Creating a business plan for your SME: these are the building blocks
April 2024 - A business plan is an essential document for any (starting) company. It describes your activity, the market you operate in, your competitors and your financial challenges. It helps you achieve your goals and overcome obstacles - not only during the start-up phase of your business but also later.
What is a business plan?
A business plan serves a dual purpose. On the one hand, it provides insight into the financial and practical feasibility of your business idea. On the other hand, it enables investors and lenders to evaluate your business before granting a loan or capital.
Mandatory or not?
A business plan requires the starter to think about a number of essential issues for the success of the venture. But even entrepreneurs with several years on the clock can benefit from a business plan. In fact, a lot of companies draw up an annual plan that includes all the objectives for that year, plus the financial calculations. It is the company's financial and strategic compass.
Building blocks of the business plan
There are various models for constructing a business plan. In terms of content, however, the following items are essential:
Executive summary Objective:
To capture the reader's interest.
History of the company
A brief description of past achievements. If you are a start-up, you can skip the history.
Policy statement and vision
What does your company do, who are your customers and what are your values?
Products and/or services
Explain the product or service and argue why it is valuable to the customer (value proposition).
Management and business model
Who is part of the management team and what are their qualifications? Focus mainly on experiences and achievements. In addition, make a schematic representation of the different steps a product or service goes through before it reaches the customer.
Market analysis and marketing
Who are your customers and what is the market potential? Who are your competitors and how will you differentiate yourself? How will you market your products or services? Sum up the planned marketing actions and explain the sales strategy (price, location, promotions, ?).
Financial plan
How much turnover do you think you will achieve, what are the costs and how will you finance your business? Include a projected balance sheet and income statement and give an overview of cash and cash equivalents.
