Entrepreneurship, Second Edition

7.4. Types of Plans

So far in this chapter, we have laid out the basic sections or areas you want to address in your business planning process. The earliest drafts should be housed in a three-ring binder so you can add and subtract as you gain a deeper understanding, but at some point, you may want to print a more formal-looking plan.

Business plans can take a number of forms depending on their purpose. Each form requires the same level of effort and leads to the same conclusions, but the final document is crafted differently depending on who uses it and when they use it. For instance, when you are introducing your concept to a potential investor, you might send a short, concise summary plan. As the investor's interest grows and she wants to more fully investigate the concept, she may ask for a more detailed plan. Even though the equity boom of the late 1990s essentially equated entrepreneurship with venture capital, a business plan serves many more purposes than the needs of potential investors. Employees, strategic partners, financiers, and board members all may find use for a well-developed business plan. Most importantly, the entrepreneur herself gains immeasurably from the business planning process because it allows her not only to run the company better but also to clearly articulate her story to stakeholders, who may never read the plan. In sum, different consumers of the business plan require different presentation of the work.

Your three-ring binder is basically what ...