The definition of a Business Plan is very simple, it is only a guide document where the viability of the business idea and the plans to develop it and take it to higher levels are captured. It should not be confused with the feasibility study, since the business plan is a much broader and more proactive concept, in other words, it is like a vision of the future of the company and how it will get there.
Among modern entrepreneurs, it is very common to hear the topic of the business plan, not only because it is one of the most useful technical instruments in the internal management and development of companies, but also because it has become the key to business. and financing.
Now you will be able to realize why it is so important that you have among your priorities to build your Business Plan, but always take into account the context and the environment in which you will develop your entrepreneurial idea so that the result is not too abstract and away from reality. Keep in mind that this document will be reviewed by investors, partners and clients, not to mention the international executives to whom your letter of introduction will be, so be consistent with those realities. For the latter case, it is not unnecessary to remind you that mastery of the English language and the writing of the Business Plan are vital.
Business plans emerged in the 60s and 70s in the United States as a result of the need to determine with greater certainty and less risk where the so-called financial surpluses of companies should be invested; This will give you an idea of the power of influence this report has on investor financial decision making.
To build a good Business Plan you must take into account the international element, that is, a company that does not have global sales aspirations is no longer conceivable, by including the export profile it will not only provide a strength to the entrepreneurial idea but that will make it much more interesting in the eyes of others. Take advantage of the historical moment that we have had to live, be competitive, think globally and share it in your Business Plan.
Actualmente las características del Plan de negocio que se manejan internacionalmente incluyen lo que en un principio se interpreto como una medida para arancelaria a los productos de los países del Tercer Mundo, hablo de la Gestión De La Calidad que es mas conocida como la norma iso 9000. Este elemento debe formar parte de su Plan de negocio, claro está que no estamos hablando de una certificación oficial sino de las características propias de esta «política» de la gestión moderna, así que entérese que norma es la que mejor se adapta a su actividad empresarial e incluya estos preceptos en su Plan de negocio.
An element that has taken on great importance lately is that of Environmental Management, it is about forming industries that are respectful of the environment, this requirement will bring you great image benefits and will most certainly be considered highly viable among foreign investors from the First World. To better understand the required characteristics, review the ISO 14000 standards on the environment, which will be very useful in the development of your company's production processes.
On the other hand, it is important that you consider very seriously including the Technology Management part not only as a clearly distinguishable element but also as an active and decisive part in the Strategic Management of your company, it is not about isolating the technician to serve to support the main management but to give it the true importance it has. This exercise not only provides you with a higher level of value added creation, but it is very possible that optimum levels of performance can be achieved in all the departments of the firm.
As you will realize the elaboration of a Business Plan is not a weekend job, it may take around 4 months or more to achieve an appropriate document, but rather than conceiving of this as a job prepare for what It is a process that never ends, in which you will have to invest time and work, but that will surely pay you back for your dedication.
Remember that your Business Plan must have a global scope, do not tropicalize it or give it a parochial character because you could be wasting your time.
Elements of a typical business plan.
1. The company: In this chapter, it should be clarified, What are we forming ?, What do we intend ?. It should also be clarified who owns the company, how it is structured and under what model it works. It is advisable to include a historical review of the start of the company. Indicate the location of the company's facilities. It doesn't matter where it works. Say it.
2. The product: Make the description of the products and make a competitive comparison. Here you can include your company's sales literature. You can also pinpoint the source of the products and technology you use. It is advisable to project future products. Remember that the logic of business is that you hire competition but you don't buy capabilities, but products. Answer if it is sustainable, if it has competition and above all do not underestimate substitute products. Be realistic in your report. For this you must have done a sales exercise before, to finalize the offer; in addition to having identified the technology of the sector and having monitored it. You must know the product cycle and in fact must assume this function as something dynamic.Show your knowledge of raw material sources and publicize your strategic alliances with your suppliers.
3. Market analysis: In this section of the document, include an industrial analysis, that is, I evaluated how many participants the industry has and what distribution patterns are managed in the sector. It should include the characteristics of the competition and the purchasing patterns of the consumers. Also, specifically identify your main and direct competitors. The other point is to include your segmentation strategy and action on the target market. Show in the document that you have evaluated the need for the market, its trends and its growth.
4. Strategy and its implementation: Explain where you are, where you are going and where you want to go. Develop your growth strategies. Then clearly state your competitive advantages. Here you can include your marketing strategy, positioning strategy, pricing strategy, promotion strategy, distribution strategy, and how you will leverage your strategic alliances.
5. Management: Describe the organizational structure and the management team. Specify the roles and responsibilities of individuals. Explain what are the gaps in your team and detail the plan for the growth of your staff. The most important thing is that your document can convey that the team is worthwhile and thus create a relationship of trust with the client, investor or partner.
6. Financial plan: This chapter includes the most important assumptions and key financial indicators (financial statements). Include break-even analysis, a profit and loss projection, a projected cash flow, and business indices. If you have done a good job before, it is sure that when you get here everything will be easier. Let it be very clear that the business plan is not only the financial plan as it is popularly assumed.
7. Executive Summary: In a maximum of two pages, write a summary consistent with the objectives, function and keys to the success of your business, such as sales levels, international presence and penetration of new markets. Provide as much information, but be concise. Don't use the technical language of production processes, but the business language with which you project robustness. This chapter must be provocative above all, so that the investor is attracted to it since it is the gateway to the rest of the document.
8. Financial summary: As an appendix, include a financial summary with the totals for the exercise, so that the reader can consult it quickly in a first approach to the proposal.
Some additional practical recommendations
to. The wording of your business plan should be clear and precise, don't leave anything to chance and be sure to explain everything very clearly but without being overwhelming in the technical details.
b. The structure of the business plan must be backed by a contingency plan for unexpected situations. This means that you must handle adverse hypothetical scenarios in the future to be able to anticipate those situations.
c. When making your presentation before a board, be strict at the conference and exact in the time of the exhibition.
d. The business plan is a very powerful and useful tool, but you decide who will present it to you; Keep in mind that the investor is not just money. Think of a strategic investor.
and. Take care that the final document is not very long. Think too much information is unnecessary. Give the reader what you need to make your decision. This will add a touch of intelligence to your presentation.
F. Don't neglect aesthetics. The first impression is the physical presentation of the business plan itself. Personalize the document and give it a more sophisticated style.
