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Tips for developing a quality business-plan.

1. To be credible, a business-plan must be coherent and each parameter in the Business Plan must be based on facts.

2. There are many methods to build Business Plans, but very few can help you correctly carry out reliable financial projections based on a preliminary commercial engineering and market study.

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  1. Indeed, one frequent mistake when building Business Plan's is to first define the target in terms of market share, and then try to "find" the number of customers necessary to fill these objectives! This process should be reversed.
  2. 3. In addition, one essential point in a Business Plan is to define concrete policies and measures. This definition aims to gain a reasonable number of customers, based on a sufficient knowledge of the market. The quantitative estimate of this gain must be calculated on realistic monthly and annual increase rates. A well-founded pricing policy then makes it possible to estimate the sales turnover in the years ahead.
  3. The calculation of the costs of the planned actions in your Business Plan are essential and make overall financial projections possible. In short, financial forecasts – including those related to the financing of the project – must be elaborated from the basic elements of the project. They should be proceeded by a commercial engineering study which projects a realistic estimate of sales.

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4. In a Business Plan, the marketing plans as well as the financial forecasts require a basic understanding of how these important elements are calculated. You can use good software – some of which is free – to faciliate the development of your Business Plan.

5. The last point and certainly not the least significant: A Business Plan is never ended "once and for all". A regular follow-up and comparison between the theoretical Business Plan and the reality of its execution are essential. You can then modify your Business Plan and adapt it to improve performance and achieve your goals.

There are many important steps to consider when developing a business plan for your company, but the first step is to fully understand the main uses of a business-plan. The four main uses of a business-plan are as follows:

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• A Business Plan is a written document that you can use in your search for external financing.

• A Business Plan is a tactical planning and management tool for your business.

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