Definition and Examples of a Business Plan
How a Business Plan Works
Types of Business Plans
Business Plan vs Business Model
Definition and Examples of a Business Plan
A business plan is a written document that outlines your business activities, goals, and strategy. A strong plan details everything from the products your company sells to the executive summary and overall business management. Essentially, the business plan should guide the founder’s actions through each stage of growth.
How a Business Plan Works
A business plan is a formal blueprint for business operations, financing, and the goals aimed at achieving a successful company. When designing the business plan, companies have the freedom to determine its length or detail. As long as it covers the essential aspects of the business, it will be effective in most cases.
Types of Business Plans
The stage of your company’s business affects the length and detail of the business plan. As discussed, the traditional plan is the most common type of business plan. This style includes common elements such as the executive summary, company description, market analysis, management plan, marketing and sales plan, funding request, financial plan, and appendices.
The other main type of business plan is the lean startup plan. Lean startup plans are more abstract and shorter than the traditional version. Companies that are just starting out often create a lean startup plan to help them identify appropriate starting points. These plans can be as short as one or two pages.
Business Plan vs Business Model
The business plan and business model are often confused, and it’s easy to understand why. Simply put, a business plan is a comprehensive overview of the business, while a business model is the basic structure of how to make a profit.
Takeaway
You should avoid using ambiguous terms or technical language that people outside your team may not understand. The business plan should be shared among people inside and outside the organization. Simple and effective language is the best.
Source: https://www.thebalancemoney.com/what-is-a-business-plan-5188291
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