From idea to business plan
Your head is likely buzzing with brilliant ideas. High time then to give concrete shape to these ideas. Write your idea, your resources and prospective revenue sources down on paper as part of your business plan and financial plan. This will give you a clearer and more overall perspective of the risks you'll be taking and the chances of success of your project.
Your business plan
Your business plan is where you outline your activities, the market in which you'll be operating and your competitive position. It will give you an insight into where you want to take your business and what your aims are. So be sure to include the following aspects:
- your objectives
- your principal activity: products and/or services – and their future prospects
- a market analysis: is there enough room on the market? Is the project profitable?
- an analysis of the competition
- your marketing strategy
- the results you want to land
- the business organisation: organisation chart, production, distribution, administration, etc.
- your strong suits in the area of business management
Putting together a solid business plan is not just worth the effort for yourself as an aspiring entrepreneur, in most cases it's compulsory if you are planning to apply for grants or loans.
If doing the maths is not exactly your strong point or you feel a little uncertain, call on the services of an accountant or make an appointment with the Securex Business coach.
Your financial plan
If you are incorporating a company in the form of a legal entity such as a bvba/sprl (≈ UK: public limited company), nv/sa (≈ UK: private limited company), a commandite company or a cvba/scrl (≈ UK: co-operative limited company), you are under obligation to put together a financial plan. This is to be submitted to a notary in order to account for your start-up capital. Although not all legal entities require a financial plan to be drawn up, it's still a good idea to do so - whether in full or in a simplified version. This will give you a better understanding of your prospective revenues and expenditures.
The substance of the financial plan is based on a variety of details, including your objectives, the details of your prospective market and the services or products you will be selling. You will also need to detail your sources of revenue and prospective expenditures. One good piece of advice: do not underestimate the expenditures and allow for sufficient breathing space to keep your business viable. In order to be as comprehensive as possible, your financial plan needs to specify the following:
- A description of the nature of your intended activities
- An estimate of your expected revenues
- A calculation of your expected profitability
- Your financing method (capital, loan, other resources, ...)
Please feel free to raise any further questions you may have with your nearest Securex Business Desk.