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Business plans and variations

| Dec 31, 2014 | Business Formation & Planning |

Michigan entrepreneurs may be interested in learning how to create a business plan for potential customers, investors or employees. There are four types of plans that a business owner might use depending on the company’s goals. Some companies may benefit from using two or more of these models in their business planning.

Small businesses often only need a mini-plan that is designed to be read quickly. The mini-plan gives the highlights of a longer business plan, including most of the relevant information. However, a business with a more complex model might prefer a longer business plan in addition to the mini-plan. A presentation plan gives the highlights of the business’s objectives via Powerpoint. Within a presentation, it is important to keep the plan to approximately 20 minutes, and the information on the screen must accentuate the presentation so the presenter is not reading text to the audience. This concise plan should tell the audience the important general aspects of the business.

A working plan is intended to draw in others and to outline the operations of the business. It does not have to be long but must include details as to how the business’s objectives will be achieved. Working plans may be only for internal use, which means they need not have information the owners already know, including photographs of products or extensive information on company executives. Finally, there is the what-if plan, which is also called a contingency. The purpose of this plan is to tell business owners what to do if a worst-case scenario situation arises.

A lawyer may be able to help companies determine the best plans for the business’s needs. A lawyer may also be able to help draft or implement chosen plans.

Source: Entrepreneur, “The 4 Types of Business Plans“, December 21, 2014

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