There are many different kinds of business plans, including strategic, operational, conceptual and financial. The type of plan that is best for you depends upon your goals — whether short term or long term — and the reason behind creating your plan. We, experienced business plan consultants UAE, prepared this blog to explain a few of the most common types of plans and help you figure out which one is right for you.
Start-ups, by their very nature, are risky. That's why it's important to have a business plan that's flexible and can change as the company grows and evolves. A start-up plan is one of the most important documents you'll create for your business. A start-up plan is also called a business plan for startups or an informal business plan. It's a blueprint for how you will run your business once you've launched it.
The purpose of this type of business plan is to help you evaluate all aspects of your new venture before you take the plunge. You'll want to consider:
- What type of product(s) or service(s) are you offering?
- Who will be your target audience?
- How much funds do you need to launch and start your business?
- How will you generate revenue?
- How much money will each customer spend with your company?
- What kind of marketing strategies do you intend to use?
Most start-up plans include many assumptions about how the owner expects his or her venture to operate. These assumptions tend to be overly optimistic and may not reflect reality once the new business is launched. Start-up plans can also be used by experienced entrepreneurs as a way to test their ideas before making them public knowledge.
Creating a Strategic Plan
A strategic plan is a forecast of the future of your business, including the direction in which it’s heading and what its goals are. It helps you make decisions about where to put your resources and how to allocate them. A strategic plan can be created at any point in the life cycle of your business, but it’s most effective when you begin creating one as soon as possible.
Many entrepreneurs create strategic plans as part of their initial business planning process, but it’s also important to revisit your strategic plan periodically throughout the life cycle of your business. If you’re already operating your business, this means taking time out from day-to-day operations to revisit long-term goals and strategies for achieving them.
Writing an Operational Plan
Operational plans are designed to describe how the business will be run on a day-to-day basis. They include information about staffing, product mix and pricing decisions, as well as marketing strategies, sales forecasts and financial projections.
The purpose of an operational plan is to provide a roadmap to help guide the growth of your business. It’s important that you know how your business is going to operate before you start it up so that you can make informed decisions about staffing needs, pricing levels and marketing strategies.
An operational plan is usually written after your business plan has been completed. However, it can also be used as a companion document for those who want more detail about how their businesses work or for managers who need step-by-step guidance on what tasks need to be completed next week or next month.
Preparing a Financial Plan
A financial plan is a document that outlines the financial needs and goals of your business. It can be used as a tool to measure your progress and track your success. The five most common types of financial plans include:
1. Cash flow projections
2. Break-even analysis (B/E)
3. Capital expenditures budgets (CAPEX)
4. Net working capital budgets (NWC)
5. Balance sheet projections
If you need help understanding what type of financial plan is right for you contact business management consulting firms in Dubai. Also, here's what you should know:
1. A detailed budget is the most common type of financial plan. This type of business plan outlines projected sales figures and expenses for an entire year or longer time period. It also includes information about how much money will be required to cover these expenses based on past experience or other factors such as market conditions.
2. A cash flow projection provides a snapshot view of how much money will be coming into and going out of your company over a specific period (usually one year). It shows where income comes from, where it goes and how much cash is available at any given time throughout the year.
3. A capital budget is similar to a detailed budget in that it shows projected income and expenses over time; however, this type of business plan focuses more on long-term needs than short-term ones like quarterly budgets do.
Developing an Internal Operations Plan
The internal operations plan is the blueprint for your business. It is where you lay out your vision, mission and values for the company. It can be used to guide the development of other business plans, including marketing or finance plans.
The internal operations plan should answer these questions:
- What is my vision for this company?
- What are my goals?
- How will I achieve those goals?
This plan should also include a description of your business model, including how you make money and how you are different from competitors. It should also include information about how you will run your company day-to-day, including how much time will be spent on each aspect of running the business. This type of plan may include resources such as staffing, training, scheduling and budgeting.
Business operational planning in UAE can prepare you for future growth by providing you with information necessary to make decisions related to hiring or firing employees; developing employee training programs; improving efficiency; or creating new products or services that will satisfy current or new customers' needs in a timely manner — all valuable tools when dealing with increased demand or competition from other companies in your industry or geographic area.
A marketing plan describes how you'll market your company and what you want to accomplish with your marketing efforts. It's important for businesses that sell products or services to customers outside their immediate area because it helps them reach customers who aren't familiar with their business or product lines.
Marketing plans may include sections on advertising campaigns, public relations programs, direct mail campaigns and social media strategies. If possible, include a timeline for each part of your marketing plan so that everyone involved knows when different parts are supposed to happen and how long they're expected to take (and when results will appear).
Drafting a Growth Plan
The growth plan is a short-term plan, usually less than three years. It focuses on what you need to accomplish to reach your short-term objectives. The growth plan shows how you will achieve your goals, including the biggest obstacles and why they are important to address. It also shows how much you can afford to spend on each obstacle, which helps you prioritise and make decisions quickly.
The growth plan is good for:
- Helping you get started and get moving in the right direction.
- Helping you keep focused on your priorities and goals during periods of uncertainty or change.
- Saving money by helping you avoid costly mistakes by setting up reasonable expectations for the near future.
Even if you're not sure what type of business is right for you, you can be pretty certain that starting a business is not only better than making no effort to pursue your dream. At the end of the day, planning and effort are both necessary to ensure a viable, successful business. Which kind of business plan you ultimately choose should probably depend on how receptive your industry is to entrepreneurship. Volonte business management consultancy in Dubai will help to alleviate that confusion by shedding light on the different types of plans currently available and how each plan can help your business reach its goals.