Know the differences between several types of business plans so that the information you collect is important and accurate.
A business plan is an important document for the sustainability of a business. The business plan itself is a guide or business guide so that you are not confused about running your business in the future.
In addition, there are other benefits of making a business plan, for example as a document to strengthen your business model to get funding from investors. To create the document, you must pay attention to several important components in the business plan.
One important aspect is market research. There are also other important components to form a complete business plan framework. Regarding the understanding of a business plan, its benefits, and how to make it, you can access the business plan material in the previous edition.
In practice, there are various types of business plans. Now, it’s time for you to understand the types of business plans so that they don’t get the wrong format. The categorization of this business plan is based on the reason to whom the document will be given. For more, see the differences below.
Startup Business Plan
As the name implies, this type of business plan is used for businesses that want to find financial support to start a business. Usually, this type of business plan is used by startup companies or new MSME businesses.
In terms of component composition, a startup business plan is not much different from the composition of a business plan in general. Such as executive summary, products or services offered, market evaluation and value proposition, marketing strategy, budget and financial planning.
However, keep in mind that you will provide this document to investors so that they will fund your business. In addition to the mandatory components above, you must also provide space for investors to manage the money they have invested in your business.
In that section, you can include what investors’ money will be used for. You can also enter an exit strategy or strategy for investors if your business experiences an emergency situation that allows for failure.
Internal/Strategic Business Plan
Business plans are not always made for external parties of the company. You also need to create an internal/strategic business plan for your own business interests. This kind of document will help you clearly direct your business.
Internal/strategic business plans are also very useful for teams that have crucial roles in the business. For example, the marketing team can use the internal/strategic business plan as a guide to evaluate the marketing strategy that has been carried out.
Not only that, this document also functions as a written document regarding business expectations and implementation. For example, it contains the company’s vision and mission, how the strategy is to achieve the goals, how the finances will be arranged, to how to implement the existing plans.
Operations Business Plan
If the internal/strategic business plan contains expectations and implementation, then the operations business plan contains projections of the implementation of the internal/strategic business plan. Operations business plan is also often referred to as the company’s annual plan.
Operations business plan contains a mapping of the company’s operational activities, including the responsibilities of management and employees to achieve company goals. This document also contains criteria for what resources are needed, HR recruitment criteria.
Feasibility Business Plan
A feasibility business plan is written when an established company wants to expand its business. For example, by creating a new product or marketing an old product to a new target market.
This document is relatively simple because it only contains one important aspect, namely how big the prospect of your idea is. Does the target market for the new product exist and is promising? Whether the new product can guarantee profits for the company.
This kind of business plan usually requires strong market research. You can do product-testing to prove how worthy your proposed product is in the market. You can also enter a detailed strategy regarding the marketing of the new product.
Growth/Expansion Business Plan
When a company wants to expand into a larger scale, the company automatically requires greater resources. Such as investment funds, materials for new products, and of course the addition of employees.
In fact, companies only need to update their strategic and operations plans if they want to expand. However, a growth/expansion business plan will be useful if your business requires financial assistance from a third party, such as an investor.
The composition of the growth/expansion business plan is more or less the same as the composition of the startup plan which has the same goal: funding from investors. However, because your business is already established, you can highlight the advantages of your business so that investors are more interested.
For example, you can enter management whose names are well known in the industry and add achievements that have been achieved. Don’t forget to include the projected funds you need and how you manage those funds.