Anyone who starts their own business often writes a business plan. The biggest reason to write the business plan is because of applying for a loan from the bank. Those who have the means to invest themselves or do not need a loan will be less likely to write a business plan. Still, it is good to rethink this. Anyone who takes themselves seriously as an entrepreneur mainly writes a business plan for themselves.
Business plan for the bank
Before you can get a loan from the bank for your business’s start, the bank wants to know if you are serious. They want to know whether you have thought carefully about your plans, about your product, recruiting customers, in short, how are you going to make a profit. You must have a plan that can demonstrate your estimated profit forecast. Doing business always involves a risk, but the test plan’s content says something about how the bank takes a risk in providing the loan.
If you do not need a bank loan, writing a business plan is not an obligation. The Chamber of Commerce can ask about it and want to know whether you have thought carefully about your plans. You do not need to submit a business plan upon registration. Many starting entrepreneurs will, therefore, be inclined not to write out a complete plan. But you can also see a business plan as a tool for yourself as an entrepreneur.
Why write a business plan anyway
If you want to start your own business, you have probably already thought carefully about what exactly you want to do. Still, it makes sense to write the plan for yourself on paper. Writing the plan and putting your idea into words forces you to look very precisely at your plan. And maybe there will come the point where someone will still go to your business plan, for example, during support discussions with an accountant at the Chamber of Commerce. The idea that someone will read your plan also forces you to put your plan on paper very precisely. The better you can describe your idea, why you want to start this company, and how you will achieve this, the better you know your strengths lie. It can also help you articulate even better to the outside world what your product stands for. This makes you stronger when you start networking.
You as an entrepreneur: strengths and weaknesses
Various examples of business plans can be found on the Internet and templates that you can fill in yourself. In general, the plans come down to the same thing. One plan is more extensive than the other. A business plan forces you to think about your product and why you want to do business. It also forces you to look at yourself as an entrepreneur: your strengths, what are your weaknesses, and how do you plan to deal with them. Try to be honest with yourself: the more realistically you dare to look at yourself, the better you can overcome your weaknesses. You may even be able to turn your weaknesses into strengths.
Taking a critical look at the competitor
Many entrepreneurs think they already know who their competitors are. They know the environment and know what is going on. But here too, there is a danger: never think that you already know everything as an entrepreneur. Better you do research and put the competition on the map extensively. Explore the area, search the Internet, and ask different people what is needed and what is already available in your field. Also, try to consider what your ‘hidden’ competitors are. These are not direct competitors, but the supply that indirectly meets the need. By putting the competition on paper, you can see exactly where the competition lies and how you distinguish yourself from it.
However, convinced you are of your product. Always investigate whether there is a need for your product: Research the trends, figures, and developments in your field. But also seek contact with potential customers. For example, create a survey and bring in your existing network of friends, family, and acquaintances to take a critical look at your product. Be open to all criticism and comments because your customers can think that way too.
The phase before the start
Allow yourself enough time for the preparation phase. This phase also includes developing and writing your business plan. The business plan is the guideline and the final report of preparing the start-up of your company. The financial part is very important here. Many starting entrepreneurs are very reluctant to do this and think, “we’ll see that”. Ultimately, they lose themselves in not keeping proper administration and accounting. Ultimately, that’s what causes many start-ups to fail. Therefore, it is essential to have this clear to yourself before the start: how are you going to keep your administration and accounting, your budget, and what is your profit forecast—especially the entrepreneurs who are successful and succeed in their business.
If you are thinking of starting a startup and want a business plan, you must consult a business plan writer for a better strategy.