In a previous blog, we talked about the types of business plan. Well the type also depends on the audience. So in this blog we explore the different types of audience and what they need from a good business plan.
The Audience for a Business Plan
The audience for a business plan can vary widely depending on the purpose of the plan and the stage of the business. Here’s a list of different types of audiences that a business plan might be intended for:
- Investors: This includes angel investors, venture capitalists, and private equity firms. They are interested in the profitability potential, growth prospects, and risk assessment of the business.
- Banks and Financial Institutions: If you’re seeking a loan, banks will review your business plan to assess the viability and financial health of your business.
- Potential Business Partners: Other companies or entrepreneurs who might be interested in a partnership will look at your business plan to understand the business model, market opportunity, and strategic fit.
- Government Grant Agencies: When applying for government grants, the agency will review your business plan to ensure that the business aligns with their funding objectives and criteria.
- Suppliers and Vendors: They might be interested in your business plan to gauge the stability and long-term viability of your business as a potential customer.
- Key Employees or Management Team: A business plan can be used to align your team with the business’s goals and strategies and to motivate and inform key employees.
- Potential Customers or Clients: In some cases, especially for B2B businesses, potential clients may want to review your business plan to understand the stability and direction of your company.
- Advisors and Consultants: Business advisors, mentors, or consultants will use your business plan to provide guidance, advice, and to help refine your strategy.
- Board of Directors: For established businesses, the board will use the business plan to guide decision-making and strategic direction.
- Yourself (The Entrepreneur): As the business owner, the plan is a roadmap for your business and helps you to track progress, manage the business, and make informed decisions.
- Incubators and Accelerators: If you’re applying to a startup incubator or accelerator program, they will review your business plan to evaluate your business’s potential for success.
- Crowdfunding Platforms: When launching a crowdfunding campaign, your business plan will be important to convince potential backers of the viability and potential of your product or service.
- Franchisees: If you are franchising your business, potential franchisees will review your business plan to understand the business model and potential profitability.
- Legal and Regulatory Bodies: In some industries, you might need to present your business plan to regulatory bodies for approvals or licenses.
Each of these audiences will have different priorities and concerns, so it’s important to tailor your business plan accordingly. For example, investors might be more interested in financial projections and growth potential, while government agencies may focus on the social impact or compliance with regulations.
In Summary
| Type of Business Plan | Audience | Key Requirements/Interests |
|---|---|---|
| Startup Business Plan | Investors, Banks, Partners, Incubators | Market viability, growth potential, financial projections, team capabilities |
| Internal Business Plan | Management Team, Key Employees, Board of Directors | Operational strategy, internal goals, departmental plans, performance metrics |
| Strategic Business Plan | Board of Directors, Advisors, Management Team | Long-term vision, strategic objectives, market positioning, SWOT analysis |
| Feasibility Business Plan | Investors, Partners, Yourself | Market demand, technical feasibility, financial viability, risk assessment |
| Growth/Expansion Plan | Investors, Banks, Partners, Board of Directors | Expansion strategy, market research, financial projections, resource requirements |
| Operations Plan | Management Team, Key Employees, Suppliers | Operational processes, supply chain management, production logistics, quality control |
| Financial Business Plan | Investors, Banks, Financial Institutions | Detailed budgets, revenue projections, cash flow analysis, funding requirements |
| Marketing Plan | Marketing Team, Potential Partners, Management Team | Marketing strategies, target market analysis, branding, promotional tactics |
| Lean Startup Plan | Investors, Incubators, Accelerators | Business model canvas, key partnerships, customer segments, revenue streams |
| One-Page Business Plan | Investors, Advisors, Potential Partners | Concise overview of business idea, market, strategy, financial summary |
| Social Enterprise Plan | Grant Agencies, Investors, Partners | Social/environmental mission, impact measurement, sustainability, financial model |
| Franchise Business Plan | Potential Franchisees, Investors | Franchise model, market analysis, financial projections, support systems |
| Contingency Plan | Management Team, Board of Directors, Key Employees | Risk management strategies, emergency procedures, business continuity plans |