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Why and how to make a business plan?

The implementation of a project supposes calling on investors to finance it. The entrepreneur must develop a business plan that will ensure the viability of the project and convince investors.

Do you need to do a business plan? What are the objectives of this document and how to write it? Find out why the business plan is an essential tool for entrepreneurs and how to develop it.

What is a business plan?

The business plan or business plan is a file compiled during the creation of a business, a business takeover or a change of activity. It presents the different actions that will be carried out by the company, the means it intends to use as well as the period defined to achieve its objectives.

In other words, the business plan demonstrates the added value of your project. It highlights your vision, your objectives and means of results.

Why make a business plan?

There are several reasons that encourage entrepreneurs to make a business plan. First of all, it allows you to structure your original idea and clarify your project, particularly on the economic and financial levels. Indeed, it is essential to measure the expected profitability and to determine the financing to be mobilized to concretize this idea. When it is well done, the business plan can force the entrepreneur to give up his project, for example if it is not financially viable, to adapt or review his business model.

In addition, this document makes it possible to convince several actors, starting with the banker. When taking out a loan, the loan will determine your ability to repay. The business plan shows that your project is well thought out and can influence its decision. It is also an important communication tool for investors and partners. We must not forget that without them, your project will not be able to succeed.

How to build a business plan?

The business plan should revolve around five themes:your project, market research, your products and services, your strategy, financial data. To start, it is advisable to write a detailed summary to be sure not to forget anything. You must then prepare the descriptive part of the business plan by presenting your business model and its objectives, indicating the results of your market research, defining your product and service offer as well as your strategy. Finally, the means necessary for the implementation of your project and the resources mobilized must appear in this document. The financial part should not be neglected because it demonstrates the seriousness of your approach.

If you think you do not have enough perspective to highlight your project, do not hesitate to seek the advice of a professional. You can call on a support structure for creators or an entrepreneur club that will answer your questions. It may also be useful to contact an accountant to work on market research and the positioning of your offer.