There are startup business plans for companies that are just forming, and there are established business plans for those who are already operating.
In addition, there are 2 business plan types based on the company’s size.
For instance, it should include the reasons you think the business, product or service will be successful.
It should prove that the market is big enough to support your business.
There are small business plans that generally cover companies up to 50 employees.
Medium and large company business plans are usually for companies with 51-250 employees and 250 employees respectively.
A business plan is important in that it serves two core purposes; it provides 1) financial validation and 2) serves as a roadmap.: With regards to financial validation, your business plan gives a strong indication, to both you and outside funding sources, as to whether your venture will be financially successful.
Your financial projections, if completed properly (more on this below), allow financing sources to calculate whether you’ll be able to repay your loan or provide an appropriate Return on Investment.
For example, there are 3 types of business plans depending on the goal of your plan.
These three types are for funding, for strategy, and for both.