The business plan, or the business plan / plan in Greek, is the cornerstone of every new business venture. It is the document (text) that describes the business idea and philosophy in detail and clearly. It states what the business is about, what the goals are, and how we will implement them. It is an action guide for transforming an idea into a financially viable business.
Before starting a new business or growing an existing one, it’s important to have a workable business plan. Not only is it the best way to set yourself up for success, but it can also help you identify risks and weaknesses in your venture.
How many types of Business Plans are there ?
There are many examples of business plans with different structures online, but every time you use one you should be aware of the following:
A business plan is an important tool that serves a specific purpose and targets a specific audience.
The needs of startups seeking financing from investors are different from those of businesses with established brands that want to develop new products/services with their own funds, while the needs of small businesses seeking financing from banks are also different.
External Business Plan (for financing)
These types of business plans are addressed to individuals and organizations outside the business. Whether it is a business that is operating or not, we use business plans to attract capital from investors or from banking institutions. The most important factor in developing this plan is to know who we are addressing and what the goal is. We will use different elements for a new business idea when we address an investment fund, different elements when we ask for financing from a bank.
Internal Business Plan (for management)
This business plan is intended for internal use by existing businesses who want to use it as a management tool or when launching a new product or service. It is a document that assesses the current state of a business, its operations, financial goals, and performance.
We plan together your path to success
What does a Business Plan include?
Summary
This is the overview of the business idea and should be short, concise and easy to understand.
When writing a summary, keep in mind who and what we are aiming for. This is the first part someone will read and we need to pique their interest. In the summary, we can document
- What need does the business idea meet or what problem does it solve?
- How much value does someone gain by purchasing the product or service?
- What is the purpose/goal of the idea?
Description of the business and products/services
This is about the description of the business, the size of the business, the products, services, human resources and the added value we provide to our customers.
To describe the business and development potential in detail, you must be able to answer the following questions:
- Where is the business located?
- What will be the size of the business?
- What spaces does the business have?
- What is the entrepreneur’s experience?
- What benefits will arise from operating the business?
- Who will be the business partner – external or internal?
Market and competition analysis
In market and competition analysis, we should focus on the business environment, the economic conditions of the market, consumer habits, competition and how to react.
Implementation strategy
One of the most crucial parts of our business plan as it contains key ideas for the development of our business idea. We should clearly define the action plan, the management plan, and the marketing plan. Through these elements, we will be able to ensure that our vision becomes a reality.
Resources
At this point we analyze the financial, technological and human resources we will need. We should be able to answer questions such as
- Where will we get the resources to start our business?
- Who else will help us start our business?
- What technology will we use to start and operate our business?
Financial Forecasts
Financial estimates, such as revenue, expense, cash flow forecasts and profitability analysis.
How useful is a Business Plan?
It all starts with an idea. The conception of our ideas often fills us with excitement and hopeful anticipation. The next stage is to write the idea down and start thinking about how to make our idea a reality. That’s why a business plan is as useful as oxygen is to a person. It is useful for both a startup and an existing company.
Developing a business plan is not just a formal process, but a critical tool that guides the business towards success, helping to organize, make decisions, and secure the necessary resources for its development.