Why prepare a business plan?

If there’s one lesson businesses have learned between 2015 and 2023, it’s that planning is essential to survival and success. From crafting a business plan to carefully studying the competition, preparation has become the key to the business game. It is no longer enough to have a good idea; to succeed, you must formalize it and put it into action.

In Quebec, for example, between 2016 and 2020, there was a 28% growth in the number of companies that took the time to develop a business plan before starting their activities. Indeed, a business plan – also called a “business plan” – has proven its usefulness not only for obtaining funds, but also for clearly defining the direction to take.

From 2015 to 2018, only 12% of new Quebec businesses survived without a business plan. On the other hand, this figure jumped to 16% in 2020, thanks to the adoption of solid business plans. There are plenty of free tools out there today to help build your own business plan, and now is the time to take advantage of them.

So why start writing a business plan? Why is it so crucial for starting a business in 2023? In this article, we’ll explore the good reasons to do so and the key steps to creating an effective business plan.

Get ready to take notes, because we have 10 essential points to share with you!

It is a strategic guide that presents a clear picture of your business, its market, its objectives and how you plan to achieve them. Here are three key reasons that highlight the importance of a business plan.

Clarification of ideas and vision of the company

Preparing a business plan forces you to think critically and strategically about every aspect of your business. This includes everything from your value proposition, to your revenue model, to your marketing strategy. This approach allows you to transform your ideas into a concrete vision and to clearly define the direction you want your company to take.

Identify short, medium and long term goals

A business plan serves as a roadmap for your business, setting out the goals you want to achieve and the steps needed to get there. These goals can be as simple as launching a new product or as complex as expanding internationally. With a business plan, you have a clear vision of what you need to do to move forward and grow.

A business plan allows you to assess the resources you need to start and run your business. This includes not only financial capital, but also human resources, necessary skills, equipment, facilities, etc. By clearly understanding your needs, you can plan accordingly and avoid costly surprises later.

A business plan not only defines what your business is, it also plays an important role in the promotion, growth and success of your organization. A well-developed business plan is often the first contact between you and potential investors or partners. It presents your vision, demonstrates the feasibility of your project and outlines how you plan to achieve your financial goals. It’s a showcase for demonstrating the value and potential of your business, thus fostering the investment and partnerships needed to drive growth.

Preparedness for challenges and opportunities

The business plan is also a valuable tool for anticipating potential challenges and identifying opportunities. For example, an in-depth market analysis may reveal emerging trends or market gaps that your business can exploit. Similarly, a SWOT (Strengths, Weaknesses, Opportunities, Threats) analysis can help you predict potential problems and develop strategies to deal with them.

Finally, your business plan serves as a benchmark for evaluating the success of your business. The goals and key performance indicators (KPIs) you set in your business plan allow you to track your business progress, assess performance, and make strategic adjustments when needed. It’s an essential tool to

An effective and compelling business plan consists of several key elements that provide a comprehensive overview of your business, its value proposition, its market and its financial strategy.

This part should give a clear overview of what your business does and the products or services it offers. It is important to include here your mission, your vision, and the legal structure of your company. Next, describe your product or service in detail, highlighting unique features and the value it brings to your customers.

A key part of your business plan is a thorough analysis of your market and your competitors. Who are your target customers? What is the size of your market? This information will help you understand your business environment and develop strategies to differentiate yourself.

How are you going to reach your target customers and convince them to buy your products or services? In this section, you must describe your marketing strategy, including your communication channels, your value proposition, your pricing strategy and how you plan to sell your products or services

Your business plan should include financial projections that show how your business will become profitable. This includes sales forecast, expense budget, cash flow, and business case. These numbers will give potential investors a clear idea of ​​the financial viability of your business.