Business plan: Tips
Above all, a business plan is an instrument which describes the resources needed to bring a business idea to life.
A business plan provides information about a company’s past, present and future. It contains declarations, the market situation, the actions planned and financial requirements.
First, the document introduces the management, in broad strokes, along with the underlying ideas and objectives. Only then will readers—potential partners and investors—be able to get a detailed overview of the risks and opportunities of the business.
A business plan is also recommended when a business is on the verge of expanding or when it depends on the support of partners.
Layout
The business plan should be directed at its readers, offering those readers all the information they require to make a decision. Simple, clear tables and graphs should set out each main idea in detail (IFJ BusinessPlan Tool - The leading Swiss business plan tool).
A business plan is based on facts and estimates: a clear distinction should be made between estimated figures/scenarios and facts. For this kind of document, 20 to 40 pages with an appendix are sufficient (Free business plan templates (UBS)).
Drawing up your business plan
The business plan should contain the following:
- Summary: business idea, vision, strategy, management, products, market, financial planning, possibilities and risk; possible shareholding proposal.
- Company: legal structure and capital structure, owner, strategic and operational partners, management control, advisor.
- Management and staff: organization chart, responsibilities, management training and experience of key staff, staff planning and development.
- Products and services: detailed description of products and services along with usefulness to customer base, life cycle status, subsequent development and innovation.
- Markets: outlets (potential and growth), structure of customer base, number of sales envisaged, competitors, analysis of competition and market.
- Marketing: target markets and customer groups, PR, advertising, sales, distribution, product, service and price selection policy.
- Business risks: analysis of risk potential and possibilities, risks to be avoided or reduced.
- Production and infrastructure: site, production tools, capacities, warehouse, suppliers, calculations.
- Miscellaneous: patents and trademark protection, risk and insurance policy, public commitment.
- Schedule: deadlines, stage objectives.
Learn more
Templates and examples for drawing up a business plan
Entrepreneurs can use a preexisting template to draw up their business plan. Here are some examples.
When should a business plan be drawn up?
There is a whole series of scenarios which require a business plan to be drawn up. When setting up a business, for example.
Ten steps to a successful business plan
To create a good business plan, a certain number of criteria should be met. Here is an example in ten key steps.
Mistakes to avoid in your business plan
Weak points in your business plan can be avoided. Consider the following criticisms frequently given by banks:
Preparing for an interview with a bank
Something to be taken into consideration when it comes to interviews with banks: good preparation is key. Here are the questions most frequently asked by banks during interviews regarding credit:
What you need for a comprehensive business plan
Quite a few documents are required to produce a business plan. These vary depending on whether you are creating, expanding or restructuring the company.