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Business plans are crucial to the success of any business venture. They outline your goals, raise capital and give potential investors a good idea of where you’re headed. If you don’t have experience in writing one yourself, then it pays off to seek out professional help from people who specialize in this area.,
The “10 types of business plan” is a list of different types of business plans that you can use for your business. The article also includes software and writing services.
A business plan is a written document that describes how a company will be successful. Every company should have a strategy in place. Consider utilizing software to keep your ideas and financial estimates organized if you’re writing a more detailed company plan.
We’ll go through four different sorts of company ideas in this article:
- Business Plan on a Single Page
- A classic business plan
- Canvas for Business Models
- Pitch a Business
You may create multiple of these company strategies over time. If your company is a weekend side hustle, for example, you may start with a one-page strategy and a pitch—which vocally describes your business.
Once your business grows, you may need financing from a bank. To be eligible for financing, you will need a traditional plan. If your business continues to grow and you have an executive team, you may choose to do a Canvas for Business Models, which works well for input from a large group.
1. Business Plan on a Single Page
The Business Plan on a Single Page is for a very small business such as a side-business. It’s a great way to get your ideas on paper and to work out the fundamentals of the business. With this plan, you’ll write a couple of sentences for important business concepts. It should include items such as the business model (how will it make money?) and competitive advantage (what will it do better than competitors?).
You should plan on spending around an hour to write out a Business Plan on a Single Page. The simplified Financial forecasts will be the most challenging and time-consuming. You most likely will need to do research online to get accurate income and expense estimates.
Click here to download our Business Plan on a Single Page template to start your business planning today
The One-Page Business Plan’s Sections
Answer the following questions in one to two sentences:
- Problem: What will your company’s solution be?
- Solution: What services will your company supply to address this issue?
- How will your firm earn money, according to your business model?
- Customers to target: Who are the folks who will purchase your goods or service?
- How will your potential clients find out about your company?
- What will your company accomplish better than its rivals in terms of competitive advantage?
- Budgeting: How much money do you need to get started? How much money will you make each month? And how much do you plan to spend each month?
- How much money do you need to get your company off the ground?
After You’ve Created Your One-Page Plan, What Should You Do?
Don’t simply stow your plan away in a desk drawer after you’ve finished it. For feedback, show it to supportive friends, family, and mentors. Consider revising the mini-plan in light of their suggestions.
You may also want to try a couple of the one-page business plans to flesh out some of your company concepts. If you’re having trouble deciding which company to start, use this technique. Pay attention to whatever business plan excites you the most as you write the plans. Allow your enthusiasm to guide you in deciding which business to pursue.
2. A classic business plan
The A classic business plan is more in-depth and thorough than the Business Plan on a Single Page. A traditional plan may contain over 40 pages of info about your business. Typically, you’ll use this plan to get funding from a bank such as a larger loan. You may also use a A classic business plan to attract investors to your business.
A well-researched business plan should take at least 30 hours to complete. You’ll spend time researching market research and producing financial predictions in addition to crafting the strategy.
As a small business consultant, I’ve reviewed dozens of A classic business plans. Most business owners can easily do the research and write the plan. Where most have difficulty are the Financial forecasts, which require creating several financial documents. If you don’t have a financial analysis background or interest, it’s a wise strategy to purchase a Software for creating business plans that walks you step-by-step through the financial projection process.
A classic business plan Sections
- Opening Organizational & Legal Pages: The opening pages of your business plan need to be a cover page, nondisclosure agreement, and a table of contents.
- The executive summary will be the final component to be completed. In fewer than two pages, it summarizes the whole strategy.
- Discuss the fundamentals of the firm, such as its history, location, facilities, ownership, and competitive edge.
- Products & Services: Talk about how your business makes money (business model), the products or services it provides, and future products or services.
- Market & Industry Analysis: This section analyzes your potential customers and industry. Include any data here about your current (or ideal) customers, business industry, and competitors.
- Marketing Strategy & Implementation Summary: How will you reach your customers? Discuss your marketing, sales, and pricing strategy.
- Management & Organization Summary: Who will own and operate the business? If your business isn’t open yet, give a compelling reason why your background will make it a success. Include information on any managers in the business as well.
- Financial Data & Analysis: Here you want to show in charts and graphs how your business will be a success. You will include Financial forecasts such as a profit & loss statement, projected cash flow, and business ratios.
