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Business Plan: Instrument for Planning and Controlling

Definition, Explanation

Setting up a business plan plays a central role in the formation or take-over of a company. The business and technological concept, the economic environment as well as the necessary financial and personnel means are described in detail in it. In this way, the business plan becomes one of the important strategy papers and control instruments for the entrepreneur for defining his/her targets and checking these on a regular basis. A professional business plan is a prerequisite for obtaining funds, be it form banks, business angels, venture capital companies or supporting state programmes like business grants. Accordingly, it must be tailored to the target group and aim.

First and foremost, the business plan is intended for you. You define your product or service in it, make statements about your market and competitors, describe your unique selling proposition, give thought to marketing and sales, describe your competences and plan the financial development of your company in a multi-annual plan.

Tips, Checklist

• Set up a business plan even if you do not need it for the application of a company grant. In doing so, you give thought to the various aspects of a company foundation and management in advance and can see your weaknesses and homework to be done, immediately
• Ensure a neatly arranged set up, comprehensible phrasing and the focus on the essentials. The professionalism of your intention is expressed in this plan and thus makes you an equal partner for suppliers and customers
• Update your business plan on a regular basis
• Submit your business plan to business plan competitions. In doing so, you receive support and advice for free and can discuss your idea with professionals

Last update: 03/26/2010