Business Plan (Business plan) is otherwise known as a plan for the development of your business. It can apply to the company as a whole as well as to a specific, smaller project implemented within the business. So, it is a study that will be useful for both new companies and existing ones that want to develop in new areas.
It is a document with a wide range of uses. You can use it for your own purposes as well as for obtaining funds from an investor or a bank. In addition to the advantages associated with having a developed business plan, there are also significant disadvantages of not having one. In particular, insufficient study of the activities of competitors, the situation on the market or the real needs of customers, may result in the lack of success of the project.
Even if you're an expert in your field, when opening a business it doesn't hurt to plan future activities in detail. You can do it on your own or entrust the implementation to specialists.
If you are opening your own business or developing an existing one and want to write a business plan or learn more about it, you are in the right place.
Whether you are thinking of launching a business in Poland or abroad, the scheme of the business plan will always be similar. The nature of your product or service does not matter.
Moreover, it will also be similar for a version prepared by an American or Asian. There are unified standards in this field all over the world. This is quite an advantage if you are thinking of expanding abroad or attracting foreign investors.
In this article you will find all the most relevant information related to the creation of a document such as a business plan (business plan). If you still do not find the answers to your questions, write to us!
The business plan (business plan) defines the company's goals and how to achieve them. This document is a roadmap outlining the path to the success of the enterprise. A business plan (business plan) contains a vision for the development of the company over the next few years. It can also be described as an outline of the company's goals, a description of how to achieve these goals set in a specific time frame.
In order to write a business plan, it is necessary to conduct relevant analyses: financial, competitive, market or develop a marketing and sales strategy. A precise schedule of activities is also important.
A business plan is usually created for in-house (internal) purposes or to persuade people outside the company's structure about the project. Often the document can be used for both the first and second purposes.
Examples of using the business plan for internal purposes:
MBO (management by objectives) is the process of agreeing on goals (which may be detailed in business plans) in an organization so that management and employees agree on the goals and understand what they are in the organization.
Strategic planning, on the other hand, is the process of an organization determining its strategy or direction and deciding how to allocate its resources to implement that strategy, including capital and people. Business plans can help decision-makers see how specific projects relate to the organization's strategic plan (broader vision for development).
TQM (total quality management) is a business management strategy to build quality consciousness into all organizational processes. TQM is widely used in manufacturing, education, but also in call center operations, government or service industries, and even in NASA's space and science programs.
In all of the above processes, business plans are used.
However, the most common purpose of using business plans for personal use is simply to verify the viability of a particular venture. The time and money involved in developing a business plan is far less than the cost of launching a business. If only for this reason, it is worthwhile to execute one. It will also significantly increase the chances of successful implementation of the venture.
The most common case when an entrepreneur decides to write a good business plan is a requirement from an external investor or institution. The entrepreneur is often concerned with finding a source of funding for the project. And these are the following entities (sources):
All of the above-mentioned entities in 90% cases require a business plan or similar document. In the case of EU subsidies The proposal usually takes the form of a business plan. In contrast, private investors prefer investor presentations (pitch decks). Banks granting investment loans still expect the traditional form of a business plan, described in detail in this article. So, the chances of success when applying for external financing, without a business plan, are almost zero. Entrepreneurs are aware of this and often entrust the execution of the document to external experts.
A business plan for a professional investor, should clearly answer some basic questions such as:
If, on the other hand, you apply for a loan, the bank must be convinced that it will be repaid. Therefore, financial analysis includes an additional element - a loan repayment forecast.
The strategy of writing a business plan for an investor includes the goal of obtaining financing. Thus, regardless of the objective quality of the idea, the business plan usually presents the project in a positive light. Of course, with the necessary dose of reason and moderation.
In the case of business plans created for personal use, the priority is to maintain objectivity in the assessment, and even the proverbial "looking for a hole in the whole", in order to actually anticipate in advance any potential risks.
An example of the layout of an elaborate business plan is as follows:
Regardless of the aforementioned structure, virtually every business plan contains basic elements such as:
Often additional optional elements of the business plan appear in the body of the document. These are, for example:
Separate attention should be paid to the financial model. It should include break-even calculations, in addition to other standard elements such as the balance sheet, income statement and cash flow statement.
When planning a business, think very carefully about the costs it will generate. Remember, too, that revenues are usually uncertain, so you should forecast them with caution.
How detailed the business plan will be in the end depends on you or the expectations of the addressee who requires it. There are no standards here. A business plan can be included in a simplified version even on one page (the so-called "business model canva") as well as on several hundred pages.
A good example is market analysis. It can be done very superficially and have one page, but for the same industry, some companies create entire reports. Market analysis is then even several hundred pages long. And yet there are many more components of a business plan.
The key is the objectives for which we want the business plan to serve. As a rule, the more detailed the study the better, but there is no point in overdoing it either. If the document is several hundred pages long, hardly anyone will have the time or inclination to read it. Most of the information will be left out. Therefore, it is important to find and clearly present in the document those most relevant data and information.
A pitch deck or investor presentation is nothing more than a business plan presented in a different form. More visual and abbreviated. It is a presentation that usually contains a dozen slides and is supplemented with a financial model in excel.
Pitch deck is a form of business plan preferred by private investors (especially VC funds). It presents the current state of the company and plans for development. It is most often created by startups, regardless of industry or business specifics.
Some components overlap with a traditional business plan. Example of a pitch deck structure:
You have a business idea and sit down to create a business plan. Where is the best place to start?
Usually the beginning of the document is information about the company's data and the general plan of your venture. Knowing your product or service, you can easily describe it in a comprehensive way. This section is very important, as it de facto presents the object of your business, in part also the business model or the syllabuses responsible for implementing the project into reality. Describe the product (service) clearly
The financial plan is best left for the very end. This is a largely separate element of the document from the narrative section.
You can check your competitors on the Internet or test their services as an "anonymous customer," many companies do this. This way you will see for yourself what are the strengths and weaknesses of the product they offer.
To develop a market analysis for a particular company, first define that relevant market. You may also want to familiarize yourself with the definitions of terms such as TAM, SAM and SOM, which refer to the methodology for developing market analysis. What the general trends in the market are is often crucial to the execution of a venture beyond the next few months. Business does not operate in a vacuum.
A SWOT analysis is easiest to do at the very end, already knowing the competition, market, industry trends and other relevant business factors affecting the company. In it, describe strengths and weaknesses, as well as opportunities and threats.
Sales strategy is a very important part of a business plan. Think about how to select sales channels for the identified target group. It is important to start sales as early as possible, preferably even before you are fully operational. You can collect orders in advance or make preliminary agreements. This will secure revenue from the very beginning.
Acquiring customers is your most important and urgent task. And really the only objective measure of business success.
Another important element is the marketing strategy. You can develop it yourself or in cooperation with an experienced agency. If you create the strategy on your own, it is best to use already proven solutions in the industry. You will probably be able to find examples on the Internet.
In a situation where you don't want to spend money on hiring professionals to write business plans (costs), use the information and tips in this article. You can also look for examples of ready-made business plans on the Internet. Remember, however, that free templates are usually of very low quality. It is important to approach the creation of a business plan in a serious and responsible manner. When you want to develop a really good business plan, you need to devote at least a few days to this task.
If you want to write a business plan on your own for your planned venture, consider some additional tips.
First, take the time to thoroughly analyze your market and competitors. Check out the alternatives to your product or service. See what their strengths and weaknesses are.
Remember that every business depends on successful sales. You need to verify real demand at the earliest possible stage. Don't ask your family or friends for their opinion. It's better to get information from strangers who could become potential customers.
A very basic financial analysis is something you can do on your own without expertise. Think about the costs you will incur. If you slightly overestimate them nothing will happen. A reserve will then remain. The financial plan is a key element of the document, so it is worth paying more attention to it.
Try to objectively assess opportunities and threats. The point is not to point out only the strengths of the project, but also to point out objective weaknesses. E.g. lack of necessary capital, lack of business/industry experience, or product/service weaknesses.
You may be a proponent of handing over the process of creating a business plan to outside specialists. If so, pay attention to several factors in your decision.
Prices for business plans range from a thousand zlotys even to several hundred thousand zlotys. The pricing is influenced by the level of complexity of the business plan, but most importantly by the brand of the contractor.
Freelancers or students who make their living this way will accept any assignment for a low price. Unfortunately, this is often followed by relatively low quality. The sales process of such a person is focused solely on getting the order - often at any price.
Large consulting (advisory) firms, on the other hand, demand very high rates because of their recognized brand. In many cases - internationally recognized. One pays mainly for the signature or stamp under the document. The quality of the plan is, of course, high, but whether for the client it is high enough considering the gigantic expenses incurred is left to individual judgment.
In between the above categories, there are smaller consulting firms that create business plans priced from a few thousand zlotys to tens of thousands of zlotys, and it can be pointed out that this is the market standard.
No less important aspect than an attractive price is experience. It is best to ask a potential contractor questions about this aspect. Great if he can boast of numerous references from previous clients. Ideally, if the service provider has already worked for companies with a similar business profile.
Usually when commissioning a business plan, you have a choice of several companies. I recommend choosing a company that operates transparently. It shows its clients, and the website shows people working as a team (not fake stock photos from the Internet). Quick contact (responsiveness) is also important. Offering complementary services will be an added advantage. For example, support in raising funds for the entrepreneur. Despite appearances, few companies meet all these criteria.
