What type of business plan are you going to write?

Business owners write a business plan for a specific purpose. There are several types of business plans you can write and you just have to know what is applicable for your venture. The question is ‘What will you use it for?’ So it’s important to consider the audience, the current goals, and the benefits you want to gain, to come up with the right plan.

Some common types are the following:

Start-Up

This is the most common type for startup owners. For those who are just in the very beginning of everything, writing a business plan is very essential. This business plan is to either attract investors to get funding or simply to fully understand the company’s path and goals. This typically discusses the market, the competition, your financial projections, and basically the value of your new idea.

Internal

The target audience of an internal business plan is the people who are inside of your business. This business plan is meant to keep your team informed. In order for your business to continue to run smoothly, you need this type of business plan to show the state of your business. This should tell you if you’re reaching your goals or not, which areas you need to retain or make changes and improvements on, and if you are progressing or not.

Strategic

This plan is the ‘how’ for your whole team. This is where you detail all of your strategies as a guide to accomplish what you want to accomplish for your business so you can maximize your efficiency.

Feasibility

This plan’s purpose is to assess your approach to your new product or service, or new market. This will help you and your team figure out if this new project or idea will succeed or not. So this will need to include your market analysis and financials.

The feasibility business plan can also be used when you are looking for investors.

What-If

This business plan focuses on the ‘what-ifs’ of your business. It’s your company getting ready when unusual circumstances happen. This is your backup plan, additional to your actual business plan, where you consider the worst-case scenarios which also helps reassure your investors. So you can include situations like heavy competition, loss of market share, or shortfall in management.

There are varying types of business plans. But the ultimate role of it is to act as a guide to properly manage your business depending on where you’re at. With the right business plan, business development and success are high. So if you are writing one, customize it based on where you’re at and it will surely help you gain a proper perspective to achieve your company’s goals.