The business plan is one of the most important documents in an entrepreneurial project. It includes several components, the implementation of which contributes to the survival and growth of the company. What is the benefit to your business of writing it?
What is a business plan?
By definition, a business plan or business plan is a written document that sets out the financial and commercial strategies intended for the good running of a business. It is useful when starting a new business, starting a new project within a company, or simply when changing activities. His main goal is to help the entrepreneur convince a number of interlocutors that he must not only build his structure, but also make it flourish. It therefore contains a detailed plan of the activities to be carried out, the methodological approaches chosen and the expected results.
The business plan also helps you as a project leader to understand the ins and outs, improve your goals and define the best strategies up front to make it profitable. You can know your company’s strengths and weaknesses in advance to guide your efforts.
In addition, it allows youeasier to get funding from an investor or a loan from a bank. His job is to show them the relevance of the services you offer.
Finally, the business plan offers the opportunity to inform partners and employees internally about the general goals and the overall strategy of the company. Everyone works individually in the same dynamic as the others. This avoids the diversification of efforts and the pursuit of individual goals.
How to write a business plan
That Writing a business plan meets a number of requirements both technically and professionally. The aim here is to show, through a clear, precise and concise presentation, the peculiarities, the advantages, the advantages and the possibility of starting your company or implementing your project. This exercise is all the more delicate as the business plan must inevitably contain certain information in order to be professional.
Who can write a business plan?
The delicacy of the business plan implies a proven know-how for its creation. However, you can do it yourself. To do this, you can get help from business plan creation software. These technological tools help in designing a business plan with simple and intuitive options. For example, we can look inside Previ’Start a set of instruments too generate the essential data for the design of an operational business plan. Your document is therefore as complete as possible in order to be able to fulfill its tasks effectively.
You can also hire an expert or professional business plan designer. To find one, you can contact a store manager used to these types of projects or consult an online directory. However, the first option is more interesting, since it guarantees you an idea of the abilities of the person to whom you entrust the implementation of your business plan.
The questions companies need to answer
being actionable and convincingIt is important that your action plan includes information to answer the following questions:
- Who are you and what is your background?
- What service do you offer and what is your goal?
- What are the special features of your project compared to the competition?
- What are the key dates of the project?
- What/how much do you need and how do you plan your financing?
- What are your projections in terms of profitability?
The answers to these questions are included the various components of the business plan according to a chronology determined by their main titles.
The components of a business plan
In order to fully satisfy your partners and convince them to invest in your project, your business plan must include two main axes in its design. It’s about an editorial component and a financial component.
The editorial part presents the project on a technical level. It includes the presentation of the management team, the market analysis carried out, the intended strategies and the legal aspects of the project. Regarding the financial part, it includes all the tables necessary to understand the project from a financial point of view. It includes the balance sheet and financial forecasts, the planned financing plan and the cash budget.
These two major axes are most commonly broken down into titles, which form the main body of the business plan. The business plan usually begins with a summary. This is an introductory summary or executive summary that provides an overall view of the project. Your position in the editorial calendar is important because it makes it easier for your interlocutor, who may not have time to read your document in its entirety.
Whatever the case, the business plan must be complete, although you must be careful not to confuse the essential with the irrelevant. Be sure to include any information that you consider useful in achieving your goals.
How do you use your business plan to achieve your goals?
The business plan can serve different purposes depending on who you address it to. So your benefit depends on the goals you want to achieve.
To get funding
This is one of the main goals to be achieved with the business plan. To achieve this, you can send it to Your potential investors by email or by post. In this case, you must ensure that the email is received and read. Otherwise, you won’t get the feedback you want. On the other hand, you can ask for an appointment or invite your interlocutor to a working session where you present the main features of your document. This face-to-face conversation makes it much easier to understand your project and really convinces the partners, since they have the opportunity to ask their questions directly.
So that your investments are profitable
In order to make your business profitable and deliver on the promises of your original business plan, you need to make it known to all of your employees. You can have one copy of each. You also need to constantly update it to keep up with new demands that arise along the way the implementation of your project. This can be, for example, a more expensive advance payment or the loss of an investment. In this case, a missing update will certainly take you into the background, since the forecasts you have made are no longer up-to-date. This allows you to anticipate the operation of the project and adjust the parameters needed to achieve the goals.
Avoid common mistakes when creating a business plan
The meaning of business plann no longer need to be proven when realizing your project. It is therefore essential to ensure that it is created with the greatest possible professionalism and that errors are avoided. Generally avoid:
- to be surreal in your predictions
- to appear inaccurate in the dates of the various activities,
- to speed up the market study,
- forgetting certain expenses
- establishing insufficient funding.
One of the best ways to avoid these mistakes is to have your business plan reviewed by different people whose skills you know in the field. It does not have to be an expert or professional in the field. It could be a business partner, an entrepreneur You know or another resource person. Each of these people gives you feedback that you can analyze to improve your document.