Business plans are formal documents, either digital or printed, that lay out and describe a commercial project in detail.
Business plans are made before making an investment or at the beginning of a new business.
What is a business plan for?
Business plans are mainly used to present a commercial project to partners, investors, or the company’s board of directors. Making a business plan is also very useful for oneself, as it forces ourselves to visualize the entire operation and recognize possible obstacles.
For you: To clarify your vision, your need for resources, your opportunities and your limitations in a new business idea.
To raise capital:To formally propose your idea to possible investment partners, or financial entities, and show them with transparency and detail what your business idea is and how you plan to execute it..
For your team: To be able to show your business plan to your own company and to be able to execute it with the consent of your team.
How to make a business plan?
When you are making your business plan, you have to take into account that this document must be useful throughout the development of the project, it is advisable to add an index at the beginning to be able to consult it when necessary.
It is important to emphasize that these documents must have an easy to read, formal and clean format, it must also be as detailed as possible.
We leave you a structure so that you can start from a defined point and thus avoid an unreadable, unstructured or entangled document.
What are business plans?
What are business plans?
1.- Mission, vision and values:
A business idea is always accompanied by an idea of the results it can achieve. A professional business plan must reflect that initial vision adapted to the real situation of the company and the current market, and combine it with the values that sustain the company, as well as with a mission that gives soul to the project.
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What are business plans?
What are business plans?
2.- Initial investment:
No matter how hidden it may be, every commercial project entails an initial investment; whether it is the purchase of machinery, travel expenses of partners, training, or the time of the employees.
It is important to be rigorous with this report, break it down and contemplate any necessary investment to be able to analyze the future profitability of the project.
What are business plans?
What are business plans?
3.- Financial projection:
A 3-year financial projection, including assets, liabilities, cash flow, costs, sales, profits, and the return time of the initial investment.
This projection is vital to be able to present your project to lenders or partners, even so that yourself can figure out how profitable the project will really be.
What are business plans?
What are business plans?
4.- Team and operational structure:
This report must include the manpower necessary to start operations, and the work structure that each one will have.
The operational structure should include the responsibilities of each partner/employee, his salary, and a little discussion of why that member is necessary and profitable.
What are business plans?
What are business plans?
5.- Internal analysis:
In the event that the business plan is an established company, this analysis is necessary to understand the current situation of the company, the market expansion, or line of business that this new commercial project represents for the company.
What are business plans?
What are business plans?
6.- Market analysis:
This analysis is probably the most technical part and the one that deserves the most detail; It is advisable to have the support of a marketer or a professional in the line of business.
This analysis should include:
- Market validation surveys
- Competitor Analysis
- Actual market size
- Current market occupancy
- A projection of how much of the market can be captured with our business plan
What are business plans?
What are business plans?
7.- Sales and marketing strategies:
A detailed plan of the appropriate advertising channels, the most optimal strategies, points of sale, commercial alliances and budgets for marketing campaigns, all endorsed by professionals in the field.