The business plan, the essential tool for any business project

Whether you are planning to start a business, take over an existing structure or start a new business, it is in your best interest to write a business plan. Sometimes condemned, this document is nonetheless essential. It allows you to validate many points in your business project, and above all, it will help you convince your future partners (banks, investors, suppliers, etc.).

The business plan: what is it?

The business plan is often mistaken for the financial forecast. In fact, the forecast is only part of it. It generally includes a balance sheet, an income statement, a cash budget and a financing plan. This economic component supplemented by another.

The second part, on the other hand, is economical and descriptive. It takes the form of a note where you will present your offer of goods and / or services, the market you want to develop in, the customers you target, the competitors you want, the business model you want to implement. teams around you, etc.

It is important to feel good understand what a business plan is before embarking on its design. In fact, it should not be seen as a constraint or an administrative obligation, but in reality as a real decision-making tool.

How is the business plan useful for a business project?

The business plan is THE essential document for any business project, whatever it is: business creation, business acquisition or business development. In particular, it makes it possible to accurately quantify financing needs. But not only that: it is an excellent communication / negotiation support and a very good management tool.

If you are in the creation phase, it will allow you to do that measure the profitability of your project. In addition, it will facilitate the validation of some of your creation choices (profit tax scheme, manager’s social status, etc.). By the way, he will act as support to get a bank loan or get investors into your company capital.

When you take over a business, the business plan can be used to convince a bank to give you a loan to repurchase the shares. It can potentially validate a financial package: setting up a “head of the group” holding company, repurchasing securities using bank financing and paying dividends, etc.

How to 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 an estimate so he can accompany you in this task. This is the professional who is best placed to help you, even if his intervention has a cost.

If you have a solid knowledge of the matter, you can establish it yourself by using a spreadsheet (Excel for example) for the financial part and power point for the financial part. If necessary, many sites offer online models and tools (sometimes for free, but more generally paid).

That said, remember one thing: Whatever option you choose, make sure you do so take an active part in the development of your business plan.

Make a business plan allows you to put your thoughts in order and of structure your project. Admittedly, it is based on forecasts, which by their very nature have a random, uncertain and subjective character; but this document helps reduce the risks. Thanks to that, you will make sure of it nothing will be left to chance “. (Source: Business plan guide)

(Photo credit: iStock)

Article written by

Author

Pierre Facon Pierre Facon is the associate director of FCIC, a company that specializes in online media publishing, setting up, managing and acquiring companies. He created and launched the website l …
See his contribution

This text is published under the responsibility of its author. Its content does not in any way engage the editorial staff of Les Echos Solutions.

Leave a Comment