What is a business plan?

The business plan is an essential document when you plan to create a business. But what exactly does this document include? What is its definition? What is the difference with a market research? We explain what you need to know about the business plan.

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  • Definition of the business plan
  • The demystified business plan for you
    • Financial forecasting and your business plan strategy
  • : precise information about the company
  • In what cases can a business plan serve?
  • Compose your business plan professionally
    • The financial part of the business plan
    • Rate your ideas as you go

Definition of the business plan

The business plan is used to help future business leaders who want to have a clear idea of the future of events. We quickly hears about the business plan when you start creating a business. Indeed, this type of document is useful to promote the smooth running of your business and professional activity project .

The business plan is primarily a paper and handwritten document, which lists all the ambitions of the entrepreneur on his future business. This document therefore helps to define a business development strategy from its inception.

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It takes into account various aspects of the company:

  • Technical means;
  • Logistical means;
  • Financial means;

These are the three basic pillars of whether a business project is sustainable in the long term. The business plan is a document of paramount importance because it can be presented to all sorts of actors revolving around of the contractor. It is important to mention financial partners, investors and banking institutions, among others.

The demystified business plan for you

In the jargon of business creation, the business plan is also considered a business model or a business plan. This document is a kind of comprehensive study that serves as a template for the continuation of the procedures.

Often referred to during a business creation, the business plan can also be established if a company is taking over . If the entrepreneur in question already owns a business but wants to diversify his business by adding it, then he can also use this very useful document.

Financial forecasting and your strategy

The business plan is above all a financial forecasting document that allows us to give answers to those who arise, especially regarding how to set up a business, develop the activity, be profitable, etc. The business plan poses in time certain forecasting milestones that the entrepreneur will do everything to carry out.

Any business plan gives also includes crucial information about the legal form adopted for the company. The products or services that the company will market must be mentioned in the business plan, as well as the nature of the targeted clientele and how it will be targeted (marketing networks, etc.)

Business plan: accurate information about the company

In short, the more accurate information the business plan includes, the more likely your business creation project is to emerge and be convincing with investors. This is your business strategy and its strength as it is.

We draw up a business plan to give ourselves a clear direction but also to reassure potential investors and partners: your strategy must therefore be very clear:

  • How to enter the market;
  • What positioning to approach to directly target customers;
  • Details of product manufacturing or service development processes;
  • Identification of competition;
  • Profits expected;
  • Forecasting deadlines, etc.

So much information that will make your business project a serious project, whether in creation or resumption. If your business strategy is clearly presented, then it will be presented for all your partners.

In what cases can a business plan serve?

A business creation cannot be done at the light weight and requires that the market be studied before launching. Many therefore confuse the business plan with market research, while these documents complement each other.

A business plan can be used to assess the feasibility of a project , giving it relief and materializing it as best as possible before it really takes shape.

Once your orientation strategy is defined, you have your planning up to date and you can use this document for many reasons. Ask the technical and financial aspects of your business project via your business plan and you will better convince potential investors.

Thus, to study profitability, viability, finding funds, presenting its corporate objectives, the business plan is ideal if it is established in a serious and clear way.

Compose your business plan professional way

To properly draft and develop your business plan, it is important to show key components:

  • The viability of the business project;
  • How the project is innovative and has every chance of conquering the market;
  • How clearly the project responds to a client need;
  • The characteristics of the products or services must appear;
  • Your products and services must be as best as possible highlighted;
  • Demonstrate your good knowledge of the market (market research at various times, seasonality, etc.)
  • Presentation of the marketing strategy;

The financial part of the business plan

This part is essential and must convince your partners. You bring:

  • Figures that support your project;
  • Accurate financial tables;
  • From budget details;
  • Details on the projected account of the project;
  • Record of charges to be expected;
  • What resources will meet what needs?
  • The balance sheet must be included, along with the information it provides on the company’s resources;
  • Cash flows must be presented in transparency;
  • What is your internal rate of return and net present value?

With all these elements, your business plan can only convince investors and financial partners. It is now possible to get advice and find models of business plans on the Internet or from associations supporting business creation. The Chamber of Commerce can also provide internships to support entrepreneurs in their start-up.

Finally, remember that your goals must be constant and that they will serve as a guiding line. If you are writing a business plan first and foremost for you as a business manager, keep in mind that this business plan is an essential document that can open doors for you . It is therefore essential to take the time to write it well, not forgetting any parameters, even if they seem futile to you.

Rate his ideas as they go

When you set up a business, it is a teeming of ideas that come into place. Always have an accessible notebook with you . Take your ideas back cold before you start writing your business plan.

It is advisable to do several market studies in the course of the presentation of the business plan. This shows that you anticipate and are patient and thoughtful. It is often said that financial partners are waiting for numbers : it’s not totally wrong!

Be careful to record all the information you have, as soon as the company project is drafted. The more numbers and comparisons you present over time, the more reliable and sustainable your forecast will be in the eyes of your interlocutors, including banks. Because it can sometimes be the cross and banner to demonstrate the viability of a project, give yourself every chance to succeed and believe in your project : it will be felt in your businessplan.

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