- Appendix: Any papers or material that does not fit into one of the above categories is placed here. Documents such as a floor plan, a trademark, or marketing materials may be included.
Financial forecasts
For a new business owner to complete a business plan, the Financial forecasts will be the most challenging part. It’s difficult because you are mostly guessing how much money the business will make and spend every month for the next three years. Additionally, financial terminology and how it all flows together can make your head hurt.
Bankers and investors require Financial forecasts in a business plan because they want to learn how you believe they will make their money back. It’s also a great idea to track your projections and update it with actual data as the business progresses.
A no-cost way to create Financial forecasts is to use SCORE’s free template. If you are overwhelmed by the free Excel document, I’d recommend using a Software for creating business plans. The LivePlan software walks you step-by-step through the financial projection process and turns your financial data into easy to read charts and graphs.
3. Modern Business Plan: Canvas for Business Models
The Canvas for Business Models (BMC) is an alternative to the A classic business plan. Released in 2008, it updates sections such as Customer Relationships and Key Partnerships.
The BMC is preferred by many company owners because it can be used as a visual exercise with the leadership team. The team may go through each part and give high-level feedback together. It’s simple to distribute the BMC after you’ve created the fundamentals. The contents may be summarized on one page, however the standard approach described above would most likely be at least 40 pages long.
Canvas for Business Models Sections
- Customer Segments: What are the most essential types of customers or companies that will purchase your goods or services?
- Propositions of Value: What kind of value will you provide to your customers? What are the issues that you’re attempting to resolve for your customers?
- Channels: How will you communicate with consumers and sustain relationships?
- Customer Relationships: How will you keep up with your consumers’ needs?
- Who are the important individuals (inside the company), and what are the patents, locations, and equipment that the company can’t function without?
- What are the most important operations that need to be completed in order for you to service your customers?
- Key Partnerships: Who or what groups (from outside the company) assist you in running your business, such as suppliers or referral sources?
- What are the most significant costs in your company? Make a list of at least seven.
- Revenue Streams: How will your company generate revenue? List particular figures, such as the average earnings per product or service done, if available.
With a BMC, you may get a loan or find an investor.
Both banks and investors are becoming more open to accepting a Canvas for Business Models instead of a A classic business plan. If you’re choosing to do a BMC to receive funding, always check with the bank or investor to determine if they will find it as an acceptable business plan.
Even though we didn’t discuss as a section for the BMC, when seeking funding, you must include thorough Financial forecasts (similar to the traditional plan). Bankers and investors mostly care about how much money you believe the business will earn over the next three years, and how they will make their investment back.
Find out more about the BMC.
You can learn about the specifics of the Canvas for Business Models for free through blog posts and articles online. However, if you’re serious about applying it to your business, I recommend purchasing the official book by the creators of the BMC, called Business Model Generation. The book will walk you step-by-step through each section and provide several examples.
4. Pitch a Business
A Pitch a Business is a short explanation of your business in about 60 seconds. Many people also call this the elevator pitch. If you’re involved in the tech world, a Pitch a Business is typically a 10 to 20-minute presentation given to angel investors and venture capitalists.
The average company owner, on the other hand, is unlikely to come to Silicon Valley and request a huge quantity of money.
When starting their business, the typical business owner will be explaining their business hundreds, if not thousands, of times. So in our perspective, the short verbal explanation is the Pitch a Business. Use it to get customers, vendors, business peers, or potential partners excited about your business.
Pitch a Business Structure
Depending on who you are telling your pitch to, the structure of your Pitch a Business will change. For example, you probably won’t be including the business model info with a potential vendor; however, you would use it with a prospective business partner.
- Issue: Describe your customer’s problem in the first few seconds of your pitch. If at all feasible, build a connection with the audience to make your message more personal.
- Solution: Discuss how you’ll remedy the issue with your product or service as soon as possible when the problem arises.
- Discuss your business model next if it isn’t clear how your solution will produce money. If you’re talking to someone like an investor, this clarity is very vital.
- Use facts about your target client and industry to demonstrate the size of your company’s potential.
- Team: Explain your background as well as the background of the team. Consider include information such as the overall number of years in the sector or previous achievements.
- Ask: Your listener should be pumped at the conclusion of your pitch. Don’t let your enthusiasm go to waste. Always ask for help in some form, whether it’s something as simple as a website visit or something as big as a million-dollar investment—just like on Shark Tank!
