Focus of a Business Plan
A good business plan does not necessarily need to be long. The most important factor is that you cover the relevant interest of your adressee.
Adressee - Who is iterested in your Business Plan?
A thorough business plan will help you reflect your ideas, but is also crucial when looking for investors.
You - Map out your Idea
The business plan is the ideal way to map out your ideas. By writing your thoughts onto paper you are forced to define your target group and their individual needs. Furthermore, you will look into your finances and determine where you spend money and make sales. By writing a business plan you will get an idea if your company is sustainable or not.
Future Partners - Convince of your concept
If you are looking for future business partners in financial or support activities, the easiest way to convince them is with a logically structured and conclusive business plan.
Banks – Obtaining Loans
If you need to borrow capital from a bank they will always want to look at your business plan. They will assess the plausibility and productivity of your start-up, thus determining their return on investment. For that reason your business plan should also look the part (i.e. layout, pictures, graphics etc.). If the bank decides to invest they will want to know your ability to meet financial obligations and a guarantee of payment of loan. A thorough liquidity planning is therefore essential.
Equity Investors – Seed and Growth Capital
A thorough business plan is also helpful when looking for equity. Especially business angels and venture capitalists will want to see your plan. Investors will be interested in the value of the equity, the offer for participation and expected return on investment.
Public and Private Sponsorships - Winning Prize Money at START-UP Competitions
In most start-up competitions you can win seed capital without having to give away a share of your company. Your start-up is mostly assessed by a panel of experts and compared with the competitors. A thorough and flawless business plan will increase your chances of winning.
A good business plan does not need to be 40 pages long. We recommend keeping it short and concise. These are some of the factors that determine the focus of your business plan:
- Stage of development: Is your company a classic start-up or a developed firm?
- Circle of addressees: Is your business plan intended for investors, potential partners or simply to review your own effectiveness?
STARTUPS.CH recommends drafting your business plan as shown below:
- Before and during their company foundation, entrepreneurs tend to doubt their customers, their competitors and their own strengths and weaknesses. This is mostly due to a lack of information or experience. In this stage you should avoid detailed planning and focus on fundamental tasks such as market analysis as well as strategic and operational planning.
- On your path as an entrepreneur you will gain experience and information when in contact with customers, suppliers and competitors. This will allow you to deepen your initial fundamental planning and support the growth of your start-up.
- Top tip: One of the biggest mistakes is extensive planning before you launch your start-up, and then trying to stick to your plan at all costs. It is important to adapt to your surroundings and be open to changes. That way the experience and information you gain will really benefit your business.
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