There are a wealth of articles to praise the positive effects of the business plan, but on the contrary, there are also a wealth of articles that can condemn the business plan! No matter how long it takes to complete your business plan, your business plan is subject to time variations and changes. Why ? For the simple reason that it is by definition impossible to predict how a new activity will develop if it finds its customers, how long it will take before it becomes a success. One may therefore wonder if it really pays to spend time writing it.
The business plan: there is no simple matter
You have already opened several clothing stores in different districts of Paris, and in light of your success you have the desire to open stores in major French cities, and therefore you use your business plan to model your new store, and you follow closely, but you have forgotten that the clientele in the provinces is hardly identical to the Parisian clientele, and there you encounter a major obstacle.
In conclusion, your business plan is already more or less false. But is that reason enough not to? The answer to this question is clearly “no” and for several reasons.
What does a business plan contain?
But let’s start by remembering what a business plan or business plan consists of? This is a document that explains in a structured way what the future entrepreneur wants to achieve, when, by whom, by what means, aims at what results and how his project can be viable and profitable. The project manager describes in particular his future activity, his products or services, his market, the risks they run and how he anticipates them, the main stages of development he imagines, the profitability model, the team if he wants to surround himself.
The business plan: 4 good reasons to implement it
In the nature of things, the business plan therefore makes it possible to meet 4 goals:
- that 1st goal is for the entrepreneur to verify the viability of his project by ensuring that every aspect that constitutes it (legal choices, financial means, commercial strategy, industrial tools, communication media, human resources, etc.) has been the subject of in-depth reflection, that risks are measured and solutions found.
- that 2nd goal of the business plan must make it possible to provide the necessary financial resources to launch and implement the project. Whether it’s a loan to finance the purchase of equipment or a need to finance a liquidity gap or an investor’s return to capital, it will be necessary to convince the person who has the money to invest them in your business. But you are far from alone. The requests are overwhelming. Bankers and investors can therefore afford to make a choice based on their criteria: to minimize their risks while maximizing their profits. For this, they want to know where you are going and you will need to detail, argue, concrete and verifiable data in support to get their support for your project. The business plan is used for this.
- that 3rd goal of the business plan is to convince your partners to trust you: a supplier, a service provider, an incubator that you want to integrate, etc. Everyone will be assured in advance of the seriousness of your project: so reassure them, show them your business plan. Your professionalism will be an important asset.
- that fourth goal of the business plan is to give you the opportunity to follow up on your project. Feel free to update it over time and as you evolve. It will serve as your compass, showing you the direction you need to follow, to always remain in control aboard your ship.
Not making a business plan means taking the risk of making mistakes on several levels.
If you do not make a business plan, you therefore deprive yourself of the opportunity to more thoroughly verify the seriousness and viability of your project, to find the necessary financial resources for the realization of your project, to convince the partners whose need to follow . you, to have a monitoring tool for the implementation of your project. Wouldn’t that be a shame?