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The Top 4 Types of Business Plans Not all business plans looks the same. Here's how to customize your plan to your specific goals.

By Eric Butow

Opinions expressed by Entrepreneur contributors are their own.

This is part 7 / 12 of Write Your Business Plan: Section 1: The Foundation of a Business Plan series.

When it comes to writing a business plan, one style does not fit all.

Different industries require different plans. A retailer isn't much like a manufacturer, and a professional services firm isn't much like a fast-food restaurant. Each requires certain critical components for success—components that may be irrelevant or even completely absent in the operations of another type of firm.

For example, inventory is a key concern for both retailers and manufacturers. Look at Walmart, one of the great all-time success stories in retail. Expert, innovative management of inventory is an integral part of its success. Any business plan that purported to describe the important elements of these businesses would have had to devote considerable space to telling how the managers planned to manage inventory.

Related: The Basics Of Writing A Business Plan

Contrast that with a professional services firm, such as a management consultant. A consultant has no inventory whatsoever. Their offerings consist entirely of the management analysis and advice they can provide. They don't have to pay now for goods to be sold later or lay out cash to store products for eventual sale. The management consultant's business plan, therefore, wouldn't have a section on inventory or its management, control, and reduction.

This is one obvious example of the differences among plans for different industries. Sometimes, even companies in more closely related industries have significantly different business plans. For instance, the business plan for a fine French restaurant might need a section detailing how the management intends to attract and retain a distinguished chef. At a restaurant catering to the downtown lunchtime crowd, you might devote much plan space to the critical concern of location and quick turnaround of diners with very little about the chef.

Related: The Benefits and Risks of Writing A Business Plan

You want your plan to present yourself and your business in the best, most accurate light. That's true no matter what you intend to use your plan for, whether it's destined for presentation at a venture capital conference or will never leave your office or be seen outside internal strategy sessions.

When you select clothing for a momentous occasion, odds are you try to pick items that will play up your best features. Think about your plan the same way. You want to reveal any positives your business may have and ensure they receive due consideration.

Related: The Main Objective Of A Business Plan

Business plans can be divided roughly into four distinct types: Mini-plans, presentation plans or decks, working plans, and what-if plans. Each plan requires different amounts of labor, not always with proportionately different results. A more elaborate plan is not guaranteed to be superior to an abbreviated one. Success depends on various factors and whether the right plan is used in the right setting. For example, a new hire may not want to read the same elaborate version that might be important to a potential investor.

The Mini-Plan

The mini-plan is preferred by many recipients because they can read it or download it quickly to read later on their iPhone or tablet. You include most of the same ingredients that you would in a longer plan, but you cut to the highlights while telling the same story. For a small business venture, it's typically all that you need. For a more complex business, you may need a longer version.

Related: How To Write A Business Plan

The Presentation Plan

Created with PowerPoint or a similar platform, this is how most plans are presented. And while today's plan is shorter than back in the day, it's not necessarily easier to present. Many people lose sleep over an upcoming presentation, especially one that can play a vital role in the future of your business. However, presenting your plan as a deck can be very powerful. Readers of a plan can't always capture your passion for the business, nor can they ask questions when you finish. In 20 minutes, you can cover all the key points and tell your story from concept and mission statement through financial forecasts.

Related: How To Craft A Business Plan That Will Turn Investor Heads

Remember to keep your graphics uncluttered and to make comments to accentuate your ideas rather than simply reading what is in front of your audience. While a presentation plan is concise, don't be fooled. It takes plenty of planning. The pertinent questions—Who? What? Where? Why? When? and How?—need to be answered.

The Working Plan

A working plan is a tool to be used to operate your business. It is long on detail but cshort on presentation. As with a mini-plan, you probably can afford a somewhat higher degree of candor and informality when preparing a working plan.

Related: 6 Tips For Making A Winning Business Presentation

In a presentation plan, you might describe a rival as "competing primarily on a price basis." But in a working plan, your comment about the same competitor might be, "When is Jones ever going to stop this insane price-cutting?"

A plan intended strictly for internal use may also omit some elements that you need not explain to yourself. Likewise, you probably don't need to include an appendix with resumes of key executives. Product photos are also unnecessary. Internal policy considerations may guide the decision about including or excluding certain information in a working plan. Many entrepreneurs are sensitive about employees knowing the precise salary the owner takes home from the business.

Related: 12 Reasons You Need A Business Plan

To the extent such information can be left out of a working plan without compromising its utility, you can feel free to protect your privacy. This document is like an old pair of khakis you wear to the office on Saturdays or that one ancient delivery truck that never seems to break down. It's there to be used, not admired.

The What-If Plan

When you face unusual circumstances, you need a variant on the working plan. For example, prepare a contingency plan when you are seeking bank financing. A contingency plan is a plan based on the worst-case scenario that you can imagine your business surviving—loss of market share, heavy price competition, defection of a key member of your management team. A contingency plan can soothe the fears of a banker or investor by demonstrating that you have indeed considered more than a rosy scenario.

Related: How To Hire The Right Business Plan Consultant

Your business may be considering an acquisition, in which case a pro forma business plan (some call this a what-if plan) can help you understand what the acquisition is worth and how it might affect your core business. What if you raise prices, invest in staff training, and reduce duplicative efforts? Such what-if planning doesn't have to be as formal as a presentation plan. Perhaps you want to mull over the chances of a major expansion. A what-if plan can help you spot the increased needs for space, equipment, personnel, and other variables so you can make good decisions.

What sets these kinds of plans apart from the working and presentation plans is that they don't necessarily describe how you will run the business. They are essentially more like an addendum to your actual business plan. If you decide to acquire that competitor or grow dramatically, you will want to incorporate some of the thinking already invested in these special purpose plans into your primary business plan.

Related: Do You Need To Write A Formal Business Plan

If you are looking for extra guidance with an industry-specific business plan, you can visit Bplans.com to access over 500 free real-world business plan examples from a wide variety of industries to guide you through writing your own plan. If you're looking for an intuitive tool that walks you through the plan writing process, you can try LivePlan . It includes many of these SBA-approved business plan examples and is especially useful when applying for a bank loan or outside investment.

Owner of Butow Communications Group

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Business Planning

10 Types of Business Plans - Definition, Benefits, and more!

Written by Plangrowlab Team

Published Sep. 25 2024 · 17 Min Read

According to a study, businesses with plans grow 30% more quickly than those without.

But every time you sit down to plan, confusion takes over, leaving you unsure where to start, unclear on details, and fearing failure.

What adds to your fear is figuring out the type of business plan your business needs.

Frustrating, isn’t it? Not anymore!

In this blog, we’ll break down the different types of business plans and help you choose the right one for your business.

Let’s dive in.

What is a business plan?

A formal document that outlines your business strategies, target market, and financial projection to achieve your business goal is known as a business plan.

A well-crafted business plan serves as a roadmap for your business growth on how you’ll achieve your objectives over a specific period.

Remember, it’s a living document that needs updating as your business grows. Different plans, such as traditional, lean, and strategic, suit various stages of business development. Hence, understanding why these different types exist and what their purposes are is essential for selecting the right plan for your needs.

So let’s explore the next section for a better understanding.

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Why do different types of business plans exist?

Here are reasons why there exist different business types:

Varied business goal

Businesses have diverse goals beyond just increasing sales and profit. They may focus on expanding their market reach or even enhancing brand awareness. Thus, each of these goals requires a different approach and strategies.

Different business stages

There are different types of business plans for startups and established businesses. A startup requires a business plan from scratch to outline its vision, secure funding, and validate its business idea.

Meanwhile, an established business needs a solid plan to focus on growth strategies, streamline operations, or even pivot into new markets.

Separate target audience

Business plans are tailored depending on whom you’re targeting. Whether they’re investors, partners, lenders, or internal teams.

Each audience demands a different style and focus, with changes in content and presentation to effectively communicate the business's goals and needs.

Distinct level of detail

A healthcare business requires an in-depth explanation of its operation and research hence the level of detail is high.

In contrast, a startup requires a more straightforward plan focusing on its core business idea, marketing plan, and basic startup costs and projections. Resulting in less detail.

The level of detail varies based on the industry complexity and specific business needs.

