Main types and types of business plans, their classification, structure and application in practice

2024 Author: Howard Calhoun | [email protected]. Last modified: 2023-12-17 10:16

Each business plan is unique, because it is developed for certain specific conditions. But you need to familiarize yourself with the different types of business plans in order to understand their key features. Experts recommend doing this before compiling your own such document.

What is a business plan?

Today there are a large number of classifications of business plans. Each author has his own guideline and key points on which this classification can occur. But with a detailed analysis, one can understand that in all three main directions are described. Of course, such a gradation can by no means be called rigid and strict. But with all this, it is thanks to her that you can get a complete understanding of what type of planning you need to choose in order to develop your business plan, taking into account the tasks that have been set.

A business plan is a plan or program that guides business operations and the actions of a firm. In suchthe document should contain information about the company, the goods and services provided, production, planned sales markets, marketing, as well as the organization of various operations and analysis of their effectiveness.

A business plan is a software product that is developed during business planning.

Types of business plans by purpose

The first direction is a business plan that is designed to receive finance from external sources. As such sources can be used:

• bank loan;
• investments from business partners or shareholders;
• funds received from grant organizations.

Potential investors have specific business plan requirements that must be met. Moreover, very often, potential investors even have their own forms that are used to fill out applications. Such documents are standardized, and companies work on them for years. In fact, thanks to them, you can draw up an ideal business plan for an investor, which will perfectly show all the benefits of investing money.

There is also a type of business plan that is developed exclusively for internal use. Such a document should show possible risks, as well as the characteristics of the future enterprise, including:

• specifics;
• potential at work;
• opportunities.

Such a document can be compared with a kind of road map, which is necessary for verification during managementcompany. It is on this map that you can be guided when a decision is made.

Among the types of business plans of an enterprise, one stands out, which is used when it is necessary to change something in a company that is already functioning. For example:

• introduce a new service or product;
• launch a new division or direction;
• restart the company from scratch.

It is thanks to a well-written business plan that you can get a holistic understanding of what actions are needed to achieve the desired results.

There are also such types of business plans (depending on the planning horizon):

• strategic;
• short-term;
• mid-term;
• long-term.

Methods for compiling such documents may be different. Moreover, they can be developed for various types of organizations and their segments. Applies to both existing companies and newly created ones.

Short and medium term plans

This type of business plan, as a short-term one, is made up for a period that does not exceed a year. It is always based on resources that are already available. At the same time, the real state of finances and the team should be scheduled monthly.

As for medium-term plans, they can cover a period that is equal to 3-5 years. They describe in detail the quantitative indicators of the functioning of the enterprise. At the same time, the main object of planning is the need for financing,production resources, advanced research and development, and the company's organizational chart.

Strategic Business Plan

Such a document is usually developed for a period exceeding 5 years. It has much less detail, accommodating mainly information about the main areas of management with prescribed requirements for development and growth.

The strategic plan refers to the main types of business plans and contains long-term goals that are prescribed depending on the mission of the company. When drafting, possible ways to achieve the goals are also taken into account.

Many factors influence the planning horizon, but the most important is the sustainability of the environment in which the company operates. With an increase in the number of risks and uncertainty, the period covering the plans decreases. Of course, a plan can be drawn up for a long period even with high risks, but experts note that in this case it is more of a recommendation.

Business plan by project type

There are many classifications of business plans, in which various conditions for the functioning of the project are prescribed in one way or another. But all entrepreneurs must take into account the classification of business plans by project type. So, they can allocate:

• commercial project;
• budget (or state) project.

Very often, calculation is also included here, as well as a study of the social part of the project.

There are also these types and forms of a business plan:

1. Expanded.
2. Business plan with expert opinion.
3. feasibility study (contains the technical and economic justification of the selected project).
4. Business plan - presentation.
5. Abbreviated (this business plan does not include financial calculations).

Goals and target audience

Briefly, the types of business plans can also be classified according to the target audience. It is possible to create such a document for internal use by management or a group of managers. Also, addressers can be:

• bankers considering a loan;
• investors who are looking for promising and attractive companies for subsequent financial investments;
• shareholders who decide to expand the business;
• civil servants who are tasked with assessing the social significance of the project;
• business partners who decide on joint participation in the project.

It can often be classified by purpose, among which the following are often distinguished:

• extension of existing production;
• creation of a new enterprise;
• financial recovery of the company;
• drafting a development strategy;
• creating an up-to-date company work plan.

They distinguish the classification by business objects. This type provides that it is possible to conduct planning either for a group of enterprises, or for an entire enterprise (maybebe both new and already working). An investment project can also be a business object.

Development standards

The international community declares a large number of organizations that have compiled standard methods for developing business plans (their types and structure may be different). The advantage of such documents is that they are drawn up solely in the form of recommendations, and are checked and applied at the same time in a variety of conditions (the specifics of the business, as well as the region of operation and the size of the company, do not play a role).

