Defined by a team, the business plan is a document presenting a development project in the short and medium term (3/5 years). It enables entrepreneurs to present their plans to investors simply and effectively.
WHAT IS THE PURPOSE OF THE BUSINESS PLAN?
The need for finance is undoubtedly the greatest requirement for an entrepreneur. But since bank loans are hard to come by, entrepreneurs have turned to alternative sources of finance, particularly venture capital. Venture capital, which is provided by investors for the benefit of a company, is an investment in the form of an equity stake.
The business plan is then used to attract investors in line with the company's development plans. Generally in search of capital to bring success to their business, company directors will use the Business Plan as their sales tool.
This tool is a simple, short and precise presentation of a business project, with the emphasis on the financial aspects. Its aim is to create interest, conviction and commitment. From an internal point of view, drawing up a business plan makes it possible to vectorise the action. In this way, you can take a step back, check intuition, determine needs, provide benchmarks for management and inform and motivate all employees. And from an external point of view, the business plan helps you stand out from the crowd, because presenting a business plan is more valuable to banks when they need financing.
QUELQUES CONSEILS ET BONNES PRATIQUES
To produce an effective business plan, here are a few tips and best practices to follow:
It is important to present your business plan in an attractive way, so that it is as clear and simple as possible. Your business plan is what will convince your partners.
In addition, you need to pay attention to the consistency of the planning, so that the deadlines are realistic, but also that the sales targets are consistent with your company's marketing measures, your staff planning or that investments keep pace with growth.
It is also advisable to present several scenarios in your business plan during the financial planning stage, with a realistic case and a worst-case scenario (a management scenario that costs more and earns less).
The business plan creates the conditions for a monthly control, i.e. a consistent comparison between objectives and reality (offers, orders, sales, costs and cash flow). It is therefore preferable to draw up a monthly report.
It is also important to update your business plan regularly, as soon as you have any feedback, so that you can adapt it to the current situation and to new priorities, in order to constantly improve your business plan.
Adding a summary to your business plan gives investors a brief and precise overview of your project, which will lead them to read your business plan if they are interested in your development project. This summary is the first document that the venture capitalist will have about you, and may well be the last, so it should not be neglected.
The business plan is therefore a document that must be adapted to each situation, in terms of content, form and timing.
WHAT A FIRM OF CHARTERED ACCOUNTANTS CAN DO FOR YOU
Drawing up a business plan isn't easy, so calling on outside help can contribute to the quality of your work. In this way, you can benefit from a critical mind and a certain distance from your project, which will help you to see the inconsistencies in your file.
To structure your approach, it is important to use a business plan template. To do this, an external person with a qualified viewpoint can help you to define the model that will enable you to draw up quality content with a good legal structure.
What's more, with the right support, you can secure your business plan by correctly estimating the financial requirements of your project, and then identify the most appropriate financing methods for your situation. Depending on this, outside help can also put you in touch with different investors and help you with your presentation pitch.
This support will enable you to increase your chances of success in drawing up your business plan.