March 15, 2021

Types of business plans

By l1nk3b33k

There are two main types of business plans: simple and traditional. Traditional business plans are long, detailed plans that expound on both short-term and long-term objectives. In comparison, a simple business plan focuses on a few key metrics in concise detail so as to quickly share data with investors.

Simple business plan
Business model expert Ash Maurya has developed a simple type of business plan called a lean canvas. The model, which was developed in 2010, is still one of the most popular types of business plans emulated today.

A lean canvas comprises nine sections, with each part of the plan containing high-value information and metrics to attract investors. This lean business plan often consists of a single page of information with the following listed:

Problem
Solution
Key metrics
Unique proposition
Unfair advantage
Channels
Customer targets
Cost structures
Revenue streams
Traditional business plan
Traditional plans are lengthy documents, sometimes as long as 30 or 40 pages. A traditional business plan acts as a blueprint of a new business, detailing its progress from launch to several years in the future when the startup is an established business. The following is covered in a traditional business plan:

Executive summary
Company description
Products and services
Market analysis
Management team
Financial plan
Operational plan
Appendices