a web search for other types of business plans. Make a WEnote about any others you find.

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References