A strong business plan persuades investors or banks to finance an idea. The business plan serves as both a guide and a road map for entrepreneurs. A professional corporate concept requires data gathering, written justification, and presentation. Examples, tips, and tools are helpful in this.
What Is a Business Plan?
A business plan is a summary in writing of a potential business venture. This business plan outlines the company’s objectives, programs, and initiatives, as well as its management, planning, production, marketing, and financial aspects. The market and the company are presented in a realistic light.
It doesn’t matter what type of business you have, whether it is an international enterprise, a small dental service, or a home service business. Having a business plan is a critical factor for a successful career.
1st phase: Collect information
Before creating the business plan, there is a lot of preparation work. Researching facts, figures, and information on the startup project should be done initially. These show the viability and economic attractiveness of starting a business.
The founders collect data when working with the market, the industry, or the target clients, and these insights are then included in the company strategy. These are useful for marketing initiatives, for example, after the founding. Targeted research is based on the business plan’s structure.
Additionally, the business plan’s content is divided into four sections: the cover page and table of contents, the text section, the number part (financial plan), and the appendix.
First, the future company’s name, logo, contact information, and date are all listed on the cover sheet of the business plan. Making a good first impression starts with an image on the cover page. All primary and supporting chapters and page numbers are listed in the table of contents.
The following chapters and contents make up the business plan’s text and figures section: an executive summary, founder(team), target customers, business idea, market & competition, goals and strategy, marketing, etc. And if you want to improve the coordination and management of the task, you can get a task management software.
Next, a milestone plan supports the business plan and outlines the essential steps that must be taken before the company may officially launch.
And finally, the business plan’s appendix comprises the founders’ resumes, industry statistics and studies, proof of registered property rights, and elaborate financial section tables, among other things.
2nd phase: write the business plan
The writing of the business plan’s text comes after the research. The chapters that need to be written by when are listed on a schedule. This makes sure that before discussions with investors and banks, the business concept has been developed. When the team is formed, task planning should be included in the time planning: Who will provide which part by what deadline? There are writing suggestions for company plans as well as errors that must be avoided at all costs.
The topic of how the business plan should be drafted also emerges in addition to the organization. Using traditional Word and Excel or modern business plan software? Maybe it’s better to use business plan consulting to prioritize your work.
When founders are writing a business strategy, founder coaches or management consultants offer important support with their experience. The recommendations are backed by financing initiatives. You often only have to pay 30 to 50% of the consultation charges, which are typically between 2,000 and 4,000 euros, yourself. Advice on business plans is precious if financing is sought. Good startup advisers help founders pick the dream house bank and frequently join them during bank discussions.
However, entrepreneurs mustn’t let the consultant draft the company plan. This can be pleasant. However, you won’t be able to execute your business plan if you haven’t written one yourself.
3rd phase: Convince with the finished business plan
A business plan is a planning tool for you. It is something like organizing an event on a large scale․ However, external addressees are frequently also required to have it. These include, for example, the employment office to receive the start-up grant or the bank if development loans are to be taken out.
A few last suggestions will help to make the finished business plan compelling.
Before sending: carefully review and adapt
Is the business plan complete? Enough time should be given for the final review before sending the business plan to the contact. This involves proofreading the full company plan and looking for flaws and mistakes. In addition to a start-up coach with a business plan check, friends and relatives can help.
Take part in a business plan competition
In the many business plan competitions that take place, a company plan receives free comments and, in the best scenario, even prize money. It is worthwhile to participate in such a competition if the timing and subject matter are appropriate. At the same time, founders can add useful contacts to their network.
Adjust addressees fairly
Various addressees mean different perspectives, whether they be an investor, banks, or employment agencies. It is helpful to show the business plan audience fairly to persuade:
Employment agency: To successfully apply for the start-up subsidy, the business plan must show that the subsidy is needed or that it helps to bridge the start-up phase. The office will reject the subsidy if an overly optimistic financial plan is chosen since the founder could survive without it. The office will also make a bad selection if the financing need is too high even with the subsidy.
Bank: As part of the loan, the bank wants to be sure that the business model is associated with low risks and that interest and repayment can be serviced.
Investors: When start-ups collect equity from business angels or VC investors, the main focus is on the market size and growth opportunities. However, it is also important to consider the potential costs of implementing a solution. Sometimes an open-source data visualization tool will meet your needs, but in other cases a commercial solution may be necessary. In either case, it is important to have a clear understanding of the costs and benefits of the various options before making a decision.
In conclusion, today’s investors, decision-makers, entrepreneurs, and business leaders need access to all the information they need to make smart decisions not only in finance but in every aspect of their lives. And that’s where business plans come in. A quality business plan can help business leaders understand a company’s strengths in detail, and determine if that company can help them reach their goals. So, what are you waiting for? Get to creating your business plan!