Before starting any business adventure it is more than advisable to develop a business plan, where clearly reflect and in writing the different aspects of our activity. There is no need to spare time in its realization, nor leave anything in the inkwell. It will depend on the business going forward. So, mindful of the rules that every plan must follow.
1.- Make your first investment in a good structuring of the plan
The time that is used in the development of this document should be understood as the first and most important investment to be made as a company. What’s more, the company begins its real journey at the moment when the ideas we had in mind are written down, we have to do it in a structured way; It is about exposing what responsibilities we are going to assume, what expenses are necessary, what benefits we can get, what commitment each partner acquires in the company, etc. The business plan itself can be considered as a marketing tool and will serve as a presentation to get financing, as potential investors need to know the feasibility of the project.
2.- A presentation with face and eyes
In short, the business plan must collect all the keys and forecasts of the face-to-face but written activity in a simple way, since it is aimed at the entrepreneur himself. If you have to do it to third parties, you can also opt for a multimedia presentation. The document should begin with the presentation of the company or summary of the project and a presentation of the promoters as a curriculum of who is each of the entrepreneurs. In any case, what should be clear is the business idea, the evolution of the project: its origins and current state, its valuation with strengths and weaknesses. At the time of having a format, almost all follow common rules: a brief main dossier, with a short summary of the conclusions of the market study, comments related to the financial studies and an exposition of the technical data; And a mandatory summary of one or two pages where a synthesis of all aspects of the project is presented in a more attractive way.
3.- Define the product
It may seem obvious, but you have to analyze in detail the product you want to offer, explaining how it differs from what already exists in the market. This aspect is very important; Do not forget to list the advantages, technical, economic and commercial qualities of the product and a study of the market to which it is directed. The interesting thing would be to ask: what needs is covered and what will be your target audience. In today’s competitive market, you have to be original when it comes to looking for an idea, but also when it comes to exposing it.
4.- Do not forget the competition
In this same line, we must not forget to analyze: what competitors exist, how they work and how they sell, what their market is; And thereafter try to find out what advantages and disadvantages will present our company with respect to them. It is important to dedicate a section to the barriers that we can find when entering, to try to put solutions. The most common are those related to economies of scale. Manufacturing costs decrease as production increases due to the existence of high fixed costs. This is ahead of the companies already consolidated in the sector; Sectors that require large capital and difficulties in accessing distribution channels.
5.- It has a good marketing plan
Just follow a series of steps to arouse the public’s interest in buying. That is the goal pursued by a good marketing plan. It is necessary to study the commercial variables of the project: the product, price, distribution, and communication. This is responsible for the marketing plan that must be appropriate to the overall strategy of the company, must be qualified, reviewable and, above all, practical, and must contain achievable goals. The advantages of having a good marketing plan are that it serves as a connection between the different departments of the company and helps to detect new business opportunities. The marketing plan should be based on market research. It establishes the appropriate policies to introduce a product or service to the market and explains how it is expected to evolve. There are different models from the marketing mix, which encompasses the study of variables such as product, price, and distribution, to merchandising.
6.- Comprehensive in the production and purchasing processes
The business plan should reflect an entire planning of the production and purchases that explain how the products to be manufactured will be manufactured and that includes both the selection of suppliers and fixation of the dates of delivery and of the quantities to the characteristics Techniques of raw materials and materials, analysis of their costs and quality controls; As well as stock management. In addition, other fundamental aspects of storage and costs. In order to carry out this part of the plan, it is necessary to consider whether there is a need for a specific machinery, the costs of manufacturing or providing services, the organization of the production process and the purchase of raw materials and necessary products.
7.- Introduce yourself and introduce your team
Who are you? What is your professional experience? And the experience in the sector in which you want to work? These questions must find answers in the business plan: you have to introduce yourself and do it correctly. It should be clear who the partners are, who they invest, the organizational chart of the company and the functions of each one, as well as the responsibilities that are given and the distribution of tasks.Knowing in advance the human team that will count the company is an important step to contemplate foreseeable expenses and the time that will be used in the selection and training of employees and how that template will evolve. It is interesting, depending on the size of the company, to have a human resources department and to use the services of a recruitment company.
8.- Study well the legal, fiscal and labor obligations
Determining the legal form of the company and the tax obligations that we must attend is an indispensable item in the business plan and must be very well reviewed. It is assumed that before deciding on one legal system or another, the most convenient will have already been chosen from the different possibilities. When setting up a company no one is exempt from carrying out a whole series of tax procedures. The relationship of the company with potential workers that it contracts must also be explained: what type of contracts, duration, expectations, etc. In addition, it is necessary to enumerate the different permissions that need to be obtained to develop the business activity.
9.- Specifies the charging system for customers. Where will the income come from?
Everyone is waiting for the arrival of this point: how we are going to survive, where the revenue will be, how we will charge customers. All of these aspects should be related to the type of activity that we have in hand, this means that it is not the same one company of fashion articles that another one of services to a company, the form of payment is different. What we must always indicate is the term of payment to customers and the term of payment to suppliers. The goal is not to enter critical situations, you have to generate enough resources to meet possible debts and recover money invested.
10.- Details the investment plan
Once we define our business concept, its objectives, the sector of action, expectations and work guidelines is to enter the laborious world of investments. A fundamental and necessary area. You have to prepare budgets, know where you are going to spend the money and how much, and study what kind of investments are going to be made and how. In short, find out where the financial resources come from which the company will start its activity: whether money or property and what to do with them. It is the most complex part, if you want to see it as budgets are intended to express in economic terms the content of the business plan and its implications.