Know what points can not be missing in this document to turn it into the map to reach your goals.
A business plan is a document that helps you to succeed in your venture, but you must also keep in mind that this is a route to follow. For this reason, the writing of this is an exercise in wisdom, which allows us to clarify what the business is about, its potentialities and how to carry it out.
In reality, it is a map that guides the entrepreneur in the right direction and allows adjustments. For this, it is fundamental to know the key elements that must contain any business plan. Take note:
- executive summary: The executive summary is often considered the most important section of a business plan. This section briefly tells your reader where your company is, where you want to take it, and why your business idea will be successful. If you are seeking to finance, the executive summary is also your first opportunity to grab a potential investor’s interest. The executive summary should highlight the strengths of your overall plan and therefore be the last section you write. However, it usually appears first in your business plan document.
- Analysis of the industry: Define how the industry in question is and add the opportunities available in the market.
- Customer Analysis: Conduct an investigation of the target market; Age, sex, socioeconomic status, personality, consumption habits, among others.
- Analysis of the Competition: Define who is the direct and indirect competition; Describe its characteristics, strengths and weaknesses and what our business offers unlike it.
- Marketing Plan: Establish the strategy of price, promotion, and distribution of the product or service. The channels and means of communication to be used and the frequency of impacts must be defined.
- Operational Plan: Description of the operation of the company.
- Management Team: Propose an organization chart with the positions, balances, and responsibilities of each team member.
- Financial Plan: To make financial projections in the short, medium and long term. Establish fixed costs and profitability of the company.
- Appendix: Include all annexes pertaining to the previous investigation.
In addition, you must take into account that the presentation of your business plan will give credibility to your company, so you must avoid certain mistakes like underestimating the competition or estimating the size of the target market. Your business plan should include:
Definition of the relevant market
Try to define your market clearly, do not overestimate it. An example of this is to say that sales should reach x% of this niche, which provides potential investors with better expectations than achievable ones.
Concentration on previous achievements
Your company history is important to demonstrate the milestones that have been achieved with previous funds available, as well as present the achievements of the management team to show how challenges will be overcome in the future.
Know the needs of your client
For investors, the relationship between your company and your customers is fundamental, so the business plan must demonstrate how the products and services meet the needs of customers.
An effective and convenient business plan must prove the existence of barriers to entry by demonstrating clear strategies, which show how the company will build barriers around its customers.