The contract should safeguard your rights. E.g. regulate what will happen if the content of the business plan turns out to be far from your expectations. It is important that the contract precisely defines the content of the business plan. This way, you will avoid possible disappointments. For a good consultant, final satisfaction with his services is as important as for you. The chance that you will then recommend him to your friends grows.
If you need a business plan for the employment office, describe it directly from the start. Do the same for a loan or funds from another source. As you already know, business plans are very different. Most companies do not take applications to the labor office, because it is not profitable. This is just an example. The better you present your needs, the faster you will find a suitable contractor.
Most budding entrepreneurs are oversensitive about protecting an idea. Well, 99% of consultants, advisors and other people you tell about the business will not copy your idea. The reason is simple - an experienced entrepreneur knows that the idea itself is 1% of success, the rest is execution. Therefore, don't be afraid to talk about your business. You can, of course, keep the individual, sensitive parts of your idea secret, but don't be afraid to present the concept.
It is definitely worthwhile to draw up a business plan for your own company or a commercial project in which you are involved.
Business plans are created differently for external audiences such as banks or investors, and for your own purposes. Precise definition of the goal at the very beginning is very important.
No one is interested in long studies in which the author "pours water" with complicated language, which is not followed by concrete data or actions. It is better to write shorter, but clearly present the value of, for example, relevant data or solutions planned for implementation.
If this is your first business plan ever, consult the final content with someone more experienced. You will make sure that the content (the various parts) conforms to accepted standards. This is especially important if the business plan is to reach the desk of a third party. First impressions are made only once.
Your business plan is your business card. Try to make sure it is done in a professional manner. It is not only the content that counts, but also an attractive, readable and eye-catching form. To achieve this goal, use graphics, develop charts, tables, etc. Avoid typos.
Remember that the first impression is made only once. The person who is going to read the business plan will see the form of the plan before reading it in detail. It is important to arouse her interest from the first contact. Realistically, this will increase the chances of a positive perception of the business described in the business plan.
Try to write concisely and specifically. Give the document a proper structure. Ensure that the document contains all the elements that the recipient expects.
People who present their business idea to us often claim that they have no competition in the market. In practice, they "haven't done their homework" and haven't checked carefully enough. Competition always exists. If not direct then indirect (satisfying a similar need of customers).
The same is true when it comes to market analysis or financial analysis. The more thorough the research (data research), the more reliable the content of the business plan. And as a result, higher quality.
The basic mistake in creating a business plan is making incorrect, unverified hypotheses. They usually involve an overly optimistic approach to future revenues and profits. They are supported only by the founder's (entrepreneur's) faith, and not by credible arguments. These would be, for example, preliminary agreements with future customers.
Own business is often treated by the creator as his own child - the approach to the idea can sometimes be biased and uncritical. It is necessary to avoid such mistakes and hurra-optimism. To do this, it is good to verify your assumptions with so-called market "benchmarks" (reference points), and even better to consult the adopted theses with an independent expert.
For detailed guidance on elements of a business plan such as market analysis, competition, swot, sales or marketing, see our series of separate blog articles. The steps to be taken in such a process deserve a separate article. Keep up to date with the publications that appear here.
You need to know that even the best business idea, is not as important as the proper implementation of it. This is where a business plan comes to your aid, which helps you plan your activities.
In addition, whether you want to get a loan or are thinking about raising funds from other sources, a business plan will prove useful.
You have the option of outsourcing the writing of such a document to professionals or writing it yourself. The decision is yours, and each solution has its pros as well as cons. Remember, however, that the costs incurred at the stage of creating a business plan are usually nothing compared to the later actual costs of operating (running a business). Prevent instead of cure.
The various components of a business plan are indicated in this article. They can serve as a guide for you in your work. If you want to write a good business plan, take it seriously.
Remember, regardless of the industry/activity, the main thing in any business is to generate sales, and thus revenue and profits. Therefore, from the very beginning, take care of the customer. And remember. A business plan is a tool and a means, not an end in itself!
If you still have questions or concerns after reading the article, please contact us. Also be sure to check out our other articles on business planning and raising financing. Don't wait, get into action!
A business plan is a document that is used to describe and plan a business activity. It contains information on the company's goals and strategies, as well as detailed financial assumptions and a description of market trends.
A business plan helps you plan your business activities, as well as anticipate potential risks and opportunities. It allows you to better understand the market in which the business operates, as well as to identify and set goals and strategy for the business. In addition, a business plan is an essential document if you want to obtain financing for your business.
The business plan should include several key sections, such as:
The business plan should be created by those responsible for the direction and management of business operations or external specialists. This can be the owner of the business, directors or managers responsible for specific areas of the business. It is important that the authors have sufficient knowledge and experience to be able to prepare a credible and realistic business plan.
Yes, the business plan should be regularly updated to reflect the current situation of the company and the company's ongoing development plans.
