1.1. What is a business plan?

The business plan is a tool to develop a business concept. The business concept defines the strategic goals and operational issues that make a company successful. In order to achieve this, the business plan instrument is used as a procedure with the help of which a certain result can be generated. In order to develop a business concept in its conceptual, legal, organisational, personnel, prognostic, operational and financial dimensions, the business plan is developed with its individual modules. The conceptual view of the entrepreneur must ensure the integration of the modules. A medium-sized enterprise is a holistic and complex entity.

The business plan is increasingly gaining acceptance in the economy as an instrument for the successful implementation of business plans. Business plans were used in the USA at the beginning of the 19th century as a tool for acquiring capital from private investors and venture capitalists who wanted to invest in a company with equity capital. Today, the business plan is considered a business concept without which entrepreneurial activities can no longer be entered into.

Business plans have been increasingly used as assessment tools in the context of start-up offensives in Germany for years. They are designed to get to the heart of the most important economic facts. Project-related business plans, e.g. for company expansions or new business branches, have long been used in large companies and also in SMEs for bidding and investment decisions. In economically strained times, the importance attributed to business plans is growing. "Good" business plans can prevent bad investments from being made. In this respect, the business plan can be used as a targeted instrument.

The business plan should describe the enterprise and business concept convincingly in terms of content, professionally competently and with economic expertise. This must be done from the perspective of an entrepreneur. The entrepreneur is a person who wants to carry out a commercial or freelance activity independently and with economic success. It must be directed towards sustainability and growth. It is carried out in economic life under competitive conditions. It has not only an intention to generate income, but also an intention to make a profit. The entrepreneur can be a natural or legal person.

A business plan is essentially about the conception of a successful business idea. This includes selling the business concept itself. It is particularly important to pay attention to the specific industry conditions and market requirements, which must be named in the market analysis and in the plan.

Business plans have different motivations. They are needed for different occasions and types of business. Depending on the purpose, these particular requirements must be addressed. The occasions are based on different motives and reasons.