The business plan is a written document presenting the project to the contractor and its business model, and which then proposes a financial study consists of several tables. It is a very important tool for the entrepreneur, in particular to prove the viability of his project and to communicate with potential partners.
This file explains everything you need to know about the business plan :
What is a business plan? Definition and utility
A business plan is a business plan , it reflects financially and operationally the economic model of the business creator. To build your business plan, you must therefore have previously determined how your future business will add value and generate income.
The business plan is materialized by a written document which explains what the project consists of and which proves its viability as well as its feasibility . It usually consists of two closely related parts:
- a presentation of the project with an operational variation,
- a provisional financial study of the project.
Although not mandatory, the business plan has a real interest for the entrepreneur because it allows to structure the project, to prove its viability and to take a step back. It is also a very important tool in future exchanges with the company's potential partners (an associate, investors, banks, strategic partners, etc.). Moreover, the business plan is often essential in these situations.
What's in a business plan?
A business plan consists of two parts:
- a presentation of the project and the economic model,
- a provisional financial study of the project.
Presentation of the business creation project and strategy
The first part of the business plan provides a presentation of the business creation project and explains how the economic model will be implemented. Among the important elements to find here, there are in particular:
- the summary of the project (brief and precise presentation),
- the project team,
- the economic model,
- the action plan,
- the legal and financial terms of the project.
Financial study of the business creation project
The second part of the business plan corresponds to the financial study of the project, also called the financial forecast . There are several tables that will allow the business creator to analyze his project financially:
- an income statement which calculates the profitability of the project and its construction process;
- a financing plan which checks the financial balance of the project by listing all the needs to be financed and all the resources mobilized;
- a cash budget which makes it possible to determine the theoretical cash balance of the company at the end of each month;
- a balance sheet which provides a picture of the company's assets at the end of the forecast period.
As we mentioned previously, a preliminary step is essential to build a business plan. The business creator must start by developing his business model , which makes sense given that the business plan is based on it.
The business plan should be built by the business creator himself and his team. Then, it is possible to seek professional advice, if necessary. The development of the business plan requires working on the following subjects, a good part of which has already been addressed in the construction of the economic model:
- the skills and motivations of the members of the project team,
- presentation of the business sector and target customer segment,
- the description of the product or service offer,
- an explanation of the company's positioning and its competitive advantages,
- the presentation of the envisaged strategy, the action plan and the necessary resources,
- budgeting for the project and estimating future income.
We start by presenting the project, the strategy and the economic model, then we build the financial forecast study. In practice, the forecast is drawn up gradually , depending on the new information available. For example, when you work on the means you need to implement your project, you can, at the same time, integrate expenses and investments into your forecast.
Finally, to build your business plan, we advise you to rely on an application or software that will help you build it. This will facilitate your work, help you in your reflections, and allow you to not forget anything. Plus, there are online services that help you build your business plan for free .
Example of a business plan for a business creation
Here is an example of a business plan produced from the Le Coin des Entrepreneurs application, which helps business creators and buyers to set up their project: