Business plan is a document intended to check the potential of the business and the level of risk of the business idea. It is often the first step towards the realization of business ideas.
Preparing a business plan is advised to all companies regardless of their size and market presence – startups as well as established mature companies.
Business planning allows you to increase the chances of success in the market, ensure further growth and development of the company.
The purpose of preparing a business plan can vary, but most often it is related to:
- Expanding the product / service portfolio
- New market penetration
- The launch of a new project
- Reorganization and revitalization of the company
- Collecting sources of financing (debt, equity, grants)
Well-prepared business plan discloses the feasibility of the business idea and foresees its success. Growth and development of business ideas also depend heavily on strategy, therefore development of the business model has to be approached carefully and in line with guidelines provided by experts.
The role of the consultant in the process of business plan preparation could be simply to provide a feedback regarding the quality of the business idea, or also to connect stakeholders such as potential customers, partners and investors, provide strategic business guidance, link technical and business knowledge and look for opportunities to develop new ideas.
It is wrong to think that a business plan in any way inhibits or restricts creativity and flexibility. It is strongly recommended solely due to the fact that prior to realization of a business idea one has to check its viability and get acquainted with the path and the obstacles that have to be overcome.
Elements of a good business plan:
- Analysis of the environment
- Market research
- Organisation
- Product/service plan
- Research and development
- Human resources
- Timeline
- Key risks and problems
Mandatory components of the business plan, connecting the above mentioned elements, refer to financial projections and scenarios of success. Together they form a realistic assessment of the business idea potential based on the business and its risks. Well prepared financial projections relate to future returns, required investments in working capital and fixed assets and the extent of non-monetary categories.
Based on the financial projections bankers and various other funds decide whether to support a business idea and thus provide sufficient sources of funding for its success.
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