Any business creation must be the subject, upstream, of a financial business plan. This document makes it possible to assess the relevance of a business project and show its potential and viability in the long term. It also lays the foundations for the business development strategy. The obligatory passage before embarking on entrepreneurship, the business plan takes time and must respond to a precise method. It includes a written part but also an essential part with quantified projections.
What purpose does a business plan serve? The business plan helps for a variety of purposes.:
- It is handy for the project leader: it allows him to mature his idea and push his thinking further.
- The business financial plan covers all aspects of the project: the strategic, economic, and commercial objectives over the next three years. It thus represents a natural line of conduct, even if it can be challenging to project oneself during creation.
- This development plan can be adjusted over time to change the objectives according to what has been accomplished.
In addition to being an essential document for the entrepreneur and his team, the business plan is also vital to convince potential partners and obtain financing. The challenge is not the same since the business plan in question will have to be thought out and carried out to convince. It is possible to adapt it according to the interlocutors.
How to make a business plan in 7 steps?
- Write an executive summary
- Describe the company and the team
- Do a market and competition analysis
- Determine the business strategy
- Define the marketing strategy
- Establish financial forecasts
- Add appendices
1 – Write an operational summary
The executive summary, or operational summary, must give an overview of the company and the market. It’s a concise part that serves as an introduction, but it’s best to write it at the end when all the rest of the business plan has already been completed. This will make it easier to extract the main ideas. Composed of several short paragraphs, this summary must include an overview, a description of the company and the founders, a presentation of the products or services, a brief market analysis, and the leading financial plan. The objective is to centralize the critical elements of the project on a single page before going into detail in the following pages.
Example of the first paragraph of an executive summary for a concept store
Based in Mâcon, Basile & Joséphine is a concept store of children’s clothing and decorative items. The two founders of the store have more than ten years of experience in BtoB sales and childcare. There is no similar shop in the city, which will allow Basile & Joséphine to meet actual demand and build up a young and dynamic clientele on the lookout for trends on social networks.
2 – Describe the company and the team
The objective of this part is to describe in detail the activity of the company and its mission. It is also necessary to provide a complete presentation of the founders and their expertise. In addition, the description should highlight each team member’s training, background, and experience. It is also essential to specify which role each person will take on. The idea, at this stage, is to show potential partners or investors that the project leaders have complementary skills to carry out the creation and development of the company.
Example of a business description for a digital agency
Digital Nomad is a digital agency in the process of being created. It will offer 360° digital support solutions to professionals. In this very competitive market, our agency will make a difference thanks to the founders’ expertise, which will make it possible to internalize a large part of the processes. We will indeed be able to manage the graphic, editorial and technical parts while creating a site and community management internally.
Our agency wants to focus mainly on a BtoB target and develop long-term centers of expertise by sector of activity to bring real added value. To build our portfolio, we can count on the personal and professional networks of the four founders, who have been working in digital for ten years.
We plan to establish our agency in Lyon and develop our activity locally, then nationally. The agency will be a real place of life and meetings, whether for clients, partners, or entrepreneurs who evolve in the digital world.
3 – Do a market and competition analysis.
Market research is an essential part of the financial business plan. It makes it possible to check supply and demand on the market in question and thus to define to what extent the project can find its place. For example, if there is intense competition, it is a good sign: it is a demanding market, but it will then be necessary to find a way to stand out from competitors. Conversely, if there is little supply on the market, you also have to ask yourself the right questions. For example, maybe the project is too cutting-edge, or there isn’t enough demand. It will then be necessary to conduct a more in-depth study with the target.
In summary, at this stage, it will be necessary to analyze the market (i.e., supply and demand to the target audience) and the competition (i.e., the companies offering the same service or product or which meet the same need).
Example of market analysis for a start-up specializing in commercial real estate
A PropTech start-up, NeoOffice, conducted a market study to have an overall inventory of business real estate in France. As a result, the sector is experiencing an increase in office demand of 32% over January-September 2021 compared to 2020.
The start-up studied its target market, namely VSEs and SMEs, and identified their main expectations in terms of office rental. According to a study conducted in September 2021, companies and employees are looking for perfectly soundproofed properties close to transport. Providing common areas is also an essential element when renting an office. Finally, companies want more flexibility and agility and gradually turn away from the traditional commercial lease.
Thus, NeoOffice wishes to bring a breath of fresh air by only offering to rent offices with all-inclusive contracts to provide services. The start-up will build a catalog with properties that meet the expectations of companies and will only offer warranties with a commitment period of fewer than 36 months. The objective is to respond to actual demand on the market and adapt to today’s societies’ new requirements.
4 – Determine the commercial strategy
The commercial strategy can be defined thanks to the 4P method, also called “marketing mix.” It thus consists in taking an interest in the product (Product), the price (Price), the distribution (Place), and the communication (Promotion).
To begin with, the entrepreneur will have to prepare his offer of products or services and detail all the characteristics associated with it. He will then have to define how his products or services will be distributed. Will they be sold via physical stores? On an online site? Through intermediaries? This part will also explain how the proposed ranges meet a need and what they bring compared to the competition’s solutions.
Example of a business strategy for a computer hardware distributor
Numéritech is an expert consulting firm in digitalization. It offers a full range of services to support companies in their digital transformation, from A to Z.
Services
The company offers its solutions in 4 main areas:
- Strategic support for digitalization: this service consists of defining an action plan hand in hand with the client and determining an overall budget.
- Digital training: this is a comprehensive service to train the various internal departments in new digital uses (HR department, for example, accounting department, etc.).
- A recruitment offer: This offer makes it possible to hunt and recruit the best IT talents on the market to join the company.
- Work on the employer brand: creating a career site and accounts on professional social networks to develop the company’s notoriety.
The added value compared to the competition.
Numéritech wishes to make a difference thanks to the proximity and the consulting dimension. It wants to position itself as a true partner for its clients, available to monitor projects from start to finish. The company only markets services and not products. These are consulting services entirely managed internally since Numéritech has the necessary resources. This allows excellent responsiveness in the management and monitoring projects, which customers highly appreciate.
The distribution
Numéritech distributes its solutions mainly by recommendation and by prescription. Current customers very often recommend Numéritech’s services and thus allow the portfolio to grow.
5 – Define the marketing strategy
To establish a relevant marketing strategy, you must first define the buyer personas: this is the target of the products or services. Then, the communication plan must follow several steps. To begin, it is necessary to work on the company’s image and identity. Therefore, it is to create a logo, choose a graphic charter, develop an editorial line, and think about the sales pitch. Then, it will be necessary to select the different channels to make the company known to the general public. They are numerous and must be chosen with care, demonstrating relevance to the target audience. Finally, the communication strategy should be the subject of a complete action plan.
Example of a marketing plan for SaaS planning management software
Play is a software dedicated to companies with many employees with complex schedules (catering industry, medical sector, logistics, transport, etc.). This tool makes it easier to create and manage programs, saving time and increasing efficiency. To reach its BtoB target, Planymi plans various actions.
Specialized magazines (paper/web)
Play provides a budget for editorial adverts in BtoB newspapers, in paper and digital format. An envelope will also be dedicated to distributing press releases, and in the long term, recruitment is envisaged to manage all the PR parts.
6 – Establish financial forecasts
After all the descriptive parts, it’s time to move on to the financial plan. First, what is the business model of the company? But for a mobile application, the business model can be more challenging to determine. In this case, it could be income from advertising or affiliation or even a paid subscription system.
We have reviewed the various vital points to draw up a business plan. Here is a complete business plan template to help you make your project a reality.
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