Two Types of Business Plans
The first type of business plan you will need is a Concept Presentation Plan.
Concept Presentation Plans are typically 10- to 24-pages long, and basically
describe your business concept, products, principals (owners and key management), target market, trends in the industry, etc. This type of plan contains no financial projections or financial statements.
The second type of business plan is a Full Financial Business Plan.
Typically, you will need a Full Financial Business Plan to borrow money from a bank, or to entice investors to lend you money. Depending upon the contents, it can consist of anywhere from 25 to 100 pages of information. It can contain all the elements of the concept presentation plan, but primarily it examines in-depth what the total costs of your project will be, when the project will turn a profit, and what level of return you can expect
Why do you need a business plan?
A business plan will precisely defines your business, identifies your goals, and which will serve as your firm's resume. Much hinges on it: outside funding, credit from suppliers, management of your operation and finances, promotion and marketing of your business, and achievement of your goals and objectives.