Creating a business plan (business plan)

Introduction

To quote an ancient cliché: A good start is half the battle. This is true for everything, and certainly for starting a business.

For example, before you cook, it is smart to read the recipe ahead of time and have all the ingredients ready. The same goes for business. The better your preparation, the greater your chances of success. Therefore, the ideal starting point for any entrepreneur is a strong business plan.

What is a business plan?

A business plan, business plan or business plan is a document in which you describe what your business will look like. A business plan often (but not always) includes the following sections:

• A management summary (most investors don't have much time)
• Personal data of the entrepreneur(s)
• Internal factors (product, legal form, positioning)
• External factors (market information, competition, economy, trends, target audience, risks, partners)
• Financial substantiation (budget, sales forecast)

Apart from being useful for you to have an overview of where you want to go with your business, a business plan is also often used to obtain financing from a bank or investor.

Why do you write a business plan?

The insights offered by a good business plan are interesting for several reasons:

1. You discover your strengths and weaknesses

When writing a business plan, you figure out what sets you apart from your competition. But you also identify the areas in which they have an edge over you. This way you know where you need to maintain your advantage and which points you still have to work on.

2. You get to know the market

You look not only at yourself and your competitors, but also at the market you are in. What developments offer new opportunities? And what are the trends you need to capitalize on to stay relevant? Important information that helps you make strategies for both the short and long term.

3. You convince your funder

Unless you have a big bag of money lying around on your own, you will turn to a lender to start your business. That could be a bank, or it could be an investor or someone else who lends you money.

In such a case, your business plan is the justification for your application. This should show whether your plan has enough potential to repay the loan or investment.

What should be in a business plan?

There is no standard template for a good business plan. Instead, it is meant to be original and fit your business. But, of course, there are components that should be in every good business plan:

1. Your product or service

What exactly are you going to offer and how did you get to this point? Be detailed, but be careful not to get too technical. The story must also remain understandable to someone with less substantive knowledge. For the technical details, you can include a separate section in your business plan.

2. Your distinctiveness

Why would someone choose your product over the competitor's? If you can explain this well, your business probably stands a good chance.

3. Your goals

What do you want to achieve with your business? The answer to this question shows you what your ambitions are, but also whether you have a realistic view of the market and your place in it. It is useful to set your goals using the SMART method. This way you make them Specific, Measurable, Acceptable, Realistic and Time-bound.

4. Analysis of the market

A good picture of the market is essential. How big is the potential market, both in persons and turnover? What needs are there and how are they being addressed? What competitors are already there and how are they doing things? Therefore, also conduct a competitive analysis ui

5. The marketing approach

Describe how you plan to reach your target audience using a concrete marketing plan. What online and offline channels will you use, for how long and what will it cost?

6. Financial planning

How much money do you need to start your business? And, just as important: where exactly is all that money going? This is information that an investor is very curious about. Of course, here you also map out what your expectations are about your company's income. So it is important to keep good accounting records.

Business plan examples

Are you looking for a template to get started, or simply looking for inspiration? On our business plan examples page we collect all examples & templates of business plans available for free. As a starting entrepreneur, it's also helpful to familiarize yourself with Simon Sinek's Why, How, What model, how to create a balance sheet and think about what growth strategy fits your business.