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What are the Types of Business Plan?

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Business plans are classified according to the criteria listed below.
By type, depending on the scope of the application. The following types are distinguished:

  • Economic;
  • Organizational;
  • Technical;
  • Social;
  • Mixed.

 


By class, depending on the number and size of objects for which the project was developed:

 

  • A monoproject is being developed for a separate enterprise or organization.
  • A complex or multi-project, by definition, is developed when several enterprises are involved in the project on an equal footing as objects. For each of them, within the framework of a multi-project, an own mono-project is being developed.
  • A monoproject is a complex of monoprojects and multiprojects. Developed for regions and industries.

 

By scale, depending on the scale of the project, that is, depending on the amount of funding, as well as depending on the number of enterprises, organizations and labor resources involved.

By duration:

  • Short-term, with a period of implementation of not more than three years;
  • Medium-term, with a period of implementation of at least three and no more than five years;
  • Long-term, with a maturity of more than five years.

By difficulty:

  • simple;
  • Complex;
  • Very complex.

 


By type, depending on the nature of the resources involved in the project:

 

  • Organizational;
  • Scientific;
  • Educational;
  • Mixed.

The last section is worth a closer look.

Business plans for innovative projects

 

The purpose of innovation projects, by definition, is the development and implementation of innovations. It can be both the development of a new product and research in the non-material sphere. For example, the development of new software or market research.
The business plan drawn up for an innovative project should clearly and clearly state the purpose of the project. At the same time, local goals can be adjusted based on the achieved intermediate results.

Similarly, the time frame for the implementation of the project, given in the preparation of the plan, may vary depending on what has been achieved.

The specifics of financing this type of projects is that very often a fixed amount is allocated for their implementation, the amount of which becomes the main factor in financial planning. This imposes known limitations on the amount of resources involved.

Business plans for organizational projects

 

Such plans are drawn up for a set of measures to upgrade the enterprise, optimize the management system, create a new enterprise or organization, and the like.

They, as a rule, quite clearly stipulate the goals of the project and the timing of its implementation.
The amount of required investment is also set in advance, although it is often subject to adjustment as the project progresses.

The allocation of resources for implementation occurs as far as possible, therefore, the plan does not prescribe. Instead, a scheme is prescribed for controlling their spending and financing options are outlined depending on the achievement of certain results.

In this case, we can only talk about determining intermediate results, since the final goal of the project does not have a quantitative expression. It is possible to speak about the success or not of the project success only when organizational changes will fully affect the production process or trading operations.

 

Business plans for economic projects

 

Economic projects include the introduction of audit and taxation systems, privatization and other similar complex measures.

A feature of compiling business plans for them is that the goals of the project are only outlined, since they do not have an exact digital expression. In the course of implementation, they are refined depending on the success of the implementation.

The same is true for the timing of the project.
Resources and funds are often allocated during the implementation of activities. Their allocation is regulated depending on the effectiveness of their use.

Business plans for social programs

 

Social programs are engaged in the creation and modernization of life support systems. They are engaged in health care, social protection, assistance to the population in emergency situations.
In plans drawn up for such programs, goals are usually outlined in general terms and can be subject to major adjustments in the course of the programs.

Also, the deadlines do not have an exact expression and depend on the achievement of intermediate results.
Since funds for such programs are most often allocated by the state or charitable organizations, the drafters of the plan most often limit themselves to indicating the sources of funding, in some cases indicating the desired amount of investment.

 

 

 

Types of business plans for an enterprise

 

The concept of a business plan is not limited to the above classification. Plans developed for an individual enterprise are also divided into types. This division is due to the task that they are intended to perform.
Moreover, the concept of “types of business plans” can be interpreted ambiguously. Many economists believe that the concept of type includes two main groups of documents of this kind – internal and external.
Let’s consider this concept in more detail.

Internal plan

This type of document is produced by management for internal use. The concept of internal use has its own gradation depending on the level of access:

  • The document may be compiled by the head or owner solely for personal use.
  • The document can be addressed to partners and top management.
  • And, finally, all employees of the enterprise can be the addressee of the document.

In each of these cases, the content of the plan may differ significantly, since the information about upcoming actions and prospects that needs to be conveyed to the managers of the enterprise is of a different nature than the information intended for ordinary employees.

The concept of an internal business plan involves the formation of a program of measures aimed at the development of the enterprise, forecasting the qualitative and quantitative indicators of production and marketing of finished products.

The core data collected for such a document is, by definition, more complete and objective. This, in turn, imposes on its recipients increased requirements for maintaining confidentiality, since the disclosure of this information can often be detrimental to business.

But the content of such a business plan is not limited to this. As a rule, it contains an analysis and assessment of the difficulties and risks that may arise during the implementation of the project, as well as ways to minimize and eliminate them.

Another task that the internal plan is designed to solve is very often the task of motivating employees and partners of the enterprise by opening up new horizons for them in their activities.

Documents of this kind can be divided into types also depending on what is their object. That is, depending on what area of ​​activity of the enterprise they concern.
From this point of view, internal plans are divided into production and marketing.

 

Internal production business plan

 

A production business plan is drawn up for projects to reorganize and increase existing production or create new production facilities. It includes:

  1. Analysis of the technical condition of the enterprise.
  2. Rationale for the need to modernize production.
  3. Program of specific measures for the implementation of modernization.
  4. Information about the resources to be used in the program.
  5. Forecast of risks and program of actions to eliminate them.

Internal marketing plan

 

This plan contains a program of actions aimed at improving the position of the enterprise in the relevant market segment. Its task is to increase the competitiveness of finished products and improve their sales.

Therefore, the document scheme in general terms looks like this:

  1. Overview of the relevant market segment.
  2. Analysis of the competitive opportunities of enterprises and organizations that produce similar products.
  3. Program of measures aimed at improving the competitiveness of products. This section of the plan most often includes measures to organize advertising campaigns and improve marketing policies.
  4. In addition, the plan may address pricing aspects in order to optimize the price-quality ratio.

In addition to marketing and production types, there are also social and organizational plans.

External business plans

External plans are designed mainly to raise funds from outside. Depending on the types of these investments, they are divided into the following types:

  • Investment;
  • Credit;
  • Grant.

Basically, the task of external business plans is to convince potential investors of the attractiveness of the project. The distinction between different species is conditional.

So, for example, the state and specialized funds are engaged in the distribution of grants. Therefore, in a plan designed to attract grants, the focus is most often on the compliance of the project objectives with the conditions outlined for receiving grants.

Documents drawn up for credit projects must contain calculations proving the validity of the requested loans, a detailed description of the property of an enterprise or organization that can be pledged.

Also in documents of this kind there is often a reference to the credit history of the enterprise.
A feature of the plans drawn up for investment projects is the in-depth study of aspects that indicate the expediency of investing in them. These aspects include:

 

  • Project profitability.
  • Payback periods.
  • Prospects for increasing profits.

Naturally, these figures must be supported by convincing calculations and a serious logistical justification.

Conclusion

It should be noted that the classification of business plans does not exist as an established system. Schemes of documents and their content can vary significantly depending on specific circumstances.

But the common features and rules of compilation are preserved. Knowing them can not only make life easier for the head of the enterprise, but also contribute to the development of the enterprise itself and the receipt of investments

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