When you first start working on the details of your new business you should develop a business plan that can help you set your goals and give you a roadmap to follow.  This plan should include everything, from the type of customers you are targeting with your products and services to the types of business loans you are going to pursue for financing.  How detailed your plan is will be dependent on the type of business you are going to run.

In order to develop a business plan you need to know what types of plans are available to you.  There are four types of business plans that you can utilize and they can be long or short, simple or detailed.  They all take a varying degree of effort to put together but they all work the same.  They provide you with a roadmap for your company and your goals.

The miniplan is a business plan that ranges from one to ten pages.  They are a basic outline of your business and they cover key points such as your financing needs, business concept, marketing plan and financial statement.  This last item should include at a minimum your current cash flow, your income projection and your current balance sheet.  This type of plan is best to help you test out your overall business concept and to measure the interest of a business partner or minor investor.  It is also a good outline for a much more in depth business plan that you prepare later down the line. 

However, if you use a miniplan remember that it is designed to be an outline and not a full-length business plan.  Major investors are going to want more information on the business you are proposing, which is why you must prepare a full plan before meeting with anyone you hope will invest in your company. 

The working plan, the second type of business plan, is one that is used as a tool to operating your business.  It should be a short presentation but it should also have a lot of detail in it.  This plan is informal compared to a full plan and it is designed solely for internal business use.  You would not want to present this to an investor because many major elements that they would be interested in are omitted from this plan.  You do not need appendices or photos with this type of plan. 

How the plan is finished is also something that is not a major concern with a working business plan.  You can keep this plan in a three ring binder with coffee stains on the sheets if you want to.  You should make sure that your financial statements in this plan are complete but you do not have to worry about whether or not numbers are scratched out and handwritten in.   

The presentation plan is a working plan that has had all of the typos corrected and has been dressed up to show someone outside the company.  You can use the presentation plan for investors and bankers who may be interested in financing your company.  All of the information in this plan is the same as that of the working plan.  You simply need to clean up the language and the way it is packaged to make it appealing to outsiders. 

You will need to add a few things to your presentation plan.  Investors will be looking for competition information and a risk assessment.  These plans should also have included in them color graphs and photos that are pertinent to the information you are presenting.  All of your typos should be fixed up and all of your information – especially your financial numbers – should be accurate and consistent.  You do not want to skimp on these details because they are the ones your investors will be looking at. 

Finally, the electronic plan is the business plan most companies use.  They are composed on the computer and then printed off on high quality paper with color prints for hard copy presentation.  However, an electronic plan makes it easy for you to transfer the document to an interested party across the country.  You will be able to e-mail this plan to investors as well as use it in computer presentations for investors who have the need to tear apart your spreadsheets.