The detailed steps to build your business plan.

A business creator must establish a business plan to validate his creation project. For this, he needs to specify the different stages to build his business plan. The future entrepreneur must therefore ask himself all the necessary questions (and give the answers) to ensure the long-term success of his business. What are the steps required to build your business plan?

Step 1: Evaluate your offer

It is first a matter of deciding whether the products or services offered by the company that we are to create correspond to a real offer. It is therefore necessary to ask what the added value of the products or services offered is in relation to the already existing offer. Are these products original and stand out from other products offered by competitors? What are their benefits and how are they innovative? Does the target group have a real offer?

Step 2: Perform detailed market research

Then it is necessary to know the market that your business services are targeting. It is therefore important to launch a market study, the results of which will provide a good overview of the defined market. Market research will make it possible to better identify potential customers: for example, to determine the average age of customers, to know their financial capacity and thus their purchasing power, the socio-professional categories represented, the geographical areas that are targeted … perfect knowledge of the market, it will be possible to establish the right marketing and commercial strategy for your business activity.

Step 3: Create your “business model”

This part of the business plan is used to show that his future business will be financially viable and that it will produce significant sources of revenue and profits. The sources of revenue may come from the sale of services or products, advertising, the sale of patents or technological licenses … In this same part it will be necessary to determine and determine the selling prices of its products or services. Prices will have to be placed in relation to those already in the same market. Finally, the business creator will propose his commercial strategy: ensure that he has a perfect knowledge of the market and the target customers, that he will be able to sell his products or services, that he will be able to find commercial partners.

Step 3: Position yourself against the competition

This part of the business plan allows the entrepreneur to position himself against the competition. He will be able to determine his pricing policy (prices higher or lower than the prices in the target market). The future entrepreneur must demonstrate that his company will be in a position of strength in relation to the competitors and thus ensure the company’s sustainability over time.

Step 4: Define the nature of the business

In this part, the company creator must indicate the legal form chosen for the latter (SA, SARL, etc.). It must also specify the capital, the nature of the funds and the contributions. The future entrepreneur must also list the shareholders and define how they will distribute the company’s capital.

Step 5: Make an action plan

This is the heart of the business plan. The entrepreneur will present his various strategies for developing his business within the first three years after creation. Therefore, he will explain what are the key factors for the success of his business. It will provide quantified targets. The business creator will specify his research and development plan and by what means and investments he will finance it. But he will also have to assess production costs, give his commercial action plan, explain his personnel policy … He must therefore present a lot of numbers and many arguments to show that he has a clear and precise vision of what will promote the success of his business over time.

Step 6: Create financial forecasts

This last part is used to demonstrate the future financial viability of the company over the first three to five years of its creation and development. The entrepreneur will therefore need to clarify his assessments with regard to estimates of income and expenses. In addition, he must establish a preliminary income statement, a preliminary balance sheet as well as the financing plan and finally the cash flow plan.

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