There are many types of business ventures, and each has a unique way of doing business. Some companies started on a whim and became successful, while others were birthed from calculated analysis and failed. Regardless of the business approach, all ventures need to create a business plan.
A business plan is a written document that describes the path that businesses will take to achieve success. Business owners can write plans for various reasons — these include when a company is in the startup stages, when seeking new investors, or when the business shifts focus.
A business should always have a current business plan on hand to refer to and make sure their current business strategies align with the desired outcomes. But how do you determine what type of business plan is best for your company?
Types of business plans
Depending on the business’s goals, a plan will look different from business to business. Some involve complex numbers, while others will have trend-setting strategies. There are many kinds of business plans one can create, but generally, there are a few types of planning that are the most basic and sometimes necessary.
Market analysis business plan: This business plan revolves around understanding where profits are made, where the money is flowing to and when the money is going there. From this information, a business can implement the information into their product or services.
Growth business plan: This business plan outlines a series of steps or actions that will shorten the distance between the current situation to the ideal goal. Steps or actions can be short or long-term and may deal with marketing, financing, or overall growth.
Backup or scenario business plan: These plans are made by companies that are already successful. Making one of these business plans as a startup company isn’t seen as productive. These plans are made when a company is rapidly changing or as a precaution for future growth options. These plans take future possibilities into account to have options when an unexpected change occurs.
Analyze the variables and write your business plan
The most immaculate business plans will be the ones that include all the variables and have developed a strategy with them in mind. Variables should consist of anything that will directly or indirectly affect the operation’s success or failure, no matter how little the impact may be. From the identified variables, you can create a business plan.
There are many services online that can assist in the creation of a business plan. But some companies prefer not to be restricted to a predetermined template and prefer to create one from scratch.
To say that there is one single “best” business plan would be naive. Since every business is different, every business plan will be different. While there may not be the “best” business plan, there will be business plans that are more efficient for certain companies.
For example, a new spice company may complete a market analysis business plan as they research various markets to enter. Simultaneously, a well-developed technology company will have a growth business plan as they prepare for future tech releases.
Whatever type of business plan your company decides to create, choose one that best fits you!