If you did not already know, there are different types of business plans. And in this article, we’re going to teach you all about them so you know which you may need to write. It is essential to use the appropriate business plan for each audience so that your business plan effectively communicates your message. For instance, you should not submit the same business plan that you would offer to a new hire to a potential investor. The following paragraphs will explain the Mini Business Plan, the Presentation Plan, the Working Plan, and the What-If Plan and their uses.
The Mini Plan
As the name implies, this plan is precise. It highlights the most critical aspects of the business while still showing how the company is value-adding. Subjects that could be highlighted in this plan include how the business creates value and who the target audience is etc.
These are essential topics that should not be missed in a business plan, no matter how mini it is. This business plan should be about 2 to 3 paragraphs for each topic you decide to cover. A mini plan could be issued to prospective investors, and then a longer version can be sent to the most interested investors. If you still are confused about what a mini plan is, think about an elevator pitch; as short as an elevator ride is, this is a brief speech explaining background and experience to a potential employer.
The Presentation Plan
A presentation plan is short as well. The difference between a mini plan and a presentation plan is that a presentation plan is verbally presented. To effectively present your business plan, highlight essential topics stated in the previous plan and deliver the plan using infographics (imagery, charts etc.). Visual information could help your audience easily understand what information it is you are trying to communicate. Your presentation should include fewer words and should be captivating.
The Working Plan
A working plan is used to operate your business. However, this plan can be less formal as it is only used within the company. In a more traditional plan submitted to a bank to apply for a loan, you could describe a competitor as “competing solely on prices”, but in the working plan, you can describe this as “Jones never stops this insane price cutting”.
They explain the same thing, but the former being more formal than the latter. You may also consider leaving out some obvious information that you should not leave out in any other plans. For instance, you can leave out details of salaries because you do not want employees to find out about it.
The What-If Plan
This plan is vital as we live in a VUCA (Volatile, Uncertain, Complex and Ambiguity) world. This plan is made based on the worst possible scenario that you can imagine your business facing. Some of these scenarios include market share loss, intense pricing competition, the exit of key talent in your team etc. A what-If plan makes the reader; maybe an investor feel safer because you have taken into account both good and bad possible scenarios.
Now that you know the different types of business plans, which will you be needing? A business plan is a highly necessary document especially if you’re looking to attract investor loans and we explain why here.
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