There are a multitude of articles praising the positive effects of the business plan, but there are also many articles praising the business plan to the contrary! No matter how long it takes you to complete your business plan, your business plan is subject to the uncertainties of timing and changes. Why ? For the simple reason, by definition, it is impossible to predict how a new activity will develop, if it finds its customers, how long it will take to be successful. So one might wonder if it’s really useful to spend the time writing it.
Business plan: no simple matter
You have already opened several clothing stores in different districts of Paris and given your success, desire to open stores in major French cities and so you use your business plan to model your new store and You follow faithfully but you have forgotten that customers in the provinces are hardly the same as customers in Paris and there you come up against a huge obstacle.
In the end, your business plan is already more or less false. But isn’t this reason enough? The answer to this question is clearly “no” and for several reasons.
What is included in a business plan?
But let’s start by remembering what is included in a business plan or business plan? It is a document that states in a structured manner what the future entrepreneur wants to achieve, when, with whom, by what means, for what results and how his project can be viable and profitable. The project leader specifically envisages the key stages of development of his future activity, his products or services, his market, the risks he poses and how he anticipates them, the profitability model, the team he will surround himself with , gives a description of .
Business plan: 4 good reasons to complete it
By its very nature, the business plan therefore makes it possible to accomplish 4 objectives:
- first objective For the entrepreneur, it is to verify the viability of his project by ensuring that every aspect of the making of it (legal options, financial instruments, commercial strategy, industrial equipment, communication media, human resources, etc.) has been the subject. – In-depth reflection, that the risks have been measured and solutions have been found.
- second goal The purpose of the business plan is to make it possible to obtain the necessary financial resources to undertake and implement the project. Whether it’s a loan to finance the purchase of equipment or the need to finance a cash shift or an investor’s return in capital, it will be necessary to explain this to the person who has the money to hold it in your company. But you are far from alone. The requests are heavy. Bankers and investors can therefore afford to choose based on their criteria: minimizing their risk while maximizing their profits. For this, they want to know where you are going and you will need detail, reasoning, concrete and verifiable data in support to get their support for your project. Business plan is used for this.
- third objective The purpose of the business plan is to persuade your partners to trust you: a supplier, a service provider, an incubator you want to integrate into, etc. Everyone will want to be sure of the seriousness of your project in advance: so reassure them, show them your business plan. Your professionalism will be an important asset.
- fourth goal The purpose of a business plan is to allow you to follow up on your project. Feel free to update it over time and as you progress. It will serve as your compass, showing you the direction to follow to always be in control of your ship.
Not creating a business plan means running the risk of making mistakes on multiple levels.
If you do not create a business plan, you deprive yourself of the possibility to more thoroughly verify the seriousness and feasibility of your project, to find the financial resources necessary for the realization of your project, to those partners To explain what needs to be followed you must have a monitoring tool for the implementation of your project. Wouldn’t that be a shame?