Constant evolving business growth

As market conditions change, businesses need adaptable plans that evolve with their strategies. Staying competitive requires new approaches to stay ahead in a dynamic market.

That’s about it. Now, let’s explore the different business plans.

Types of business plans

Here are the 10 types of business plans designed to address different needs and stages of business growth. Each type serves a unique purpose and provides a different level of detail.

1. Traditional business plan

Traditional business plans serve as the foundation for many entrepreneurs and growing businesses.

Its primary aim is to provide detailed insights into the business nature, market position, and competitive advantages. Such insights help businesses to craft a roadmap that offers growth, development, and prosperity to businesses.

Here are key components that are commonly included in a traditional business plan:

A high-level overview (executive summary) of the business that includes the company’s mission, product or services, and key financial information.
The business description provides detailed insights into the business's nature, market position, and competitive advantages.
A market analysis that provides data on the industry landscape, target market demographics, and competitive analysis.
Forecasts of revenue, expenses, and profitability to demonstrate financial viability.
A description of your company's structure, management team, and key personnel.
Your estimated income, expenses, and cash flow for the next several years.

2. Lean business plan

Unlike a traditional business plan which can be lengthy and complex, a lean business plan typically fits on one page.

It’s a simplified version of a traditional business plan that focuses on key elements like business model, target market, and essential finance.

A lean business plan is typically crafted for internal purposes or when experimenting with new products, services, or markets. The goal is to create a plan and immediately execute it to see if it succeeds.

Key features of a lean business plan are:

Lean business plans focus on being short and to the point.
They use bullet points and tables to share key information quickly and clearly.
Lean business plans are designed to be easily updated as business evolves which allows for quick adjustments.
A lean business plan focuses on practical steps like setting milestones and tracking performance to help businesses make smart decisions .

3. Internal Business Plan

The internal business plan is a strategic document that aims to bring management and employees on the same page and focuses on a common goal.

It’s designed to ensure that all team members understand their roles and stick to the roadmap to achieve the organization's vision effectively.

Additionally, the internal business plan outlines the resources available to the business. An internal business plan includes:

Detailed plans for how to achieve those goals through day-to-day operations.
Identification of potential challenges and strategies to mitigate them.
Key performance indicators (KPIs) to track progress and success.
A schedule outlining when key milestones will be achieved.
Clarification of who is responsible for each part of the plan.
Insight into the internal market dynamics.

4. Strategic Business Plan

A strategic business plan is a comprehensive document that outlines an organization's long-term goals and the strategies to achieve them.

It acts as a roadmap for decision-making, that helps your businesses align their resources and efforts with their overall vision.

The features of a strategic business plan include:

Specific deadlines for achieving short-term and long-term objectives.
Defines the business vision and states the mission statement.
In-depth study of market trends, competition, and opportunities.
Plans for allocating financial, human, and operational resources.
Identification of potential risks and mitigation strategies.
Strategy for differentiating the business in the market.
Step-by-step plan to execute strategic goals.

5. Feasibility business plan

A feasibility business plan is a document or a plan that determines the practicality of a new business idea. It's a crucial step before investing significant time and resources into a venture.

A feasibility business plan helps entrepreneurs assess whether their proposed product or service has the potential to succeed in the market.

The feasibility business plan typically includes:

A brief overview of the business idea, target market, and key financial projections.
Details about the proposed offering, including its unique features and benefits.
An assessment of the target market size, customer needs, and competition.
An outline of the resources, processes, and infrastructure required.

6. Operational business plan

An operational business plan is a detailed blueprint that outlines the specific actions and processes necessary to achieve an organization's strategic objectives.

It focuses on the internal operations of the company, including production, sales, marketing, and human resources. The purpose of operational planning is to streamline internal operations to achieve the desired goals effectively.

The operational business plan's purpose is to bring all team members on the same page and make them understand their roles and responsibilities in executing the company's goals.

Here are the key components of an operational business plan:

Details the processes involved in producing goods or services, including equipment, materials, and staffing requirements.
It clearly defines the roles of each team member, ensuring accountability and minimizing overlap in duties.
Includes key performance indicators (KPIs) to measure progress and success.
Explains the process of sourcing materials, managing inventory, and distributing products or services.
Identifies potential risks and outlines strategies for mitigating them.
Describes the technology infrastructure, systems, and software needed to support the business's operations.
Outlines the strategies for reaching and acquiring customers, including sales channels, marketing campaigns, and pricing.

