Have you heard that every business needs to have a business plan? Are you thinking, "why?" I've been doing just fine without having one. My business is healthy - but is it? That's the question. Ask yourself, how many times have you missed your goals and benchmarks or your business ended up pivoting in a way that you did not expect and you couldn't figure out how you got there. Well, not having a business plan "Your Roadmap to Success" could be one of the reasons for this. Your business plan is like your accountability partner, it keeps you on track and focused on success and away from "shiny object syndrome."
Due to this pandemic, funding sources, and the requirement for those funds, people are beginning to see the gaps in their businesses and one of those gaps is the lack of structure found in a business plan. Now, people are realizing that they need to be ready at all times - they need to start closing some of the gaps. One of the first steps to doing this is choosing the right business plan for your specific need and getting it done, either by your hand or that of a business plan writer.
Remember, if you need money, 95% of the time, you are going to have to produce a well-written business plan to get funded.
What is a Business Plan?
A Business plan is a fluid document that you can utilize to make sure that you are reaching the benchmarks in your business and you are staying on track with your goals to making financial success a reality.
Types of Business Plan:
Below you will find the 8 most popular types of business plans:
1. Regular Business
This is your 10-12 pages business plan with some financial, no charts or graphs. Just a simple business plan that outlines what you'll be doing in your business, how you going to be doing it, how you're going to market it, and how you are going to make money. You are not looking for any financing with this business plan.
2. Nonprofit Business Plan
Every Nonprofit Organization should and does need a business plan. Without it, you are literary operating blind. This Business Plan is essential because this serves as the jumping-off point to your strategic plan.
This Business Plan is needed when you are applying for grants or if a donor wants to make a sizable contribution but wants to make sure that you have a solid business model first. This plan will give insight into your Mission, Vision, Values, Busines Model, etc., and how are you going to achieve these goals. They may want to see a written document rather than you just telling them.
In a nonprofit, a business plan is a really great tool to keep your board members and staff focused as well. Remember, it is not something you create and hideaway, it is to be shared with your team.
3. Business Plans for Investors
If you are looking for investors, like Venture Capitalist or Family/Friends that you want to make a sizable investment in your business, they would want to know how you are going to design, build, and fund this business.
They need a tailored business plan that shows how you are going to use their money, and how are you going to guarantee them a return on their investment. In most cases, this is the only way to get them to buy what you are trying to sell to them.
4. Bank / SBA Business Plan
This is an extremely detailed business plan because the people needing this business plan are usually looking for a really large amount of money, to invest in their business.
This plan can sometimes run between 50 to 100-pages because you really have to break down what the business is, what you will be doing, how it's going to be doing it, how every dollar is going to be spent and be returned as profit as quickly as possible. Granted, these are the components of all types of business plans but this is just very, very detailed.
5. Strategic / Operational Business Plan
This is like a regular business plan but it focuses more on the strategies of success and operational planning of the business. It shows how the business is going to be run, it focuses on the business's shortfalls and fixing them with SMART Goals, who is going to be doing what, when they are going to be doing it, and their roles and responsibilities.
In simple terms, it's the "marriage" or merging of your business and strategic plan. This can be a pricey business plan because it takes a lot more time to create than some of the others.
6. Immigration Business Plan
This plan is for people who want to come to the United States to work or start or expand a business. In most cases, in order for foreigners to get their work visas, they need to have a business plan. This is not heavy on the financial, but they need to know why you are coming to the U.S., what you are going to be doing, and how you going to make your money. Usually, lawyers are the ones requesting that this be done so they can complete their paperwork.
7. Franchise Business Plan
This plan is for those that are planning to open a franchise company. Most Franchise companies will provide their own business plan written up for their Franchisees that will be accepted by the bank. If they do not offer a done for you business plan, they will give your very strict guideline on how it should be written and what it should contain. You would then take this to a Business Plan Writing Professional to execute for you.
8. Landlord Business Plan
This plan is for people who are trying to get into the Real Estate business. Some may want to buy houses to flip, buy houses to rent, or for development projects. Either way, they need to have a plan that outlines their ROI. This plan is heavy on the financials. This plan will help you to stay focused and on track making sure that your Real Estate Venture is profitable.
So, those are the 8 Types of Business Plans that most entrepreneurs might want or need. The best part is that we create all of these business plans at TVA Consulting Group. If you need a business plan to help you get to the next level in your business or you are looking for financing, we create fully fundable business plans. It's one of our special superpowers.
Just fill out the contact form and we will get back to you and help you create a business plan that is worthy of being funded!
Always remember, there is someone in your community that is waiting for the product and services that your company provides, and it's up to you to make sure that you get it right!
Tracy V. Allen