Recently, studies revealed that 70% of entrepreneurs recommend writing a business plan before starting a company. Indeed, when used well, it represents a powerful strategic tool that will serve as a benchmark for your business.
Currently, future business owners tend to downplay the usefulness of a business plan in their projects. Indeed, one in ten entrepreneurs believe they do not have a plan, but if properly drawn up, it can considerably optimize profits. Furthermore, following research and analysis, it has been shown that companies with a business plan grow 30 times faster than others. In addition, according to the “Journal of Business Venturing” , setting up a business increases the performance of small businesses. In addition, the majority of investors rarely invest in a company that does not have a solid action plan.
Business plan: what is it for?
First of all, a business plan is a document containing all the actions to be undertaken for the development of a business. Generally speaking, a business plan must clearly present the objectives as well as the strategies planned to achieve them. The objective is to discover the commercial opportunities linked to the project in order to develop the action plan adapted for its realization. Therefore, a business plan must contain commercial, financial and strategic objectives. However, over time, a project will have to adapt to market needs and will therefore be constantly evolving. In this regard, the business plan can serve as a point of reference during the first 3 years, which are also the most decisive for a company.
A business plan also represents a communication tool with future partners. In theory, it allows investors to see a start-up's dominance in the market and its potential for long-term survival. In order to reassure a supplier, the business plan must highlight a credible and attractive order volume. In addition, however, as it is a professional document to be provided to financial partners, its visual aspect should not be neglected. Therefore, the content must be clear and airy.
How to write a business plan?
Step 1: the executive summary
The executive summary consists of producing a summary of approximately two pages which generally contains an overall vision of your company. This is the hook of your Business plan, so this part must present the document in its best light. Consequently, we find essential elements such as the name of the company, the nature and values of the project. To write the executive summary, you must:
- Recognize your target audience and identify their needs.
- See the current gaps in your market.
- Put forward relevant solutions to resolve customer dissatisfaction.
- Analyze the strengths and weaknesses of the competition.
Step 2: presentation of the founding team
In this section, you must highlight the skills of the members of your management team. The objective is to convince potential investors of the capabilities of your company as well as those of its members. Therefore, it is essential to demonstrate the expertise of each member and their roles in commercial decision-making, so this part must include:
- A presentation of the members as well as their training and backgrounds.
- Vacancies which still require a recruitment campaign.
- Hiring costs.
- The role of future partners.
- The values that drive the management team
Step 3: market research
This is a crucial step which will determine the relevance of your Business plan. In addition, it makes it possible to analyze the flaws and potentials of the market. This study is based on 3 essential axes:
The offer: once your target audience has been determined, you must analyze the offers already available on the market. To do this, it is necessary to understand the business strategies of competitors.
Demand: here, you need to focus a little more on the target clientele by identifying their purchasing habits as well as their budgets.
Market gaps: it is necessary to carry out surveys of the competition and your niche. The objective is to discover unmet needs within the market in order to propose an adequate solution.
Step 4: strategies
This part plays an important role in the success of your project and the relevance of your business plan. The implementation of this step is done in two parts. On the one hand, there is the commercial strategy which integrates all product data. Therefore, prices and service catalogs must appear there.
On the other hand, the communication strategy which consists of defining the image of your company and promoting your brand. Furthermore, it aims to improve your visibility, particularly on social networks such as Facebook, Instagram, Twitter, etc.
Step 5: the business model
The business model is an essential part of your plan because it allows investors to determine your financial capabilities. Indeed, in this section, you will establish the economic model of your company. To do this, you must include:
- A minimum turnover forecast table containing the estimated sales per day and all costs necessary to run your business.
- A table of the financing plan integrating the resources available as well as those necessary for the launch of the project.
Step 6: legal form
The legal status of your business will determine the expenses relating to your various tax charges. Furthermore, the tax regime, social and administrative costs must be included in your spending forecasts. Indeed, this data is essential for the development of your business plan and the proper functioning of your project.
Step 7: financing
Now that you have all the information necessary to launch your project, it is time to move on to the last step of your Business plan. Here, the objective is to facilitate obtaining financing from a possible investor. Therefore, you must determine your need for external financing and detail the means you will use to find it.
Roughly speaking, the business plan plays an important role in launching your project as well as in finding partners. To this end, it must be written carefully and must evolve as your business progresses.
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