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Business Plan

Business Plan

What Is a Business Plan?

A business plan is a written and detailed summary as well as an explanation of the business plan. If the idea is to be concretely transformed into a startup venture, a business plan is needed. A business plan is an extremely success-critical instrument, to be able to align the project optimally in long regard. With the help of a business plan, risks and opportunities can be optimally identified and solutions proposed. Besides, entrepreneurs want to win investors with the business plan.

Benefits of a Business Plan

When a comprehensive business plan is created, founders advance deal with critical areas of the business idea. It develops an awareness of the target group and market potential. A good business plan provides orientation and structure and serves as a guide for further action. It serves as a personal framework for the project and is thus the basis for success.

What Does a Business Plan Consists Of?

The complexity of a business plan can not be defined in general terms. Depending on the level of complexity of the project, it can vary from 5 to 40 pages. On average, investors take about 10 minutes, if there is further interest, a personal meeting is arranged.

A good business plan should not only be easy to understand and clearly structured, it should above all convince. Depending on the area of application, the contents of a business plan always have different focuses. For example, a business plan for product launch has its focus on topics such as market, competition, marketing and sales. In the following section, a typical outline of a business plan is explained.

Business Plan Outline

1. Abstract

The beginning of any business plan is a summary of the primary points of the venture. This can be written within a single document outlining all requirements that need to be fulfilled before the business expenditure commences. All major factors addressed in the business plan should be explained in a compact manner.

2. Product & Business Idea

Here the product idea or the project is presented first. The focus here is on the customer benefits and the possible comparison to competitors. If you want to describe your product, you should especially know your target group.

3. The Team

Here typically the founders are introduced. This includes the presentation of their own strengths, qualifications and experience. A concrete reference to the business idea is recommended at this point.

4. Market and Competition

In this point, the market industry data must be analyzed in detail. An in-depth look at competitors and customers as well as a target group analysis must not be missing here in any case.

5. Marketing and Sales

Set a market entry strategy and outline its effectiveness. Promotional and sales advantages over competitors should be clearly defined.

6. Business form

Select an appropriate legal form, including rationale and opportunities.

7. Financial Planning

Describe the profit and loss statement and capital requirements of the investment plan.

8. Risk assessment and alternative scenarios

This shows existing risks as well as alternative developments and best-case and worst-case scenarios.

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