The business plan is also an excellent means of forecasting, it allows you to set your objectives, so it has a double utility, for the entrepreneur and the investor. In your entrepreneurial projects, you must refer to this document, which will define your company’s basis and strategy. The business plan is, therefore, essential for:
The business plan is not a mandatory document in the design of a project. It is generally used to convince and to obtain external financing, via investors or financial establishments. Without a business plan, even with all the goodwill in the world, your chances of raising funds are close to zero. Imagine that your employee asks you for an advance without argument.
The credibility of the project
To evaluate a project, the business plan is the reference document that will determine its feasibility. Your capacity will thus be assessed according to him, but also its viability. It is analyzed down to the smallest detail to determine the stakes and whether it is viable in the long term. Can you imagine an application for a job without a CV?
An indicator of your abilities
If your business plan is perfectly set up, you are more likely to be credible in obtaining financing. You can then detail your experiences and skills. Thus, even if you are a new entrant in entrepreneurship with a properly set up business plan, you have the same chances as a professional to find financing. Which bank would trust an insolvent borrower?
Presentation of your project
For fundraising via financial institutions and other credit funds, the establishment of a business plan is mandatory. To convince your project, you must know how to convince your business plan to help you defend your project as well as possible. As a politician, you must know how to get elected.
To help you in your objectives
The business plan also allows you to follow a roadmap for the proper functioning of your business. Indeed, the objectives that you set are established above in advance, you plan your strategies and determine your situation accordingly. It is one more motivation to respect your ambitions.
To better manage your business.
The content of your business plan contains the structure of your future SME but also the management of this one. You thus determine the human and material resources to run your business. For example, you can precisely determine the number of personnel and investments.
Determine your marketing strategies
It is important to have a guideline in business; this is how you can know if you are progressing according to your goals. The business plan can, for example, fix the business strategies you are going to undertake but also your marketing approach. Which bank is going to lend to a person who has no clear strategy?
Concrete analysis of your project
This document is generally entrusted to business plan professionals for its realization. This professional will thus carry out a concrete analysis of this project and its reliability. You thus have pragmatic figures, but also statistics and various studies that will allow you to better analyze your project. With a business plan, you can think more clearly about your project and the risks it may present.
You increase the chances of success of your fundraising
This document is essential to your donors. You thus multiply your chances compared to a file that does not contain a business plan. However, it will have to be established in the standards and that it be fundamentally plausible. Pay particular attention also to the form so that it is easy to read.
In short, establishing a business plan is more than necessary to be granted funds. Traditional institutions make this document an imperative for a financing file.