7 GOOD REASONS TO WRITE A BUSINESS PLAN
Described by some, the business plan remains an essential document for business creation. It is a must for any entrepreneur who wishes to obtain a public subsidy or raise funds from private investors. Here are 7 good reasons that justify writing a business plan.
REASON 1: YOU WRITE A BUSINESS PLAN BECAUSE YOU NEED IT!
The basic reason why any entrepreneur writes a business plan is very simple: it is written above all for himself . Indeed, this formal document requires you to reflect on the project, the marketing and commercial strategy that you wish to apply, the income generation model (the business model ), the financing needs, the resources that you will have to commit, the risks that this includes, ways to get around them, etc. In short, because it requires all this information to be written down, the business plan forces the business creator to reflect on all the dimensions of his project .
REASON 2: THE BANKER WILL NECESSARILY ASK YOU FOR A BUSINESS PLAN
It is the rule. The banker will always ask you the fateful question: have you made a forecast ? The business plan and more specifically the financial statements will serve as the basis for granting a loan. The banker in addition to ensuring the ability of your company to repay the loan over the term of the loan will want to inquire about the forecast of turnover in your activity, understand the sector in which your offer will evolve and measure the consistency of your financial information.
REASON 3: ESSENTIAL TO CONVINCE INVESTORS
Participating in a business creation competition, meeting business angels or venture capitalists, are all situations that require the drafting of a business plan. Even if not everyone will read it in detail (hence the interest in taking care of its " executive summary ") you will still need to provide this document which acts as an "application file". A well-written business plan can promote your "file" and speed up your fundraising .
REASON 4: A BUSINESS PLAN IS A GUARANTEE OF SERIOUSNESS OF YOUR PROJECT
Having a business plan is a guarantee of seriousness of your project and reassures your interlocutors. This shows that you have seriously thought about your project and that you have mastered the ins and outs. In addition it allows you to value yourself.
REASON 5: MAKING A BUSINESS PLAN IS SIMPLE AND INEXPENSIVE!
Writing a business plan is not necessarily a professional matter. You can get help from a chartered accountant or an economic development agency on specific points, but you don't have to be an accounting expert to do it. Our website offers a free tool that allows you to write this strategic document in full. You are guided step by step to obtain a business plan of professional quality and "ready to print". To get started easily you can use our sample business plan .
REASON 6: THE BUSINESS PLAN CONFRONTS YOU WITH REALITY
Too many entrepreneurs postpone the moment of analyzing the financial tables of their future business . Convinced that their idea is revolutionary or simply because of a lack of skills, he abandoned this essential stage of the project. It is indeed vital to build a sustainable and healthy business. The drafting of the business plan requires taking into account the financial tables and immerses the entrepreneur in the figures, projections and calculations of ratios.
REASON 7: IT HELPS ANTICIPATE RISKS AND THREATS
As of the creation of a company it is necessary to prepare to face the various external factors which could harm your activity. The business plan offers a strategic view of the environment and the activity of the company. The use of methods of strategic analysis of the company such as the SWOT matrix or the model of the five forces of PORTER make it possible to analyze and thus anticipate the risks and potential threats on the project.