Making a business plan: is it really worthwhile?

There are many articles to praise the positive effects of the business plan but on the contrary there are also many articles to praise the business plan! Regardless of the time you allocate to complete your business plan, your business plan is subject to time fluctuations and changes. Why? For the simple reason that, by definition, it is impossible to predict how a new activity will develop, if it will find its customers, how long before it will be successful. One may wonder if it is really worthwhile to spend time writing it.

The business plan: no simple case

You have already opened several clothing stores in different districts of Paris and you have a wish, due to your success, to open stores in major cities of France and therefore you are using your business plan to model your new store and you carefully follow but you have forgotten that the clients in the provinces are almost not the same as the clients of Paris and there you struggle with a big obstacle.

In conclusion, your business plan is almost unrealistic. But is that reason enough not to? The answer to this question is clearly “no” and for some reason.

What is the content of a business plan?

But let’s start by remembering what constitutes a business plan or business plan? It is a document that explains in a structured way what the future entrepreneur wants to achieve, when, to whom, what it means, aimed at what the results are and how his project can survive and profitable. The project leader details in particular his future activity, his products or services, his market, the risks they have incurred and how he expects them, the key stages of development he is thinking of, the model of profitability, the group he surrounds himself.

The business plan: 4 good reasons to carry it out

In its nature, the business plan makes it possible to meet 4 objectives:

  • the 1st goal is, for the entrepreneur, to verify the viability of his project by ensuring that every aspect that constitutes it (legal options, financial means, commercial strategy, industrial tools, communication media , human resources, etc.) became the subject of in -depth reflection, in which risks were measured and solutions found.
  • the 2nd goal a business plan will make it possible to obtain the financial resources necessary to launch and execute the project. Whether it’s a loan to finance the purchase of equipment or a need for financing a cash flow gap or an investor’s return on capital, it’s necessary to convince anyone with the money to put it into your company. But you are far from lonely. The requests are overwhelming. Bankers and investors are thus able to make a choice based on their criteria: minimizing their risks while maximizing their profits. For this, they want to know where you are going and you will need detailed, argumentative, concrete and verifiable data in support, to get their support for your project. The business plan is used for this.
  • the 3rd goal A business plan will convince your partners to trust you: a supplier, a service provider, an incubator you want to include, etc. Everyone wants to make sure of the seriousness of your project first: so reassure them, show them your business plan. Your professionalism will be a valuable asset.
  • the fourth goal A business plan is to allow you to follow up on your project. Feel free to update it over time and as you progress. It will serve as your compass, showing you the direction to follow, to always stay in control aboard your ship.

Not making a business plan means taking the risk of going wrong on some level

If you do not draw up a business plan, you are therefore depriving yourself of the possibility of more thoroughly verifying the seriousness and feasibility of your project, of finding the financial resources necessary for the realization of your project, of convincing to the partners who need to follow you, to have a tracking tool for the implementation of your project. Isn’t that embarrassing?

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