Many start-up and scale-up companies wonder whether a business plan is vital. Writing a business plan is not required by law. In the case of additional financing facilities by external financiers, it is necessary to write a business plan.
Without a business plan, companies are not eligible for a loan from a bank or other investors. Entrepreneurs are forced to rethink their strategies. Essential questions to be answered are:
• Which product or service is involved and in which market is the company active
• What are the company’s financial forecasts
• What is the motivation to start a business or to make an investment.
• What is the strategy that the company wants to use
• What is the success factor of the investment
In addition to an investment need, a business plan can also help gain insights into when other questions arise within business operations. Think about:
• The need for medium-term external financing (1-5 years)
• Positioning of a product or service within the market for business development
• Analyzing for financial setbacks and other business risks
• Determining the business strategy, vision, and mission
Writing a business plan is the most efficient way to develop the company’s strategy, and you work according to a fixed pattern that describes every necessary subject
Short-term benefits of a business plan
- External parties get a quick and substantiated insight into the business plans, the opportunities, and risks of the investment or the company.
- Making vision and plans concrete in a concrete approach
- Investigate and plot the dangers of the company
- Recording actions concerning the marketing strategy and business development
Long-term benefits of a business plan
Establishing the policy.
- The business plan can serve as a reference for the corporate vision.
Continuous improvement of the strategy
- Which good points can be further explored, which weaknesses can be solved by looking for solutions, for example, externally.
Rest.
- The business plan takes into account less favorable scenarios. Once these have been calculated and taken into account, the organization must make adjustments.
It is advisable to periodically review the business plan and adapt it to the current situation. Writing and updating a business plan takes time and is not a goal in itself. It is advisable to delegate certain parts and to request advice from specialized advisers.
Amstaete Finance’s consultants have a strong business and financial background and can take care of all facets of your business plan. We look at your ideas with a fresh look and puts this on paper in a structured way, including a corresponding financial basis.
Amstaete Finance has extensive experience in drawing up business plans and, therefore, knows the criteria when assessing a business plan. Our services won’t end after the finalization of your business plan, but we would like to remain involved in realizing the established objectives.
