A few days ago I told you about how to create a business model as an essential basis before getting down to work with the business plan. Well, now, and hoping that you already have your business model more than defined and studied, we will see the next important step for the definition of the business. Now comes the time to put on paper and develop everything we have thought about in that step to start, but in a much calmer and more analytical way.
What is a business plan and what is it for?
A business plan is a document that reflects the business idea of the company as well as the market analysis and financial plan that justifies its operation. It is generally used to find investors for a business, although it can also be requested for state aid or it can serve as a script for yourself and your team to create a company with firm foundations.
How to make a business plan step by step?
Next, I indicate the main sections that you should incorporate into your business plan. However, you can adapt it to your needs and ways of seeing the business:
1. Executive Summary
It consists of summarizing the essence of your company in just one page. It is the opportunity that you will have that investors or other people interested in your business go to the next page, so… do not miss it! Capture the most characteristic arguments and elements of your business and try to convey the assurance that it is a profitable project with a successful future.
Important: this summary is a summary of everything that follows, and therefore, it must be elaborated at the end of the whole.
2. Presentation
Tell what is the business idea, how it arose and has evolved to become something really profitable as a company. Don’t forget to mention the equipment principal and its main characteristics that make it unique and decisive for the development of the business.
3. Market study
Something essential to corroborate that your business idea is feasible is to develop a good market study where elements such as: situation and evolution of the market, customers, competition and distribution channels.
At this point, it will also be very useful to carry out a SWOT analysis characterized by the detection of weaknesses, threats, strengths and opportunities. A great support base to propose strategies that take advantage of opportunities and strengths and end threats and weaknesses.
4. Marketing strategy
At this point, we will begin to develop our marketing strategy from a global point of view and not merely communication and advertising. We will indicate how the product/service in detail, the location of our business (if applicable), the prices what we will offer to customers and how we will organize the whole system of sales, distribution, communication and advertising.
As you can see, marketing at the business level goes beyond online marketing and is introduced into one of the most important parts of it: the configuration of the product or service.
5. Production
Another important point in our business plan covers the entire production phase, from the applicable legislation and the providersuntil the same productive process retail.
What do we need to produce our product or to offer our service? How will we organize production? What raw materials will we use? Do we need specific machinery or equipment?… What should we consider?
6. Human resources
We must also consider the size that the team will have as well as its training and skills. At this point we will be able to assess the subcontracting of certain services (such as transport) and the hiring of a complete staff that allows us to carry out the activity that we have planned.
7. Economic-financial analysis
Finally, we will have to make numbers developing the Investment plan and the Financing plan, as well as proposing a series of scenarios with the possible results expected 5-7 years from now. Three scenarios are usually developed, the optimistic, the pessimistic and the medium with its corresponding income statement, cash flow, balance sheet and ratio analysis.
I hope that this script to make your business plan will serve as a basis for developing the business and capturing all the ideas that flow through your heads. Now all that remains is for me to invite you to take a good tour of our blog where you can read more about how to find clients or organize your work team and… wish you good luck with your business!