2023-11-24 12:08:26
To start a project, you need more than a vision for the future. As you know, it is necessary to generate a defined path to achieve the objectives, depending on the type of company, its clientele and the state of the market, among other factors. That’s where a business plan comes in, which lays the foundations that will give life to a business idea.
To start your own version of this document, below we present the types of business plans that exist, their most relevant characteristics and when you can use each one.
Strategic business plan
The purpose of the strategic business plan is to show the vision of the entrepreneur, in order to talk about the profitability of the project and inspire confidence in potential investors. It usually outlines the long-term project.
Characteristics of a strategic business plan:
Part of certain long-term goals. Use short-term, measurable objectives as a way to fulfill the entrepreneur’s vision. Its purpose is to inspire and move investors to bet on the project. It is suitable for both small companies and startups with a high level of financing. The relevant thing is to have a business mission of high standards and know how to translate it into practice. It generally has a long format that outlines the main strategies and tactics to follow.
When to use a strategic business plan? When your focus is on showing the business vision you have and what you will do to achieve it, through long-term goals and measurable objectives.
Operational business plan
An operational business plan focuses on the viability of operations and how they should be organized in accordance with an objective, almost always financial. The importance of this business plan is that it allows companies with a track record to establish their practices and define responsibilities.
It is also suitable for businesses that are in an adequate financial balance and that seek to grow in a discreet but sustained way.
Characteristics of an operational business plan:
Defines the general and area objectives to be followed within a short or medium period of time. It places emphasis on the indicators to monitor and those responsible for achieving the objectives. Project financial, technological and human resources accurately. Defines the compliance phases and the operations involved in each one. It serves mainly internally and for interested parties.
When to use an operational business plan? When you have an established business that seeks profitability through well-defined operations. Also, at the beginning of a project that has a focus on financial objectives and how to achieve them.
One page business plan
A good exercise is to make a one-page business plan if you are thinking of presenting it to a group of investors and convincing them in a few minutes.
This type of plan helps to find the most relevant part of the business idea and must be concise and impactful enough.
Features of a one page business plan:
It is very brief and mentions only the key points of the plan. It is useful to excite the audience and motivate them to participate in a project. It requires adding details about the initial investment and projection of returns so that the business vision does not remain in the air. It can be presented as an executive summary (as the initial part of a larger plan).
When to use a one page business plan? When you must present your business idea to a demanding and busy audience, they need to know in a few lines why they should risk their resources on what you offer.
Standard business plan
A standard business plan presents its elements in more detail. Typically, its structure contains the definition of the business, a market study, investment analysis, organization, recommendations and more elements.
Features of a standard business plan:
It includes everything you need to understand at a glance the long-term business goal and how it relates to certain objectives. It helps interested people immerse themselves in the analysis, whether it is financial resources, human resources, market, demand or other aspects. Thoroughly shows the feasibility of the project. It puts the business in the context of its target audience and the characteristics of the competition. It allows more technical investors to understand the background of the strategic vision.
When to use a standard business plan? Practically, always. Regardless of the focus of your plan, you need to carry out an exhaustive analysis that shows the business objectives, financial projections and the ways in which you will be able to implement its components. Even if you win over investors with a short presentation, this document will serve as a reference for your strategies and also to improve them in the future.
Feasibility business plan
A feasibility business plan is focused on the market, possible demand and future profitability. It is typically used by startups seeking a large initial investment, with the promise of bringing an innovative product to market.
Characteristics of a feasibility business plan:
Includes a precise market analysis to answer the question: who will buy this solution?
Clearly outline the characteristics of the market you intend to enter and the possibilities of success. Shows when and how financial goals will be achieved. This is a highly technical plan that requires the intervention of internal financial analysts and even external reviewers.
When to use a feasibility business plan? When you have an innovative business idea that can attract people with a high investment capacity. You will not only have to sell your product, but also show who your buyers will be and how profitable this base will be to achieve the highest profit margins.
Business plan of possible scenarios
A possible scenario business plan, also known as what-if (“what if…?”) aims to show what the probabilities and risks of a business are.
Characteristics of a possible scenario business plan:
It shows two or three possible scenarios derived from a business decision: changing the main line of business, adding an original product line, generating a long-term strategic alliance… Its purpose is to show the levels of risk and, sometimes, encourage the parties. interested in making business moves that are less discreet than usual, but that can represent high profits. It helps in cases where a business does not have good prospects in its current circumstances and must take risks to stay afloat.
When to use a possible scenario business plan? Use it if your business is going through a delicate moment and is in a changing environment, since it will give you the guideline to take more risks, with the aim of the company staying afloat and even growing. It is also appropriate for intrepid entrepreneurs who seek to renew their companies in an unpredictable way or through high-investment and high-risk acquisitions or mergers.
Growth business plan
The main objective of the growth business plan is to show the opportunities of a business if it receives the necessary financing or if it obtains a suitable alliance. It should be tempting for interlocutors by showing what they would gain by betting on the growth of an already established company.
Features of a growth business plan:
Shows solid financial projections based on various levels of financing. It highlights the value of the company within a partnership or merger, if it is a possibility. Defines what type of resources are needed in each strategic area. Talk precisely about marketing or advertising that will increase the company’s recognition.
When to use a growth business plan? When you want your business to grow in a sustained way, with moderate risk for both your company and investors.
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