Different situations call for different business plans.
Whether you want to acquire funds, analyze market risks, introduce a new product, or simply need a roadmap for business operations— a specifically tailored business plan is essential for different business purposes.
Identifying the type of business plan you require is quintessential so that you create a document fit for your business needs.
In this blog post, we will introduce you to the 7 different types of business plans and help you understand which suits your business needs the best.
Ready to get started? Let’s dive right in.
Types of business plans
Businesses in different business situations call for different business plans.
To understand different types of business plans, we will categorize them based on audience, scope, and purpose to instill better clarity in your minds.
Let us understand these in detail to help you choose your ideal business plan.
Based on audience
Business plans are broadly categorized into two types based on the type of audience they cater to.
1. Internal business plans
As the name suggests, an internal business plan is solely for the people inside the company. These can be specific to certain departments such as marketing, HR, production, etc.
Internal business plans focus primarily on the company’s goals, operations, finances, and personnel and define the strategies to achieve their goals.
2. External business plans
On the contrary, external business plans are intended for people outside the company, such as investors, banks, partners, etc.
These plans usually contain detailed information about the company’s background, finances, market share, and business strategies.
Based on scope
Similarly, business plans are classified into two types based on their size and the depth of information they encompass.
1. Standard business plan
A standard plan or traditional business plan is a professional document offering a comprehensive understanding of your business idea. It serves as a step-by-step guide to launching your business and offers a roadmap to operate it efficiently.
A standard plan follows a structured format and usually includes components such as
- Executive summary
- Company description
- Market analysis
- Products and services
- Marketing and sales plan
- Operations plan
- Financial plan
- Funding demand
Most entrepreneurs follow this structure to write a business plan and add depth to the sections that hold significant value to them.
Best for: Startups and businesses that require a detailed roadmap or operate in highly volatile markets. These plans are also used for getting funding approvals.
2. Lean business plans
A lean plan, also known as a startup business plan, is a condensed version of the standard business plan including highlights and summaries of all its sections.
Such plans empower entrepreneurs to kickstart their business endeavors with a minimum viable product and build it gradually by gathering real market feedback.
Lean business plans are crafted with brevity and outline your strategies, revenue model, tactics, and timeline.
- Strategies: How will you reach your goals
- Tactics: What are the KPIs to evaluate your performance
- Revenue model: How will you make money
- Timeline: Who will accomplish the tasks
Drafting such plans is not only easier, it is considered to be more efficient compared to a standard plan.
Best for: Entrepreneurs who want to quickly launch their business in a hot-moving market.
Based on purpose
Every business plan tends to solve a specific purpose. Let’s understand 7 different types of business plans based on different purposes.
1. One-page business plan
One-page business plans offer a snapshot of your entire business idea in one page. Such plans follow the same structure as traditional plans, however, they are much more concise and crisp.
One-page plans are simplified versions of detailed business plans and can be placed together in less than 10 minutes.
They are quite useful when you want to convey essential information in a brief document without missing out on important points.
Best for: One-page business plan is best suited for startups and small businesses that require rapid adjustments and quick implementation.
2. Growth business plan
A growth business plan combines the crispness of one-page business plans and the detailing of financial forecasts to enable prompt decision-making.
Such plans are quite handy when you want to upscale or grow your business without writing a full-fledged detailed business plan.
Businesses can compare their forecasts with the actuals, identify the discrepancies in the current strategy, and adjust it to ensure maximum growth when they have a clear demonstration of financials.
To prepare your growth business plan, outline the target market, business strategies, and a business model as you do in your one-page plans. And additionally, also include detailed financial projections for sales, cash flow, and revenue to help individuals make data-driven decisions.
Best for: A growth plan is best for businesses entering new markets, launching new products, scaling operations, or practicing a growth planning process.
3. Strategic business plan
Strategic business plans highlight your strategic objectives, define your business strategies, and outline a roadmap to take you there. It covers the nitty-gritty about your company’s goals, mission objectives, and long-term vision.
Such plans are extremely efficient in communicating your goals to internal teams and stakeholders, while ensuring everyone is on the same page as you.
Best for: Businesses and startups planning long-term growth and nonprofits aiming to increase their impact.
4. Feasibility business plan
A feasibility business plan is specifically designed to test the viability of a new product or business expansion in a new market. As opposed to a detailed business plan, such plans focus on two primary matters:
- Determining the existence of a market
- Determining the profits of the initiative
This type of business plan usually excludes all the other sections included in usual business plans. Instead, it concentrates mainly on the scope of a new initiative, its profitability, market analysis, competition, and associated financial implications.
It is mostly crafted for internal management and ends with recommendations on whether the decision to enter a new market or introduce a new product or service is viable or not.
Best for: Established businesses and early-stage startups to assess the viability of a specific product, market, or business idea before allocating significant resources.
5. Operational business plan
Operational plans are specific documents outlining processes and procedures of day-to-day business activities. Such plans focus on operational aspects of the business such as logistics, inventory, supply chain, production, and resource allocation.
A well-mapped operational plan serves as a guidebook for internal team and management. It streamlines the workflow, establishes SOPs, and offers a clear understanding of who will perform what tasks and what resources will be required.
There is no strict format outlining the contents of such a plan. The plan just needs to be clear, communicative, and viable enough to implement practically.
Best for: Established businesses to manage operations and resource allocation and startups to establish standard clear processes.
6. Nonprofit business plan
Nonprofit business plans are suited for businesses that operate for a charitable or social cause. Such plans are quite similar to traditional plans, however, they include an additional section where you explain the impact your non-profit organization will make in society.
Like a traditional plan, you will highlight the business concept, outline the market research, set the business goals, determine your business and promotional strategies, and demonstrate your team.
Additionally, you will include a section demonstrating the financial sustainability of the nonprofit venture. This is essential to attract donors, grants, and investors for your nonprofit business.
Best for: Nonprofit startups planning to secure funding and grants from financial institutions.
7. What-If business plan
What-if business plans are contingency plans used to draft strategies for the worst-case scenarios. This plan is usually less formal unless a funding request is included.
Such planning allows you to test and study the impact of different hypothetical situations related to the market, environment, competition, and legal regulations on your business.
Best for: Businesses in highly volatile markets and companies practicing crisis management. Also suited when considering mergers, price hikes, or undertaking any major business decision.
And those are some of the many different types of business plans you can have for your business. Wondering which one your business needs? Let us make your choice easier.
Choosing the right type of business plan
Here are the 2 criteria that will help in determining the right plan for your business.
1. Purpose
The first step to choosing a business plan is to understand the purpose and objective of writing a business plan. For instance, your objective could be to acquire funds, guide an internal team, create a strategic roadmap, expand into a new geographic market, or prepare for contingencies.
Align your objective with the purpose of specific business plans and see which one suits you the best.
2. Scope of business
The scope and complexity of your business play a crucial role in determining the type of business plan you require. Take into account factors like products and service offerings, the scale of the business, and the business complexity to make a choice.
Even the stage of your business, depending on whether it is a startup or an established business, will influence this decision.
Start preparing your business plan with Upmetrics
You now have a proper understanding of the different types of business. If you’re not sure which one to pick, let us help you.
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