A business plan can help you see the potential of your business, it can help you set business goals and help you raise finance for your business. In a business plan, parts of the whole business are rethought. The level of detail depends largely on your goal and the business objective you are pursuing.
Being realistic from the start in the business plan and sticking to it over time should be the basis of the business. It is quite possible that in the future you will need to present it to other people or institutions if necessary.
What is a business plan?
A business plan is a formal statement of the company’s objectives, the reasons why they are achievable and the plans for achieving them. It may also include additional information about the company or the team that will work to achieve those goals.
Your overall business plan sets out the most important guidelines for business activities in the course after the company’s creation and its long-term business management. Innovations in your services and products or innovations in your business processes are important for your success as an entrepreneur.
What are the elements of a business plan?
There is no single answer to this question, as the structure of the business plan will vary depending on the type and purpose of the business plan.
Some of the most important points to include in a business plan are listed below.
- Executive summary: this is a brief description of the business, its products and services, the market and the company’s competitive advantages. The executive summary should also include a brief description of the management team and the company’s financial situation.
- Company description: provides more detailed information about the company, its products and services. The company description should include information about the company’s history and target market and competitive advantages.
The company description should also include information about the management team, the financial situation of the company and its plans for the future. This should be followed by a description of the products and services.
- Product and service descriptions should provide more detailed information about the company’s products and services, the target market and the company’s competitive advantages. Product and service descriptions should be followed by market analysis.
- Market analysis should provide information on the target market for the company’s products and services, the size of that market, the growth of that market and the company’s competitive advantages. The market analysis should also include information about the company’s competitors and their products and services. The market analysis should be followed by the financial analysis.
- Financial analysis should provide information on the company’s financial situation, its plans for the future and its ability to meet its financial obligations. The financial analysis should also include information on the company’s equity or debt financing. The financial analysis should be followed by a biography of the management team.
- Management biographies should provide information on the experience, background and qualifications of the management team. Management bios should also include information on the management team’s plans for the future. Management biographies should be followed by the company’s financial statements.
- Financial statements should provide information on the company’s revenues, expenses, assets and liabilities. The financial statements should also include information on the company’s equity and debt financing. The financial statements should be followed by the company’s business plan.
- Marketing strategy: its product and service offerings, its target market, and its competitive advantages.
Types of business plans
There are three main types of business plans:
- operational,
- tactical and
- strategic.
Operational business plan
An operational plan describes the specific actions and processes that a company will carry out on a day-to-day basis to meet its objectives. It includes information about its products or services, production process, capacity and sales forecasts. An operational business plan is an essential tool for business planning and decision making.
Tactical business plan
A tactical business plan is a specific plan that describes the actions a company will take to achieve its objectives. This type of plan is usually created annually and describes the steps that need to be taken to achieve specific objectives within a specific timeframe. Tactical business plans are often created in conjunction with strategic business plans.
Strategic business plan
A strategic business plan is a document that describes a company’s vision for the future and how it plans to achieve its goals. It includes strategies for marketing, finance, operations and other areas of the business.
Writing a business plan
The best business plan format will always depend on the objectives of the business, the target audience and the specifics of the business.
If you are seeking funding from investors or lenders, it is important to use a formal business plan format that includes financial projections and detailed information about your business.
If you are just starting, a simple business plan format can be useful for getting your ideas down on paper. And if you are writing a business plan for internal use, you can be more flexible with the format and focus more on your business goals and strategies.
Example of a business plan
In this business plan example, we will use a fictitious company called “Sun Tissue”.
“Sun Tissue” manufactures high-quality tissue products. The company sells its products to retail outlets, wholesalers and distributors. The company has been in operation for two years and has been profitable every year. The company has a strong management team and a well-defined business model.
Its products are in high demand and the company has a solid reputation in the industry. The company is seeking EUR 250,000 in financing to expand its production capacity and plans to use the funds to buy more tissue machines and rent more space.
“Sun tissue has a strong track record of growth and profitability, and the management team has a proven ability to execute its business plan. The company has a strong marketing strategy and has established relationships with key customers. The company plans to continue to invest in marketing and sales to drive growth.
Conclusion
If there is something you don’t understand when creating your business plan, asking an expert for help is always a good idea. You need to have a clear plan: what you want to achieve, what are your goals, what is your budget, etc. You have to know exactly what you want to achieve, otherwise, it is easy to get lost in all the options and features.
Do you need help creating a business plan? We’d love to help you. Contact our tax advisors in Barcelona by email or phone.
