7 Types of Business Plans

You’ve got an idea for a business. It might be something you’re passionate about or a problem you’re ready to solve.

But as you start thinking about how to bring it to life, you may be feeling a little stuck.

Where do you even begin?

No matter how awesome your idea is, a solid business plan can make all the difference between success and struggle. I know, planning sounds like a lot of work, but it doesn’t have to be complicated.

In this post, we’ll explore different types of business plans. These plans will help you turn your idea into something real and set you up for growth.

1. Startup Business Plan

Starting a business is exciting, but it can also feel a bit overwhelming. A startup business plan helps you focus on the key areas that matter the most when launching your business. It’s your guide to turning your idea into something real and actionable.

What’s Included in a Startup Business Plan?

• Executive Summary: A brief overview of your business, your goals, and how you plan to achieve them.
• Company Description: What your business does, what problem it solves, and what makes it unique.
• Market Research: Insights about your target market, competitors, and industry trends.
• Marketing Strategy: Your approach to attracting and retaining customers, along with your pricing strategy.
• Financial Projections: A forecast of your revenue, costs, and profits, which helps you understand the financial viability of your business.

Let’s look at a full business plan for a startup called FreshBites, a company that delivers healthy, pre-made meals to busy professionals.

Executive Summary:

FreshBites is a meal delivery service targeting busy professionals in major cities. Our goal is to provide affordable, healthy meals that are quick and convenient. We aim to be the go-to service for anyone looking to eat healthier without the hassle.

Company Description:

FreshBites delivers chef-prepared meals that are tailored to individual dietary needs. Our meals are made with locally sourced ingredients, packaged for convenience, and delivered directly to the customer’s home or office.

Market Research:

• Target Market: Busy professionals aged 25-45, living in urban areas, and looking for healthy meal options.
• Competitors: Companies like HelloFresh and Blue Apron. However, FreshBites stands out by focusing on locally sourced ingredients and personalized meal options.
• Market Trends: Health-conscious consumers are increasingly choosing meal delivery services over traditional dining options, especially those focused on nutrition and convenience.

Marketing Strategy:

• Branding: Focus on health, convenience, and sustainability.
• Channels: Online ads, social media, and partnerships with fitness centers.
• Pricing Strategy: Competitive pricing with subscription models offering weekly, bi-weekly, and monthly plans.

Financial Projections:

• First Year Revenue: $200,000
• Cost of Goods Sold: $120,000
• Net Profit: $40,000
• Funding Needs: $50,000 to cover initial startup costs, including marketing and kitchen equipment.

Ever feel like your customers are trying to tell you something, but you’re not sure what? By understanding their needs and pain points, you can turn that insight into strategies that boost your bottom line.

2. Feasibility Business Plan

Before diving into launching your business, it’s important to know if your idea is actually feasible. A feasibility business plan helps you evaluate whether your concept has potential.

It’s all about answering the question: Can this business idea actually work in the real world?

What’s Included in a Feasibility Business Plan?

• Market Feasibility: Does your idea solve a real problem? What’s the demand for your product or service? This section explores your target market and whether people will pay for what you offer.
• Technical Feasibility: Can you actually deliver on your idea? Here, you explore the technical aspects, like production methods, technology, or expertise required to make your idea a reality.
• Financial Feasibility: This section dives into the numbers. Can you afford the startup costs? Will the business be profitable? You’ll estimate initial costs, expected revenue, and break-even points.
• Legal Feasibility: Are there any legal roadblocks to your idea? This could include permits, trademarks, and regulations that may impact your business.

Let’s say you have an idea for a Smart Home Device that helps people save energy by automatically adjusting their home’s temperature based on their habits. Your feasibility business plan would look like this:

Market Feasibility:

• Target Market: Homeowners aged 30-50, particularly those interested in technology and energy conservation.
• Demand: The smart home market is growing rapidly, with a 25% year-over-year increase. Consumers are looking for ways to save on energy bills and make their homes smarter.

