The business plans prepared meticulously in 2019 and 2020 have found themselves questioned for a certain number of them, whether in a positive or a negative direction, because the parameters have changed. It was necessary for the project leaders and the entrepreneurs to make adjustments.
In the context of business creation, the implementation of the business plan or the development plan is an essential step. Entrepreneurs do this when they are 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 company being built. This document details all the information relating to the activities of the future company, in particular in financial, material and human matters.
The main uses of the business plan
The business plan remains essential to monitor the evolution of the company. 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 for an existing business or a company being created, the business plan facilitates negotiation between the entrepreneur and his future partners. Very often, investors require a business plan allowing 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.
- Delineation 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 of the activities he wishes to undertake, the path he must take 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 mainly concerns the business plan dedicated to new projects within an existing company. By establishing a business plan, the company can determine its effectiveness. He can evaluate his effectiveness based on the result of the search for partners or funding, or on the reaction of investors to the new project he wishes to implement.
The structure of the business plan
In principle, four elements form the business plan.
1. Delimitation of the project
To establish a business plan, the entrepreneur must begin by defining his project. To do this, he must specify the offers he wishes to make available to his consumers. Products or services, these offers must address very specific targets that the entrepreneur must undeniably define.
2. The market
To locate the offers and their targets, the entrepreneur must actually carry out a complete market study. This study will allow him to assess the field in which he will practice. It is also a reliable and effective way to better understand and control the market, particularly in terms of competition and regulatory impositions.
This step consists in 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 presented by the market. In this way, he can easily establish the appropriate strategy according to the situation.
4. Financial data
In the context of business creation, the establishment of a financial plan is a legal obligation. The company must have enough assets to ensure its first three years of activity. In the case of a newly designed project within an existing company, the establishment of the financial plan constitutes a guarantee for the success of the said project.