The business plan, often criticized, is an essential step in the creation of a business from the moment one seeks a banker, an investor, an incubator, a partner, but it can serve as a benchmark as evolution of the company and updating it constantly makes it possible to better identify the points to be improved. How to use it wisely?
The business plan will allow you during the evolution of your company to think about the strategy of the company and the direction you want to take. It must adapt to changes linked to market developments and competition that will lead you to redraw a new development plan. This will allow you to analyze what you could change, the forces on which you need to rely but also the risks of the moment T. It will have to take into account the risks that will loom in the short, medium and long term. It turns out to be an essential tool for helping to manage the company, allowing you to see if your company has opportunities to develop or what it needs to do to anticipate a crisis.
The business plan models presented to creators are plentiful and follow a pattern that is little questioned. In reality, it is the project leader who brings his added value but also the product or products or services he offers. In the context of an evolution of the company, the lived history of the manager and his collaborators is added to the business plan.
The essential and essential Executive summary (summary)
This is an essential summary for presenting your project as part of a business creation but also for entrepreneurs who would like to raise funds. It allows you to remember the essential points if you want to see how to evolve their business towards exponential growth!
You must be able to present your analysis to your collaborators but also to the investors who have supported you so far. It is located at the top of your business plan and should not exceed 2 or 3 pages and give an overview of your project/company.
Some fundamentals in the development of the business plan
Include your business story
It is always relevant to go back to the genesis of the project because it shows the path you have traveled, the successes but the difficulties and obstacles that you have been able to overcome so far and it is time to value the path traveled:
- How was your project born? How did you come up with the idea?
- Why did you choose this idea?
- How far have you come from the start? What are the stages you went through?
- What is the current situation ?
Present your team and its evolution
In a business development, it happens that one or more associates leave the ship, it is therefore necessary to be lucid and to explain the reasons: skills, human relations…. You may have hired employees and it will be necessary to discuss their skills and their added value and what is also the reason
Present your products or services
With regard to your offer, it is absolutely necessary to see if your product corresponds to an expectation and if it risks becoming obsolete due to environmental, economic or technological developments.
Locate your competition
And yes, the landscape of competitors is constantly changing and therefore to locate them and know their strengths but also to pay particular attention to entrants (direct competitors: presentation of their products, their positioning, their strategy as well as their strengths and weaknesses and indirect competitors ).
Highlight your customers
Your product meets a real market need but everyone knows that consumers have not sworn loyalty and therefore can go to your competitor without qualms, the internet opening up all possibilities to them.
Detail opportunities and risks
It is quite simply in this part to define the essential points which will condition your success and those on the contrary which can lead to the bankruptcy of your company. Identifying the risks and stating them shows that you have analyzed all the possible eventualities and that you have thought about the risks you are likely to face.