Types of Business Plans
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Many self employed people, sub-contractors and small home based businesses underestimate the worth of the planning process. In many cases the finished plan is not in itself the most valuable part (although it is evidence of the process). It is the process the business owner goes through that is of value.
By writing down the business concept, it becomes a more concrete goal.
By examining the market and identifying a target group, the potential customer becomes more real to the business owner, and therefore easier to target sales and marketing messages.
By forecasting sales and expenses, the business owner has a specific number of sales to aim for.
By deciding first their goals, then the strategies and tasks they will use to achieve their goals, the business owner is consciously making decisions that become planted in subconscious and conscious thoughts, helping them to stay on track.
The primary purpose of your business is to serve your life … in order to grow a business that will serve your life, you need to work ON your business, not simply IN it.
Business plans are useful for focus and direction, if only as a tangible product of the discipline of the planning process. Those who take time to plan their business benefits by gaining a deep understanding and commitment to the business goals and direction, as well as having a plan on paper to act as a guide.
There are three main foci when undertaking the business planning procedure:
- Describing history
- Examining today
- Forecasting the future.
With all types of business planning for established businesses, it is important to compare past with the present. This uncovers trends which, if analysed thoroughly, will provide a more realistic basis for forecasts about future business performance. If you are planning for a new business, benchmark figures for the industry or similar businesses will be a sufficient start.
There are several types of business plan, each useful for different purposes. Follow the links for more in depth information, and helpful hints about the process of that style of plan, or examine our Which Business Plan? comparison to quickly see which plan types will meet your needs.
Feasibility Study
A feasibility study (also called a feasibility report or feasibility analysis) is a preliminary exercise when starting a business. It is a process to examine the overall feasibility of a business concept or project feasibility, to diligently check the viability of your business concept before you start spending serious money and time.
More about writing a feasibility study>>
Simple Business Plans
For entrepreneurs and business people starting a small business, read how to write a simple small business plan that provides a simple strategic template for focussing your day to day operations.
More about simple business plans>>
Economic Plans and Financial Projections
Viewing a business plan from a financial perspective is essential if you want to remain focussed on creating a profit. A fully forecasted financial plan for a business plan will evolve out of, and elaborate upon the feasibility analysis.
More about economic and financial plans>>
Business Plans to Raise Capital
Venture capital is money raised by selling a share of your business to a person or entity who is willing to risk their money by investing in your business. Venture capital investors not only provide capital but often also bring other skills and benefits in the form of strategic advice and established business networks.
More about business plans for raising capital investment >>
Strategic Business Plans
Strategic plans outline the motivating vision and mission for a business’s existence, and how the business owners are intending to achieve their vision. Many venture capital investors will want to see a well thought out strategic business plan before committing their time and money to the venture.
More about strategic business plans>>
Operations Plans
Developing an operational plan is simple once a strategic plan has been developed. An operational plan explains on a day-to-day basis what activities are going to be completed, with the aim of achieving the strategic aims of the business, as outlined in a strategic plan. The format of the operational plan will vary according to the size and complexity of the business, but generally it outlines what to do, names the people responsible for doing that task, and estimates how much money and what resources will be needed to complete the task.
More about operations plans>>
Marketing Plans
A marketing plan examines the current market environment, and outlines a marketing strategy to achieve sales in that environment. It is an extension of the market analysis discussion in a business plan.
More about marketing plans>>
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