Technical Feasibility:

• Production: The product will require advanced sensors and an AI-powered algorithm. Initial research shows it’s possible to create, but high-quality components could be expensive.
• Technology: You’ll need to integrate with major smart home systems like Google Home and Amazon Alexa, which requires collaboration with these platforms.

Financial Feasibility:

• Startup Costs: $100,000 for product development, research, and initial marketing.
• Revenue Forecast: Projected revenue in the first year is $500,000 with a 10% profit margin.
• Break-Even Point: The business will reach break-even after 18 months.

Legal Feasibility:

• Patents: Need to file a patent for the energy-saving algorithm.
• Regulations: Must ensure the product complies with energy-saving standards and electronic product regulations.

3. One-Page Business Plan

Not every business needs a 30-page document. If you’re looking for something simple and quick, a one-page business plan might be just what you need. This is perfect for early-stage startups, small businesses, or entrepreneurs who want to get their idea on paper without feeling overwhelmed.

What’s Included in a One-Page Business Plan?

• Mission Statement: A short sentence that explains the purpose of your business. What do you aim to achieve?
• Product or Service: A brief description of what you’re offering and how it solves a problem.
• Target Market: Who are your ideal customers? Be specific about the type of people who need your product.
• Marketing Strategy: How will you reach your customers? This includes your approach to advertising, social media, or any other channels.
• Revenue Model: How will you make money? Will it be through direct sales, subscriptions, or another method?
• Financial Snapshot: A quick overview of your finances, such as startup costs, projected revenue, and profit margins.

Here’s a simple one-page business plan for a Handmade Jewelry Business.

Mission Statement: Create beautiful, eco-friendly jewelry that celebrates individuality and sustainability.

Product/Service: Handcrafted, unique jewelry made from recycled materials. Each piece tells a story and offers an eco-friendly alternative to mass-produced fashion.

Target Market: Eco-conscious women ages 25-40 who are looking for stylish, sustainable alternatives to fast fashion.

Marketing Strategy:

• Social media marketing, focusing on Instagram and Pinterest.
• Partnering with eco-friendly influencers and bloggers to showcase products.
• Offering limited-edition collections to create buzz.

Revenue Model:

• Direct-to-consumer sales through an online store.
• Offering exclusive pieces through a subscription service.

Financial Snapshot:

• Startup Costs: $5,000 for materials, website setup, and marketing.
• Revenue Target (Year 1): $50,000
• Profit Margin: 30%

Getting my first 100 customers wasn’t easy, but it taught me valuable lessons. Here’s what worked and what you can apply to your own journey.

4. What-If Business Plan

A “What-If” business plan helps you prepare for different scenarios. It’s about asking, What if things don’t go as planned?

A What-If Business Plan prepares you for unexpected situations. It helps you act quickly if things don’t go as planned. This is especially helpful if you’re in an unpredictable market or launching a new product.

What’s Included in a What-If Business Plan?

• Risk Analysis: Identify potential risks that could affect your business, like changes in the market, delays in production, or financial challenges.
• Contingency Plans: Outline the steps you’ll take if these risks occur. How will you handle challenges when they arise?
• Financial Scenarios: Plan for different financial outcomes. What will happen if your sales are lower than expected or if you face unexpected costs?
• Impact on Operations: Think about how these risks will affect your day-to-day operations. What adjustments will you need to make to keep things running smoothly?

Let’s say you run a Mobile App Development Company. You may face risks like changes in technology, market trends, or budget issues. Here’s how you could create a “What-If” business plan for your app development company:

Risk Analysis:

• Market Risk: A sudden change in app trends that makes your app less popular.
• Technical Risk: Delays in development due to tech issues or staff shortages.
• Financial Risk: Low sales after launch, leading to cash flow problems.

Contingency Plans:

• Market Risk: If demand drops, you can explore new features or tap into a new market to keep the app relevant.
• Technical Risk: Adjust the development timeline and consider outsourcing tasks to get things done on time.
• Financial Risk: Keep a reserve fund in place or look for new revenue streams to maintain cash flow.

