A-INTRODUCTION
Everyone at some point has crossed our minds to create our own initiative, how to generate or create a company, but surely we have thought, how do I start? Which is the first step? That I have to do?
generation-of-companiesWell, the objective of this work consists precisely in guiding the entrepreneur in the important questions that he must contemplate in order to have the essential points considered and planned to generate or create a future company.
Logically, each entrepreneur is a world and each initiative also, therefore, it is necessary to make certain aspects clear. To begin with, there are no standard solutions, what is good for some can be harmful for others and the appropriate strategies at a certain time and for a specific initiative may be inappropriate for others. Conclusion, there is no magic formula for success. Actions and choices must be taken after an analysis of the individual situation, if not, it starts to go wrong.
On the other hand, being an entrepreneur can be a very satisfactory experience. Creating and growing something of your own, with our decisions and effort, can be very enriching and, in the medium term, profitable, because logically we have to maintain and live. To do this, the ideal is that the entrepreneur has a vocational spirit and that is what guides him throughout his business adventure. Entrepreneurship on your own because there is no other option is always a worse starting point than starting up because it is what you really want. The entrepreneur needs a special character where the illusion is the main impulse of the initiative, without it, there will be no reward, personal or otherwise. If one undertakes because "he has no other choice" then he must change his way of thinking,You must see your future initiative not as the last exit but as a great opportunity to do what you want to do and to have something of your own that lasts and is the product of your effort and your ability.
B-DESCRIPTION
THE BUSINESS IDEA
The business idea
Any claim to carry out the hard task of starting a business must necessarily revolve around an idea, a happy idea that suddenly, or after a long time of thinking about it, arises in the mind of the one who will be the promoter of the project. deal.
This idea can arise spontaneously, and seem so appropriate and viable that by itself it decides to undertake the adventure of becoming an entrepreneur. But it can also be sought on purpose, and so we will try to invent something new, be it a product or a service never seen before, or derive from research projects, or arise from the simple observation of the environment and the real market needs that we have. warned.
But once we have the idea, there are several questions that we have to ask ourselves before moving forward with the project:
- Is it a realistic idea? Is it actually feasible? The real needs that our idea aims to satisfy, are they not already sufficiently covered by the already established competition?
The promoters
The promoter is the person who has the business idea and decides to put it into practice until the creation of the company to be managed (although in certain cases this further management function will be carried out by other people).
But the qualities a promoter needs to have must be found in ourselves if we decide to continue with our project. It is true that at first glance only confidence in oneself and in his idea seems relevant, and sometimes it will be, but the difficulties that we may find ourselves in the task make it advisable to carry out a prior examination of conscience that tells us if we are indeed going to be capable of bringing our project to a successful conclusion.
Every promoter must have the capacity to take on large amounts of work and risks that cannot be fully assessed a priori. Likewise, it must have sufficient organizational capacity to be able to manage a number of variables. And as for our personal preparation, it will not hurt (it is highly desirable) to have previous experience in the area in which we intend our future company to develop.
Creativity as a characteristic of entrepreneurs
Boot on what already exists
Creative imitation
Many times "great business ideas" are born from existing developments that allow them to be perfected.
In the race to create a company you will not necessarily have to start from the starting point like the rest of the squad around you, you will also have the possibility of starting with an advantage and, if so, you should take advantage of it.
Surely you have heard that this or that company started as a "copy" of another already established. Well, this case occurs frequently and many times the one that starts on the basis of the established one is more successful.
Why is this if we know that innovation is part of success? The answer lies in a concept called "Creative Imitation." Creativity results in originals (a Picasso for example), the original cannot be an imitation (again a Picasso). However, this is a very common strategy that does allow creativity and innovation.
