Each business plan is unique, because it is developed for specific conditions. But you need to familiarize yourself with the different types of business plans in order to understand their key features. Experts recommend doing this before compiling your own similar document.
What is a business plan?
Today there are a large number of classifications of business plans. Each author has his own landmark and key points by which this classification can occur. But with a detailed analysis, one can understand that all three main directions are described. Of course, such a gradation is by no means hard and strict. But with all this, it is thanks to her that you can get a full understanding of what type of planning you need to choose in order to develop your business plan, taking into account the tasks that have been set.
A business plan is a plan or program that implements business operations, as well as company actions. Such a document should contain information about the company, the goods and services provided, production, planned sales markets, marketing, as well as the organization of various operations and analysis of their effectiveness.
A business plan is a software product that is developed during business planning.
Types of business plans by purpose
The first area is a business plan that is designed to obtain finance from external sources. As such sources can be used:
- Bank loan;
- investments from business partners or shareholders;
- funds received from grant organizations.
Potential investors have special business plan requirements that must be followed. Moreover, very often potential investors even have their own forms used to fill out applications. Such documents are standardized, and companies have been working on them for years. As a matter of fact, thanks to them it is possible to create an ideal business plan for the investor, which will perfectly show all the benefits of investing money.
There is also a type of business plan that is developed exclusively for internal use. In such a document should be shown the possible risks, as well as the characteristics of the future enterprise, including:
- specificity;
- potential in work;
- opportunities.
Such a document can be compared with a kind of roadmap, which is necessary for reconciliation during the management of the company. It is on this card that you can focus when a decision is made.
Among the types of business plans of the enterprise, one is also distinguished that is used if necessary to change something in a company that is already operating. For instance:
- introduce a new service or product;
- launch a new unit or direction;
- restart the company from scratch.
It is thanks to a well-designed business plan that you can get a holistic understanding of what actions are needed to achieve the necessary results.
There are such types of business plans (depending on the planning horizon):
- strategic;
- short term;
- medium term;
- long term.
The methodology for compiling such documents may be different. Moreover, they can be developed for various types of organizations and their segments. It concerns both existing companies and newly created ones.
Short and medium term plans
This type of business plan, as short-term, is for a period that does not exceed a year. It is always based on resources that are already available. At the same time, the real state of finances and the team should be scheduled monthly.
As for medium-term plans, they can cover a period of 3-5 years. They describe in detail quantitative indicators of the functioning of the enterprise. At the same time, the main object of planning is financing needs, production resources, promising developments and research, as well as the organization chart of the company.
Strategic business plan
Such a document is usually developed for a period exceeding 5 years. It has much less detail, containing mainly information on the main lines of business with the prescribed requirements for development and growth.
The strategic plan refers to the main types of business plans and contains long-term goals that are prescribed depending on the mission of the company. In compiling, possible ways of achieving goals are also taken into account.
Many factors influence the planning horizon, but the most important is the sustainability of the environment in which the company operates. With an increase in the number of risks and uncertainty, the time span covering the plans decreases. Of course, a plan can be drawn up for a long period, even at high risks, but experts say that in this case it is more of a recommendatory nature.
Business plan by project type
There are many classifications of business plans, which in one way or another spell out various conditions for the functioning of the project. But all entrepreneurs must take into account the classification of business plans by type of project. So, they can distinguish:
- commercial project;
- budget (or state) project.
Very often, calculation and research of the social part of the project are included here.
There are also such types and forms of a business plan :
- Deployed.
- Business plan with expert opinion.
- Feasibility study (contains the technical and economic feasibility of the selected project).
- Business plan presentation.
- Abridged (such a business plan does not include financial calculations).
Goals and Target Audience
Briefly, the types of business plans can be classified according to the audience, which is their target. It is possible to create such a document for internal use by a management or group of managers. Also as addressees can be:
- bankers who are considering a loan;
- investors who are looking for promising and attractive companies for subsequent financial investments;
- shareholders deciding to expand the business;
- civil servants who are tasked with assessing the social significance of the project;
- business partners who decide on joint participation in the project.
Often, classification by purpose can be applied, among which are often distinguished:
- expansion of existing production;
- creation of a new enterprise;
- financial recovery of the company;
- development strategy development;
- creating an up-to-date company work plan.
Allocate classification by business objects. This type provides that it is possible to conduct planning either for a group of enterprises or for an entire enterprise (it may be either new or already operating). An investment project may also be a business object.
Development standards
The international community declares a large number of organizations that have compiled standard methods for developing business plans (their types and structure may be different). The advantage of such documents is that they are compiled exclusively in the form of recommendations, and are checked and applied in this case under a wide variety of conditions (in this case, the specifics of the business, as well as the region of work and the size of the company).
