Financial business planning as a success factor on competition

Scientific Study from the year 2019 in the subject Business economics - Company formation, Business Plans, language: English, abstract: The aim of this case study is to provide a basic theoretical understanding about financial business planning in the field of start-up companies and also for business case purposes within running ventures. In conclusion, there shall be a controversy discussion about different financial success factors and the associated risks and limits in order to persist on competition. In addition to that, there will be a transfer into a practical example to apply the theoretical knowledge. The final approach is a critical evaluation about the topics regarded. Entrepreneurship is enjoying ever growing popularity, most likely due to the idea that it is only possible to develop the own personality through a self-determining activity. A business start-up establishes for the founder the highest degree of individual personal development and complacency. Thus, it is not surprising that especially for the younger generation this topic become more and more in the center of attention. Furthermore, independent or freelance activities may provide both personal fulfillment and an opportunity of more income. All companies require capital, to invest in plant, machinery, inventories, accounts receivable, and all the other assets it takes to run a business. The topic finance planning has an essential importance in the context of business planning. It summarizes all textual descriptions of the business plan into clear interpretable numbers. Potential and value of a business idea has to be clearly visible and identifiable. Based on a detailed planning the capital requirements arise, which is needed to derive the necessary type of funding. Due to the fact that most start-ups are characterized by relatively high risk of fail and a huge need of capital by the founder, which can cause an existential personal threat, a detailed and realistic finance plan is mandato