Business plan

The business plan is the leader of the establishment and operation of a company. It presents the company's future objectives, the most important elements of the marketing, financial and operational plan in a single document.

The business plan is the basis for the operation of every enterprise. This is the guide that you can always fall back on when you feel that things are going in the wrong direction or you simply want to know if the company is on the path that we originally envisioned for it. 

A business plan is requested from businesses in many places. The bank usually examines it when evaluating the credit application, but the essence of the business plan is to give support to the company management in managing the business. Everything in the life of a company does not have to happen exactly as it is written in the business plan, but the company management must always be able to justify why it deviated from the originally developed plans. 

The business plan starts from where the business is and what its future visions are. What do you want to sell, to whom, how much and for what price. How and with what resources you will produce and sell the products and services included in the plans. For this, it is necessary to examine the market where the company operates. You must be aware of your competitors' market positions and products. It is also necessary to know what and how much our own product or service is better than that of our competitors. 

There are many analysis methods that can be successfully used even in a small business to realistically describe the company and its environment. Even so preparing a SWOT analysis or even a PESTEL model can help a lot with realistic assumptionsin its formation.

The "to whom, how much, how?" answers to questions are also called a marketing plan, it is one of the legs of the business plan. Expenses and income are recorded in the financial plan, which is also an essential part of the business plan. The parts related to production or the production of the service are recorded in the operational plan. These can all be more detailed materials than the business plan takes from them, since our business plan must always contain the essential elements, it must not get lost in the details. 

It is important that the business plan is based on reality. Starting from the wrong parameters, using the wrong prices and solutions, the result of the business plan can be very different from reality, and this can have serious consequences even if the business plan does not get into the hands of others. 

However, it must also be taken into account that many people can request a business plan from a company. It is good to know that potential investors, partners or creditor banks have a great routine in finding wrong assumptions and parameters in the document. 

That is why it is advisable to outline the best and worst scenarios at certain points in the business plan, because the author himself may be surprised by the changes that pushing the "potmeter" can bring about in the final result. Everyone can check the effect of this if, for example, they calculate a few variations regarding the amount that can be sold.