The business plan is a prerequisite to for a successful business start-up and the most important information basis for the sponsor. Additionally, the business plan serves for your own guidance in the development of the business idea and later as a controlling tool. Therefore, the business plan should always be done with great care and it should be adapted to new circumstances as soon as they occur. This is especially important if, over time, the customer wishes change or the competition increases.
Furthermore, the business plan serves for estimating the risks and the opportunities of the desired professional independence. With your business plan you can prove that you already have developed an action plan in case of unanticipated problems or risks.
The quality of service offered suffers often because the range of services is too broad. Therefore you should define your company goals clearly. Focus on your core competences and don´t offer too many things at a time!
Only this way, step by step, you can improve the development of your company in the long run and reach your desired goals.
Make sure that your business plan is understandable. This applies to every area of the business plan, from the service offered to the market and competitive situation. The main focus should be placed on the revenue and cost projections. The financial and liquidity positions are the core of a business plan. Here you should particularly make sure that the information contained in the explanatory notes matches with those of the financial part without any contradictions.
The business plan has to be well organized and structured so that the reader is interested in your business concept. The first impression of your professional experience is a decisive factor for a good evaluation. Make sure to have a presentable cover page, an indication of the page numbers, paragraphs, etc.
The business plan does not need to have a certain number of pages. The content is what matters. A reasonable length is about 10 pages. The business plan should be written so that even laypersons understand it. Avoid incomprehensible specific terms or technical details. Focus on the points that are essential for the representation of your future company.
In your business plan a business management expertise is required. If you are having deficits in this area you should compensate them by taking special training courses (e.g. about accounting, taxes, etc.).
Before the start-up of your business you have to identify your target client group and find out if there is any demand for your services. Market surveys are one option to determine your potential customer group.
Do not underestimate your competitors! Most of them are established on the market for several years and have built up a solid customer base. Therefore again: Find out who your competitors are and what they are offering. Research this on the internet, in the yellow pages or at the respective chamber. Pay attention to where your competitors are geographically located and to the structure of the people living in this neighborhood referring to potential clients. Perhaps there are already enough enterprises offering similar services and you might have better chances in another region?
You should have at least one unique selling proposition (USP). This allows you to stand out from your competitors and win new customers.
Before the establishment of your business you should also deal with the future developments in your targeted business. How and in which direction can it change and which future opportunities are possible? You can request the necessary information from professional chambers / associations or from your bank.
Don’t forget: Your business plan is your personal compass for your future business and doesn’t just serve as instrument to find financial support for the start-up. You should constantly deal with new economic targets and think about how you can implement them successfully into your strategy. If you live up to these values you can develop your management skills successfully and reduce the risk of your business.