The innovative business plan: economic and financial part

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The innovative business plan is a file that allows you to build, structure and validate a business creation or takeover project. Its realization is an essential step for any entrepreneur. A good business plan should consist of an economic study and a financial study.

Depending on the characteristics of your project (activity and scale in particular). It may be necessary to adapt the content of your business plan.

What is a innovative business plan?

A innovative business plan normally includes an executive summary, an economic study and a financial study of the project.

innovative business plan

The executive summary

The executive summary summarizes your business plan, it presents the key points and the key figures of your project in a few pages. By reading it, the reader must understand what the project is and what the business model is.

It includes information about the target market and customer base, supply, positioning, competitive advantage, team, needs, goals, and profitability.

The economic study of the project

This part is very important, it aims to present the complete project and justify its consistency: market study, marketing strategy, business strategy, team together and important parameters.

The financial study of the project

A innovative business plan necessarily involves a financial study of the project. This reflects financially, over a period of three years in general, the project of creation or takeover of business presented in the first part.

At a minimum, the business plan must include the following financial statements: a balance sheet, an income statement, a financing plan and a cash budget.

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The economic part of the innovative business plan

This first part of the business plan contains in particular. The market study, the marketing strategy, and the commercial strategy, the presentation of the team and all the other important parameters (implementation, list of needs related to the realization of the project, financial resources mobilized, legal assembly …).

Market research

The objective of the market study is to obtain as much information as possible on the targeted sector of activity and to analyze supply and demand. This allows you to validate the commercial feasibility of your project.

It is necessary to study in detail the targeted market, its regulation, the needs of the customers, the competition.

innovative business plan

The marketing strategy

The entrepreneur must explain in his business plan which is the targeted clientele and what are the offers of products and/or services envisaged to satisfy the needs of this clientele.

Targeted clientele

The definition of the targeted clientele must be as precise as possible:

  • What is the target audience category: men, women, children, businesses?
  • What are the characteristics that define the target audience? Here are some examples of possible parameters: marital status, age, income, leisure …
  • What is the age range of the targeted clientele?
  • Is the offer of products and/or services intended for people with a certain income?
  • What are the geographical area of the targeted clientele?
  • What the socio-professional category of the target clientele?

Any other parameter to precisely defines the targeted clientele should be mentioned. It is also necessary to justify this segmentation: why do you choose this type of clientele?

Positioning your future business

After having precisely defined the targeted clientele, you must present the positioning of your future company to meet their needs: what image do you want to convey to your future company?

The choice of your positioning should be based on what competitors already offer, what is your competitive advantage over what is already on the market? In the absence of competitive advantages, how can you justify your chances of success?

The commercial strategy

After detailing your marketing strategy, it is necessary to present your business strategy. To do this, you must present: the products and/or services you will offer, the prices charged, the distribution channel and the communication strategy.

The commercial policy is strongly correlated to the financial study of the project ( estimated turnover, distribution costs, communication costs).

The project leader and his team

Having a good project is not enough, then you have to justify that you are the right person to carry the project and, if necessary, to present the important actors that you grouped together to drive it. The team must be adapted to the project, the skills and experiences together must be adequate in relation to the required needs.

This part must contain:

  • A presentation of the entrepreneur: career, experience, skills … this should allow readers to judge if you have the ability to manage the project,
  • The motivations that lead him to launch the project,
  • If necessary, a presentation of the team assembled to lead the project.

Important parameters of the project

The presentation of the location where the company will be located is also necessary: presentation of premises, characteristics of the lease or purchase, amenities to provide, justification of the chosen location …

Then, it is essential to list all the needs necessary for the realization of your project (investments to be made, stock to build, work to be done, recruitment …). To encrypt them, then to indicate what are the resources that you consider mobilizing to finance them. This part is particularly related to the financing plan (table in the financial study).

If the future activity involves important partnerships, such as significant commercial contracts, collaboration with a brand or suppliers essential to your business. It is necessary to mention them in the business plan and to provide the main information about them. this.

Finally, your business plan must explain the legal structure of the project. Chosen legal form, chosen tax regime, the composition of shareholding, the functioning of decisions …

The financial part of the innovative business plan

The financial study presented in the business plan must include at least a balance sheet, an income statement. A financing plan and a cash budget. Other tables and indicators can then enrich this part if needed: working capital and working capital requirements, cash flow, financial ratios, details of certain items, etc.

innovative business plan

The forecast balance sheet

A forecast balance sheet presents the asset situation of the future company at a time T, generally corresponding to the closing date of the financial year. It is composed of two parts:

Assets: the items in them correspond to everything the company owns (fixed assets, inventories, cash, accounts receivable, etc.) at the balance sheet date;

Liabilities: the items contained therein correspond to all the resources available to the company belonging to third parties (equity, financial debts, trade payables, tax and social security debts, etc).

The projected income statement

The income statement details the formation of the result over the duration of the forecasts (with a segmentation by fiscal year), taking all the products (turnover mainly).  And expenses (purchases of goods and services, rentals, wages and social charges …) budgeted under the project.

The financing plan

The financing plan is a table showing the financial needs of a company in its infancy.  And then several years and the financial resources allocated in return. The purpose of the financing plan is to balance the needs and resources of the company with consistency.

The business plan can have two tables: the initial financing plan and the overall financing plan (initial financing plan + financing plan for the duration of the forecasts).

The cash budget

The cash budget is a monthly projection of all cash inflows and outflows over the forecast period. All expected cash receipts and disbursements are reported for the purpose of determining the cash balance of the business.

Our advice for a successful innovative business plan

Include only realistic and justified data

For a business plan to be consistent, it must contain only relevant and justified information. The preparation of the business plan must be neat to be able to build it correctly.

Sometimes the temptation to modify certain parameters (especially financial ones) can be important to obtain attractive figures. However, behaving in this way, the business plan loses its essence and the entrepreneur builds his project based on parameters that are false.

innovative business plan

To be accompanied by a professional

The realization of a business plan involves important issues for a contractor. It is recommended to be assisted by a professional, its external opinion and analysis will improve your approach.

If needed, our trusted partner can support you in your project:

A business creation professional will be able to take a critical look at the project, validate your financial study and complete it.  And then assist you in setting up the project. By cons, the business plan is a job where the entrepreneur occupies a central place. The role of the professional is to assist you.

Revisit your innovative business plan

In addition to the adviser who accompanies you. And it is recommended to have your business plan. And re-read for several people before validating it. You must make sure that each reader understands your project. And you will collect comments that may be useful to you.

Use a tool to facilitate the realization of your business plan

We advise you to rely on a professional application to achieve your business plan. And avoids several errors especially in terms of financial study and provide a professional structure to the document. If you are accompanied by a professional, this one normally has a professional tool to realize business plans.

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