1.2. How to make a business plan convincing?

The business plan is not a scientific treatise, but an economic concept. The difference is that it is not about a scientific question or a theoretical interest in knowledge, but about the entrepreneurial challenge of developing a business idea in such a way that a successful company can emerge from it or be continued in the case of a company takeover. Therefore, the criteria of plausibility, comprehensibility and realism are of decisive importance for the evaluation of business plans.

With an economic concept, it is important to recognise the opportunities and risks of the business concept in order to be able to make the right decisions as an entrepreneur. In this sense, success is to be seen as the "sum of right decisions".

Since there is not only one reality, but always several views of reality apply, the final evaluation of a business plan - despite all objectivity - always also represents a subjective view. This view is of particular interest, since third parties are always involved in every business plan. If the business plan is convincing, the decision-makers, whether they are the managing director of a company, the loan officer at the bank, the investor, a business promoter or the expert, will be able to understand and confirm this.

• Plausible means it must be acceptable, plausible and comprehensible to a third party. The assumptions must be acceptable, for example, the sales forecast should be able to explain why a certain customer or target group can and is likely to buy a certain amount of products in a certain time.

• Comprehensible means that a third party can see and understand something in writing, graphically, mathematically and/or in tabular form, i.e. in text form. For example, it is comprehensible if a company presents and elaborates its unique selling propositions in comparison to competitors.

• Realistic means that it must correspond to reality to a high degree. This must be based on the conditions of social reality in which today's business world operates. If today's world is, for example, international and digital, its effects must play a role in the business concept. For example, it is about the concrete competition in the place where the business is to be done. This must be recorded as precisely as possible. The criteria for success or failure must be identified, described and mentally turned around in the concept so that the business idea can be successful. It is important to recognise the economic risk and at the same time the opportunities.

In the market, it is the customers who decide on success and failure. The success of a business plan is only decided when a product or service is purchased. Therefore, it is quite possible that all decision-makers have an inadequate view of future reality and a start-up nevertheless succeeds with its business concept. Otherwise it would be hard to explain why the famous "garage companies" or "dishwashers" achieve world fame - because they would not have received a start-up loan from a bank. On the other hand, reality is tougher in any case than a rejected concept. In business life, a flawed business plan is punished with insolvency, i.e. economic loss - which can also result in personal failure.