When it comes to starting their business, some people hesitate to write a business plan. They rush through this step and make the costly mistake of throwing themselves headfirst into a wall. In real life, a savvy investor knows that they can never invest their funds in a business project without establishing a serious business plan that ensures the future success of their enterprise. If you need to start a business, know now that the second thing to do after defining your project idea is to create a business plan. You will see in the following lines the importance of creating a new one…
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, far from being a complete description of your project, is a summary of your entire business creation project. Whether you are starting a blog or creating a real business, the business plan is your roadmap that accompanies you throughout the life of your enterprise.
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Even though the business plan is a document you write before starting your business, it is likely to undergo changes during the life of your enterprise. So, it is not static.
Is writing a business plan really useful?
Is it important for me to write a business plan? When should I write a business plan? Who is my document for? These are a series of questions we often encounter from beginner entrepreneurs or even those who started without writing a business plan beforehand.
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Sometimes, some entrepreneurs neglect this important step downstream of starting their business. They end up realizing that they should not ignore this step, but sometimes it is too late, and that is unfortunate. To help you avoid this youthful mistake, here are some useful reasons that should encourage you to write a business plan after clarifying your project.
a- Assure your banker: Having a business plan when applying for a loan is tangible proof that you have conducted preliminary studies of your project. This well-written document will allow you to demonstrate to your banker that you have the ability to repay your loan even if your business fails.
b- Improve your project: With such a document, you have the opportunity to embark on your desired project.
c- Convince your future partners and investors: By developing a business plan, you have the opportunity to convince potential investors and attract other partners by clearly showing them the keys to your project’s success.
In addition to the benefits mentioned above, the business plan remains an internal and external communication tool that results from a theoretical and practical working method.
Who should write a business plan?
The business plan is intended for 4 types of people and should be taken into account during the writing phase:
- the entrepreneur themselves: who has the opportunity to have on paper the different steps to take to evolve in their methodological approach;
- The banker: Writing a business plan will allow you to convince your banker of the seriousness you bring to your project and your ability to stay on track;
- Partners and collaborators: allowing them to ensure that you know who you are and where you are going by showing them that you have a clear idea of your business and its evolution;
- 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 may be excluded.
It is therefore important to note that the business plan differs from person to person. A business plan presented to a banker differs from one sent to an investor.
How to write a business plan?
Now that you have seen why writing such a document is important, we will now show you how to create your business plan to ensure that you do it correctly.
Writing a business plan: 6 key questions
The success of writing a business plan stems from the entrepreneur’s ability to answer essential questions. It is up to the entrepreneur to show their partner that they control their market, their evolution over time, and the expected results. One of the most commonly used methods is answering the 3 PCQ, namely: WHEN, WHERE, HOW, and WHY. Here is an example of a business plan using the QOCP 3 method.
In their business plan, the entrepreneur is required to define revenue assumptions and the method to achieve them. It is not about saying, “I will achieve a turnover of 45,000 euros per month,” but rather showing the means to be exploited in an informed environment.
For example, the entrepreneur might say: by using 10 salespeople who will surely sell 100 products per day for €150, we will achieve a turnover of €45,000.
By answering these questions, the entrepreneur has a clear idea of their project as well as its feasibility. It will be easier for them to convince their interlocutor and engage them in their project.
Writing a business plan is a team effort
Writing a business plan is not intended for the entrepreneur alone but for the entire management team. It is not about dividing the tasks to be accomplished but about defining together the means and strategies that will be put in place to avoid considering only the entrepreneur’s idea, which could well lead to errors in forecasting, for example. The team will be able to redefine the assumptions of revenue realization, marketing strategy, and result forecasts while taking market constraints into account.
By writing a business plan alone, you risk having your employees reject it.
Have a business plan template at hand
It can sometimes be difficult to develop a business plan from scratch. This can take several months and require a lot of effort. That is why it is advisable to have a template at hand that you can reorganize to your liking.
To find free business plan templates online, you can type “free business plan template” into the search engine.
It is also recommended to go out into the field to conduct a thorough market study to avoid making forecasts that will increase your expenses or financial result estimates.
Reread your business plan
Once your document is written, you should have it read by other entrepreneurs. Having an outside perspective is an effective way to succeed.
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