The most popular methods are:

1. UNIDO. The industrial development division of the United Nations. It works in countries characterized by a not very high level of industrial development. The main goal is to improve the welfare of the region. In international practice, this technique is the most detailed and very detailed. Experts recommend using it as a guide for entrepreneurs who are faced with the need to develop a detailed business plan for the first time.
2. EBRD. The planning standard from the European Bank for Reconstruction and Development is recognized in the world community, but is used mainly by experienced entrepreneurs. The reason for this is that the methodology is quite concise, with large sections bringing together the main points. This type of business plan in business planning focuses on a deep study of the financial part of the plan. At the same time, borrowed funds are especially carefully taken into account and controlled.funds.
3. KPMG. This standard was developed by an international consulting and auditing network. It has a balanced approach to quantifying information.

All of the above are recognized by the world community and are actively used today. But there are also many other methods, for example:

• domestic;
• regional;
• industry.

Nobody prevents institutions that are potential investors from issuing their standard with clearly defined requirements. Only an exact match to them allows you to accept the document for consideration.

Structure

The list of main types and types of business plans helps to navigate their diversity, but it should be understood that each such document is unique. They are united by a structure that is approximately the same for any business plan. Of course, there are many nuances, which lie in how deeply the points of the plan are worked out, how they are named or where they are located in the text. It is important that the expectations of those for whom such a document is being developed are justified.

Almost always contains the following sections:

1. Title. This section always comes first and is considered the face of the document. It is the impression of the title page that is the most important condition for making a decision on further consideration of the project. Especially when it comes to investors who have every minute on the account. Here you need to place information about the authors (must indicate the position andexperience), enterprise, proposal (its essence and purpose), needs for implementation, as well as other necessary information (for example, important notes and confidentiality).
2. Content. Regardless of the types of business plans, this item is always there. It is required to list the main sections that will help experts quickly find the information they need. By the way, it is thanks to the well-developed content that one can understand how clearly the creators of the project understand the action plan.
3. Summary. Experts recommend that this part be compiled individually in each case. Here, the needs and expectations of those potential investors to whom the project is presented in a particular case should be taken into account. It should be understood that different audiences have different motives, without a clear understanding of which, the chances of attracting a potential investor are very low. Various kinds and types of business plan include such a clause. Here you need to write down the strengths of the enterprise, the required amount of investment, possible risks and the timing of the return of funds that were invested.
4. Description of the enterprise. Helps to form an accurate understanding of what kind of company it is, as well as the features of its organizational structure and what it does. Be sure to include information about why the company is able to fulfill the prescribed business plan. Any types and forms of a business plan include information about production facilities and equipment, as well as unique developments, know-how and technological solutions. Particular attention should be paid to quality control and management systemsproduction. You can tell about the team of specialists who will work on the project, and about their competencies and professionalism.
5. Marketing plan. This section requires an answer to all questions regarding the pricing policy of the company, as well as the features of promoting services or products, PR and advertising. The potential of the market should also be noted. This section contains a description of the product marketing plan.
6. Organizational plan. At this point, you need to provide a detailed description of the interaction scheme for all divisions of the company without exception. Also at this stage, coordination and control of the work of the company's employees is included.
7. Financial plan. All types of business plans must include this item, because it is he who is the most interesting for investors. It is better that the financial service of the company participate in its development. It is necessary to accurately indicate all expected income, expenses and any other financial indicators with implementation dates.
8. Risk assessment. Risk analysis must be included in the plan. It is also imperative to work out options to reduce damage from risks or neutralize them.
9. Applications. Regardless of the types and forms of the business plan, this section should contain information that can somehow confirm the validity of the business plan.

What kind of business plan do you need to start a business in an urban-type settlement?

Residents of small towns often think about starting their own business. It is worth noting that a business plan for an urban-type settlement is the same prerequisite asand for big cities, because here you also need to work out the prospects and take into account possible risks.

The most promising areas of activity are:

• trading;
• services;
• production.

So, most often in such small towns open hairdressers, pharmacies, tire shops. One of the most promising will be farming. With minimal investment, you can get a very good income.

How to open your own educational institution?

Thanks to the reform of the education system, as well as modern socio-economic conditions, the opening of an educational institution (EI) in our country has become quite a profitable business. Quick payback and considerable profitability constantly attract a large number of entrepreneurs. The main types and types of the business plan of the OU suggest that it is necessary to work out the risk assessment of such a business very carefully. But at the same time, the prospects are very high, due to the ever-growing demand for education.

Among other things, you can open the following institutions:

• educational courses;
• full educational institutions;
• child development centers, etc.

The main types and types of business plans are great for creating such a document. You need to understand that it is imperative to write down financial indicators, draw up a marketing plan and work out risks.