The most popular are the following methods:
- UNIDO. UN Industrial Development Unit. It works in countries characterized by a not very high level of industrial development. The main goal is to increase the welfare of the region. In international practice, this technique is the most detailed and very detailed. Experts recommend using it as a guide for entrepreneurs who are faced with the need to develop a detailed business plan for the first time.
- EBRD The planning standard from the European Bank for Reconstruction and Development is recognized in the international community, but is mainly used by experienced entrepreneurs. The reason for this is that the technique is rather concise, and large sections combine the main points. This type of business plan in business planning focuses on a deep study of the financial part of the plan. In this case, borrowed funds are especially carefully considered and monitored.
- KPMG. This standard is developed by the international consulting and audit network. It has a balanced approach to the quantitative display of information.
All of the above standard are recognized by the international community and are actively used today. But there are also many other techniques, for example:
- domestic;
- regional;
- industry.
No one is stopping institutions that are potential investors from issuing their standard with clearly defined requirements. Only exact compliance with them allows you to accept the document for consideration.
Structure
The list of the main types and types of business plans helps to orientate in their diversity, but it is worth understanding that each such document is unique. They are united by a structure that is approximately the same for any business plan. Of course, there are many nuances that lie in how deeply worked out the points of the plan, how they are named or where they are located in the text. It is important that the expectations of those for whom such a document is being developed are justified.
The following sections are almost always contained:
- Title. This section is always the first and is considered the face of the document. It is the impression of the cover page that is the most important condition for making a decision on further consideration of the project. Especially when it comes to investors who have every minute counts. Here you need to place information about the authors (it is necessary to indicate the position and experience), the company, the proposal (its essence and purpose), needs for implementation, as well as other necessary information (for example, important notes and confidentiality).
- Content. Regardless of the types of business plans, this item is always there. A listing of the main sections is required to help experts find the information they need as quickly as possible. By the way, it is thanks to the elaborated content that you can understand how clearly the creators of the project understand the action plan.
- Summary. Experts recommend compiling this part individually in each case. Here, the needs and expectations of those potential investors who are presented with a project presentation in a particular case should be taken into account. It should be understood that different audiences have different motives, without a clear understanding of which, the chances of interest of a potential investor are very low. Various types and types of business plan include such an item. Here you need to register the strengths of the enterprise, the required amount of investment, possible risks and terms of the return of funds that were invested.
- Description of the enterprise. It helps to form an accurate understanding of what this company is, as well as the features of its organizational structure and what it does. Be sure to include information on why the company is able to fulfill the prescribed business plan. Any types and forms of a business plan include information on production facilities and equipment, as well as unique developments, know-how and technological solutions. Particular attention should be paid to quality control and production management systems. You can talk about the team of specialists who will work on the project, and about their competencies and professionalism.
- Marketing plan. This section requires an answer to all questions regarding the pricing policy of the company, as well as the features of promoting a service or product, PR and advertising. It should also be noted market potential. This section describes the product sales plan.
- Organizational plan. In this paragraph, you need to provide a detailed description of the interaction scheme of all, without exception, company departments. Also at this stage, coordination and control of the work of company employees is included.
- Financial plan. All types of business plans necessarily include this item, because it is it that is the most interesting for investors. It is better that the financial service of the company participate in its development. It is necessary to accurately indicate all expected income, expenses and any other financial indicators with the timing of implementation.
- Risk assessment. A risk analysis must be present in the plan. Also, you certainly need to work out options for reducing the damage from risks or their neutralization.
- Applications Regardless of the types and forms of a business plan, in this section you need to put information that can somehow confirm the validity of the business plan.
What business plan is needed to open a business in an urban-type settlement?
Residents of small towns often think about starting their own business. It is worth noting that a business plan for an urban-type village is the same prerequisite as for large cities, because here you also need to work out prospects and take into account possible risks.
The most promising areas of activity are:
- trade;
- services;
- production.
So, most often in such small towns open hairdressing salons, pharmacies, tire shops. One of the most promising will be farming. With minimal investment, you can get a very good return.
How to open your own educational institution?
Thanks to the reform of the education system, as well as modern socio-economic conditions, the opening of an educational institution (OS) in our country has become quite profitable. Fast payback and considerable profitability constantly attract a large number of entrepreneurs. The main types and types of the OS business plan suggest that you need to carefully consider the risk assessment of such a business. But at the same time, the prospects are very great, due to the constantly growing demand for education.
Among other things, you can open such institutions:
- educational courses;
- full-fledged educational institutions;
- children's development centers, etc.
The main types and types of business plans are excellent for creating such a document. You need to understand that it is necessary to prescribe financial indicators, draw up a marketing plan and work out the risks.