Business plan

from Wikipedia, the free encyclopedia

The term Business Plan ( Engl. Business plan ) denotes a comprehensive document that reveals the business opportunities with their risks and opportunities and describes measures to the resulting future business use.

General

A business plan is necessary both for setting up a company and for strategic and operational planning of existing companies . The starting point is usually a marketing plan . This is supplemented by further partial plans; this includes procurement , production , human resources , research and sales . In addition, there is the financial plan , which contains an estimate of the necessary financial and human resources (planned costs ) and the expected sales so that the profitability of the investment can be assessed. A business plan is based on internal target agreements and at the same time means of communication to private or public investors such as banks , venture capital giver, business angels to convince partners (mergers) or corporate bodies that decide on the release of funds.

Use

While strategic planning has always been practiced by many large companies, it was not until the late 1950s that the realization took hold that a business plan is also advantageous for small and medium-sized companies ; even later, start-ups began to draw up formal business plans. To this day, however, it is still controversial as to what connection there is between the quality of the business plans and the success of the company or how close it is.

A business plan has the following advantages:

  • It helps the entrepreneur himself to gain orientation and structure for the business idea. Fifty percent of all start-ups fail within the first five years. In most cases, a business plan could have revealed beforehand whether the concept could be profitable.
  • It helps to convince others of the planned project: Once someone has drawn up a business plan, one can assume that they are thinking intensively about the project and that they have the serious intention of implementing the project.
  • It is an essential prerequisite for raising capital: Without a description of the economic viability of the concept, it will be extremely difficult to attract investors or to convince a bank for a loan project.
  • It gives you the opportunity to monitor success: the plan is the starting point for every controlling . Every step can be traced. Every deviation requires an assessment and a possible adjustment of the plan. Appropriate measures can be initiated at an early stage in the event of difficulties.
  • It forces a systematic approach: When creating a business plan, the author is forced to think through everything logically and systematically. Knowledge gaps become visible. Problems become apparent. Decisions have to be made. Alternatives have to be considered.
  • It gives an overview: The finished business plan brings everything together into a whole. All parts have to fit. The dimension of the planned project becomes visible.
  • It increases the chances of success: nobody would start building a house without a blueprint. That means: A business plan worked out in advance makes the implementation of a business idea much easier. Practice has meanwhile confirmed that the chances of success increase through the creation of a business plan. Because a flawed plan, serious deviations from the plan or a non-existent plan are the most common causes of a failure in Germany.
  • It helps to better assess risks: The implementation of a business idea is always associated with risks. Risks can arise within the company or from the market. Risks cannot be ruled out. But precise planning and the awareness that there is a risk in one case or the other mitigate the negative consequences considerably. Identified risks can be B. through financial reserves, mitigated or excluded.
  • It helps to analyze the market, competitors and competitors and, if necessary, to steer the business concept in the right direction at an early stage.
  • It helps to show dependencies: Even if a business plan is divided into individual components, it is important that all chapters fit together in terms of content and that the project is coherent. Statements about the target group have an impact on the marketing plan. Communication planning must be reflected in the financial plan with the corresponding figures. Planned revenues influence the capital requirement. When the business plan is ready, it can be seen whether all chapters of a business plan fit together in the end.
  • In line with this development, a company manual is often designed from the business plan for later entrepreneurial action.

Areas of application

Whenever a business idea is to be converted into a start-up project, a business plan is required. This is independent of the scope of the project: whether someone just wants to open a flower shop or a new, innovative production process has been developed. The questions are the same.

Contrary to popular belief, business start-ups are no longer the only area of ​​application for business plans. In large corporations in particular, it is now common practice to use the "business plan" tool when launching products, expanding or buying a company.