Financial Scenarios:

• Best-Case Scenario: The app becomes very successful and generates $500,000 in the first year.
• Worst-Case Scenario: The app doesn’t perform as expected, and you only generate $100,000 in the first year.

Impact on Operations:

• If the market shifts, you may need to pivot the app’s features or adjust your marketing strategy.
• If sales are lower than expected, you could cut unnecessary costs and focus on boosting cash flow.

5. Growth Business Plan

A growth business plan is for businesses ready to expand. If your business is already up and running, this plan helps you figure out how to grow. You can use this plan to add new products, reach new markets, or grow your operations.

What’s Included in a Growth Business Plan?

• Market Expansion: How will you reach new customers? This might include expanding to new locations or targeting new customer groups.
• Product Development: If you plan to offer new products or improve your current ones, this section covers how you will do it.
• Sales Strategy: How will you boost sales? This could be through new marketing methods, partnerships, or keeping customers coming back.
• Financial Projections: What will it cost to grow? This section looks at the money you need for expansion and the revenue you expect.

Let’s look at EcoClean, a cleaning company that started small. Now, they want to grow their services and move into new cities. Here’s what their growth plan looks like:

Market Expansion:

• Target Markets: Expanding from a local area to other cities. We’ll focus on places where people care about the environment.
• Market Research: The eco-friendly market is growing fast. More people want services that are good for the planet.

Product Development:

• New Services: We plan to add carpet cleaning, commercial cleaning, and a subscription service for regular cleaning.
• Technology: We will create an app for customers to book services and track their appointments.

Sales Strategy:

• Partnerships: We will partner with local businesses to offer discounts to their customers.
• Online Marketing: We will use ads on Google, Facebook, and eco blogs to reach more people.
• Customer Retention: We will create a loyalty program where customers earn rewards for booking regularly and referring friends.

Financial Projections:

• Revenue Forecast: We expect sales to grow by 30% in the first year after we expand to new cities.
• Costs: It will cost about $100,000 to cover marketing, staffing, and equipment for expansion.
• Funding Needs: We need $150,000 to cover all the costs of growing our business.

6. Operations Business Plan

An operations business plan focuses on the day-to-day activities needed to run your business. This type of plan is essential for businesses that are already in operation and want to improve efficiency. It helps you streamline processes, manage resources, and make sure everything runs smoothly.

What’s Included in an Operations Business Plan?

• Operational Workflow: How does your business operate daily? This includes your production processes, supply chain management, and how work is organized.
• Staffing and Resources: What kind of team do you need to run the business? How will you manage resources like equipment, inventory, and technology?
• Facilities and Equipment: Where will your business operate from? What facilities or equipment will you need to get the job done?
• Performance Metrics: How will you measure success? What key metrics will you track to ensure everything is running smoothly?

Let’s take FreshBites, a meal delivery service, as an example. Here’s how their operations business plan might look to ensure smooth day-to-day operations:

Operational Workflow:

• Meal Preparation: Meals are prepared in a central kitchen with a team of chefs. Each meal is carefully packaged and labeled for delivery.
• Delivery Process: A fleet of drivers delivers meals directly to customers. We track all deliveries via an app to ensure timely service.

Staffing and Resources:

• Team: We need chefs, kitchen staff, delivery drivers, and customer service representatives.
• Suppliers: We partner with local farmers and food suppliers to ensure we have fresh ingredients on hand.
• Technology: Our online platform manages customer orders and tracks delivery.

Facilities and Equipment:

• Kitchen: A commercial kitchen that meets health and safety regulations.
• Vehicles: A fleet of delivery vans equipped with temperature control to keep meals fresh.

Performance Metrics:

• Customer Satisfaction: Measured through feedback and surveys.
• Delivery Time: We track delivery times to ensure meals arrive on time.
• Order Accuracy: We measure how many orders are delivered correctly without mistakes.

7. Strategic Business Plan

A strategic business plan is focused on the long-term direction of your business. It’s about setting big goals and planning the steps you need to take to reach them. This type of plan is ideal for businesses that want to grow and expand over time.

