Why draw up a Business Plan

The reasons that push the management to draw up a Business Plan are

 multiple, by virtue of this, although starting from standard drafting rules and elements

 applicants, you can find different forms of Business Plan. Here are some

 examples.

Business Plan in the event of a start-up launch

 It is certainly the most widespread case of using Business Plan in this one

 occasion, a multi-year development plan is a must and deals with all aspects at 360 ° that interact in the life of a company. The first fundamental function of the

 Business Plan is therefore internal as it serves to first verify the potential of

 success of the entrepreneurial initiative. The starting point of this Business Plan goes identified, even before the actual drafting of the plan, in the analysis of

 personal attitudes of the entrepreneur and what it will mean to fill this role; understand if the figure who has the entrepreneurial idea is also able to manage relationships

 interpersonal, organize human resources within the company that will be born,

 make sacrifices in terms of time and money. After this preliminary step, we move on to draw up a real business plan in the which to report in detail all the information useful for future business

 entrepreneurial; to determine how much the activity costs and how much it pays off, in how much time

 you should return the capital invested, what are the minimum sales volumes and which ones prices apply to reach the break-even point. The Business Plan also becomes it external information tool necessary to represent financial needs and i expected profit margins. The weak point is instead the lack of the whole part

 introductory with the analysis of historical data that allow you to have a view not only

 prospective but also consultative, which makes the curriculum of the

 founders to be able to evaluate the degree of knowledge and managerial skills from one part and the balance of financial resources between own means and third party means.

 Last but not the least function of the Business Plan in the case of start-ups is that of ensure easy control and monitoring of the initiative; it constitutes the trace

 and indicates the guidelines for achieving the objectives set in the initial moment of

 drafting of the plan.

Finally, the Business Plan represents the external communication tool for

 search for financiers, partners and collaborators. I have deliberately indicated this last function because in my opinion a Business Plan should not serve in the first instance a convince others of the validity of our project, but to convince the promoters that all the basic conditions exist for the project to be successful; because if it is true that lenders and collaborators are essential to the success of the project and even more It is true that without a valid plan, no lender-collaborator will decide to

 support it and that therefore the Business Plan must mainly serve to demonstrate that our idea is winning and profitable are the most varied points of view.

Business Plan in the case of an expanding company

 Whatever the reason why a company decides to expand3 the editorial staff

 of the Business Plan is essential to trace a path, define strategies and demonstrate its feasibility. the difference from the above is that the point weak of the Business Plan in the case of start up is missing, in fact you have a available all equity and economic data sufficient to explain the history, the trend growth and future potential of the business.

Business Plan for the acquisition of an existing company

 The Business Plan that responds to this particular circumstance differs in

 more clearly than all other cases as it focuses on the acquisition of something

 already existing, with products and customers already defined, which allows you to draw up a plan with a very small forecasting part and based on certain and sure final data. It will be a plan aimed at highlighting mainly reasons why the seller wants to sell, the managerial skills, the wishes of the buyer and how the reality that will be acquired

 it is part of a common strategy.  first you need to choose in this case

 the way in which it is intended to take over a company:

 Rent of an existing company 4

 , advantageous option for minimization

 of the initial costs, and because it allows you to immediately take possession of all the assets

 necessary to carry out the business activity.

 Purchase of an existing company, an option that requires large capital

 initial available and which, as a major critical aspect, has difficulty in evaluation

 of the assets and liabilities that are sold regardless of the book value of

 these.

 The Business Plan, in this case mainly for internal use, differs in

 more clearly than all other cases as it focuses on the acquisition of something

 already existing, with products and customers already defined, which allows you to draw up a plan

 with a very small forecasting part and based on certain and sure final data is

 indispensable for tracing a path, defining strategies and demonstrating their feasibility.

 The Business Plan serves to verify the real potential of the existing company of

 achieve the objectives and results that the buyer sets, and for this reason, in

 in this case, the most relevant part of the Business Plan will be the one concerning the analysis economic, financial and equity dynamics.  The substantial difference, compared to the previous case, it is that in this case the company is already functioning and therefore

 in the drafting phase all pre-existing elements (which will be evaluated as carefully as possible) and all corrective maneuvers that yes will intend to implement to eliminate the critical points of the old management. It is therefore necessary to understand when to invest, what to invest in and how to find the

 necessary resources.  It is precisely for this reason that also in this case the drafting of a Business Plan represents the most appropriate tool to evaluate the aspects first exposed.

The main functions performed by the bp in this case are:

  It allows to evaluate the coherence of the project with the general objectives

 of the company and with the strategies that are implemented to achieve them, are the

 objectives and strategies to determine the investments to be made available for

 make them, and not vice versa.

  Allows you to check the technical compatibility of the investment,

 analyze the structure of the pre-existing production system and understand if

 the investment in new machinery allows it to be inserted into the structure

 existing or if the entire production layout needs to be revolutionized

  It allows to develop accurate economic forecasts about the feasibility

 of the investment, and the return times of the invested capital as well as an estimate of the related costs 5 .

  It allows to evaluate the financial feasibility of a project; in fact a

 project can be valid from a technical, productive and economic point of view but

 without adequate financial coverage it will be impossible to achieve it.

Business Plan to analyze development dynamics

 One of the typical attitudes of small and medium Italian enterprises is that of

 keep the environmental, management or production situation always under control o however easily controllable. The entrepreneur trusts his company and the

 instinct and acts accordingly, makes decisions on impulse and often without

 analyze the problem in depth, underestimating the impact that these choices have on corporate life.

In this sense, even for an entrepreneur who leads a business, albeit of

 small size drawing up a business plan becomes useful to avoid taking

 decisions that are risky relating for example to investments, works of

 extraordinary maintenance, interventions in the production structure, etc ...

 With this in mind, the drafting of a Business Plan takes on relevance in relation mainly to two aspects:

  Promotes constant planning of company guidelines, in

 all its different components. The Business Plan is the right tool for plan the life of the company, detect signs of crisis in advance and simulate the result of a corrective action;

  It is a company performance monitoring tool. Very often larger companies already have specific structures which, making use of suitable management control tools, they manage to control the different aspects of management. Smaller businesses dimensions can instead use the business plan to perform similar control functions. Draw up and update, at least annually, a business plan allows you to check if the business is proceeding in the right way direction, how is the trend in profitability margins, if the planned strategies they are correct, if the organizational model adopted is consistent and so on.