Business plans are used on the following occasions:

  • Start-up
  • Succession planning
  • Company sale or takeover
  • Structural change and realignment
  • fusion
  • cooperation
  • New product launch
  • Expansion into other markets
  • Capital increase
  • initial public offering
  • Applying for public funding
  • Applying for funds from in-house research funds
  • Obtaining extension loans from the bank
  • Investment decisions
  • Strategic planning and plan updates in operational business

species

When you look at the different areas of application for business plans, it quickly becomes clear that not all business plans have the same focus. An internal company business plan has different content than a plan for a start-up. In the case of internal company plans, for example, the management team only needs to be described briefly or not at all. Internal controlling instruments can usually be used for the figures . A new product launch plan focuses on market, competition, marketing, and sales. In the case of succession plans, takeover financing and the competence of the successor must be focused.

But even with start-up projects, the business plans differ depending on the phase of the company formation. There is a short plan for the start-up phase and a detailed plan for the start-up phase. In common usage, however, the detailed plan is always meant when a business plan is mentioned.

construction

No one has yet clearly defined which chapters or components a business plan should contain. Influenced by American role models, venture capitalists, management consultancies, business plan competitions and the ideas of banks or public funding institutions, however, a largely standardized structure of a business plan has emerged in recent years. On the one hand, this standardization enables potential investors to compare different business plans from different companies. On the other hand, a systematic and analytical approach by the authors can be ensured during the creation. The order of the sections or the division of chapters can vary in individual cases. In contrast, the relevant content is defined in the same way almost everywhere. A professional business plan should therefore contain the following chapters:

  1. Summary ( Executive Summary ): Here are the key points of the project, short and precise.
  2. Product and company idea: The product idea is presented here. In addition, the customer benefit, also in comparison to the competition, must be clear.
  3. Management or founding team : Here all team members are presented with their specific qualifications that are important for the project (usually a company foundation).
  4. Market and competition: At this point, with the help of market and industry data, a more detailed insight into competitors and customers is given.
  5. Marketing and sales: This is where the market entry strategy and specific advertising and sales considerations are discussed in detail.
  6. Company form: The shareholder situation, the selected legal form and other formal points are described here.
  7. Financial planning: In financial planning , a. the income statement, liquidity planning and capital requirements are listed.
  8. Risk assessment and alternative scenarios: Risks are shown here. In addition, information on alternative developments is presented with the help of best-case and worst-case scenarios.

Some investors or competitions require a schedule in business plans. This should be created, but it is not necessarily part of the business plan itself. Due to the frequent updates, it is often not useful to integrate this into the business plan. If in doubt, the recipient of the plan should be asked whether a schedule is expected.

Business plan and business model canvas

The Business Model Canvas can be used to develop a business plan . It helps to get an overview of the most important key factors of a successful business model.

  1. Key partner: Who can be considered as a partner?
  2. Key Activities: What are the most important activities to put this business model into action?
  3. Benefit promise: What benefit do the customers have when they buy the product or service?
  4. Customer relationships: How can the potential customers be won over and retained?
  5. Customer types: What is the target customer group?
  6. Key resources: which resources are essential?
  7. Sales and communication channels: How do customers find out about the offer? How do you get it?
  8. Cost: What are the most important expenses without which the business model would not work?
  9. Sources of income: Where does the money come from in this business model?

The Business Model Canvas was developed by the Swiss entrepreneur, lecturer and author Alexander Osterwalder. It is now recognized worldwide as the means of choice for finding innovative business models and putting outdated ones to the test. The special thing about the Business Model Canvas is the method with which many individual ideas can be combined into a modular business model and related to each other until a marketable model is found. The whole thing works best when a cross-departmental group works with the method.

The business model that can be found with the help of the Business Model Canvas is the core of any good business plan. However, the Business Model Canvas does not address the topic of finance. A business plan is more comprehensive here. It also contains all the important financial considerations: capital requirements , financing , liquidity and profitability . A business model canvas is therefore usually seen as preliminary work for the business plan.

