If you are considering starting as an independent sports coach, you will most certainly go through the “business plan” box. Contrary to popular belief, it will not only cause you a waste of time. Indeed, it will clarify a certain number of points concerning your business creation/resumption project. Here is why and how a sports coach should build a business plan.
The Usefulness Of The Business Plan For A Sports Coach
The business plan has several advantages for your business creation project. First of all, it will allow you to clarify your ideas and highlight the expected profitability of your project. Its design approach is beneficial since it will encourage you to ask yourself the right questions. In this sense, the business plan constitutes an excellent decision-making tool.
Once completed, you will have validated most of your creation choices: the legal status of the company (individual business or company), the social regime of the manager (self-employed worker or equivalent employee), the tax regime ( income tax or tax on companies ), etc.
Then, the business plan represents essential communication support. It allows you to be convinced. Indeed, it is thanks to this document that you will be able to negotiate bank loans, or even simply open a professional account. You may encounter significant investments (entry fee into a franchise, company vehicle, etc.). However, you will be able to precisely determine your financing needs in a business plan.
Presentation Of The Business Plan Of A Sports Coach
Traditionally, a business plan consists of two parts. The first, called the economic part, describes the project. The second, the financial part, translates it into figures. The economic part is mainly used to describe the project to third parties: investors, bankers, etc. It includes a lot of information such as, for example, a presentation of the project leader and his team, the business model adopted, the proposed offer, competitive analysis, means of differentiation, etc.
The financial part appears in the business plan of all sports coaches. Its objective is to demonstrate the viability and profitability of the project, over a more or less long horizon (generally 3 years). It must highlight specific ratios and financial data depending on its recipient. It includes a lot of forecast information, such as:
- The turnover and expenses (operating, financial, and more rarely exceptional),
- Investments and financing methods.
The Content Of The Business Plan For A Sports Coaching Company
The business plan for a sports coaching company must include, at least, 3 financial tables: a balance sheet, an income statement, and a cash flow plan. When financing is requested, a financing plan can complete the package.
The Forecast Income Statement
The projected income statement measures the amount of wealth created (or destroyed) over a year. We are talking, more precisely, about an accounting year. This wealth is measured by the net result, the difference between “products” and “expenses”. The products mainly include the turnover excluding taxes invoiced as well as the subsidies granted.
The charges, for their part, include all the sports coach’s expenses: purchases of small equipment and supplies, insurance, telephone and Internet access subscription, travel expenses, accountant’s fees, depreciation of fixed assets, etc.
The Forecast Balance Sheet
The forecast balance sheet, for its part, lists and evaluates the company’s assets at the end of each accounting year. It is generally likened to a snapshot at a given time “t” of what the company owes (“liabilities”) and what it owns (“assets”). Assets contain fixed assets (these are goods with a value greater than €500 that are used to carry out the activity), inventories, customer receivables, and cash. Liabilities include all the company’s debts (suppliers, tax, social security, financial) as well as capital contributions.
The Cash Budget
The cash budget is a table that lists the money the company has in its bank accounts. In general, it is presented month by month, with amounts that include VAT. It is constructed using 4 important variables: the starting balance, receipts for the period, disbursements, and the ending balance.
Collections include customer payments (tax-inclusive turnover collected), loan releases, and VAT credit reimbursements. Disbursements include all expenses incurred (small equipment, supplies, insurance, accountant, telephone, internet, etc.), loan due dates, salaries paid to staff as well as corresponding charges, dividends paid to partners, VAT disbursed, etc.
The Financing Plan
The financing plan highlights flows by comparing the needs generated by the activity with the financial resources allocated in return. The whole must, of course, be balanced. Traditionally, it is established for 4 periods: during creation then at the end of years 1, 2, and 3.
Needs generally include investments, changes in working capital requirements, and loan repayments. The resources include the contributions of the partners (capital or current account), the release of loans, the self-financing capacity, and the variation in the WCR (if it works in the favor of the company).