Photo by Tim Gouw

Just as goal-setting is an integral part of the success of a highly motivated person, a business plan is key to setting your business up for success. There are many types of business plans; we can think of these as different lenses that each provide unique perspectives with key insights into all different aspects of an organization. 

Let’s dive into the five most common business plan types.

1. Traditional Business Plan

A comprehensive, detailed plan covering all aspects of the business, is often required by banks and investors. Even established companies can revisit and revamp their business plans to rethink their goals. To be “comprehensive,” you’ll need to include an executive summary, market research, operations, financials, etc. There’s no specific required format for a traditional business plan, but you do need those elements. You can use a template and jazz it up by letting your brand’s personality shine through!

2. Lean Startup Plan

A shorter, more flexible version of a business plan that focuses on key elements like a value proposition, customer relationships, and revenue streams. You may have heard – and yes, it’s true – these can even be as short as one page. They’re famously used by and are ideal for startups looking for flexibility and rapid iteration. The big pro with the lean startup plan is that instead of frontloading a ton of energy into an elaborate business plan, you depend on feedback to evolve the plan as you go.

3. Operational Plan

Focuses on the internal operations of the business, detailing the day-to-day tasks and processes needed to run the business effectively. In your operational plans, you should detail short-term objectives that serve your long-term, overarching goals. Operational planning is all about keeping you on the right path as you work towards those bigger goals. To create the most effective operational plans, you’ll have to create them with specific focuses based on the structure of your organization, meaning that these plans should be drawn up at the team and/or department level, rather than at the company level.

4. Strategic Plan

A high-level overview of the business’s long-term goals (think: 3–5 years) and the strategies to achieve them. This type focuses on vision, mission, and core objectives, and is really important in order to achieve those more abstract goals that are paramount to your company vision. Make sure that you accurately assess your current state of affairs with a SWOT (Strengths, Weaknesses, Opportunities, and Threats) analysis and delegate responsibilities in executing the strategic plan with intention. Before all of that, brainstorm like never before, and have a plan as to how you’d like to approach brainstorming with your team in order to properly gel together and achieve the best results.

5. Financial Plan

Primarily focused on the business’s financials. It includes income statements, balance sheets, cash flow analysis, and projections to demonstrate profitability and financial health. With your financial plan, you also figure out your budget and plan for taxes. You will have to dig into your company’s numbers to assess your current financial standing as well as project sales and expenses, which will lead to a break-even analysis. A great financial plan will work hand-in-hand with your operational plan to ensure you’re being as efficient and intentional as possible in the pursuit of your goals.

If you’re not sure which plan(s) are the best fit for your organization and feel like you could benefit from talking to an experienced Founder, book a mentor session today and figure out those tangible next steps. Not a member yet? Sign up for a FREE 7-day trial with Selfmade and discover how strategic planning can transform your business outcomes.