Writing Your Business Plan – 5 Formats to Consider
A key part of starting and maintaining a business is the formulation of an effective business plan. For a budding entrepreneur, a written plan may be a tool to attract potential investors; for an established business owner, it may be the foundation for continued growth and success. Whatever its purpose is, choosing the right type of business plan to write is not something that should be taken for granted. There are five main types of business plan to consider:
Executive Summary
An executive summary is the shortest and most succinct of business plan formats, usually no longer than two pages. That is not to say, however, that it is lacking in clarity, cohesion, and information. As this type of business plan is typically targeted towards investors, do not underestimate the importance of presenting a unified, well-thought-out executive summary.
Synopsis
Best described as an extended, fleshed-out version of the executive summary. A synopsis usually focuses on “selling” a business plan to a potential investor. As such, it attempts to show the investor why he or she should be interested in the company.
Summary Plan
Yet another expansion of the previous format. A summary business plan is about ten pages in length and includes an executive summary, followed by more detailed explanations of specific, important components of the plan.
Full Plan
25 to 35 pages in length, a full plan lays out in extensive detail all the main aspects of the business. The key to a full plan is research. All projections, marketing, and product designs are backed up by hard facts. A full plan will usually include financial projections for three to five years.
Operational Plan
This type of business plan differs from the others in that it is usually written by an already established company. Operational plans are usually drawn up in very high detail, and are often used as an actual guide for running a business, as opposed to a proposal.
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