What is a business plan?

A business plan is a document with two main chapters: a descriptive part and a financial part.The descriptive part outlines your idea, your project in detail. 

The second part, the financial plan, focusses on the numbers: the investments, your expenses, the expected turn-over, profit, etcetera.

There is not one particular unique template or format for a business plan. If you look for templates on the internet, you will find dozens of different models and templates. However, a business plan should answer fundamental questions about your future venture. 

The descriptive chapter answers:

  • what are you going to do (sector, type of business, products)?

  • where (location) you are going to (online, brick and mortar, city)?

  • how you plan to do it (strategy)?

  • Who are your prospects and future clients?

  • who are your competitors?

The financial part answers:

  • what are your expenses and turn-over?

  • what is your expected personal income/salary?

  • how much sales or income the company needs to be viable?

  • how much sales you need to meet your goals?

An investor, a bank, a partner, or a supplier who reads your business plan needs to understand precisely what you want to do and how you want to do it. It proves that you did your homework and that you are well prepared to launch.
This post is the first on the topic of business plans. I am publishing other posts on why you need a business plan, and how to make one. Stay tuned!


Top 10 about the author; Erik Victor
1. is a serial entrepreneur and started his career in Engineering
2. currently a majority shareholder in corporations in the fields of Industrial Real Estate, Wealth Management & Investment funds, and International Tax Planning
3. has a passion for the dynamics of young businesses and actively endorses several start-ups
4. is an engaged member of several think-tanks and an international conference speaker
5. has a business footprint in six countries
6. speaks five languages
7. personal life - resides in Europe
8. Erik (48) is known as a discrete and private person, a family man
9. loves to spend his limited holidays in the mountains or at sea on his yacht
10. Erik has no social media accounts



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