How to write a business plan

You can register at KVK without a business plan. Do you need financing to start your business? Or are you currently receiving benefits? Then writing a business plan is necessary.

What is a business plan?

A business plan is a document in which you describe the plans for your business. In it, you include details about yourself as an entrepreneur. You describe what your business idea is and how you will make this idea a success. This also includes a financial plan, because you want to know how much starting up your business will cost and whether you will make money from it. 

Why make a business plan?

With a business plan, you find out whether the idea for your business is realistic. Can you really make money with it? At the same time, you can think of it as a kind of step-by-step guide. What do you need to do to turn your idea into a business?

You can think of the business plan as research. As you list everything, you will find out what are good ideas and what will not work. Also ask for feedback from family or friends. They often see different things from you.

How do you make a business plan?

In a business plan, you summarise your plans on no more than 2 A4 sheets. Include these 4 sections:

1. You as an entrepreneur

You start your business plan structure with information about yourself. Who are you and why do you want to be an entrepreneur? Use plain language and keep the information as short as possible.

Personal information

With your business plan, you present not only your business but also yourself. Do you need a loan for your business? A bank or investor will also look at your suitability as an entrepreneur. Write down basic information, such as your name, address, place of residence, family composition, driving licence, education, and previous employers. Include what you would put in your resume.

Personal characteristics

Write down why you want to become an entrepreneur. Describe your drive, the skills that make you a good entrepreneur, and your strengths and weaknesses. The KVK Skills Test (in Dutch) helps you visualise your entrepreneurial skills, such as financial matters, administration, marketing, networking, and your plans to develop.

If you start a business with one or more partner, you include information about each entrepreneur.

2. Your business

In this section you describe your idea and how you will organise and run your business.

Your idea

Your idea is the foundation of your business adventure. You are now going to put the idea that is in your head on paper. Do this in just a few lines. You will notice that if you can describe your idea in a few lines, developing your business plan will be easier. It gives you focus.

Your company

Here you describe how you actually want to put your idea into practice. Describe very clearly what you are going to do and how you are going to do it. What are your objectives and what have you already arranged? This helps you discover whether your business plans are realistic.

In this part, you include information such as:

• Legal structure
  Describe which legal structure you choose and why.
• Part-time business
  Are you still working as an employee or do you take care of your children or parents next to your part-time business? Then write down how you think you can spend enough time on your own company. Is there a non-competition clause included in your contract? If so, explain how you plan to deal with that.
• Company name
  Which company name do you choose? And why?
• Register with KVK
  When will you register your company with KVK? Or when did you do that?
• Location
  Are you starting a business from home or from an office? Check your municipality's environment plan to see if this is allowed and if you need any permits.  Also, write down if you choose to rent or buy commercial premises, and why.
• Insurance, permits and other obligations
  Which legal requirements and obligations do you have to meet? Do you need certain diplomas or permits?
• Terms and Conditions
  Write down your terms and conditions. Add them to your business plan as an attachment.
• Administration
  Are you going to keep your business records yourself? Or will you hire a bookkeeper or accountant?
• Staff
  Are you hiring staff or not? And why?
• Future prospects
  Where do you want your company to be in a few years? And what will you do to achieve this goal?

3. Your marketing plan

Marketing is about how to bring your product or service to the attention of future customers. In your marketing plan you describe how you will do that. You make it clear and concrete how you will bring these plans into practice.

Conduct market research

Conducting market research is the first step in defining your marketing strategy. Are your customers as convinced of your product or service as you? Through market research, you find out whether there is a market for your product or service. You also map out your competition.

What do you put in your marketing plan?

In the article 'Using your marketing plan to acquire customers', you will read what should be in your marketing plan. Important parts are:

• Research into your target group and customers
• Your marketing goals
• Your marketing mix: product, price, promotion and place

4. Your financial plan

Your financial plan is a tool for determining whether your business plan is financially viable. You also use it to submit your funding application to one or more lenders. The plan will help you convince them to invest money in your business.

Your financial plan consists of 4 parts. These are called sub-budgets:

• Investment budget: how much money do you need to get started
• Financial budget: how will you get money?
• Operating budget: what are the expected revenues and costs over a certain period of time?
• Liquidity budget: do you have enough money to pay your bills at any time?

You will often also make a personal budget. This is how you find out if you earn enough to live on.

Download a business plan example

You know what parts of your business plan are indispensable. It is even easier if you can fill in a business plan template. Even if you do not know how to get started, an example will help. You can download an example (in Dutch) from Qredits. Some freelancer/zzp organisations also offer business plan templates for free.