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Importance of the Different Types of Business Plans

Business plans inform owners, management or potential investors about the different stages of the business or how a business proposes to grow. Business plans clarify each aspect of the business and tell its audiences on what to expect at different stages. Although business plans have no standard classifications and are called by many names, it can be classified into five different types.

The Simple or the Mini-plan

Due to its simplicity, it is one of the favorite business plans for many investors. It is easy to read, on-the-go, and can get to the point straight without all the story. If you are planning on a startup or small business venture, the mini-plan would be an ideal choice to get the attention of potential investors in the shortest time span. Mini-plan is also called as one-page business plan.

The Presentation Plan

PowerPoint presentations are an inevitable way to present information. Business plans can be more colorful and lively through PowerPoint slides. On the other hand, presentations of such kind can turn the table upside down. Boring, stereotype presentations can quickly make the investors less interested even though your project has a lot of potentials. Make sure the presentations are rightly timed, interactive, and meaningful. Don’t just stand there and read everything in front of the slide. Make it lively by adding comments, questions, or forecasts and interact with the audience without losing momentum. Most of all, design the slides with nice graphics and keep it uncluttered.

The Working Plan or the Internal Plan

Mostly used within the company to explain the project features to the management. Working plans explain about the project, how it operates, costs, the team involved and pretty much everything. Since working plans are mostly internal, before preparing the plan know the company’s current state, its affordability to intake a new project, workforce management etc. Internal plans may also include marketing costs, the infrastructure needed, target audience, market size, and demographics. Illustrating such vital facts in a clean presentable format may do the trick.

Operation Plans or Annual Plans

Annual plans offer a company about the milestones, project deadlines, and employee responsibilities. Most companies depend on operational plans to stay on track of their commitments. Operational plans are also extensive stating the responsibilities of each and every person involved in the project and when it has to be done. As the name suggests, operational plans cover the inner workings and the goals of the companies to be achieved in the year.

Growth Plans

When your business expands and more projects flow in, growth plans provide a guideline as to how it is to be done. Growth plans generally explain about new projects. Therefore growth plans can also be internal and operational plans. If a project requires external funding, then growth plans must include company profiles, management team, operational costs and every other thing as you would present in a startup business plan.

Except for a startup, most organizations may need one or all of these business plans to effectively run the operations. There are several companies who create monthly business plans in order to achieve sales targets and to use the workforce right. Even different departments in a single organization can have their own business plan. Example: the sales team can have a business plan which drives them to accomplish 100 sales every month. Every business plan needs its own amount of labor and if prepared well, can drive the company miles ahead.

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