Business Plan

Also called: business plan or business plan

A business plan, also called a business plan or a business plan, is a plan that is created when starting a business. The plan describes what the business will do and the steps needed to establish and maintain the business. A business plan answers the question of whether a business is viable and in what way the business should become or remain so.

Is a business plan required?

Creating a business plan is not mandatory when starting or acquiring a company but is highly recommended. If the company needs external financing, banks and investors will require a good and realistic business plan as a condition. It is crucial for a lender or future shareholder to know if a business is viable, if and when the investment will be repaid including any interest and/or dividends.

What's in a business plan?

A business plan or business plan usually begins with an introduction stating what the company will do (products, services and/or activities) why it is being established and what the company's goals are. Being able to briefly summarize what value a business adds to the world is right away a good basis for an elevator pitch.

A company's goals can be divided into goals aimed at the customer (what problem is solved and with what proposition) and the internal goals of the company itself(revenue, growth, profit, generating income or paying dividends). For all objectives, they must be SMART.

The business plan also lists the key factors that determine whether and how the business will be successful. How will the business obtain customers? What laws and regulations apply to the business? Are permits and insurance required? What housing and inventory (including machinery, tools and company vehicles) does the business need? Will the business consist of one or more entrepreneurs, or will staff need to be hired? How will administration, website and corporate identity be arranged?

An important part of any business plan is the business model. The business model, or business model, describes the way the company expects to make money. This model includes the target groups, what the total cost of making products or services is, and at what price customers will pay. To give an expectation of the outcome, an elaborate business model also includes expected revenue and relevant constraints such as the amount of orders or commissions that the company can handle.

In addition to a sound business model, the business plan must include adequate attention to marketing and acquisition. After all, the beautiful goals and a promising business model of a business plan can only be realized if the company has enough customers. This will require hard work on brand awareness, a distinctive proposition and a positive customer experience. The marketing plan therefore deserves a separate chapter in the business plan.

All activities and costs necessary for a successful business are relevant to the plan, financing and a healthy and complete business model. Thus, these will have to be described and factored into the business plan. In addition, a good business plan answers the question of whether and why the business has the right to exist at all. Charting all this usually requires the necessary research. It is wise to include the results of the market research and agency research conducted in the business plan to support the goals, success factors and projections.