Business plan is written document which serves as a map. It consists of business goal and methods to achieve these goals. It helps to make crucial business decisions, understand financial aspects, set specific goals, collect important information related to market or industry and avoid obstacles that are expected to be encountered.
Type of Business plan
There are different types of business plan that used by different companies. Startup plan, internal, strategic, annual and growth etc. are the examples of business plan.
1. Lean Startup Plan
Lean Startup Plan is the most typical plan and is designed to help to start the firms. It includes the company description, product and service, market evaluation and the projected investment and management team.
2. Internal Business Plan
Internal business plan targets specific group of people within the business. This will give more details on company’s current situation in terms of profit, operation cost and help to summarize market size and impact on company profit.
3. Strategic Business Plan
Strategic business plan helps to lay out a foundational plan for entire company. It also provides a high-level view of firm goal. It helps the firm to understand their customer need and gaps that need to be filled. It also allows company to make a change to improve and grow from their past progress by influences all the employees to work as a team for common goal with appropriate policy in the firm.
4. Annual or Operational Business Plan
The Annual or operational business plan is vital for operational business management and gives a company the detail of the nature of its business and the sales and marketing strategy for the business success. It also helps an organization to know about where the essential resources can be attained, reduce possible risks, and prepare required and contingency plans.
5. Growth or Expansion Business Plan
The growth plan or expansion business plans are in-depth description of proposed growth. This can be prepared for internal or external purposes. For an example, if the company required growth in sales, a growth plan may include complete plan for marketing and investment plan to satisfy the investors.
Reference
Paige, A. (2019, January 31). 6 Types of Business Plans. Retrieved from Chron: smallbusiness
