Why and how to write a business plan

When it comes to building their business, there are some who reject the idea of ​​writing a business plan. They rush this stage and do a great luxury by throwing their heads into the wall. While he is in real life, an informed investor knows that he can never put his funds into a business project if he does not establish a serious business plan that guarantees him the future success of his business. If you are going to start creating a business, know now that the second thing you need to do after defining the idea of ​​your project is to create a business plan. You will see in the following lines the importance of creating a …

What is a business plan?

The business plan is a business plan. A written document that clearly shows what you want to do. This document is far from a complete description of your project, but is a summary of your entire business creation project. Whether you are starting a blog or starting a real business, the business plan is your roadmap that follows you throughout the life of your business.

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Although the business plan is a document written before you start a business, it is likely to undergo changes over the life of your business. It is therefore not static.

Is it really helpful to write a business plan?

Is it important that I write a business plan? When to write a business plan? Who is my document for? These are a series of questions that we encounter most of the time from new entrepreneurs or even those who have started without first writing a business plan.

Sometimes some entrepreneurs neglect this important step downstream of setting up their businesses. They end up realizing that they should not skip this step, but sometimes it’s too late and it’s a shame. To help you avoid making this young person’s mistake, here are some reasons that are considered useful that should pressure you to write a business plan after clarifying your project.

a- calm your banker : Having a business plan when taking out a loan is tangible proof that you have made preliminary studies of your project. This well-written document allows you to demonstrate to your banker that you have the ability to repay your loan even if your business stalls.

b- Highlight your project : With such a document, you have the opportunity to get started on your project whoever you want.

c- Convince your future partners and investors: By writing a business plan, you have the opportunity to convince potential investors, to attract additional partners by clearly showing them the strings for the success of your project.

In addition to the above benefits, the business plan remains an internal and external communication tool which stems from a theoretical and practical working method.

Who should write a business plan for?

The business plan is aimed at 4 types of people and must take them into account during the preparation phase:

  • the entrepreneur himself: which has the opportunity to have on the sheet the various stages to be crossed in order to develop in its methodological approach;
  • Bankers: Writing a business plan will allow you to convince your banker of the seriousness you put into your project and of your ability to keep going;
  • Collaborators and partners: allow them to ensure that you know what you are in and where you are going, by showing them that you have a clear idea of ​​your business and its development;
  • The company through competitions: With a business plan at hand, you have the opportunity to participate in competitions reserved for entrepreneurs. Without a clear business plan, you can be excluded.

It is therefore important to note that the business plan differs from person to person. A business plan addressed to a banker is different from one you address to an investor.

How to write a business plan?

Now that you’ve seen why you should write such a document, we’ll now show you how to make your business plan to be sure to do well.

Writing a Business Plan: The 6 Essential Questions

The success of writing a business plan stems from the ability of any entrepreneur to answer essential questions. It will be up to the entrepreneur to show his interlocutor that he is mastering his market, its development over time as well as the expected results. One of the most used methods is the answer to the 3 QOCPs, namely: WHO, WHEN, WHAT, WHERE, HOW and WHY. Here is an example of a business plan using the 3 QOCP method.

In its business plan, the entrepreneur is obliged to define the hypotheses of revenue, the method to be used to achieve them. It is not a question of saying “I want to achieve a turnover of € 45,000 a month”, but rather of showing the funds to be used in an informed environment.

For example, the entrepreneur may say: by using 10 sellers who will sell 100 products a day for 150 €, we achieve a turnover of 45,000 €.

By answering these questions, the entrepreneur gets a clear idea of ​​his project as well as its feasibility. It will be easier for him to convince his interlocutor and wrap him in his project.

Writing a business plan is a team effort

Writing a business plan is not a task for the entrepreneur who carries out the project, but for his entire management team. It is not a question here of allocating the tasks to be performed, but of defining together the means and strategies that will be implemented to avoid taking into account only the idea of ​​the entrepreneur who could well make forecast errors. The team will be able to redefine the hypotheses for the realization of revenue, the marketing strategy as well as the forecasts for results, taking into account market constraints.

By writing a business alone, you run the risk of seeing your affiliates reject it.

Have a business plan template at hand

It is sometimes difficult to write a business plan from scratch. This can take several months and will require a great deal of effort. Therefore, it is advisable to have a template at hand that you can rearrange to your liking.

To find free business plan templates on the internet, you can type free business plan template >> into the search engine.

It is also recommended that you go into the field to do a good market research so as not to make forecasts that will increase your expenses or overestimate your financial results.

Review your business plan

Once your document is written, have it proofread by other contractors. Having an outside perspective is an effective way to have more success.

Any reactions on the topic? Experiences to share? Use the comment field.

By the way, a business idea: create a training organization.

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