Previously, I provided Back 2 Basics Tips that were easy for anyone in business. A few of you wanted more information about business plans, what I called a “Blue Print For Your Company.” A business plan offers various purposes for your business from your personal use to potential investors. The plans can be from a minimum of three (3) to 30 pages; it all depends upon its purpose. Below are some variations of business plan types to help you along your journey:
PERSONAL PLAN – This plan functions as a working tool to help you better understand your company’s function, process and structure. This plan should be a minimum of three (3) pages which discusses company description (including infrastructure), products or services (including niche), marketing strategy (including sales strategy and networking), management and organizational structure (including personnel), and financial planning (including personal, start up and capital).
Once again this plan is primarily your “Company’s Blue Print” to be used for your personal use. It should offer enough details to be used as a reference guide in running your business more effectively.
MID-LEVEL PLAN – This plan operates as a more detail working guide which helps you to better define, plan, manage, and control your company’s operation. This type of business plan should be at least a minimum of 12 pages. As you are creating your plan pay close attention to outlining and describing your company (including ownership type, location, business type, infrastructure), products or services (including niche, competition, target audience, and pricing), marketing strategy (including budget, and strategic plan), management and organizational structure (including personnel, inventory and suppliers), and financial planning (including personal, and capital requirement).
This plan is more detailed because it has a variety of uses. These details will help you to not only better gauge your company’s strengths and weaknesses but allow you to see what holes are in your company’s structure. In flushing out a mid level plan you would not only have a great reference guide for yourself but you can use portions as a concept for your collaterals, company policies, or other uses helping to save time and in running your business more efficiently.
FULL DETAILED PLAN – This is a more detailed plan that has all of the bells and whistles, in helping to successfully operate your business. It requires a minimum of 30 pages outlining the full structure of the business. It has everything as stated in above in the other two plans but in more detail from executive summary to company’s description to marketing and sale strategies (can also be expounded upon as separate plans) to operations, management and organization (including resumes, and infrastructure) to finances, capital expenditures and financial planning (includes profit and loss, cost projections, and projected cash flow) to be used for investors showing them the Return On Investment (ROI).
This plan is fully detailed and is primarily used for investors and lenders. The persons providing you the needed capital for your business requires a “full” understanding of 1) that you understand your business function, process, structure and operation and 2) they can understand your business’ function, process, structure and operation. Once again it also helps to gauge your company’s strengths, weaknesses and the holes in your business structure.
Remember as your company’s structure changes so should your business plan whether it’s a personal, mid-level or detailed one.