Traditional Business Plan vs. Lean Startup Business Plan. Which is Best for Your Business?

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Traditional Business Plan vs. Lean Startup Business Plan. Which is Best for Your Business?
A business plan for startups can take many forms. A traditional business plan is quite extensive and detailed. A lean startup business plan, on the other hand, is quite simple and requires less time to prepare. Which business plan format is best? Each has its own advantages and disadvantages, which are worth keeping in mind. Read on to learn more.

Traditional Business Plan vs. Lean Startup Plan – Table of Contents:
Traditional business plan
Lean Startup Methodology
Business Plan for Lean Startups
Benefits of a Traditional Business Plan
Benefits of a Lean Startup Business Plan
Which is the best?
Traditional business plan
A traditional business plan takes a traditional approach to planning a algeria whatsapp number database venture. What does that actually mean? First of all, this approach requires a lot of work in preparing a startup and implementing it. It involves a lot of effort before the product or service is launched, which can take not just weeks, but months. Before we move on to the alternative approach, let’s take a closer look at the traditional business plan, which is often also called a formal one.

A traditional business plan contains a lot of details about the company. It is 50 to 60 pages long, which does not make it a quick read. It usually has the following structure:

document summary,
a description of the startup and the goals that have been set for the company,
a detailed description of the product or service offered,
an analysis of the market and target audience,
a description of the people involved in the startup,
financial analysis,
implementation plan and overall schedule,
attachments.
A traditional business plan describes the company in detail, shows its current position in the market, and predicts its future.

lean startup business plan
Lean Startup Methodology
In 2010, a book written by Eric Reis called “Lean Startup” was published. The author presented a different view of business in it. In fact, the lean startup methodology is very simple. According to the proposed concept, you should start a business as quickly as possible, while simultaneously collecting feedback and learning about the market. This is what many startups that are widely known today did (for example, Dropbox). The lean startup methodology can be described in three steps:

find a business idea that solves customers' problems (you start creating a business plan at this stage),
execute your business idea and create an MVP,
validate your business concept. Here you will receive information on whether the MVP worked or whether another one should be prepared.
Business Plan for Lean Startups
You already know what the Lean Startup concept focuses on. But what does a Lean Startup plan look like? Such a document is created to determine the business needs and test the idea to see if it can be implemented. At first glance, you can see the difference between a traditional business plan and a Lean Startup plan. The latter is only one or two pages long, which is the same as a traditional business plan summary.

A lean startup plan typically includes:

a description of the problem the startup is solving,
characteristics of the target audience for the product or service,
an explanation of how the product or service solves the customer's problem,
information about what differentiates your product or service from competing solutions,
the cost of producing the product or launching the service.
lean startup business plan
Benefits of a Traditional Business Plan
The advantages of a traditional business plan certainly include:

risk elimination – in the case of the lean startup methodology, there is a high risk that the product will be launched too quickly,
easier acquisition of external financing – banks and other financial institutions are more attached to a traditional business plan and, having seen such a document, it is easier for them to decide whether to grant a loan or not,
a better presentation of larger, more expensive and more exclusive products – in this case, it is not always possible to prepare several versions of the MVP, as each of them will be quite expensive.