Company creation project: how to make a business plan

Verified 26 September 2023 - Directorate for Legal and Administrative Information (Prime Minister)

Do you have a company creation project? The business plan is a written document which details your company design project. The business plan will be the tool to convince the banks and investors. We'll explain how to do a business plan step by step.

Step-by-step approach

What is the business plan for?

A guide and a sales tool

The business plan must be salesman, reassuring, i.e. realistic.

You have to build it from land, of your research and your analysis.

It must prove that your company creation project is serious.

The business plan must be both synthetic and very precise with numerical forecasts.

A tool tailored to each investor

Your business plan is thetool for convince investors and anyone who will support your project.

It is therefore aimed at investors following:

  • Bank
  • State
  • Local authorities
  • Business angels
  • Future partners
  • Anyone you're looking for funds from

FYI  

Depending on the investor you are talking to, you put certain information forward.

So you have to do multiple versions of your business plan according to each consignee.

The stages of the business plan

The business plan is a document that is built in 5 steps :

  1. Introduction or pitch presentation
  2. Introducing your product (or service)
  3. Introducing your business model (also called business strategy)
  4. Your market study (summary)
  5. Your financial forecast (summary)

What is the purpose of a pitch?

The pitch presentation of the business plan is also called executive summary.

This is the presentation of your project company creation.

It must be condensed.

Its objective is to convince an interlocutor.

You have to convince in a while short.

L'objective of this summary shall be to prove:

  • Your Ability to Build and Lead a company
  • Your suitability for the project
  • Your serious preparation of the project
  • If you are several partners, your team cohesion

FYI  

It is advisable to write multiple versions of this presentation according to each investor to convince.

Example :

  • To convince a public investor, you will place more emphasis on the service you provide to the business.
  • To convince a business angel, you will insist on the innovative nature of your offer.

This information should help you understand what your ideas, your values, which motivates you, so the meaning of your project.

If many of you are carrying out the creation project, we must feel the cohesion of theteam and complementarity of members.

This presentation should prove your ability to create and direct one company on the court and the long-term.

What's in the pitch?

This presentation should allow answer to following questions :

  • Who are you? and who are your team members (collaborators, associates)?
  • What is your project ? It is the name of your company, its legal form, its domicile, the nature of the activity, the history of the project.
  • What is your target ? It's about showing that you've identified your future customers.
  • What is theenvironment ? It's about showing that you've identified your competition, constraints, risks, market trends, etc.
  • What are your ambitions for development ? It's about showing that you have a vision from project to short, medium and long-term.

Please note

The business plan presentation is in part a summary of themarket study.

You describe what you will sell.

This description must be precise, concise and clear.

We must avoid using terms that are too technical.

You must be understood by people who know nothing about your field of activity.

Please note

You can make diagrams, drawings, etc. to accompany this product description.

What is a company's business model?

You must present how you're gonna sell your product or service.

The business model is called in different ways: a marketing strategy, a business strategy, a "mix-marketing" or a business model.

Your company's business model should answer the following questions:

  • How are you going to do this? promotion and the publicity your company, product or service?
  • What will be your rates ?
  • What will be your suppliers ?
  • Who will make your product or service?
  • What will be your channels of distribution, where will your product or service be sold (internet, professional networks, shops, etc.)?
  • What will be the relationship with your customers, how will the retain ?
  • Where will be stored your products?
  • What will be the tracks of development your activity (internet, national, international, etc.)?

Have you analyzed the constraints?

It's about foresee which can curb your business.

You need to identify what can do increase your costs : storage, production, distribution, communication.

Example :

  • Does the fluctuating price of raw materials affect your production?
  • Do suppliers in the sector have a monopoly?
  • Is the demand for your product seasonal?

You have to prove that you've thought about the solutions following:

  • How to Overcome Constraints
  • How to deal with lost profits, increased expenses, new competitors, etc.

The purpose of the market study and its synthesis is to explain:

  • What are your futures? customers ?
  • What added value does your product bring to the market?
  • In which environment is your future activity included?

FYI  

We'll explain in detail how to do a market study in our factsheet on market research.

The purpose of a financial forecast is to show that your company will be profitable.

It is also called a financing plan or provisional budget.

The Financial Forecast (or Forecast Budget) is part of your market study. This is the last part of your market study.

You have to build this budget on 3 years to come.

You must put a figure on :

  • Your expenses, the necessary expenses
  • Your revenue (revenue)
  • Your financing needs
  • Fluctuations in your business and the market

It takes place in 4 parts :

  1. Profit and loss account
  2. Balance Sheet
  3. Financing plan
  4. Budget or cash flow plan

These 4 parts correspond to 4 numerical tables.

FYI  

We'll explain in detail the 4 steps of a provisional budget in our factsheet on market research.