Business plan: Structuring, Definition and Best Practice – Becoming Independent Part 1
You want to start your own business as a real estate agent or with another business idea? We support you with tips on your business plan and concept. Whether self-employed full-time or part-time self-employed: If you want to set up your own company, you have to think about a lot, in advance and in the operative business. From the right idea to health insurance – what needs to be considered if you want to become self-employed? There is no training or further education for entrepreneurs. Managing director is you or not. Your own ambition is always important, because this is the only way to improve, every day.
Today we start with part 1 of 14!
Must I write a business plan?
A business plan is a structured overview of your business model. It covers all of the aforementioned points, from the founder and your skills to the product, the business idea itself, marketing, staff and, of course, financing.
Business plan – what is it?
All parts of the business plan are neatly structured, like a little book. In this book the reader learns everything important about the business idea and business model.
For yourself, you don’t necessarily need a business plan. A business plan is usually for third parties, from sales staff who are familiar with the matter to banks where you need credit for your growth, from investors who want to invest in your project to advertising agencies who need to quickly understand your business model, for designs, videos or websites. Depending on the addressee, you can change certain data or remove individual parts of the business plan completely.
That doesn’t mean the business plan won’t help you. After all, you’ll learn to sharpen your business idea and it’s a bit like with the cheat sheet back in school. You have to memorize an entire book that has the content of an entire year. Contexts, calculations, names. The summary helps you on the one hand that you have a red thread as far as the topics are concerned, but on the other hand you also remember the individual information by summarizing it compressed.
understanding of the business model for third parties
However, a business plan helps above all third parties who should understand your business model. Here it is the same as in school, depending on the subject the contents differ. If you haven’t had physics yet, you have to explain the basics, the big context. Someone who doesn’t know anything about your business, e.g. a bank clerk from Lebensmittel E-Commere, should understand within a very short time what you are doing and how profitable your business model can be. It’s impossible to read an entire book. A business plan in a clean presentation, quickly made. Accordingly, the business plan is your little cheat sheet, for him and for others.
Short form or in detail? Elaboration
Your business plan includes everything important on the subject, in short form. After the business plan comes the short presentation. At the end of the day, your entire business model is just a slide with three key points. Your entire funding, two slides, two graphics, and a few dates.
The business plan already looks like this in its shortest form (short presentation). Anyone who pursues more complex business models, e.g. financial transactions through an app, must of course go a little further. Here the business plan is no longer just a presentation, but a paper. Here you explain the basics on up to 10, 20 pages. You give the answers to the question, how your business model works and how it is established economically, successfully in the market.
In short, your business plan is a detailed collection of ideas, followed by validation (audit and evidence) for banks and investors. As described above, the scope of a business plan varies extremely depending on whether it is used internally, e.g. for your own team, your advertising agency or externally for bankers and investors.
scope and type of business plan
- General applies to the business plan, no matter in which size: improvement of the own idea and orientation for third parties
- sketch / mind map
- short presentation with a maximum of 10 slides; 3 key points each
- Business plan in text form on 10 pages + analyses
- in addition (optional) the financial plan for 3 to 5 years: includes all planned expenses and income, including profit calculations
To get the loan from the bank or the desired amount from your investor, you definitely need a business plan. He helps you improve your own idea. It helps to orient third parties, such as banks and investors. While you are editing page 8, you notice that one point is missing in the risk assessment on page 12. As you adjust the risk assessment, you notice that I’m making a completely new option in distribution. Immediately you adapt this place on page 14 and so on. Constant optimization, also concerning your business plan itself.
When your business plan is ready, you are well prepared not only for your business, but also for all forms of questions that will come your way.
Business plan in practice
With your business plan, you will now have a functioning business model in place. Your proof of concept. In the next steps it is important to summarize all your considerations in short and concise sentences. So that your business model is easy for third parties to understand. The entire business plan will be a brief overview of you, your ideas, the USPs, an insight into potential customers, team, capital needs, risk analysis and sales volume. So far we have had many theoretical thoughts, now it is time to put everything into words.
Business Concept (short): Structure
This is how you describe your business idea in the shortest possible time:
- Name of the future company? → unimportant
- Name(s) of the founder(s)?
- What experience / knowledge qualifies you for this start-up project?
- What’s your business idea?
- What is special about it?
- Which potential customers are eligible for your offer?
- How should your offer reach customers (keyword: marketing)?
- What total capital requirements do you need for your project?
- What sales volume do you expect in the next few years
- How many employees want to employ after three years?
- What goals have you set for yourself?
- What risks is your project exposed to?
- When do you want to start your project?
Guideline: Setting up your own business & business plan
You want to start your own business as a real estate agent or with another business idea? We support you with tips on your business plan and concept. Whether self-employed full-time or part-time self-employed: If you want to set up your own company, you have to think about a lot, in advance and in the operative business. From the right idea to health insurance – what needs to be considered if you want to become self-employed?
There is no training or further education for entrepreneurs. Managing director is you or not. Your own ambition is always important, because this is the only way to improve, every day.
The topics at a glance: