Business plans are crucial for every company; however, when it comes to executing them for long-term success, the question is- are you using the right type of business plan? Sadly, most entrepreneurs are unaware of the fact that business plans are created and roughly divided into four unique types. They are short business plans, often called mini-plans, decks or presentation plans, working business plans, and the what-if business plan. Each one of them is different, and they deliver different results too.
Eric Dalius – Your business will not succeed with just an extensive one for all business plans
Eric Dalius says that when it comes to creating a business plan, just having an elaborate plan is not enough for your business. Your company’s success depends on the right business plan used in the correct setting.
He further elaborates that new hires for your business will not want to read an extensive version of your business plan than a potential investor who wants more details before investing.
He goes on to list the four types of business plans as follows-
- The Mini Plan– Recipients love this plan as it can be conveniently downloaded on tablets and phones for later reference. It is a much shorter version of the comprehensive business plan for your company with the highlights listed.
It can be used for start-ups or even small business units; however, a longer version of your business plan is needed if you have a larger complex business.
- Presentation Plan– The arrival of PowerPoint Presentations revolutionized the way business plans were presented. Being much shorter than its earlier predecessors, creating a presentation plan is no easy task.
Most people lose sleep when it comes to making the right business plan with PowerPoint. However, it is highly effective as readers generally do not ask questions until you finish, and in just 20 minutes or so, you can cover all the key highlights of your business.
Pro-tip -Your presentation plan should have good graphics, be uncluttered and keep it concise. Plan well and be ready to answer all FAQs as you cannot avoid this step even here.
- Working Plan– This Plan is used for business operations. It is long when it comes to details but short when presented. It differs from a Mini Plan, as in the former, you can be informal and have some candor element as this Plan is generally presented to committees for the grant of a bank loan. This Plan is primarily for internal use, and you have the liberty to skip key points that you do not need to explain to yourself.
- The What-If Plan– As the name indicates, the What-if Plan is intended for emergencies or an unforeseen event. It is like that the contingency plan you resort to in the event of an unusual circumstance. It helps your business to survive events like the loss of market shares, competition due to heavy prices, the defection of a primary member of the business management team, and more. It is created to reduce the fears of an investor or the bank to depict how prepared your business is in the event of emergencies or unforeseen circumstances.
Therefore, from the above, it is evident that one single plan will not work for all scenarios when it comes to business plans. Keep the above types of business plans handy to apply them in the right circumstance without hassles at all!