Five tips for making a good business plan

The realization of a business plan can represent a complex step for a creator or a buyer of a business. This document does not follow any special rules, but compliance with certain standards ensures its success. Here are 5 tips that will allow you to make a good business plan.

Prepare your business plan properly

A successful business plan is a well-prepared business plan. Before embarking on the creation of this document, gather all the elements that will serve as raw material.

In order to best prepare the economic aspect:

  • Estimate your expected revenue correctly,
  • Write down all your expenses as completely as possible,
  • Take stock of your finances to determine your personal contribution.

The preparation of the editorial part is just as important:

  • Prepare your ideas and clearly define your project,
  • Be consistent about your goals and the strategy implemented to achieve them,
  • Do not overestimate your skills and stay as objective as possible.

Respect certain financial balances

You need to carefully study certain financial indicators for the financial part of your business plan. There are balances in this area and you need to make sure that you respect them.

First of all, you need to make sure that your investments are funded in a coherent way: the goods needed to leverage your activity need to be funded by long-term resources (capital or loans). Conversely, inventories must be financed by short-term solutions (overnight contributions).

Then make an adequate contribution (at least 20% of your financing needs), especially if you are applying for a bank loan.

Finally, check that your self-financing ability allows your business to repay its loans in less than 5 years.

Be relevant and get to the point

The purpose of a business plan is to convince the recipient. And to convince, you need to be effective and concise. Be sure to insert only the elements that are crucial to understanding your project. Avoid bulky and unnecessary attachments.

Too long or too technical, you will lose the attention of your reader, who probably will not read the file until it is finished.

You must therefore show a synthetic spirit and establish a direct connection between your work experience and the project you are carrying out.

Pay attention to the form of the document

A business plan must be consulted carefully. To do this, make sure that it makes you want to read it. Read proofread and have it proofread to correct any spelling mistakes.

Ventilate the text adequately and replace your writing with images or graphics. Finally, do not forget to insert a summary on the first pages of the file.

Practice presenting your business plan

You will need to customize the presentation of the file to your interlocutor. In fact, a business plan does not present itself in the same way to a banker or an investor. The information to be included is not the same because it does not have the same meaning in the eyes of your reader.

Highlight the right indicators in the right places and above all, practice presenting your business plan orally. Ask those around you for conversations in “real” conditions and do not hesitate to get help from a professional. “Preparing a presentation pitch, or how to seduce in a few minutes or even a few seconds, is becoming an essential exercise in the entrepreneur’s life” (source: Successed in your presentation pitch).

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

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