You often hear, even from entrepreneurs or consultants, that a business plan is actually not necessary. Why it can still be important for you to create a business plan and how this can affect your success is explained by Daniel Schäfer in this article.

These are the advantages of a business plan

First of all: ideally, a business plan is the foundation for your sustainable and structured success. However, this is only the case if you are clear about why you are creating this plan and what content it should include.

You can think of a complete business plan as an anchor concept for your business development. Here you not only describe your offer, your product or your service. The plan also includes concepts for financing the company, describes your marketing strategy, and can help you select the right personnel.

The business plan is therefore a step-by-step guide for building your company. With its help, you can proceed in a planned way and quickly recognise when your concept needs optimisation.

But the business plan is not only important for yourself, but also for a whole range of other people without whom you cannot be successful.

How a business plan helps you make the right contacts

So that your business concept can help you convince important contacts of you and your idea, you should create tailored business plans derived from the overall concept. Let us look at some examples for better understanding:

Start-up grants (Gründungszuschuss): You can receive these, for example, from the Federal Employment Agency (Bundesagentur für Arbeit). The major advantage: these grants are tax-free and you do not have to repay them, even if you make a profit after a short time. However, the business concept you submit must meet certain criteria, and it is much easier for you if you can already find all the information in your business plan.

Landlords: If you need an office or retail space for your business, you will be competing with other applicants and a potential landlord can choose the tenant who convinces them the most. To achieve this, you need a business plan that briefly presents your business and includes a pitch.

Banks: It is not uncommon, especially at the beginning of your business, to need investment capital. The first step to obtaining this is usually to approach a bank from which you hope to get a loan. However, banks only grant loans if your financial concept is absolutely plausible and if the bank can assume that you will be able to make the repayments.

Investors: If you can only obtain a loan from the bank under certain conditions, it may make sense to look for other investors. You should be aware that your business represents a risky investment. Therefore, you do not need a classic business plan to convince them, but rather a meaningful pitch deck.

Use your business plan to be successful in the long term

If you have designed your business plan thoughtfully, it can serve as a roadmap for a successful business in the long term. You will quickly recognise if you deviate from the planned path or miss your targets. This is the perfect basis for identifying which adjustments you can make to achieve sustainable success.

And if you have successfully navigated the start-up phase, your business plan will help you expand and scale your business. Even if you eventually decide to make a change and aim for an exit or sale, your business plan will help you achieve the best possible outcome for yourself.

So if people, no matter how experienced they may seem, tell you that you do not need a business plan, you should at least question whether this is true or whether you have not already received enough arguments today in favour of having a business plan.

Would you like support in creating your business plan? We are happy to help. Let us find out together in a free and non-binding introductory meeting what we can do for you and your success.

About X-Group

Belief in your potential and a focus on the things that truly move you forward are the top priorities at X-Group GmbH in Berlin. You receive tailored support that identifies the most important bottlenecks. This way, you remove obstacles and can work purposefully towards your success.