The business plan is also a communication tool with your partners. Some suppliers, and your financial partners (banks and investors) will not fail to ask you to send them a business plan before doing business with you.
In this context, the business plan takes on another dimension: it must convince.
When addressed to a supplier, the business plan must highlight both the business opportunity for the latter – that is to say, highlight a level of forecast order volume that is credible and attractive – and the the financial soundness of your business – that is, reassuring the supplier against any risk of default on your part.
If you apply for financing from your bank, they will also assess the financial soundness of your project: what are the chances of the business being successful? What is the level of debt in the capital structure? Will the business generate enough cash to pay the interest and repay the principal? Will the weight of the debt requested leave enough resources for the company to develop?
Finally, when it is intended for an equity investor, the business plan must highlight the potential return on investment of the project. Your business plan must be able to convince the investor that the profitability of the project will be sufficient to offset the risk he takes by investing in the company and that the latter has the means to achieve the objectives set in the plan. .
To be successful in convincing, your business plan must be read. But your interlocutors have better things to do than read a little about your business. The business plan is therefore also an exercise in form.
In addition to the content, your business plan must therefore be perfect in form in order to make your future partner want to read it. This is due to a few elements: a clear and airy presentation, content that goes straight to the point, and a good catchphrase: that is, a good executive summary .
You have now realized the importance of this task, but also its time consuming side. It is therefore normal to expect us to answer you yes: the business plan is essential.
Making a business plan will be for the future, it will allow you to project yourself and get an overview of the financial potential of your business.
Also know that a banker or an investor will not take you seriously without a business plan, you must therefore arm yourself with a professional document with a realistic forecast and explanations that hold up.
It is up to you to decide how you will implement your business plan, however here are some tips.
This solution is the cheapest, but not the easiest. Indeed, without knowledge of accounting, financial modeling, and office automation, it will be difficult for you to obtain a reliable forecast.
A support professional will offer you invaluable help in setting up your business plan. However, check that he is familiar with your field of activity, and that he is able to make a critical judgment on your turnover assumptions. Also pay attention to the cost generated by fees which can quickly rise, especially if your project evolves after the first version on the forecast.