What’s Included in a Strategic Business Plan?

• Mission and Vision: Your company’s purpose and the future you want to create. This section answers, Why does your business exist, and where do you see it in the future?
• Goals and Objectives: What are the key milestones you want to achieve in the next few years? This section breaks down your long-term vision into actionable steps.
• Market Analysis: A deep dive into your industry, competitors, and the market trends that could impact your business. It helps you understand where your business fits into the bigger picture.
• Strategy and Action Plan: The specific strategies you will use to reach your goals. This could include market positioning, partnerships, or new product development.
• Financial Forecast: A long-term look at your business’s financial health. This includes projected revenue, costs, and profit margins for the next few years.

Let’s look at TechSolutions, a software development company that wants to grow into new markets and expand its product offerings.

Mission and Vision:

• Mission: To provide innovative software solutions that help businesses streamline their operations and increase productivity.
• Vision: To become a leader in the software development industry, known for our cutting-edge products and excellent customer service.

Goals and Objectives:

• Goal 1: Expand into two new international markets within the next three years.
• Goal 2: Develop and launch three new software products by the end of year two.
• Goal 3: Increase revenue by 40% annually over the next five years.

Market Analysis:

• Industry Overview: The software development market is expected to grow by 10% annually, with a strong demand for SaaS products in emerging markets.
• Competitors: We face competition from companies like Microsoft and Salesforce. However, our focus on user-friendly, customizable software gives us an edge in smaller, niche markets.
• Market Trends: There is increasing demand for cloud-based solutions and integrations with existing business systems.

Strategy and Action Plan:

• Market Positioning: Position our products as affordable, user-friendly, and scalable for small and mid-sized businesses.
• Partnerships: Partner with local tech companies in emerging markets to gain a foothold.
• Product Development: Focus on creating SaaS products that solve specific industry problems, such as project management and team collaboration.

Financial Forecast:

• Revenue: We expect to generate $5 million in revenue by the end of year one and $20 million by year five.
• Costs: The initial investment in R&D and marketing will be $2 million.
• Profit Margin: We aim for a profit margin of 30% by year five.

What Not to Include in Your Business Plan

While a business plan is a comprehensive document, some things don’t belong in it. Here’s what to avoid:

1. Unrealistic Financial Projections: Avoid overestimating revenue or underestimating expenses. Investors want realistic numbers, not overly optimistic forecasts.
2. Too Much Detail on Day-to-Day Operations: The plan should focus on the big picture. Don’t get bogged down in minute details like daily tasks unless they are critical to your strategy.
3. Unsubstantiated Claims: Any claims or promises you make, like “we’ll be the #1 business in the market”, should be backed up by research or data. Avoid vague statements that can’t be supported.
4. Personal Information: While it’s important to explain the team’s strengths, avoid excessive personal details. Focus on professional experience and skills instead.
5. Irrelevant Data: Don’t include information that’s unrelated to the business plan. Keep everything relevant to your business’s growth and success.

Types of Business Plan: Common FAQs from Entrepreneurs

Ready to Put Your Plan Into Action?

Business plans come in many forms, but each serves one purpose: giving your idea structure and direction.

Here is a quick recap of what we covered:

• Startup Plan helps you launch with clarity
• Feasibility Plan tests if your idea can work
• One-Page Plan keeps things simple and focused
• What-If Plan prepares you for uncertainties
• Growth Plan guides your expansion
• Operations Plan streamlines daily workflows
• Strategic Plan sets your long-term direction

The key takeaway is that you do not need every plan. You just need the one that matches your stage and goals. A clear plan will keep you focused, help you make smarter decisions, and give others confidence in your business.

Dreaming of starting an eCommerce business, but your budget says no? You can still make it happen with zero upfront cost. Learn the steps that actually work.

Choose the plan that fits your journey and start building. The sooner you map it out, the sooner you will see your idea take shape.

What about you? Which type of business plan do you think fits your vision right now? Share your thoughts in the comments