scope

The scope of a business plan cannot be generally determined. If a business plan is drawn up for a start-up project with a strong local reference (e.g. craft business, restaurant, shop, internet café), a size of 5–10 A4 pages is correct. If it is a start-up with a regional focus (e.g. IT services, freight forwarding, agriculture, trade) 10–20 A4 pages should be sufficient. In the case of national or international reference and the need to bring larger external investors in, the explanations should be made on 20–40 pages. More than 50 pages are critical, as hardly any investor or other decision-maker is willing to delve into a plan in such detail. Investment companies ( venture capital and private equity ) receive around 500 to 1200 business plans per year. On average, investors take 8–12 minutes to review a business plan. If further interest arises, the investor will obtain the necessary additional information in a personal conversation.

literature

  • Kubr, Thomas, among others: Plan, found, grow . Ueberreuter, 2002. ISBN 3-639-07675-3
  • Paxmann, Stephan; Fuchs, Gerhard: The company's internal business plan - discover, present, and implement new business opportunities . Campus Verlag, 2005. ISBN 3-593-37680-6
  • Sahlman, William: How to write a great business plan . Harvard Business Review July / August 1997 p. 98-108
  • Singler, Axel: business plan . 3rd edition, 128 pages, Haufe-Lexware, Munich 2010. ISBN 978-3-448-10041-9
  • Stutely, Richard: The professional business plan - a practical guide for managers and company founders . 2nd ed., Pearson Business, Munich 2007. ISBN 978-3-8273-7256-7

Individual evidence

  1. ↑ Stephen Robbins et al. a .: Fundamentals of Management . 7th edition, Boston: Pearson 2011., ISBN 0-13-509518-2
  2. ^ Singler, Axel: Business plan . 3rd edition, 128 pp., Haufe-Lexware, Munich, 2010, pp. 6ff., ISBN 978-3-448-10041-9
  3. ^ P. McKiernan, C. Morris: Strategic planning and financial performance in UK SMEs: does formality matter? In: British Journal of Management vol. 5 (1994), no. 2, pp. 31-42; here: p. 32.
  4. ↑ Stephanie Lahn: The business plan in theory and practice. Springer Gabler, Wiesbaden 2015, p. 120.
  5. ^ Singler, Axel: Business plan . 3rd edition, 128 pp., Haufe-Lexware, Munich, 2010, pp. 9ff., ISBN 978-3-448-10041-9
  6. ↑ Anna Nagl: The business plan: create business plans professionally. With checklists and case studies . 8. revised Edition. Springer Gabler, Wiesbaden 2015, ISBN 978-3-658-05264-5 , pp. 4 .
  7. ^ Singler, Axel: Business plan . 3rd edition, 128 pages, Haufe-Lexware, Munich, 2010, p. 11, ISBN 978-3-448-10041-9
  8. ^ Singler, Axel: Business plan . 3rd edition, 128 pages, Haufe-Lexware, Munich, 2010, p. 12, ISBN 978-3-448-10041-9
  9. ^ Singler, Axel: Business plan . 3rd edition, 128 pp., Haufe-Lexware, Munich, 2010, p. 13, ISBN 978-3-448-10041-9
  10. ↑ a b c Singler, Axel: Business plan . 3rd edition, 128 pages, Haufe-Lexware, Munich, 2010, p. 14, ISBN 978-3-448-10041-9
  11. ↑ Hutzschenreuter, Thomas: Allgemeine Betriebswirtschaftslehre , 3rd edition, Gabler, Wiesbaden, 2009, p. 34ff., ISBN 978-3-8349-1593-1
  12. ^ Singler, Axel: Business plan . 3rd edition, 128 pages, Haufe-Lexware, Munich, 2010, p. 15, ISBN 978-3-448-10041-9
  13. ↑ Start-ups help VCs beat slowdown
  14. ↑ Dean A. Shepherd, Richard Ettenson, Andrew Crouch, New venture strategy and profitability: A venture capitalist's assessment, Journal of Business Venturing, Volume 15, Issues 5-6, September-November 2000, Page 450, ISSN  0883-9026 , doi : 10.1016 / S0883-9026 (98) 00007-X .
  15. ^ Singler, Axel: Business plan . 3rd edition, 128 pages, Haufe-Lexware, Munich, 2010, p. 16, ISBN 978-3-448-10041-9