Introduction To Business Planning Paper, Background Information

Business Plan Models
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Business Plan Models
There are different types of business plan models. Each business plan model matches a specific business circumstance or situation. For instance, it is unnecessary to add background information for a business plan that is to be used internally, and not meant for investors. In this way, it is important to discuss at least four business plan models that a business can use.
One type of business plan model is the start-up plan. This is the most common model that often focuses on what one needs to start a business (Lange et al., 2007). A start-up business model covers factors such as products or services being offered, the marketing strategies that business will incorporate, how employees will be recruited and also a financial analysis of how all these will be paid for, the income, profit, and even cash flow projections (Lange et al., 2007). One advantage of a start-up business plan is that it helps craft how a business will be created, what to expect including the problems that may be faced. A start-up business model helps clarify thoughts and identify on how to begin a business from scratch. In this way, it provides an opportunity to have a logical structure of thinking about the business (Lange et al., 2007). Further, through a start-up, it helps define the reality of entering into a new market or industry and how a business should approach this step. The disadvantage of a start-up business model is a business has never been in operating before and so it could be misleading. The information in the business model may turn out unhelpful in a real business set-up (Lange et al., 2007).
The other business plan model is an internal plan. Unlike start-up plans, internal plans are often not meant for external parties such as investors, financial institutions, or any other third party entities. An internal plan is aimed at specific people or individuals within the company and in this way, it is normally shorter and precise than a fully detailed standard plan. They reflect on the needs of members or entities within the company (Fulker, Timur, Dew & Butler, 2016). One main advantage of internal business model is that this information is used for strategic planning such as how to enhance profits or improve employee engagement. It is a tool that helps a company determine how it can further its success or growth in the market. In this way, an internal plan can highlight the strengths and weaknesses of a specific part of the business and how they affect the goals of the organization (Fulker, Timur, Dew & Butler, 2016). After identifying these strengths or weaknesses, the business can use this specific information to gain a competitive advantage. The disadvantages of internal business plan model is that if the main problem of the business is not identified, the plan would be ineffective in helping the business address underlying problems.
An operational plan is another type of business model. An operational plan are internal plans that are also referred to as annual plan. Operational plans are more detailed, including specific dates, deadlines, implementation milestones, involved teams, and even the responsibilities of managers. These are plans that businesses use ...