The business plan is the most important tool when starting a company. It describes the core concepts of your business model and helps you reflect your ideas.
Visions are turned into reality by making them long-term business objectives and writing them down in a business plan. A business plan includes all areas of a company. This helps you to understand the relationships between the different areas which allows you to identify and address potential problems early on.
On the basis of the business plan investors, business partners, banks and other parties involved evaluate the risks, as well as the chances of success of an enterprise or a project. Thus, the business plan is an ideal way to effectively present the business idea.
Setting-up a business plan early on forces you to deal intensively with your business and to formulate and put into words exactly what you intend to do. Furthermore, the business plan assists you in putting the project into a wider context while, at the same time, evaluating the financial risk by determining marketing and financial figures.
The business plan is of great importance when it comes to making financial decisions. It helps you to convince investors or banks of the potential of your idea. It also informs them of the management's ability to fully realise this potential. A realistic and detailed business plan does not yet guarantee financing; however it can constitute the basis of a credit application. Only applications with a well-structured and convincing business plan are chosen for closer examination.