What is a business plan? 4 types of business plans

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Some experts believe that startup founders shouldn’t bother creating a business plan. Why? Such a plan can quickly become outdated, no one has time to read it, and it takes time to prepare it. However, sometimes a startup needs to have such a document. How to prepare a business plan? Why create one? Read on to find out more.

What is a business plan? – table of contents:
Should you spend time developing a business plan or not?
What is a business plan?
What are the objectives of a business plan?
How long should a business plan be?
Types of Business Plans
What should be included in a business plan?
Summary
Should you spend time developing a business plan or not?
The goal of every startup is to become a profitable business. Every organization needs a solid foundation. Even the best startup idea will need a business plan sooner or later. Thanks to such a document, the concept stops being a dream and becomes a reality.

While many startups can survive without a business plan, at least until a certain stage of development, such a document is sometimes necessary. A business plan will definitely be needed when you decide to seek bahrain whatsapp number database financing. It will also be indispensable when you want to get a loan from a bank or find an investor.

A business plan is also a solution when you have difficulty understanding your target market and the prevailing trends in it. Such a document is also necessary when your startup is falling apart, when you cannot find a suitable strategy and need to make a thorough analysis of the situation.

what is a business plan
What is a business plan?
A business plan is a written document that outlines a company’s objectives, operations, goals, and strategies. A well-written business plan can be essential in achieving business goals and bringing a product to market. However, it is important to remember that a business plan for a startup is a starting point, and the entire plan or its elements may evolve as experience or market knowledge is gained.

A business plan should answer the following questions:

What is a certain startup?
What goals does she want to achieve?
How will she make money?
What are your long-term goals?
What are the objectives of a business plan?
Business plans are created for several reasons:

show a serious attitude
set milestones for startup development
understand your competitors
know the needs of customers
validation of the business idea
document your business income
define financial needs
acquire investors
get a loan from a bank
market research
attract top talent
define lines of action
acquire shareholders
brand positioning
develop a marketing plan
discover new possibilities
what is a business plan
How long should a business plan be?
It is worth asking how long a business plan for a startup should be. Do you need to write a comprehensive document with all the details, or will a quick-read development plan suffice? In fact, there is no strictly defined number of pages that a business plan should have. It all depends on the specific enterprise, its complexity, the scale of business activities, etc.

The most common assumption is that a good business plan for a startup should be between 15 and 30 pages long. To this, you need to add about 10 pages for appendices. The font size can vary from 11 to 13, and for headings – 18. However, the most important thing is the content of the business plan, not its formatting. It is worth keeping this in mind.

Types of Business Plans
Business plans can be divided into four types. The first is the so-called mini-plan. It is the most optimized document from the audience's point of view, as it can be read more quickly. It takes little time to prepare and contains only the key elements. Such a solution is completely sufficient for small companies with simple operations. A more complex business model requires a more detailed document.

The second type is actually a presentation plan . This is a short document, usually presented using PowerPoint. It is a very engaging way of presenting business assumptions. During such a presentation, the speaker discusses all the key points of the business.

Another type is a work plan . Depending on your needs, it can be long and detailed or concise. If such a plan is intended for internal use, you can skip some of the less important issues in it.

The last type is a pro forma business plan, which is also called a what-if plan. It is useful when discussing an unusual market situation, planning an acquisition, etc.