Types of business plan and what does it convey? By Priyanka - January 14, 2020 Last Updated at: Dec 01, 2020 1975 India’s renewable energy sector makes a $20 billion ( Rs 1.5 lakh crores ) business sense every year. The Prime Minister said this on 25th November while urging investors to join India’s renewable energy program. He further said businesses should include renewable energy in their business deployment plans for the next decade as India’s renewable power capacity is growing at the fastest speed among all major countries There are numerous architectural wonders out there. But, some stay strong even in the toughest of the weather conditions. Well, that is where the trick lies. It is all about the design and plan provided by the architect. This is precisely how a business plan should be for a business. Reliable, stable, and well-planned as per the target market. About 50% or even more start-ups end up dissolving in the initial five years, while 20% of them terminate in the first year itself. Before setting up new ventures, every start-up must have a practical plan, which acts as an essential tool for all the operations and future working of the company. Business plan: What must it convey? A business plan is typically a document that specifies the target goals of the business, both short-term and long-term goals, and the strategies to be incorporated to achieve them, along with the financial credibility and management. The entrepreneurial culture has undoubtedly taken a toll on the way the businesses are being put forward nowadays. With almost every individual having unique ideas for a similar business in the market, the competition is growing by leaps and bounds. And so, it is not just about the concept but also the way the company is held stable and how the obstructions are being faced. To bring the ideas into action, a solid business plan is the best option. Start Your Business If put together, what exactly must a business plan convey? There are three major points that it must communicate, which include the following: Business concepts and ideas: It must describe the target industry and the audience to which the business will cater, along with the services the business will offer. Additionally, it must include the short and long-term goals which must carefully be reviewed upon from time to time. Marketplace: This must ideally describe how the business will face and have a position in the competition. It will also explain the uniqueness of the services offered that must persuade the audience to purchase the products/services. Financial statements: This is the most crucial section of the business plan that will provide information about the income, investors, investments, break-down analysis, back up plans, and handling the accounts of the cash-flow that occur throughout. Types of business plans Unlike the old days, when the business plan had to be mandatorily a 30-40 page document, explaining every bit of the strategy, nowadays, the trends have changed. All you need to do is convey the ideas, marketing strategies, and financial plannings in the best format. Considering this, there are various types of business plans that are required at multiple stages. These include: A one-page mini-plan: Yes, it can even a napkin paper delivering the main idea and working of the business. There are times when one can even get an idea while driving, or even eating. Well, that is how impromptu and short this business plan looks like. It serves as a teaser to the full and detailed that has to be presented at the later stages. It can even contain just flow charts and maps for the descriptions. The lean working plan: It elaborates every detail right from the organization of ideas to the product being put in front of the audience. It must contain practical and logical working strategies. These can be considered as the informal plans without any provisions of contents or the company’s details. And they are developed for the sole purpose of use by the members of the business. Moreover, these can be ideally between 5-10 pages and must be revised regularly at specific intervals for better execution. These can also be thought of as plans that help to keep track of the success and failure rates of the business. External presentation plans: These are the plans that involve everything, right from the details of the company, the overview, the set-up, the execution, and the ultimate goals to be reached along with the financial operations that will be followed. These are used for presenting the ideas before the investors, the government, or other external sources. These have to be formal with a polished appearance, having a detailed language and format. These plans can also be used to hire employees for the business. Electronic plans: With technology being the most chosen and sorted option to circulate ideas and carry out the business deals, having an excellent electronic plan can help you crack the deal and establish a good impression before the audience and investors. Conclusion As such, the business plan is the key to establishing your business the right way. Reviewing and continuously adapting the market trends in the plans can provide several benefits. Additionally, the business plan is the most efficient way for both the start-ups and the established businesses to maintain and continuously grow in their industry.