As you develop a strategy for growing your company, you need to create a business plan. The plan will help you figure out how to run and structure your business. It will also be a great tool for convincing investors to put their money and support behind your idea. There are two main types of business plans: traditional and lean startup.

Traditional Plan

A traditional plan can take up several dozen pages. It is best for those who are detail-oriented, or who are seeking outside financing.

Business plans vary based on the nature of the company and the purpose of the plan. However, most traditional plans use some or all of the below sections:

  Summary

A traditional plan should start with a summary of your company’s mission statement and the service or good the business will provide. The summary should also include the business’ location and leadership team.

  Description

Follow with a more detailed description of the company. State your target market and what problems your business plans to solve. This section should also discuss any competitive advantages your company has, such as a popular location or an expert leadership team.

  Management Structure

Decide whether your company will be a partnership, a limited liability company or a corporation. You may also want to include a chart that demonstrates the leadership structure.

  Marketing Strategy

Any good business plan should also include strategies for obtaining and retaining customers. Use this marketing section of the plan when formulating your financial projections for the company.

Lean Startup Plan

A lean startup plan, meanwhile, is a one-page summary that you can create in as little as an hour. It is best for those who want to quickly explain their concept, or who want to regularly update their plan.

There are plenty of lean startup templates online for you to use. Whichever format you pick, your plan should include some key elements. It should state the manufacturers and suppliers that will partner with you. The plan should additionally describe the unique value of your company and how it will gain a competitive advantage.

A lean startup plan should also list all possible revenue streams. Be sure to also state who your target market is and how you plan to reach these potential customers.

Whether you create a traditional business plan or a lean startup one, it should help you take your company to the next level. Making the plan will force you to think about key aspects of your company, which, in turn, should help you manage and expand your business.