What is a business plan?
A business plan or business plan is a document that you are likely to establish on the occasion of the launch of a new activity, the creation of a business, the resumption of the activities of a business or a change in activity. It has an editorial part and a financial part. Its purposes differ depending on its recipient.
The business plan is therefore a written document that demonstrates that your entrepreneurial project creates value in a sustainable manner. It is also a communication and strategy document at the same time. The business plan explains what you want to achieve, how, by what deadline, with whom and underlines that this project is financially viable.
In short, the business plan is your project in terms of vision, objectives, means and results.
Why make a business plan?
First of all, a business plan is useful for you: it allows you to structure your business creation project and to put your ideas into perspective. It is not mandatory. So you don’t have to stick to its design, which is quite time consuming.
In some cases, the business plan is not really of interest. For example, if you have just created your micro-business and sell a service from your home, a business plan will surely prove to be useless. Conversely, this document seems essential to us if you want to create an online store, for example, or open a restaurant.
To remember The more complex your project, with significant financial implications, the more likely it is that a business plan will become essential.
Remember: this is also a communication tool. Here are some concrete examples for which we are likely to ask you for a business plan:
- when you want to open an account or obtain a bank loan or other financing;
- when looking for suppliers;
- when you plan to join forces and / or find partners;
- when you want to raise funds.
Regarding this last point, we can think of a start-up which is launching itself, wishes to finance its development and / or accelerate its growth. Making a business plan should let the investor know if he can engage with it. Will he find his account there? Is it a profitable project? What risks does he take by investing with this startup? A business plan is there to seduce and convince him. But it is also a tool that should inspire confidence and reassure you about the financial balance of your project, but also and above all about the prospects for profits.
The business plan also has an internal use. Thanks to it, your company can control the management of certain operations, test different hypotheses, and readjust as necessary by updating it, since it provides a framework for comparison (which you sorely miss when you launch).
Finally, if you want to take over a business or a business, you can also set up a business plan. The basic framework is the same as for a business creation project, except that you must also integrate specific elements about the company that you are going to buy (eg: history, customers, products, financial report etc.).
So what are the objectives of the business plan
- Reassure your partners: They need assurance as to the feasibility, profitability and sustainability of your project. When taking out a loan, your banker, for example, will want you to demonstrate your ability to repay, whether the project works or not!
- Highlight your future project: in order to convince investors and embark them on your adventure. With a solid business plan, you benefit from advantageous payment terms from future partners.
- Convince yourself of the success of your adventure: in order to recruit new employees or even persuade future recruits to follow you when you are going to pay them 50% below market salaries.
Who is the business plan for?
This document may be intended for different interlocutors. It will therefore have to be adapted according to these interlocutors. Indeed, if you are a future entrepreneur, you need a business plan for:
- Yourself: To ensure the process and put the different stages of your project on paper. This is forcing you to do a thorough analysis of your project and write down the assumptions you want to verify in the field when starting your business.
- Your banker: the business plan is then drawn up to convince him of the seriousness of your project. So you can open a business account. In the case of seeking a loan, the business plan should demonstrate your ability to repay the loan.
- Potential investors: No fundraising without a business plan, which is the tool that allows investors to select projects, check that the projects meet their criteria. It is also a pretext to be able to question the entrepreneur that you are afterwards and to be able to achieve a valuation of the company.
- Your future recruits or associates: Why follow you on an adventure? Only for your beautiful eyes? Most first-time employees will ask for a demonstration of the project’s potential as they themselves are taking a risk by following you!
Competitions: the business plan make it possible to compare projects with each other and therefore to designate a winner (NB: the winner of a business plan competition is not necessarily the winner subsequently in the field!)
When to design your business plan?
- Your project idea is matured and refined: the maturation of the project idea allows it to be transformed into a business creation project or to take over the activities of an existing business;
- The preliminary studies have been carried out: in fact, the market study will help you forecast your turnover;
- The legal form most suited to your business has already been identified: the legal form can determine your subject to certain taxes.
Lire aussi: Nos 10 conseils utiles pour rédiger un bon business plan.
