What is Business Plan:
The business plan is a document that describes, in a general way, a business and the set of strategies that will be implemented for its success. In this sense, the business plan presents a market analysis and establishes the action plan that will follow to reach the set of objectives that has been proposed.
As such, the business plan has an internal use, from the point of view of management and planning, and an external one, as a tool to promote and communicate the business idea, either to sell it or to obtain financing.
The business plan, in this sense, serves as a compass for the entrepreneur, since it allows to have a better understanding of the business while forcing it to investigate, reflect and visualize all the factors, both internal and external, that will affect The running of your business. Similarly, business plans are documents that are subject to constant updates and rethinking, in accordance with the dynamics of business management with tools such as benchmarking and SWOT analysis.
Parts of a business plan
The business plan is a document that summarizes the way in which a business initiative must be organized and act to be successful. In this sense, the business plan defines the objectives that the company intends to achieve. Hence there are several elements that every business plan when it is elaborated, should contemplate:
Planning: It is the part in which the business idea is explained, the company is described, and the products or services that will be commercialized are exposed.
Marketing: It is the part where, after analysis and market study, the marketing strategies to be implemented are determined, the public to which the products or services are directed, as well as aspects directly related to their sales, such as pricing and The distribution channels to be used.
Operation: It is the part that defines the organizational structure of the company, the administrative policies, as well as the techniques and procedures to produce the goods or services that will be commercialized.
Production: It is the part where all the issues related to the production of the products are defined, which includes topics such as suppliers, minimum stocks, logistics of distribution, among other aspects.
Administration: It is the part where subjects such as credit policies, creditor management, account management, as well as financial plan, sales projection, cash flow, profitability, among other things are fixed.
Summary: This is the final part of the business plan and explains, in a summarized way, the most important information about the project as a business, its strengths and the investment required.