What Type of Business Plan Do You Need?

We Get This Question A Lot: Which Business Plan Is Right for You?

One of the most common questions we receive is about the various types of business plans, such as strategic plans, annual plans, operational plans, feasibility plans, and the classic business plans for startups seeking investment. However, what real business owners truly need are lean business plans for effective management.

Form Follows Function: Determining Your Plan

When it comes to business plans, it’s essential to adhere to the principle that form follows function. Your business objectives should dictate the type of plan you require.

Starting with a Lean Plan

Every business, whether large or small, startup or established, can benefit from a lean plan. This concise document includes bullet points, lists, and forecasts covering strategy, priorities, resource allocation, responsibilities, performance expectations, cash flow management, and budgeting.

The Components of a Lean Plan

A lean plan typically consists of:

• Bullet points outlining the core strategy
• Tactics for key decisions in marketing, product development, and finance
• Specifics such as assumptions, milestones, tasks, and responsibilities
• Financial projections including sales forecasts, spending budgets, and cash flow estimates

By maintaining a regular review and revision process, a lean plan can serve as a valuable tool for business success.

Lean Plan for Startups

In addition to the standard lean plan components, startups should also consider starting costs and plans. Starting costs encompass initial expenses and assets required, while a startup plan outlines tasks and timelines for launching the business.

Customizing Your Plan

If you need to present your business plan to investors, banks, or partners, you may need to enhance your lean plan with additional content. This could include formal financial projections, executive summaries, explanations, and details tailored to the specific needs of your audience.

Business Plans for Different Purposes

Whether you’re seeking funding, validating ideas, or building a strategy, your business plan should align with your goals. From internal operations plans to growth strategies and strategic priorities, each type of plan serves a distinct purpose in guiding your business forward.

Resources for Business Planning

For more information on creating a comprehensive business plan, explore our business planning tutorials, downloadable templates, and sample libraries to help you develop a plan that meets your specific needs.