Business plan - what should be the best?
What is a business plan?
A business plan is a term derived from the English language and means a business plan, a business plan. It is created for planning purposes, both for internal and external needs of the company. Its main task is to assess the profitability of the planned economic undertakings.
A well-prepared, transparent and reliable description describes both current and future business activities. A solid business plan should contain information on the anticipated opportunities and threats, a financial analysis that reliably presents business opportunities and threats, and financial calculations showing the current (if any) and planned financial results. The scope of a business plan varies and depends on the purpose for which it was created and the scope and size of the business.
It is worth emphasizing that the business plan should contain only relevant information that may be important to the person assessing it.
The main goals of the business plan include:
- detailed description of business ventures planned for the future;
- proving that the entrepreneur has the necessary skills, experience and competences to ensure the success of business intentions;
- acquiring external sources of financing.
Who can make a business plan?
A business plan can be written by the entrepreneur himself or by an external company entrusted with this task.
An entrepreneur who writes a business plan on his own will certainly be better acquainted with some issues, because he knows his own company (if he already runs it) and knows in what direction he wants to develop it.
However, a contractor or a company dealing professionally with writing business plans will be able to make all kinds of analyzes in a more accurate and faster way (SWOT, financial analyzes, etc.). Their assessment of the situation in the company and its development opportunities on the market will certainly be more objective than the entrepreneur himself. And it is the distanced evaluation that is most important here.
It is up to the person running the business to decide who will draw up the business plan. If she feels up to it and knows that she can cope with such a task, she should prepare it herself. However, when the entrepreneur has any doubts, it is better to report this task to a professional company dealing with this subject.
Rules for the preparation of a business plan
The business plan should present:
- the current situation of the company,
- company plans,
- justification and ways of implementing the presented plans,
- the results achieved thanks to the implementation of these plans.
There are 9 basic rules for preparing a business plan:
- complexity,
- long-term,
- adequacy,
- readability,
- reliability of assumptions and data reliability
- variants,
- flexibility,
- participation of management staff,
- confidentiality.
Complexity
The business plan should cover all the most essential aspects, such as:
- sale,
- recipients and suppliers,
- costs,
- outlays,
- sources of funding,
- organizational structure,
- employment and others.
Sustainable
It is desirable that the business plan covers several years (from 3 to 5) in its scope. However, due to the purpose of creating a business plan, it may only be for a few or several months.
Adequacy
A business plan should be adapted in terms of form and content to the purpose it serves, as well as to the requirements and needs of its recipient.
Readability
The business plan must be legible and have clear conclusions. In order to provide it with these features, it is worth using tables, drawings, diagrams, charts, diagrams that illustrate the issues discussed. It is very important to maintain the correct order of the issues raised. Using overly specialized language is also undesirable.
Reliability of assumptions and credibility of data
This is perhaps the most important principle in creating a business plan. All data and information should be true and supported by appropriate evidence and actual analyzes. The recipient's encounter with false and false information may result in the entire business plan being critically assessed by its recipient.
Variation
It is recommended to include several ways to achieve the goals set out in the business plan.
Flexibility
The business plan should be prepared in such a way that it is possible to make adjustments to it during the implementation of the project.
Participation of management personnel
This applies to the business plan of a company already operating on the market. In such a situation, it is impossible to complete it by external consultants. Managers should define goals and main assumptions.
Confidentiality
The business plan contains a number of business secrets and therefore should not be made widely available. In such a situation, it is worth ensuring that you draw up an appropriate confidentiality agreement before handing over the business plan to the recipient.
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Business plan recipients
The main recipients of the business plan are banks and state or local government bodies. The next in the string are investors, business partners and company owners. For all these entities, the information contained in the business plan is extremely important as it is the main source of knowledge about the company. And there is no need to hide, they have an impact on whether the company will receive a loan or subsidy and whether investors will want to invest in it.
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