7. Growth business plan

A growth business plan outlines the necessary steps required to advance current business operations to achieve desired business goals. It serves as a roadmap for businesses looking to increase their market share, revenue, or customer base.

Importantly, a growth business plan focuses on identifying growth opportunities, developing strategies to capitalize on them, and allocating resources to support expansion.

The key components of a growth business plan include:

Documents that examine the target market, including size, growth potential, and competition, to identify expansion opportunities.
Blueprint that helps you identify the unique value proposition and competitive edge.
Specific strategies for expanding the business, such as new product development, geographic expansion, or mergers and acquisitions.
Updated financial forecasts that reflect the impact of growth.
A clear roadmap for executing growth strategies, including timelines, resources, and key performance indicators (KPIs).

8. Startup business plan

A startup business plan is a foundational document that provides detailed information on the vision, objectives, and strategies for launching a new venture.

It serves as a roadmap for entrepreneurs, detailing everything from the business concept, techniques to deal with challenges to financial projections and growth plans.

The common components of a start up business plan include:

Overview of business that includes your mission, product or services, target market, and financial goals.
A detailed explanation of what the startup does, its unique value proposition, and how it solves a customer's problem.
Detailed information on the company's structure, management team, and key personnel.
The plan for reaching and attracting customers.
Detailed forecasts of revenue, expenses, and profitability over a specified period
An outline of capital needed to launch and what are the sustainable ROI.
An explanation of the required resources, the duration for which the funds will be necessary, and how they’ll be utilized.

9. One-page business plan

A one-page business plan is a small version of the traditional plan that provides a quick overview of the business.

The purpose is to provide key information about the business clearly, which makes it easy for others to understand and make decisions quickly.

This format lets you quickly share your vision, strategies, and goals without overwhelming potential investors or stakeholders with too much detail.

The features of the one-page plan include:

A short introduction to your business that includes mission, products or services, target market, and financial goals.
A clear statement of the problem your business solves and the unique solution you offer.
Overview of your target market, competitors, and industry trends.
A brief introduction to the key members of your management team.
If seeking funding, outline the amount requested and how the funds will be used.

10. Nonprofit business plan

Nonprofit organizations develop nonprofit business plans to achieve their social objectives. It serves as a roadmap for the organization, detailing how it intends to achieve its objectives, attract funding, and measure its impact.

The key components of a nonprofit business plan include:

A clear and concise statement of the organization's purpose and goals.
Detailed information about the programs and services offered.
Identification of the specific groups or communities the organization serves.
Plans for generating revenue, including grants, donations, memberships, and fundraising events.
A summary of the organization's board of directors, management team, and governance policies.
Estimated income, expenses, and cash flow for the next several years.

That said, let's see...

How to choose the right business plan type for your needs?

For a successful business plan, here's how to make an informed decision:

Understand your purpose

First, choose the right business plan to clarify your purpose. To do so, ask yourself what you want to achieve with the plan and why your business needs one.

Here are some aspects you should clear before you choose your plan:

Is your goal to secure loans or attract investors?
Are you aiming to expand your current business?
Do you need a plan to guide your team and streamline operations?
Are you exploring a new idea or project or thinking of launching a new product?

Consider your audience

Always consider to whom you’re addressing and what’s the purpose of addressing your business plan. Check out whether the business plan is for an investor, partner, lender, or internal team. Different audiences require different information and presentation styles.

Access your business scope

The complexity and scale of your business also influence the plan type you should choose. Hence, consider the following factors before choosing:

Think about your business stage—whether you’re a startup, an established firm, or an expanding business.
Evaluate your market size—if it's highly competitive, you'll need a detailed, analytical plan, while a smaller market may require a simpler approach.
Look into your product and service—They dictate the plan type. Every product and services need a different plan and strategies to move in the market.

Focus on the right format

Different business plans have different formats, each serving a specific purpose. Always choose the format based on your audience.

For example, a one-page plan works for quick overviews, while a detailed plan is better suited for investors or lenders looking for in-depth insights.

