top of page
business-handshake-two-men-demonstrating-their-agreement-sign-agreement-contract-their-fir

Dive into the new era of accelerated management

Search

Business plan

"The business plan is an essential tool for any business creation project. It enables you to define your project's strategy and action plan with a clear head. It's therefore a step that shouldn't be taken lightly."


However, understanding the usefulness of a business plan and how to build one is often perceived by entrepreneurs as a complex step.

What is a business plan?


How useful is it? We explain!


Drawing up a business plan is one of the most important steps in setting up a new business, and essential to the success of your project.


What is a business plan? The definition of a business plan can be summed up in one sentence: it's a document that sets out the financial and commercial strategy of your future company, to help it grow.

In a way, it's the "architecture" of a business. This document helps you structure your project and set out your action plan:


What objectives?


  • The means to achieve them;

  • How long to achieve them.


Why do I need a business plan?

Drawing up a business plan achieves two main objectives:

Determine your company's profitability

The heart of a business plan is the determination of its financial strategy. When drawing up a business plan, you need to :

Carry out a precise market study adapted to your business and geographical area;

Determine the financial balance between future costs and revenues (business model);

Propose financing solutions.

What should you do if your business plan shows that your project is not profitable? In this case, you need to take the time to redefine a more appropriate strategy: identify the strengths and weaknesses of your project and adjust your business plan accordingly (e.g., reduce or increase prices, choose an original concept, reduce expenses, choose suppliers with more reasonable prices, etc.).

Good to know: whether you're launching a large-scale project, with a construction business plan, or a more modest affair such as opening a food truck, drawing up a business plan remains the best starting point for creating a business.

The business plan is therefore, first and foremost, a tool for determining whether a business has a chance of achieving profitability.


Convincing your potential financial partners


The business plan is also a tool for reassuring potential partners and creditors. It enables them to assess a project's reliability and profitability.


As a result, methodical, clear and convincing writing, accompanied by careful presentation, is strongly recommended.


Having a written business plan is therefore essential for obtaining external financing, in particular for obtaining a business loan from banks, or for raising capital.


It's very important to highlight the strengths of your project, in order to stand out from the crowd and attract the attention of investors. Even if you use a sample business plan, remember to emphasize your added value. The more investors are convinced of your project's profitability and sustainability, the easier it will be to negotiate advantageous loan rates and repayment terms.


Finally, the business plan is designed to convince potential partners to work with your future company (suppliers, franchisors, goods delivery companies, etc.). In particular, the business plan will serve as a negotiating tool with future suppliers, in order to obtain favorable payment terms and prices.

What does a business plan contain?

The business plan helps you define the outlines of your project. In particular, this document enables you to set out in writing and in full awareness :


  • The business concept;

  • Products and/or services;

  • The suitability of the location;

  • Communication strategy;

  • Financial strategy;

  • Choice of legal form.


In order to present all these elements clearly, a business plan begins with an executive summary and then includes two categories of content. The main part of the business plan should be presented in editorial form, while the financial part should also include financial tables, hence the relevance of entrusting it to Montréal Pacific World (projected income statement, projected balance sheet, projected financing plan or projected budget). If you're wondering how to draw up a provisional budget, don't hesitate to consult our accounting department.


In short, the structure of the business plan is essential, both for the entrepreneur and for his investors and partners. So it's imperative to leave nothing to chance and to follow it methodically.


How to draw up a business plan?


Writing a business plan for the very first time is a complex task! However, to build a solid business plan, all you need to do is follow a certain number of steps in an orderly and methodical fashion.


To find out more about the expected structure and key elements to be outlined, discover the steps to writing a business plan deployed by Montréal Pacific World.


Comments


bottom of page