There is a big difference between having a good business idea and carrying it out, or as the Spanish proverb says, " from saying to doing, there is a stretch. " To set up your business, you must follow certain steps from its official registration with the relevant organizations to creating a web page to provide an online presence. However, there is a step that deserves special importance and on which the true success of your venture will depend: the business plan.
This document will
allow you to express your ideas in an organized way, explain the feasibility of
your project and set your future goals. With this business plan guide, you can
easily create yours.
What is a business
plan?
When starting a
business, the first step is to put all your ideas in writing. And once
developed and in order, you will be able to outline a business plan that is
nothing more than a detailed summary of the business adventure you want to
undertake.
A business plan is an
expanded version of the famous elevator speech because, among other
things, it serves to arouse the interest of potential partners or investors and
banks when you need capital for your project. But above all, its greatest
utility is that it will serve as a guide to keep you focused and realistic with
your plans and aspirations.
Elements of a
business plan
In the following
guide, we indicate the elements that must be present in your business plan:
Executive summary
The executive summary
should be your business
plan writers strongest and most compelling element. And not just
because it's the first part anyone looking at this document sees, but because
it also serves a function of its own.
In previous lines, we
mentioned raising capital. Your executive summary is responsible for doing the
"hard work" to achieve it. Or put another way, it is the piece of
information necessary to capture the interest of investors.
In this section, you
must offer a detailed business plan summary. Explain each of the elements of
your business plan in a few sentences -description of the business, products
and services, market research, etc.- so that it arouses the reader's interest
and invites them to continue reading. It should be short, interesting, and have
a maximum length of two pages.
Although it is the
first thing we have explained, the executive summary is curious, the last thing
you should write. Your executive summary will head your business plan, but you
won't know what information to include until completing the following sections.
Company description
The first thing you
should write is a description of your business. This part also has to be quite
clear.
Start by writing your
company's name and its founders with their professional profiles and
experience. Then, include data such as the year and place of creation of your
company, the needs it intends to cover and its main mission. Also, describe
your products and services briefly without going too far. You will do that in
the next section.
If one of your
objectives is to obtain capital from potential investors, you should explain
the stage in which your company is currently, the main achievements you have
obtained in the past and those of which you are proud. Accompany this information
indicating your future objectives and the plan you intend to achieve them. The
good idea is to present them chronologically, either by quarters or years.
Remember that your shareholders, investors, and those you want to attract want
to know how you intend to grow your company.
Products and
services
List and explain in
detail your products and services and the ones you plan to launch. Anticipate
any questions that someone who does not know them or is not even related to
your sector may ask. Answer these questions at length without leaving any loose
ends.
If you are still
developing your idea, describe what stage you are in and the steps you will
take to move forward. Include diagrams, product images, and any visual examples
you deem necessary.
Finish this section by
explaining the pricing and strategy, indicating the fixed and variable costs,
the final price of your product or service, and the profit margin you expect to
obtain for each unit.
Market analysis
This is one of the
longest business plan sections, comprising eight parts. In it, you must carry
out a market study, draw conclusions about it and write a complete analysis on
the following points:
- Sector overview: Analyze the market in which your business will
operate (health, wellness, education, etc.), evaluating the current
situation of the industry and the changes it may experience in the future.
It also analyzes the main market players and their current offers.
- Competitor Analysis – Analyze your main competitors and how you plan to compete
with them. Include in this section a complete SWOT analysis that indicates
all your competitors' weaknesses, threats, strengths and
opportunities.
- Barriers to Entry – Explains a new company's difficulties in entering
the market. It could be startup costs, material or specific equipment, or
patent registration.
- Target audience: describe your target audience in the sector or market
where you want to operate. Indicate its size, its demographic
characteristics, etc.
- Evaluate your business: based on the previous points, evaluate the advantages
of your business and if your product or service can satisfy the needs of
your target audience.
Marketing Plan
Having a business idea
is one thing, and selling and getting your product to your potential customers
is quite another. In this section, you have to explain in great detail how you
plan to do it.
The starting point is
to have a brand. Start by reading this guide to creating the brand
identity that will give you an idea of how to develop yours – from
choosing the most suitable colors and fonts to creating a good online identity.
With your brand
created, the next thing is to explain your marketing and advertising plan with
their respective budgets. This includes creating a website to present
and sell your products or services and all the social channels you need to
reach your customers.
If you successfully
launch your product or service, sales will not be long. You need to think about
this in advance and know how to handle any sales coming your way. Therefore, it
explains everything necessary (manpower, equipment, warehouse, etc.) to sell
and ship a product or provide a service.
Management and
organization
In this section, you
should talk about the human team of your company, from the founders and the
management team to any party involved in the operation of your company. This
last group comprises the Board of Directors, the team of advisors, department
heads, middle managers and other members of your workforce.
If some of these
people have not yet been hired, it is important to indicate the organizational
profile that your business will have when they come on board. The good idea is
to include an organizational chart that visually reflects the position and
responsibility of each of them.
Financial viability
It is always important
to know how you will guarantee your company's financial viability, not only for
the good of your business but also for the good of your investors.
This section should
answer questions like the following:
- How much capital do you need to
start your business?
- How much capital should your
investors invest?
- When will you start making
profits?
- What profit do you expect to
obtain a year from now? And at 3 years? And five years?
In addition, you must
be able to manage your business's finances by adjusting your budget and
controlling your income and expenses. This is essential to know your level of
liquidity and to be able to face your tax obligations.
TIP: We recommend you to get in touch with Maven
Business Plans to get exceptional business plans. It has the best business plan consultant all over the
USA.
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