However, consider the following aspects when choosing a business plan format:

Audience you are addressing
Font and layout choices
Presentation style
Length of the plan
Presentation tone

Benefits of choosing the right type of business plan

Choosing the right business plan is crucial for success and offers several key advantages:

Provides clarity and focus

A well-chosen business plan provides clarity about your goals and strategies. It helps you define your mission and ensure that all team members are on the same page focusing on the same business objective.

Increases the chance of securing funds

Investors and lenders expect detailed plans that show a clear grasp of the market, competition, and financial forecasts. A well-tailored plan boosts your chances of securing capital by highlighting your readiness and dedication to success.

Manages risk effectively

With a solid plan, your business can prepare for unexpected challenges and remain resilient, even during tough times. Plus, with the latest technologies in your business plan, you can forecast potential risks, allowing you to be prepared in advance.

Allocates resources efficiently

Right business planning enables your business to allocate resources efficiently, leading to better returns. It ensures your time, money, and manpower are used efficiently and effectively to achieve your goal within the time and budget.

Helps you measure your progress

With a clear business plan in place, you can set specific milestones and performance metrics. Such milestones enable you to track your progress over time and make adjustments as needed.

Provides sustainable growth

A common business plan can help you reach your goals, but choosing the right plan specifically tailored to your business ensures sustainable growth. It keeps your business on track, leading to steady growth and development.

Common mistakes to avoid when choosing a business plan type

Avoiding these common mistakes can help you create an effective document that will enhance your credibility and build a solid foundation to reach your goal:

Assuming all plans are alike

Treating all business plans as interchangeable or the same can lead to selecting one that doesn’t fit your specific needs or objectives.

Ignoring your audience's needs

Failing to consider who will read the plan may result in a format or content that doesn’t resonate with stakeholders. This mistake will not convince investors and destroy your credibility.

Overlooking business stage

Not matching the plan type to your business stage (startup, growth, etc.) can lead to inappropriate detail or a lack of necessary information. A startup business plan won’t effectively support the growth of your existing business.

Underestimating the need for detail

Opting for a lean or one-page plan when more detail is necessary can hinder your ability to secure funding or support. Hence, ensure you add the required information properly to persuade investors, external and internal stakeholders, or any other reader.

Focusing solely on financials

Choosing a plan type that focuses too much on financial projections while neglecting operational plans can lead to an incomplete picture. This may raise doubts among investors and negatively affect your chances of securing funding.

Neglecting market research requirements

Choosing a plan type that doesn’t require thorough market analysis can leave you unprepared for competition. The lack of preparation can hinder your ability to adapt and respond effectively to market dynamics.

Now that you know the business plan types and how to choose the right one, you can achieve your business goals effectively.

However, if you need further assistance to craft your business plan you may get in touch with our business plan consulting company .

Our qualified business plan experts can help you create business plans, assuring you choose the right type tailored to your specific business needs.

Get your business plan ready today!

Eleven Reasons Why You Need a Business Plan
Common Business Plan Mistakes to Avoid

Frequently Asked Questions

What is the difference between a traditional business plan and a lean business plan?

A traditional plan is detailed and comprehensive documents that explain each aspect of business in detail. Often 20 to 50 pages.

A lean business plan, on the contrary, is a shorter document (can be a page long) that focuses on key aspects of businesses, market opportunities, and financial viability.

When should a startup use a feasibility business plan?

Startups should use a feasibility plan to determine if their idea is viable and can generate enough revenue to witness the company’s success. It’ll help startups to gauge the potential of their business idea and identify potential challenges or obstacles they may face.

What is the purpose of a strategic business plan?

A strategic business plan aligns business resources with long-term goals and sets the direction for achieving them. It helps businesses equip resources to the right person, at the right time to achieve business objectives.

How many types of business plans are there?

There are several types of business plans however the core 7 types include traditional, startup, feasibility, one-page plan, operational or operations plan, exit strategy, and internal business plan.

PlanGrow Lab is a team of trusted business plan consultants, specializing in creating effective business plans tailored to your goals. We provide expert guidance, detailed financial forecasting, and business plans that meet the highest industry standards, turning your vision into a reality.