How to Improve Your Pitch Delivery
It’s a simple recipe to improve your pitch delivery: practice. Make a daily goal of saying your 60-second pitch ten times. Say it to yourself in the mirror, in the vehicle, and while walking your dog. The idea is to avoid stumbling through your pitch or pausing to consider what to say next.
Start giving the pitch in front of people after you’ve gained some confidence in it. Take note of their facial expressions. When you utter a certain phrase or term, do they make a face? Maybe they don’t understand what you’re saying. After 15 seconds, do they seem bored? Maybe your first hook isn’t powerful enough.
Software for creating business plans
A Software for creating business plans holds your hand step-by-step through the business plan creation process. Typically, software helps you create a A classic business plan that is ready to present to a banker or investor.
If you’re creating Financial forecasts, I highly recommend purchasing Software for creating business plans. This purchase will keep you from working within a complicated Excel spreadsheet and makes your financial data look well organized in charts and graphs.
What To Look For In A Software for creating business plans
Price: The cost of a Software for creating business plans is fairly similar. Expect to pay around $15 per month to access the software.
Ease of use: Whether at all feasible, check out a demo of the program to see if it’s user-friendly. Some business plan software hasn’t been updated in a long time and might be difficult to use.
Business plan design: You want your business plan to seem professional when you print it out. Additionally, specialized software enables you to include drawings and pictures into your strategy.
Many organizations provide services like as marketing tools or contacts with investors in addition to the business plan software.
Instructional resources: It’s critical for a program to provide high-quality educational materials so that you may learn while putting up the plan. Some software comes with video tutorials.
Customer support: You’ll want to be able to contact a customer representative for assistance if you need help navigating the program or have queries regarding your business strategy.
The Most Common Business Planning Software
The most popular Software for creating business plans available is from LivePlan. They provide a 60-day free trial of their software so you can test it and make sure it’s the right fit for you.
One of LivePlan’s strongest features is its detailed and easy-to-use Financial forecasts. The software asks you questions about your business, and it automatically calculates financial data like the gross margins and business ratios.
For A Tech Startup, Software
If you own a tech startup, your objectives are different from those of a typical company. To keep your high-growth company afloat, you may require a substantial sum of money.
Different business plan features, such as working capital, gross margins, and accessible cash, must be appealing to venture capital companies. Startups may use Bizplan to get such features and connect with possible investors.
Writing Services for Business Plans
If you need a business plan, but don’t want to write it yourself and don’t want to use a software, you can pay a professional to create it for you. Several companies provide Writing Services for Business Plans with experts who do market research and create custom-designed plans. Many of these companies also offer other writing services such as a pitch deck, feasibility study, or franchise-specific plan.
What To Look For When Choosing A Business Plan Writing Service
When selecting a business plan writing service, you should first look at the authors’ backgrounds. MBAs are provided by several firms to its authors (Master of Business Administration).
You should also go at examples of the company plans that have been prepared. Remember that the firm likely gave the best-designed business plans they had, so be sure to inquire about the pricing of a certain well-designed business plan, which may be out of your price range.
What Does It Cost To Hire A Business Plan Writer?
A simple business plan writing service costs about $2,000 on average. However, if your idea necessitates in-depth research, new graphics, and improved overall design, the price tag might exceed $10,000.
For a review, contact your local SBDC.
Your local SBDC (Small Business Development Center) may be able to assist you if you have a business plan and are searching for comments. The SBDC offers no-cost advising and is partially financed by the Small Business Administration (Small Business Administration). There are more than 1,000 SBDC sites in the United States.
A careful examination of company plans is one of the SBDC’s primary services. You could be fortunate and find a business plan specialist in your local SBDC, depending on the competence of your local SBDC Consultants. Inquire if he or she would be willing to go through your business plan and give suggestions.
Obtain Funding
Following the creation of your business plan, the next stage in the process of starting a firm is to get sufficient funding. When most people hear the term “capital,” they automatically think of large bank loans. Capital, on the other hand, may be considerably modest, such as $2,000 from a credit card or $5,000 from a crowdfunding effort.
Conclusion
Remember to revisit your business plan often. Even after one month, you may learn new insights about your product and market that requires a business plan revision. If you’re creating Financial forecasts, it’s a business best practice to update your projections monthly with actual sales and expense data to determine if your assumptions you made are accurate.
A business plan is a document that outlines the goals, objectives, and strategies of an organization. It can be written in many different formats and is often used as a way to present information to investors. This article will outline four types of business plans along with software & writing services. Reference: business plan sections.
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