What is a business plan?

The business plan is a detailed document that describes the key points of a company, in particular its strategy and its accounting plan. This tool is frequently used in companies because it allows you to clearly pose an idea and determine all the constraints to be respected in resolving this idea.

The benefits of the business plan

Define a business plan

The business plan is a key element in determining how a business will operate, how the business will generate revenue as well as the means it will implement to achieve its financial objectives.

Obtain financing

In order to hope to obtain certain financing, certain establishments providing this financing, such as banks or investors, request the presentation of a business plan. Proposing a thoughtful and structured business plan therefore considerably increases a company’s chances of obtaining financing.

Follow progress

The business plan includes a definition of the objectives to be achieved. It therefore makes it possible to follow the progress of the company little by little and to ensure that deadlines and real requests are met. In addition, it is entirely possible to adjust the objectives along the way if necessary.

Communicate

The business plan is a vision communication tool. Indeed, this allows you to share your vision and positioning with other actors. This is a definite help in mobilizing and involving the various stakeholders involved in the development of the company.

Creating a business plan

Set a goal

It is first necessary to answer a few fundamental questions: “Why start a business” or “What is the objective?”

Identify the market

It is then necessary to establish potential customers, define their profile, analyze potential competitors and think about the elements allowing you to differentiate yourself.

Establish a marketing strategy

To establish this marketing strategy, it is imperative to consider the means to be implemented to promote the company to target customers. This involves, for example, advertising, social networks, public relations, etc.

Determine your economic model

The business model of the company will explain how to generate income, what costs will be invested and what income is expected. In addition, it lays certain foundations on the company’s finance with investors, banks, etc.

Develop a financial plan

The financial plan will be composed of elements on the company’s cash flow needs in the short, medium and long term as well as information on the management of the company’s finances.

Prepare a launch plan

The launch plan addresses the issues related to the launch of the business, the launch objectives to be achieved as well as the deadlines to be met.

Once all the steps have been completed, all that remains is to gather all the information and write the final version of the business plan. It will therefore include an introduction, a description of the company and the market, a marketing strategy, an economic model, a financial plan as well as a launch plan.

Who constitutes a company’s business plan?

The business plan of a company is very often carried out by the managers and, or founders of the company. Additionally, it is common for external consultants to be engaged to assist in the design and writing of the business plan, often as part of the financial plan to maximize the chances of obtaining financing. It is also possible that certain employees will be invited to this creation of the business plan, in particular depending on their area of specialization. For example, someone who works in the field of marketing can provide expertise in designing the company’s marketing strategy.

The cost of putting together a business plan

Writing a business plan can be costly, especially if external consultants are involved in the design. Prices vary depending on many factors: experience, reputation, sector… It is possible to give an estimate of the cost of a business plan, this is between €500 and €5000. However, if the business plan is carried out without the support of consultants, it will not necessarily require monetary costs.