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Eliminate Your Fears And Doubts About a Business Plan

business plan

Today, there are a lot of people worldwide who have that concern of being a businessman. Those who have a great creativity to be exploited when carrying out that business of their dream. In this way, it is unquestionable that many of these traders into practice may have a failure when they develop their business plan. Nonetheless, it is nothing that experience cannot fix.

Additionally, one of the most frequent reasons for this failure to start trading is due to not thinking about the benefits it could offer. Therefore, it is essential for us to study the pros and cons of the service that will be offered. This in order to have profitability when thinking about an investment.




HOW to DEVELOP a BUSINESS PLAN?

Creating a business plan is about making a document in an explicit and orderly way. This must have certain and indicative questions which will lead us to analyze the market in which we are going to develop. In that way, some questions could be:

  • What would be the main objective of your business?
  • What would be the products and services?
  • Would that be offered to our potential market?
  • What would be the capacity we could face?

First, establish the initial development plan. For this purpose, it is essential to see what the investment will be like and to know the structure we want to our business. This in order to position ourselves in the market and define our objectives or goals to be achieved.

Talking about money, you must strictly considerate the income of your business and the expenses it will generate (water, electricity, gas, internet, and sales costs). We must keep in mind said expenses during a period of 12 months. In addition, we must also limit certain projections that are established for a period of 3 to 5 years.

Perhaps, at the time of doing the study, we will realize the profitability our enterprise will possess. Besides, we will know an approximate time in which the business will give a profitability.

It is elementary that if your company is going to generate employment, you must master certain important details. For instance, perhaps for a micro-company with a two-page document we could possibly know it. Nevertheless, if it is more extensive, it will be necessary to have a certain external financing on hand. This to help us to formalize the company better.

HAVE you EVER WONDERED HOW IMPORTANT IT IS?

It really is. For example, it helps us to focus and to understand how the main expenses would be and the costs we are going to face.
When developing this plan, the amount of products that must be sold is defined in order to obtain the effective point of sale. As a result, we can manage an exact balance (that is, to leave accounts free). After that, we will be able to see if the business achieve our minimal expectations.

To clarify, these tips are essential to start a business since, if we do not have it well established, we would jump into a void. While you have a business plan developed, this will help you when requesting finance, either if it comes from a personal or bank part. If you do not have a well-developed plan, no one will be interested in investing in your business.

WHAT MUST BE INCLUDED in a BUSINESS PLAN?

To develop an adequate plan, you must include the following:

Describe the Company:

  • Define what should be done
  • Know the differences of your business and the competition that you are going to face
  • Know the target market we are going to face.

Executive Summary:

  • Make a very detailed plan of everything that is going to be done.

Analyze the Market:

It is essential to think about the market we will enter, the competition we will have and analyze everything that we are going to offer.

Organization:

Here we must describe the way in which the company will be developed, know the shareholders and how they will be organized in the company. Something fundamental is to have an organization chart to establish functions and delegates. For example, ask for the partners’ CVs of the main officials who will be working.




Products and Services:

How to know what we should sell? What benefits would they bring to the area where we are going to work? How does it benefit competitors? We must answer all these questions and tell our story in such a way that, when reading it, it can be convincing for the client.

Sales and Marketing:

Develop sales strategies for the products and services we will offer and define how we are going to position our products in the market.

Financing:

For these reasons, you must leave well expressed if your company requires help from the outside. (Either in terms of partners or some type of loans or merchandise to begin with). That because it is essential to develop all the necessary information on this financing issue.

Financial Projection:

In this segment, we are going to place the essential expenses our company will have. That is, fixed expenses such as internet, water, electricity, gas etc. We must also bear in mind the sale costs since this is about the merchandise you will sell and the services you will offer.

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