The business plans carefully drawn up in 2019 and 2020 have been questioned by a certain number of them, whether in a positive or negative direction because the parameters have changed. It was necessary for the project managers and entrepreneurs to make adjustments.
In connection with business creation, the implementation of the business plan or development plan is a significant step. Entrepreneurs do this when planning to start a new project in their business. Also known as a business plan, it is a written document that mentions the activities of the business being built. This document describes all information regarding the activities of the future company, especially in economic, material and human affairs.
The main uses of the business plan
The business plan remains important to monitor the company’s development. With such a program, the entrepreneur can easily manage his team and plan his actions. Apart from that, he can demonstrate the strengths of his projects and the stability of his business to his potential investors.
- Search for investors
Whether it is an existing business or a business being set up, the business plan facilitates the negotiation between the entrepreneur and his future partners. Very often, investors require a business plan that allows them to assess the importance of the company, as well as its chances of success. In this context, it represents the ideal tool to rely on for successful research and fundraising.
- Delimitation of business strategy
The business plan allows the entrepreneur to materialize his intentions and his projects. By drawing up a business plan, he can easily understand the interest in the activities he wants to carry out, the path he has to go and above all the different options and possible strategies. In this sense, he can easily make appropriate decisions according to the situation. This gives some credibility to his project.
- Business efficiency assessment
This primarily relates to the business plan dedicated to new projects in an existing company. By establishing a business plan, the company can determine its effectiveness. He can assess his effectiveness based on the result of the search for partners or financing, or on the investors’ reaction to the new project he wants to implement.
The structure of the business plan
In principle, four elements make up the business plan.
Delimitation of the project
To establish a business plan, the entrepreneur must first define his project. To do this, he must indicate the offers he wants to make available to his consumers. Products or services, these offers must address very specific goals, which the entrepreneur undeniably must define.
2. The market
In order to locate the offers and their goals, the entrepreneur must actually conduct a complete market research. This study will allow him to assess the field he will practice. It is also a reliable and effective way to better understand and control the market, especially with regard to competition and regulatory requirements.
This step consists of setting up a study, which aims to analyze the strengths and weaknesses of the company or project. It also makes it possible to determine the risks and opportunities that the market offers. In this way, he can easily establish the appropriate strategy in relation to the situation.
4. Financial data
In connection with business start-ups, the establishment of a financial plan is a legal obligation. The company must have sufficient assets to secure its first three years of activity. In the case of a newly designed project in an existing company, the establishment of the financial plan constitutes a guarantee that the said project will succeed.