Being halfway between marketing documents and financial documents, the business plan is one of the most important documents that must be designed by any business promoter when he wants to proceed with the establishment of economic activity. Or a significant overhaul of it, if it already existed.
According to numerous analyzes and studies that have been carried out by experts in the entrepreneurship market, one of the main reasons why more than 50% of new businesses do not pass the two-year mark is insufficient or the lack of in-depth reflection on their business plan. Whereas precisely, the business plan is the document par excellence, which makes it possible to organize and present the results of true and serious analysis of a business project.
To avoid being one of the companies that will not be sustainable, it would be wise to know how to make a business plan. For that, you have to know the different objectives of a business plan, what should be the content, what characterizes a good business plan, and how to write it.
The Different Objectives Of The Business Plan
Overall, we can say that the role of the business plan is to present a business plan or if to be more concise, a business plan in order to ensure the best possible chances of success. Specifically, various objectives can be assigned to a business plan.
The most common objective that we recognize in a business plan is that of convincing potential investors so that they finance the business project, which was the subject of the development of the business plan. Besides that, another equally important objective of the business plan is that of serving as a tool for piloting the activity for the project leader himself.
You will understand that a business plan is a document of strategic, operational, and financial scope.
What is the content of a business plan?
A business plan worthy of the name must provide precise information on the characteristics of the supply of goods and services, on the necessary resources and on the way in which they will be used, but also on the vital need to which the project meets. ‘Business.
A business plan must present at least the following points:
- A general description of the business plan and the various execution methods, identifying, where applicable, several economic assumptions.
- A market study
- A forecast asset and operating situation (financial and accounting statements in the short, medium and long term: balance sheet, income statement, cash flow plans, etc.)
- An inventory of the necessary human, material, and financial resources.
To help the recipients of the business plan to better understand the document, it is advisable to attach as an appendix all the supporting information that can be used to specify or clarify the business plan.
What are the characteristics of a good business plan?
A good business plan should have the following characteristics:
- It should be simple, precise, and comprehensive.
- A good business plan must be adapted to the social purpose of the business plan.
- It must be attractive.
- It must present credible information that is as substantiated as possible.
After having read a business plan, one must be able to have a clear vision of what is offered to consumers, to identify the distinctive elements of the business plan, to assess its profitability and risks, and to ” identify the means and resources necessary for its implementation.
Write Yourself Or Hire A Professional
It is possible to carry out a business plan yourself or to use the services of a business plan consultant. If the promoter intends to do it themselves, there is a lot of business plan software, most of which is free and available online.
The best solutions would be for the entrepreneur to draw up his business plan and for them to require the assistance of an accountant, for example, to enrich the reflection and assess the consistency of the information presented. Indeed, in addition to having the necessary technical skills, these experts have experience in this type of document.
Useful Tips For A Successful Business Plan
- It is necessary to highlight the capacities, skills, and experiences of human resources who will participate in the business project because the real wealth of any activity is the human potential.
- Data should be digital but not descriptive. Knowledge should be portrayed.
- Always give true information by favoring a thorough analysis and the qualitative aspect.
- You should always comment on the numbers you present and justify them as best as possible, being careful not to be too literary.
- Always cite your sources of information and cross-check the information received so that you and your business plan are credible to the recipients.
- Do not overestimate your forecast turnover
- Provide detailed competitive analysis and business strategy as well as key success factors and risk analysis.
- Don’t forget to present a detailed project execution schedule.