Company formations

What is A Business Plan

The very thought of a business plan can at first sound daunting and you may kid yourself that you don't really need one. However, a business plan is a key element in the future success and longevity of your business.

There are many different types of business plan and the one you choose to create will depend on the type of business or service you offer. However, the four main business plans fall into the following categories:

Short business plan

The short business plan exists on its own but can also be used as a precursor to a full blown business plan. Generally speaking, a miniplan would be used to quickly assess a business concept, or the interest of a likely partner or investor. An overview of key issues should be included such as the concept, financing business cash flow, marketing plans and projected income of the business.

Working Plan

The working plan should contain all the details of how your business will operate. It is for internal use within the business and therefore doesn't need to have the formality of a business plan that might be shown to a potential investor. It should, however, contain the nuts and bolts of how you plan to run your business day to day for internal consistency.

Presentation Plan

A presentation plan is the posh version of a working plan for the simple reason that it is the presentation plan that is shown to likely investors, partners, banks etc. So it is important that it is clearly understandable for those not in the industry, accurate in its financial forecast and cash flow and internally consistency. In other words it is the professional presentation of your business and its inner workings.

Electronic Plans

Electronic plans are used in conjunction with hard copy business plans. Many businesses choose to have an electronic version as well which comes in useful for presentations or if you have complex spreadsheets and information to be presented.

In summary, whichever plan you choose bear in mind that whilst different in format each plan should present your business in the best and most accurate light whether it is to be used internally or externally.

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