Business plan

Definition

Whether for subsidies, financing or grants, the business plan is the roadmap for your business idea. However, the business plan is not only a decision-making aid for potential investors, but also offers you as a founder a guide with valuable information on the most important strategic decisions.

The well thought-out and structured preparation helps you to keep an eye on the decisions and goals of your business idea at all times. How extensive and detailed the business plan is depends largely on the start-up project and the goal being pursued. If the business plan is presented to potential investors, the focus should therefore be on the financial plan and the growth and development potential.

The business plan comprises data, facts and figures and is a real challenge for many founders. Basically, the business plan should summarize your own business idea in a structured way. Among other things, it should explain who the target group of this new business idea is, where the opportunities and risks lie and to what extent the business idea is profitable (financial plan).

It is important to take a close look at the key value drivers of your company and to justify your business plan with reliable growth assumptions. When creating a reliable financial model, it is important to create both a short-term liquidity plan and a long-term profit plan. Short-term liquidity planning is month-based and contains detailed assumptions taking into account existing contracts (e.g. customers, suppliers, rental, etc.) and payment dates. It is the basis for investment controlling and possibly performance-related payments (cash call) and shows the cash burn per month.

In contrast, the company's target status is derived from long-term profit planning. It includes the potential and risks of the business idea (scenarios), prediction of the break-even point and the sustainable margin. It also provides the basis for deriving the company value and estimating further financing requirements and the time of exit.

The structure of the business plan

What aspects and content actually belong in your business plan and how is it structured? The business plan is extensive and the first step is often the most difficult, which is why we will show you how to create your business plan step by step. This guide provides a structured approach and template for your business plan.

1) Mission statement/summary Every business plan starts with a mission statement, also known as a summary. This summarizes the start-up project and possible investment highlights. The question of the company's mission should also be answered here. What is your mission? What do you want to achieve with your business idea? Provide the reader with a clear overview of your start-up project in approx. 1-2 pages. Pro tip: It is best to write the mission statement at the very end of the business plan, after you have already clarified your own goals and visions. 2) Founding team and organization What does the founding team look like? Who brings what skills and experience to the table? What was the motivation for founding the company? In this section, the founding team is described in detail. It is important to address the professional and entrepreneurial skills and to focus on the founding personalities.

This section also serves to describe the organization. If you already have a location for your start-up, this is followed by a location analysis and organizational analysis. How many employees are to be hired? How are the structures within the company set up? 3) Business idea: product/service One of the most central points of a business plan is, of course, the business idea itself. What problem do you want to solve with your idea? What is the existing need? And will your product be able to specifically address the problems of the target group? What is special about your business idea? You should answer all of these points in this chapter. 4) Vision and goals In which direction should your start-up develop? Define a common corporate vision and set short, medium and long-term goals. These will then serve as the basis for further operational planning.

5) Market and competition What are your target markets? How big is the market volume? Who are the competitors? Are there any barriers to market entry? Carry out a detailed market and competition analysis and back it up with facts and figures.

6) Strategy How would you like to position yourself in this market? What is your USP? How do you want to enter the market and convince potential customers? What measures should your company use to grow? Define a suitable strategy for this. 7) Marketing What marketing measures do you want to take to position your product or service? How should sales be organized? What prices should be charged? Which channels will be used for advertising? How high is the marketing budget? 8 ) Legal form & taxes This chapter is all about legal issues. Which legal form have you chosen and why? What permits do you have? What is the company name? How is the accounting managed?

9) Financial plan The heart of every bankable business plan is the financial plan. This is where all of your company's finances are analyzed in detail. What is the turnover? What are the capital requirements? How will this be financed? What investments are necessary? You can find a detailed breakdown of the financial plan here: Financial plan

10) SWOT analysis The SWOT analysis concludes the business plan. Here, the strengths and weaknesses of the company are analyzed, and opportunities and risks are identified. Possible measures to seize potential opportunities and minimize risks are also listed here. Last but not least: The business plan is your business card for future investments. It is therefore up to you to decide whether the business plan arouses interest and curiosity or whether it generates boredom through exclusively sober data and facts.

How do I formulate a business plan?

The most important thing when formulating a business plan is to ensure that it is clear and easy to understand. Although a business plan should arouse curiosity about the business idea, it should still be formulated in a factual and serious manner. Technical terms and industry jargon should be avoided or explained wherever possible. In addition, attention should be paid to consistent wording and a uniform language style. If several people have been involved in the creation of the business plan, a final proofreading is always a good idea. The form of the business plan is also particularly important depending on the target group. In the vast majority of cases, when we talk about a business plan, we are talking about creating a pitch deck in the form of a PowerPoint presentation. If the aim is to convince a VC investor, then you need a pitch deck. If the business plan is to be presented to the Chamber of Commerce or a bank, you should provide a Word document with detailed text instead of a pitch deck. The formal requirements must therefore be adapted depending on the target group of the business plan.