Whether you are planning to establish a business, take over an existing structure or start a new business, it is in your best interest to write a business plan. Sometimes disapproved, this document nevertheless remains essential. It will allow you to validate many points of your business project and most importantly, it will help you convince your future partners (banks, investors, suppliers, etc.).
The business plan: what is it?
The business plan is often mistakenly confused with the financial forecast. In reality, the prognosis is only part of it. It generally includes a balance sheet, an income statement, a cash budget and a financing plan. This one financial component is complemented by another.
The other part, on the other hand, is economic and descriptive. It takes the form of a note in which you present your offer of goods and/or services, the market you will develop in, the customer base you will target, the competitors you will have, the business model you will be deploying. team around you, etc.
It’s important to be good understand what a business plan is before starting the design. Indeed, it should not be seen as a restriction or an administrative obligation, but really as a genuine decision-making tool.
How is the business plan useful for a business project?
The business plan is DE essential document for any business projectwhatever it is: setting up a business, acquiring a business or developing a business. In particular, it makes it possible to accurately quantify the financing requirement. But not only: it is an excellent communication/negotiation support and a very good management tool.
If you are in the creation phase, you can: measure the profitability of your project. In addition, it will facilitate the validation of some of your creation choices (profit tax regime, social status of the manager, etc.). By the way, he will serve as support to get a bank loan or bring investors into your company’s capital.
When you take over a company, the business plan can be used to convince a bank to give you a loan to buy back the stock. It may be able to validate a financial arrangement: creation of a holding company “head of the group”, repurchase of securities using bank financing and payment of dividends, etc.
How do you make a business plan?
There are several solutions at this level. First of all, if you have use an accountant, you can ask him for a quote so that he can guide you through this task. This is the professional best placed to help you, even if his intervention comes at a cost.
If you have solid knowledge in this area, you can determine it yourself using a spreadsheet (eg Excel) for the financial part and PowerPoint for the economic part. If necessary, many sites offer online models and tools (sometimes free, but usually paid).
That said, remember one thing: whichever option you choose, make sure you… actively participate in the development of your business plan.
“Make a business plan” allows you to get your thoughts together and from structure your project. Admittedly, it is based on predictions that are arbitrary, uncertain and subjective by nature; but this document will help to reduce the risks. Thanks to it you ensure that nothing will be left to chance “. (Source : Business plan guide)
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