Business plan

The term business plan (English business plan ) means a written document of about 10 to 50 pages, describing a business opportunity as well as measures to be taken to take advantage of this opportunity. A business plan is necessary both for self-employment as well as for strategic and operational planning for existing companies. The starting point is a marketing plan usually. This is complemented by other sub-plans; including the procurement, production, personnel, research and sales plan. Then there is the financial plan, which includes an estimate of the necessary financial and human resources ( costs) and the expected revenues, thus the cost of the investment expenditure can be assessed. A business plan is based on internally agreed targets and at the same time means of communication by private or public investors such as banks, venture capitalists ( Venture Capitalists ), business angels, partners ( in mergers ) or corporate bodies that decide on the release of funds, to convince.

Benefit

A business plan has the following advantages:

• It helps to convince others of the planned projects: If someone has worked out a business plan, it can be assumed that he mentally intensively engaged in the project and the serious intention to implement the project.
• It is essential to raise capital: Without representation of the economic viability of the concept, it would be extremely difficult to attract investors.
• It gives the possibility to monitor success: The plan is the starting point for each controlling. Each step can be traced. Any deviation requires a review of the possible adaptation of the plan. When imbalances that appropriate action can be initiated early.
• He forces them to systematic procedure: When creating a business plan, the author is forced to think things through logically and systematically. Knowledge gaps are visible. Problems are identified. Decisions must be made. It must be considered alternatives.
• He gives an overview: The finished business plan pieces together into a whole. All parts must fit. The dimension of the planned project is visible.
• It increases the chances of success: a construction would begin without no blueprint. This means that a pre- elaborated business plan which to develop a business idea a lot easier. The fact that the chances of success rise through the creation of a business plan, is now confirmed by the practice. For a faulty plan, serious deviations from the plan or a non-existent plan are the most common causes for the failure of a foundation in Germany.
• It helps to better assess risks: The implementation of a business idea is always associated with risk. Risks may arise within the company or from the market. Risks can not be ruled out. But careful planning and an awareness that in either case there is a risk the negative consequences that soften considerably. Identified risks can, for example, by financial reserves are reduced or eliminated.
• It helps to identify dependencies: Even if a business plan is divided into individual blocks, so it's important that all the chapters fit together content and the project is consistent. Thus, statements about the target group impact on the marketing plan. The communication plan must be found with corresponding figures in the budget again. Planned revenues affect the capital requirement. If the business plan is completed, it becomes clear whether the end fit together all the chapters of a business plan.
• In line with this development, a company handbook for the subsequent entrepreneurial activity is often designed from the business plan.

Areas of application

Whenever a business idea to be put into practice in a start-up project, a business plan is needed. It does not matter how extensive is the start-up projects. If someone opened a flower shop, the person just needs a business plan as if a new innovative production process was developed. The questions are the same. Only the scope of the plan will vary. But start-ups are contrary to popular opinion now no longer the only scope for business plans. Especially in large corporations, it is now standard practice to work for product launches, expansion or acquiring companies with the tool " business plan ".

Business plans are used in the following occasions:

• Start-up
• Succession plan
• Company sale or acquisition
• Structural change and realignment
• Fusion
• Cooperation
• New Product Introduction
• Expansion into other markets
• Capital
• IPO
• Application for public funding
• Obtaining of credit expansion in the banking
• Investment decisions
• Strategic planning and plan update in operating activities

Species

If the different applications for business plans to be clarified, it quickly becomes clear that not all business plans set the same priorities. Thus, a company's internal business plan content other than a plan for a start-up. In -house plans, for example, the management team must only briefly or not be described. When figures can usually be made to the internal controlling instruments. A plan for new product introduction has its focus on the issues of market, competition, marketing and sales. In succession plans, acquisition financing and the competence of the successor must be focused. But even with foundation projects, the business plans differ depending on the phase of the company's founding. There is the short plan of the start-up phase and a detailed plan in the foundation phase. In common parlance, but is always the detailed plan we mean when we speak of a business plan.

Construction

Which chapters or components should include a business plan exactly, no one has yet clearly defined. Influenced by American models, venture capitalists, business consultants, business plan competitions and performances of banks or public conveyors, however, a largely standardized outline of a business plan has been developed in recent years. This standardization allows potential investors on the one hand, to compare different business plans of different companies. On the other hand, can thus be ensured in the creation of a systematic and analytical approach of the author. The order of the sub-headings or chapter structure can vary in individual cases. The relevant contents, however, are defined almost everywhere the same. A professional business plan should include the following sections:

Some investors or contests require in business plans nor a schedule. This should be created but it is not necessarily part of the business plan itself. Due to the frequent updating, it is often useful to integrate it into the business plan. In doubt, the receiver of the plan should be asked whether a schedule is expected.

Scope

How large should have a business plan, can not generally specify. If a business plan for a start-up projects with a strong local reference is created (eg: craft business, restaurant, retail store, internet cafe ) is a volume of 5-10 A4 pages properly. If it is a foundation of regional concern (eg: IT services, shipping, agriculture, trade ) should be 10-20 A4 pages suffice. When national or international reference and the need dazuzuholen larger external investors, the remarks should be made to 20-40 pages. More than 50 pages are critical, as there is hardly an investor or other decision-maker is willing to delve into much detail a plan. Venture capital and private equity investment companies get about 500 to 1,200 business plans per year sent to you. On average, investors take 8-12 minutes per business plan time for consideration. If someone has deepened interest, he will get additional disclosures required of a personal interview.