What is a business plan?
The business plan is a business plan. A written document that clearly shows what you want to do. Far from being a complete description of your project, this document is a summary of your entire business creation project. Whether you are starting a blog, or starting a real business, the business plan is your roadmap that accompanies you throughout the life of your business.
Even if the business plan is a document that is written before starting a business, it is subject to change during the life of your business. It is therefore not static.
Is writing a business plan really useful?
Is it important that I write a business plan? When to write a business plan? Who is my document for? These are a series of questions that we encounter most of the time from beginning entrepreneurs or even those who have started without writing a business plan beforehand.
There are times when some entrepreneurs overlook this important step downstream of starting their own businesses. They end up realizing that they should not ignore this step but sometimes it is very late and it is a shame. To help you avoid making this youthful mistake, here are some reasons that are considered useful and which should encourage you to write a business plan after having clarified your project.
a- Reassure your banker : Having a business plan when taking out a loan is tangible proof that you have carried out preliminary studies of your project. This well-written document will allow you to demonstrate to your banker that you have the capacity to repay your loan even if your business fails.
b- Highlight your project : with such a document, you have the possibility of embarking on your project whoever you want.
c- Convince your future partners and investors: by writing a business plan, you have the opportunity to convince potential investors, to attract additional partners by clearly showing them the ropes of the success of your project.
In addition to the advantages mentioned above, the business plan remains an internal and external communication tool which results from a theoretical and practical working method.
Who should write a business plan for?
The business plan is aimed at 4 types of people and must take them into account during the writing phase:
- the entrepreneur himself: who has the possibility of having on the sheet the different stages to be crossed in order to evolve in his methodological approach;
- The banker : Writing a business plan will allow you to convince your banker of the seriousness that you put in your project and your ability to stay on the road;
- Partners and collaborators: allow them to make sure that you know what you are in and where you are going by showing them that you have a clear idea of your business and its evolution;
- The company through competitions: with a business plan at hand, you have the opportunity to participate in competitions reserved for entrepreneurs. Without a clear business plan, you may be excluded.
It is therefore important to note that the business plan differs from one person to another. A business plan addressed to a banker differs from that which you address to an investor.
How to write a business plan?
Now that you have seen why writing such a document, we are now showing you how to create your business plan to make sure you do it right.
Writing a business plan: the 6 essential questions
The success of writing a business plan stems from the ability of any entrepreneur to answer essential questions. It will be for the entrepreneur to show his interlocutor that he masters his market, its evolution over time as well as the expected results. One of the most used methods is the answer to the 3 QOCPs, namely: WHO, WHEN, WHAT, WHERE, HOW and WHY. Here is an example of a business plan with the QOCP 3 method.
In his business plan, the entrepreneur has the obligation to define the hypotheses of turnover, the method to be used to reach them. It is not a question of saying “I will achieve a turnover of 45,000 € per month” but rather of showing the means to exploit in an informed environment.
For an example, the entrepreneur can say: by using 10 sales people who will sell out of 100 products per day for € 150, we will achieve a turnover of € 45,000.
By answering these questions, the entrepreneur gets a clear idea of his project as well as its feasibility. It will be easier for him to convince his interlocutor and to pack him in his project.
Writing a business plan is a team effort
The drafting of a business plan is not a job for the entrepreneur carrying out the project but for the entire management team. It is not a question here of distributing the tasks to be accomplished but of defining together the means and strategies that will be put in place to avoid taking only into account the sole idea of the entrepreneur who could well make forecast errors for example. The team will be able to redefine the hypotheses for achieving turnover, the marketing strategy and the forecast of results, taking into account market constraints.
By writing a business alone, you face the risk of your employees rejecting it.
Have a business plan model on hand
It is sometimes difficult to write a business plan from scratch. This can take several months and will require a lot of effort. This is why it is advisable to have a model on hand that you can rearrange to your liking.
To find free business plan templates on the internet, you can type free business plan template >> in the search engine.
It is also recommended to go to the field to do a good market study so as not to make forecasts that will increase your expenses or overestimates of financial results.
Have your business plan reread
once your document is written, you will need to have it proofread by other contractors. Having an outside view is an effective way to be more successful.
Any reactions on the subject? Experiences to share? Use the comments field.