The essential elements of a business plan

The business plan, the key to creating a business if it is successful. This document outlines your project and should attract future investors, customers, partners, etc. according to their objectives. To present a most reliable business plan, here are the essential elements that should not be missed.

What is the business plan?

Here you are, you and your project are ready to embark on a business adventure. A new mission is in front of you: convince people to invest in your project. To achieve this, you must have a business plan, a document that answers many questions about your company, your services, your future customers, your strategies, etc. A set of elements must be included in your business plan so that it is the latest. convincing. It remains a confidential document, specific to the company and contains important information, be careful not to make it accessible to everyone.

You will need to write an operational summary

This is placed at the beginning of your business plan and should not exceed more than three pages. This part is mainly there to save time for your interlocutor by summarizing the strong points of your project and for you to want to read more. Therefore, it should provide an overview of your project/company so that the reader can get the first idea. Start by showcasing your company and its brief history. Emphasize the points that set you apart from the competition and show your business model, your strategy and your predictions. Don’t forget to mention the amount of funds needed for the success of your project. These points will be developed in detail in subsequent sections, but should be included in the first presentation.

Present your product or service properly

In the beginning, be sure to showcase your products or services, their features and their performance. What specific market needs do they meet? At what stage of development are they (model, patented, ready to sell)? What technologies or materials make up it? What needs does it meet? A set of elements that must be presented in a clear and concise manner. Tell yourself that the investor knows nothing about your product and your sector. Make them discover him in a simple way so they keep all the data. To the simplicity of this explanation, add a touch of originality: do not forget that your main mission is to attract your potential investor, make him want to try the experience next to you and not with your competitors.

Conduct rigorous and relevant market research

Showing the market where you want to position yourself remains important. What better way to do this than to offer a market analysis? Sometimes it is expensive, it is mainly a great way to analyze the strengths and weaknesses of your company to impose itself on the market. Don’t let this element give you credibility to investors from the moment it is conducted with purpose. The latter must be carried out in a strict and reliable manner. Also remember not to remove the presentation of competition that is already present in the sector to describe later how your offer differs from the existing one.

Target your future customers

Your product meets a real market demand, that is a fact! But who are the consumers who feel the need to buy it? Again, don’t aim too broad, segment your potential target for refinement. Detail the characteristics of your customers to justify the interest of your offer in relation to their needs and describe your primary target.

Show the main figures

Show your investor that you have a long -term outlook by forecasting your company’s key numbers into the future: estimated costs and revenue, revenue statement and forecast balance, as well as the breakeven point, the threshold at which the your profitability. These estimates should be made over several years (5 in general). All of these financial forecasts are in line with your funding plan. To form this, all you have to do is answer the following questions: What is the desired sum? What proportion of capital will be offered in return? What type of shares will be offered to investors? What funds will be allocated to different positions (technology, advertising, marketing). Feel free to mention the elements that promote the profitability of the project and show that you know where you are going. A calendar can complete your data. List the different dates and the goals to be achieved. This way, the investor sees how fast the project is progressing in order to succeed.

Highlight your team and your ability to manage

First of all, show your company (company name, date of creation, location, legal form, history) but not only. Your team should also be included in your business plan. Highlight the positions and skills held by each of your employees and emphasize their strengths by summarizing their CV (training, experience, network) which you will add as an appendix. The success of a project depends primarily on those who lead it. Working with a trustworthy and experienced team remains a key asset for your future investors that will put more confidence in you. Also show that all necessary skills are met: commercial, technical, financial….

Define your strategy

Establish your plan of action! What marketing strategy do you want to use? What are your production methods? How do you organize your research and development? What is your business action plan? A set of answers to include in your business plan that describes your path to success, make sure they are relevant.

A business plan represents your company’s reflection on your future investors. Fine-tune it as much as possible to cover them.

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