Business Plan : Business Tool
What is a Business Plan?
Concept and Definition
Also known as the Business Plan or Business Plan. We can define it as a map that describes the trajectory of the company or business, three times, past, by way of introduction; Present: the specification of the situation at the time; Future: The projections of goals and objectives.
We can define it as a document in an orderly and systematically details the operational and financial aspects of a company. Then, like a map that guides the traveler, the business plan in advance to determine where the company where they’re coming and how much we need to reach the target.
Who needs a Business Plan?
It is generally customary to think that only large companies need a business plan. However, this document is essential for small and medium enterprises (SME’s). Many entrepreneurs consider the business plan as “the most powerful tool” that can be used to operate in the evolving market economy. Therefore this instrument in the hands of a micro and medium business could be a key to open a number of business opportunities.
What I need?
When we think of a business plan usually believe that this only helps us to search for funding. The first objective should be to define a precise and objective manner the feasibility of the project or company.
It can also be used for:
1. Redefine the direction of action;
2. Supporting an application for credit;
3. Search for new investors or partners, including the type of Joint Ventures
4. Make an offer of sale;
5. Obtain a license or a franchise from a
local or foreign company, among other options.
Each stream has its own scheme of how to develop a business plan. If you just starting this and want to organize your steps you can use the following guide, bearing in mind that each company will have its specificities.
Schematic model for the development of a Business Plan
I. Introduction to the Company or Business:
1.1 Origins of the company.
1.2 Objectives and philosophy of the company. Defining the mission, vision and values (what, how and for whom)
1.3 Characteristics of the company.
1.4 Composition and Organization.
1.5 Human Resources. Management team. Operational team.
1.6 Physical resources.
1.7 Expectations of partners and customers
II. Nature of Project
2.1 The product or service
2.1.1 Current and Features
2.1.2 Operational Strategy (products or services)
2.1.3 Prices, sales and costs
2.2 Overall assessment of the project and consistency
III. Marketing and Strategy
3.1 Identification of the target (segment) of the target market
3.2 Competitive Analysis
3.3 Price Strategy
3.4 Promotion and advertising
3.5 Distribution
3.6 Forecasts
3.7 Marketing Plan
IV. Product or Service
4.1 Specifications of the product or service
4.2 Area of production
4.3 Equipment and Infrastructure
V. Organization and Work Plan Development Project
5.1 General aspects of the organization
5.2 Legal framework of the organization
5.3 Work plan for project development
VI. Economic Issues – Financial
6.1 Determination of the initial investment required
6.2 Study of available funding sources
6.3 Projected performance
6.4 Plan and Cash Projections
6.5 Balance Sheet
VII. Conclusions