Every entrepreneurial or business project must be written down. This is the very first thing that marks the beginning of entrepreneurship. Any entrepreneurial project that is not written down cannot really be very successful. But what is a business plan and why is it so important to do it? The answer in this article.
Business plan: What does it contain ?
The business plan is also called the business plan. It is the transcription or writing of the project or business idea. It is an almost indispensable step for anyone who wants to get on the entrepreneurial train. It includes the basics of the creation, from fundraising to the actual setting up of the company and its possible teams. It is a document structured in two stages, the first of which has an economic vocation and presents the business model, the market and the team, and the second of which has a financial vocation and presents the balance sheet and the provisional profit and loss account, cash flow plan and financing plan.
The fundamental reasons for doing a business project
There are many very good and necessary reasons why an entrepreneur should write a business plan. The reasons are among others
– To structure the original entrepreneurial idea or to put in writing his business project, both economically and financially: it allows to measure the profitable scope of the project in its configuration the financing to be mobilized in order to implement the said plan.
– Communicate with partners: The business plan is very important for communicating with future partners. It is a support that allows the entrepreneur to convince investors or partners to invest. It will be the basis for negotiations.
– The business plan is a means of steering and managing the business: Without the business plan, the entrepreneur will find it easier to steer his project and manage the start-up of his business.
– Determine your main objectives: Another reason to do the business plan is to define the main objectives of your business.
You have just learned the basic reasons for writing an entrepreneurial plan before starting your business. However, it is important to update the business plan regularly according to the results achieved and the evolution of the business so that it remains an effective tool to support the daily management of the business.