Requirements to apply creative imitation
- Rapidly growing market - CI meets existing demand does not create it Successful products or services - Creative copycat builds on success of other innovators Customer focus - Creative copycat views products from customer perspective Leadership - As Every innovation, CI requires the aspiration to dominate the market
How to find and implement ideas and business opportunities
In the business trip that leads to the creation of the company, the starting point is to find an idea or business opportunity, then the necessary conditions to turn an idea into a company will be mentioned and the most common sources from which the ideas arise are mentioned. ideas and business opportunities.
In the business trip that leads to the creation of the company, the starting point is to find an idea or business opportunity that allows us to reach the end of the trip, the start-up of the company, for this it is good to take into account the following:
- The idea must be "timely", that is, it arises at the right time and is maintained in a certain period of time, which means that there must be customers who demand the product or service that we have detected and that this need is maintained medium term, because if it is satisfied in the short term it is not viable to be transformed into a company. The idea of our product or service must provide an "added value" to the potential client, since otherwise it will be very difficult to displace the existing competition in the market. The ideal would be to offer something new, in the sense of improving what already exists, or to satisfy customers with a different service that gives them greater satisfaction to their needs, or in other words, greater added value. that we are addressing must have a "minimum size",No matter how specialized our sector or activity is, there must always be a minimum number of customers willing to demand our products. “Creativity” is important, we must use it in such a way that we can discern and separate only the best ideas.Create a team or a network of relationships, "network", having collaborators or dealing with the different components of a team will eliminate personal subjectivity and be more objective in the analysis and implementation of the ideas and business opportunities detected. Motivation, It is necessary to have an entrepreneurial spirit, to have a real will to take the idea forward, to believe in oneself, which will help to solve the different problems that arise during the business trip.There must always be a minimum number of customers willing to demand our products. "Creativity" is important, we must use it in such a way that we can discern and separate only the best ideas. Create a team or a network of relationships, "network", counting With collaborators or dealing with the different components of a team will allow to eliminate personal subjectivity and be more objective in the analysis and implementation of the ideas and business opportunities detected.Motivation, it is necessary to have an entrepreneurial spirit, to have will Real to get the idea forward, believe in yourself, which will help solve the different problems that arise during the business trip.There must always be a minimum number of customers willing to demand our products. "Creativity" is important, we must use it in such a way that we can discern and separate only the best ideas. Create a team or a network of relationships, "network", counting With collaborators or dealing with the different components of a team will allow to eliminate personal subjectivity and be more objective in the analysis and implementation of the ideas and business opportunities detected.Motivation, it is necessary to have an entrepreneurial spirit, to have will Real to get the idea forward, believe in yourself, which will help solve the different problems that arise during the business trip.We must use it so that we can discern and separate only the best ideas.Creating a team or a network of relationships, "network", having collaborators or dealing with the different components of a team will eliminate personal subjectivity and be more objective in the analysis and implementation of the ideas and business opportunities detected Motivation, it is necessary to have an entrepreneurial spirit, have a real will to move the idea forward, believe in oneself, which will help solve the different problems that present themselves during the business trip.We must use it so that we can discern and separate only the best ideas.Creating a team or a network of relationships, "network", having collaborators or dealing with the different components of a team will eliminate personal subjectivity and be more objective in the analysis and implementation of the ideas and business opportunities detected Motivation, it is necessary to have an entrepreneurial spirit, have a real will to move the idea forward, believe in oneself, which will help solve the different problems that present themselves during the business trip.Having collaborators or dealing with the different components of a team will eliminate personal subjectivity and be more objective in the analysis and implementation of the ideas and business opportunities detected.Motivation, it is necessary to have an entrepreneurial spirit, have a real will to get the idea forward, believe in yourself, which will help solve the various problems that arise during the business trip.Having collaborators or dealing with the different components of a team will eliminate personal subjectivity and be more objective in the analysis and implementation of the ideas and business opportunities detected.Motivation, it is necessary to have an entrepreneurial spirit, have a real will to get the idea forward, believe in yourself, which will help solve the various problems that arise during the business trip.
Taking into account what has been said in the previous sections, we can start looking for ideas and business opportunities, below are the most common sources where we can find them:
- Our personal environment, the circumstances that surround each individual are very diverse and particular in each case, especially analyzing our work experience, knowledge and hobbies Analyzing the market, we must bear in mind that the environment in which we operate makes This changes continuously, we must pay special attention to the behavior of individual and collective consumers, their desires, their tastes, and ultimately the degree of satisfaction of their needs.Analysis of existing businesses, attendance at fairs, participation in seminars, conferences, contacts in other companies, etc. Try to improve existing processes of manufacturing, distribution, production, promotion, after-sales service, etc. Reading of publications, studies, statistics, ratios, magazines, articles, economic data.Lateral thinking or association of images, applied to everyday situations. What products or services not available in my area of residence do I usually demand with some frequency? What cannot I buy or enjoy due to its high cost and what if I am interested in having it? Are there products and services that are sold for one purpose by the company that markets them and there are consumers who apply them for another function, can I satisfy that demand with a new product or service? Do I know of some frustrated business initiatives, why they failed? What information or service is missing on the Internet, or in other words a service that can be offered at the moment that does not currently exist? There are many opportunities in emerging sectors or growing, such as the current Internet,as well as non-regulated sectors open to new ideas, concepts. Of course, it is necessary to analyze and assess the ideas and business opportunities, especially their technical viability. Can I? Their economic viability. Is it profitable? and finally its financial viability, do I have money? For this there is a business plan tool.
Where to find the resources
The search for the necessary resources
Once we have a perfectly defined business idea, and our Company Project perfectly reflects the spirit, objectives and actions necessary to make them viable. It should not be thought that only people who already have all the capital necessary to start a business are the only ones to venture into it. If so, most companies would never have been born.
But it is also true that you need capital to get started. Not having an initial amount of money at all leads to a dead end for our Project. If this is the case, do not be discouraged. Many people save for a while while they work for another entrepreneur by learning the secrets of the business well, before launching to create their own.
Now, if you already have a capital, but after concluding with the completion of the Business Project, you notice that the amount you have to start it is not enough, it is time to start working hard to get financing that is required.
The debt ratio or the balance between equity and foreign capital
The debt ratio (or leverage in Anglo-Saxon language) represents the proportion that exists in a company between the amount of its own capital and the capital obtained from third parties.
This ratio or proportion can be very different in each company that we consider. It can be said that the ratio is when the amount of own capital is exactly the same as that of others. For many authors it is the ideal situation, since the business activity is being financed in equal parts by the employer and by third parties. This is highly debatable, and in any case we will not enter into economic digressions here.
What is certain is that, from the outset, it is very difficult to obtain a volume of financing equivalent to the capital that we already have to start a company. In practice, it will be necessary to have most of the capital required to start the business, and trust that we will be able to obtain financing for the rest of our needs from certain institutions that are willing to trust our idea.
Foreign capital: short-term and long-term resources
The sources of external financing of a company can be classified into two large groups: short-term financial sources and long-term sources. The distinction between the two is not trivial, since the procedure for obtaining them, the entities that grant them and even their destination are very different.
In principle, short-term financial resources should be used to finance the typical or ordinary activity of the business (purchase of raw materials, payment of supplies, etc.), while long-term resources should finance the fixed structure of the company (elements of fixed assets, such as the acquisition of a transport element or computer equipment). This is not always the case, and it is even very convenient that a part of the company's long-term resources (be they their own or those of others) are financing part of that typical activity to which we previously referred. This is what is usually known as a revolving fund or maneuver.
Thus, the short-term external resources can come, for example, from the same suppliers of our raw materials, when we agree with them the 90-day payment, or from a bank when it discounts bills of exchange. And long-term external resources will also come from a bank when it grants us a loan for a year or more, or opens a line of credit that is continually renewed.
In any case, it is necessary to be careful when choosing our sources of financing in the short and long term, not only because of the greater or lesser cost that they imply, but also because of the dangers posed by the so-called cash lags or peaks.
Sources of external financing
They are so numerous, although on too many occasions they are difficult to access, only the most common ones will be referred to:
Commercial bank financing: These are short-term resources in the form of credits and loans for less than a year, lines of credit and commercial discounts and a long series of products that can be found in any financial institution.
Long-term bank financing: In the same way, financial entities, banks and non-banks, are a source of long-term resources for the company in the form of loans for more than one year to finance investments.
Reciprocal Guarantee Companies: These companies grant guarantees to SMEs so that they can access bank financing. In order to operate with one of these companies, it is necessary to be an entrepreneur, have a viable business project and acquire the condition of participating partner by subscribing the corresponding social quota.
Leasing: Through financial leasing, the entrepreneur can dispose of movable or immovable property through its rental, with an option to purchase them at the end of the period of time established in the contract. In return, he must pay periodically leasing fees to the tenant company, fees that are fully deductible in the direct tax levied on the company's income.
Factoring: Although this source of short-term financing is not well known in Honduras, in the future, it is foreseeable that it will see a greater boom due to the advantages it can bring to certain companies. It consists, broadly, in the assignment or sale of the bills receivable from the company to a factor, who will bear the risk of non-payment derived from such bills from now on, in exchange for bearing the appropriate discount.
Official aid: There are many possibilities to find official aid that meets our needs, coming from various official bodies.
However, it must be said that it is not at all easy to benefit from these aid, and paradoxically on many occasions it is necessary to show that the company is already up and running.
The nature of this type of support can be: investment aid, tax incentives, innovation aid, aid for hiring workers, etc.
EXAMPLE OF A BUSINESS INITIATIVE:
The following is an example of how to start a business through the Internet. The Internet is something like a great jungle that is yet to be explored, however, not all initiatives are successful and surely you have already heard a lot about this. In general, when we visualize a company project for the network, basic aspects are neglected that if not taken into account it will be very difficult to surround them.
If you already have an idea, you have to evaluate it, asking yourself the following questions:
- Does the idea grow as the network grows?
In Latin America Internet users are growing at a rapid rate, sales and websites too. Does the idea live up to this growth or will it stagnate in the second or third year? There are many examples of initiatives that took off with rocket boosters with more powers than the space shuttle but when they were leaving orbit they collapsed. You have to make sure that the rocket will come off the ship when the ship's engines are hot so that they can power the entire trip.
- Can that idea be marketed with new web-based techniques?
The promotion of the great sites reaches astronomical figures. Venture capital is limited and a large proportion of new site resources go to promotion. Can that idea be adapted to these restrictions, can it be promoted with "guerilla marketing."
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- The idea is flexible?
The change in the brick and mortar business world was relatively slow, today the changes in click companies are hundreds of times faster. Your initiative can adapt to these changes and transform them into opportunities. Competitiveness in the Internet age is marked by speed of action and thought.
- Are the barriers to entry known?
Even if the idea is innovative, it will run the risk of being copied and improved quickly, you can create barriers to entry to new competitors, will customers stay with us even if 3 or 4 quick imitations come in?
- Are the risks clear?
Here we are not talking about personal risks, but about commercial risks, it is known that perhaps work or savings may be risking, but what are the risks of the future company. For example, if the market contracts, do you have a strategy?
- Do you know what the core business is?
Remember that innovations start small and focus on doing one or two things but they are done very well. This initiative has that characteristic. Is it known exactly what you can ignore and what not?
- Are you sure what is needed?
The needs in terms of human and financial capital, technology, etc. are known.
If you have answers to these questions, your idea surely makes sense, if not, it should be analyzed well and try to answer them again. Surely, on the way you can find other different questions that must be answered.
THE COMPANY PROJECT
Concept
The Company Project is a formal document, which will collect in an orderly manner all the variables involved in the creation of our business.
Business plan
How to make a Business Plan
The Business Plan is a document that serves as a guide for the entrepreneur in the difficult task of setting up a business.
The benefits of developing a business plan are several, among others:
- It helps us to know the viability of the project.
There are many steps to follow and the things that must be taken into account when we want to register a business, and the plan helps us to structure all this information
- It is a valid document to present to future partners or investors, where it is shown that the idea is thought out and the business is serious.
One of the needs to be competitive and survive is to know who they are targeting and how they should do it, as well as whether this customer perceives the benefit of purchasing our product or service and if they are willing to purchase it. A good idea is not enough to be, but must be able to reach your target audience.
Below is the outline of the plan. Indicate that it is a very flexible scheme that is continuously adapted to the characteristics of each company.
OUTLINE OF THE BUSINESS PLAN
DESCRIPTIVE ANALYSIS
- Introduction
1.1. General idea of the project
1.2. Origin of the idea
1.3. Promoters capacity
- Idea Description
2.1. Delimitation
2.1.1. Service / Product
2.1.2. Market
2.2. Business objectives
2.3. Competitive advantages
2.4. Limitations
- Market analysis
3.1. The global context
3.2. Description of the sector
3.2.1. Entry barriers
3.2.2. Study of the Target Public
3.2.3. Competition Study
STRATEGIC ANALYSIS
- Marketing plan
4.1 Product / Service
4.1.1 Definition of each of the products or services
4.1.2 Features
4.1.2.1 Physical
4.1.2.2 Features
4.1.3 Product strategy
4.1.3.1 Form of introduction
4.1.3.2 Positioning strategy
4.2 Price
4.2.1 Price setting
4.2.1.1 Cost
4.2.1.2 Competition
4.2.1.3 Client
4.2.2 Setting margins
4.2.3 Pricing strategy
4.3 Distribution
4.3.1 Need for suppliers
4.3.2 Channel selection
4.3.2.1 Cost
4.3.2.2 Quality
4.3.2.3 Features
4.3.3 Channel functions or components
4.4. Commercial plan
4.4.1 Sales promotion
4.4.1.1 Determination of strategy
4.4.1.2 Sales force organization
4.4.2 Advertising
4.4.2.1 Message / scope
4.4.2.2 Plan of media and supports
4.4.3 Public Relations
4.4.3.1 Objectives: image of the company, brand and product
4.4.3.2 Media
INTERNAL ANALISIS
- Production process
5.1 Description of the process
5.1.1 Material needs
5.1.2 Location
5.1.3 Expectations
5.2 Cost of the production system
5.3 Possibility of outsourcing
5.4 Quality System
- Organization of HR
6.1 Personnel needs
6.2 Available resources
6.3 Organization chart of the company
6.4 Communication system
6.5 Remuneration plan
6.5.1 Motivation
6.5.2 Incentives
- SWOT analysis
7.1 Internal / external
7.2 Strengths / weaknesses
ECONOMIC ANALYSIS
- Decision making and resource management
8.1 Investment Plan
8.2 Economic-financial plan
- Final decision
9.1 Legal form
9.2 Aid plan
9.3. Contrast of the results
9.4 Final decision
characteristics
Mainly a good business plan will include:
- The description of the business that we intend to create A deep and serious study about the real viability of the idea, viability that must be both technical, economic and financial The objectives pursued with the creation of the company, and a detailed description of the strategies to be followed to achieve these objectives, and last but not least, it must be convincing, not only for its own creator, but also for all those who have access to the Project, since Whether or not enough financial resources to allow us to start our initiative may depend on this.
Project Parts
As anticipated, the Company Project is a formal document, that is, it requires a certain logical structure that helps to present the business idea, to ourselves as well as to third parties, as a viable plan that is worth carrying out. cape.
The following proposal for a Business Project is not to be considered as a single possibility. Each one has to discover the strengths and weaknesses of their business idea and enhance those and resolve them before concluding the Project, and in this order of things the structure of the document will have to vary appropriately.
Structure of a company project
In any case, a serious Company Project could present the following structure:
- Description of the business idea. This section will collect the identification of the promoters, their experience and their objectives, as well as a brief description of the business idea. Description of the product or service. This chapter will focus on the adequate detail of the characteristics of the product or service that our company intends to produce or develop, as well as the real needs that one or the other will have to cover.
III. Market study. Here the Project acquires the complexity that characterizes it. A market study is necessary to discover the potential consumers of our product or service, both in quality and quantity. A poor market ensures from the beginning the need to abandon the idea or to modify it appropriately. We must not repair efforts, and even expenses, when conducting our market study. Sometimes it will even be convenient to delegate its realization to a specialized company.
- Marketing plan. Marketing or marketing aims to bring the product or service that will be the object of our company to potential consumers of them, and effectively achieve their sale. The fact that users know or not our product cannot be left to chance, but it will be necessary to adopt an adequate combination of commercial strategies that make sales real, and these strategies will have to be designed and described in detail in this chapter.. Technical description of the company. From the production process to the location of the offices, workshops and warehouses, passing through the furniture, machinery and supplies that will be necessary, they must be described here with the utmost precision. Shopping plan. The subject of this chapter is the suppliers of the supplies, their quality control, the management of stocks, etc.
VII. Organization and human resources. The set of activities that will be required to carry out the tasks of management, production, marketing, etc., and the people in charge of carrying them out, will be described here. For this, it will be convenient to describe in detail each job position, its tasks, the skills that the person who occupies it must have and their remuneration.
VIII. Legal form of the company. It is necessary from the beginning to decide whether the legal form of the business will be that of the individual entrepreneur or that of a commercial company. On the choice of one or the other will depend both the procedures necessary for its constitution and the obligations in labor, Social Security and tax matters that will have to be attended to.
- Economic-financial study. This report will describe the resources needed to start the Project, as well as their sources and cost. It will also try to risk the profitability of the business and its effective survival over time. In any case, it will include an income statement, a balance sheet and a cash budget, and a study on the company's break-even point or profitability threshold, and a set of financial and economic ratios that give idea of the viability of the Project. Procedures and tax obligations for the constitution: Put the requirements for each of the companies and individual merchants.
ELEMENTS THAT NEED TO BE GATHERED FOR A COMPANY TO BEGIN:
a-A person with the ability, initiative and desire to carry out a business, to create a company; that is, an entrepreneur.
b-A business idea that can be put into practice.
The fusion of these two elements is the beginning of the appearance of a company.
THE PRODUCT OR SERVICE:
In this section we will try to clearly delimit the functional, technical and commercial specifications presented by the product or service that is intended to be offered to the market. The final result you want to achieve is to generate enough information to be able to later design an appropriate business strategy.
1-detailed description of the product or service to be offered
It is a question of making a detailed description of the product or service that is intended to be offered to the market. The description must be literal, but it can be accompanied by graphics and diagrams that clarify it better.
2-What needs does it intend to cover?
Any product or service that wants to have a certain success in the market must be oriented to the satisfaction of some need of those who acquire the product or service:
This section should reflect on the need or needs that our product or service aims to satisfy.
3 How will the product or service be presented?
The aim here is to clarify the exact appearance of the product's presentation on the market or, where appropriate, how the service will be operationally provided. Thus, a product can be presented in boxes of ten units or in individual packages.
Likewise, a service can be provided at home, at the company's offices, by its own or subcontracted personnel, personally, by phone, by mail, through telematic networks, etc.
CUSTOMER AND MARKET:
- Characterization of the client.
It is about carrying out a characterization of the customer of the product or service, understanding by customer the one who will directly acquire the good or contract new services.
It is possible that when you reflect on who our client is, you will come across facts such as:
There is not just one type of client, but several, and each of them has its peculiarities. In this case, we should characterize each one of them and highlight the aspects that make it different from the others. On some occasions, it is difficult to distinguish between customers and the consumer or end user of a good or service.
- Description of the purchase process.
This section describes in detail the elements that characterize the way in which the client normally acquires the good or service that our company wants to offer or provide. This section is essential since the coherence of the commercial planning will depend to a large extent on the adaptation or not to the habits or purchasing processes of our client.
On the other hand, this is an area where you can discover some innovation opportunities that improve customer satisfaction in the purchase process itself.
- Market evaluation. A market study should provide data on the following issues related to our target audience:
- Demographic characteristics (age distribution, purchasing capacity, sex, marital status, education, etc.) Geographical location of potential buyers Lifestyle (customs, leisure habits, etc.) Buying trend (purchase motivations, tastes, expectations, etc.) Size and segmentation of the market.
3.1. Target market.
This is one of the key sections for the preparation of the business creation guide; we will have to carry out a quantitative and qualitative evaluation of the potential of the market to which it is directed. First of all, we will have to indicate the type of market:
1- Local market, is the one that is directed only to its municipality or part of the municipality.
2- Regional market, if the clients to whom they are addressed are located in your municipality and in others close to yours.
3- Provincial market, when the market we are going to is all the municipalities of the province.
4- Regional market, when the market we are targeting is located in different Spanish regions.
5- National market, when our clients are located in different Spanish regions.
6- International market, when the customers who buy the product or service are distributed in different countries of the world.
BUSINESS PLAN
A business plan is a document-guide of the future or current company, where the different objectives, strategies and means are methodically developed with which they have to start the company in order to achieve success.
It is necessary to define with the maximum possible detail:
1- The activity or sector where the company is located.
2- The market where it will be.
3- The competition of the area or sector.
4- The objectives to be achieved.
5- The means that will be used to achieve the objectives.
6- The strategies to penetrate this market.
7- The sources that will be used to cover them.
8- The necessary facilities and equipment.
9- Necessary personnel and its structure.
10- The financial means.
It is necessary to particularize the project and analyze it, trying to make it useful and as a guide to the future business.
On the other hand, if the business plan is properly prepared, it can be used to present it to banks, potential partners, official institutions, etc., in order to request aid or subsidies, credits, etc.
SPECIFIC PLANS TO GENERATE A BUSINESS
A business plan can be broken down into several specific plans:
1- Economic viability plan.
Where the capacity to generate sufficient resources to cover the company's expenses is analyzed. The profitability of the investment made is also analyzed. Various economic and financial planning tools are usually used, such as the treasury account (Analyzes the income and cash payments of the company during the first year), the economic budget (It annually studies the income obtained by the company and the expenses and investments to which these revenues have been allocated) and the Provisional Balance (The balance between the goods, cash in cash, merchandise and debit balances that we have and the credits and credit balances that we must face is analyzed.
2- Technical feasibility plan.
Where the production or service provision process is described and the technical competence of the promoters is analyzed to put it into practice.
3- Marketing plan.
Where the market situation to be addressed is analyzed. An analysis is made of consumers and those who will decide the purchase of our products or services, the sales arguments, the competitive advantages of our products against the competition, the image policy, advertising and marketing channels, the setting of pricing and pricing policy.
4- Organization plan.- Describes the organization chart and definition of jobs, the hiring needs.
PRODUCTION PLAN
It is to write the material, technical and human means that will be required for the elaboration of the products. It should be taken into account that most of the final additive is incorporated into the product throughout the manufacturing process.
The selected production system will be decisive in explaining the direct costs of the product and its quality standards.
The production plan will be dedicated in these cases to specify the working modes that will lead to obtaining services tailored to the needs of customers.
The following issues should be highlighted in the production plan:
1-Description and location of the chosen production facilities.
2- Cost of acquisition and maintenance of these.
3- Total productive capacity and forecasts on used capacity.
4- Deadlines foreseen for the amortization of the goods.
5- Reasons that justify the choice made and the rejection of other alternative technologies.
6- Raw materials required in the process and comparative analysis of the possible sources of 7aupply.
8- Characteristics of the necessary labor.
9- Complementary technical resources (furniture, communication technologies…)
MANAGEMENT PLAN:
Many companies have failed to meet their objectives or achieve success as a result of inappropriate management. In some surveys they point out that mismanagement is one of the factors that has the greatest impact on the disappearance of businesses. Hence, it is essential to also establish a minimum basis about management and how it should be carried out.
The key aspects that must be included in the development of management plans refer to:
1- Who will exercise command in the organization.
2- What managerial tasks will be delegated.
3- How to act in decision-making and with what degree of participation.
4- Specify the areas of responsibilities and relationships between managers.
5- Design jobs, defining tasks, training and capabilities.
6- Establish a personnel policy that covers salaries, rewards, career possibilities, etc.
7- Determine how the information will flow within the company.
ECONOMIC FINANCIAL PLAN:
The financial economic plan specifies in monetary terms the investment needs of the project, the way to finance them, the foreseeable evolution of the treasury and the expectations of results for the expected level of activity. Its objective is none other than to prove the solvency of the company in the period of time that the business plan contemplates.
This global solvency has two partial aspects:
1-Financial solvency or ability to generate profits on a continuous basis.
2-Financial solvency or possibility of meeting all the payment commitments contracted.
Elements that can be accredited so that the company has financial viability:
1-That the promoters are in a position to make the necessary investments.
2-That they can face current payments without falling into negative cash situations.
3-That the project offers a guarantee regarding the generation over a certain period of benefits for shareholders comparable to those set in the objectives.
The vigilance of the financial balance and its previous estimation become a basic question to ensure the stability of the company. Both the capital structure and the way in which the company is going to be financed, the balances between different concepts of assets and liabilities, and the level of working capital, must be included in the financial plan.
LEGAL FORM
CONSTITUTION OF THE COMPANY
Individual entrepreneur vs. commercial society
First of all, you will have to decide the legal form of your company, that is, decide whether it will be established as an individual entrepreneur or as a commercial company. In one case or another, the procedures to be followed for its constitution and the taxes that it will have to face are different.
The choice of one or the other will basically depend on the organizational needs of the business to be created, and the levels of responsibility towards third parties that we want to assume.
The individual entrepreneur
If we choose the legal form of the individual entrepreneur, we will have to take into account the following aspects:
There is no prior procedure that conditions the acquisition of individual entrepreneur status, although the promoter must be of legal age and have the free disposal of their assets.
Individual entrepreneurs are not obliged to register in the Mercantile Registry, although they can do so if they consider it appropriate.
Your responsibility for the management of the business is personal and unlimited vis-à-vis third parties.
Regarding their labor and Social Security obligations, we highlight the following:
- Registration in the Special Regime for Self-Employed Workers Registration in Social Security (only if you are going to hire workers) Affiliation and Registration of Workers in the General Regime of Social Security Hiring of Workers Social Security Quotation Contribution scheme private (housing) Contribution to the Professional Training Institute.
And in the development of its business activity, it must comply with the following tax obligations:
- Census declaration of the beginning of the activity Registration of the Economic Activities Tax Declaration-liquidation of Personal Income Tax Declaration-liquidation of Sales Tax Declaration-liquidation of the Net Asset Tax The mercantile company
If we have chosen the constitution of a commercial company as the legal form for our company, we must take into account the following:
- It will be necessary, to obtain the legal personality of the company, proving that the name that we have chosen for it does not correspond to that of another existing company.Provision of the corresponding Public Deed before a Notary.Registration before the corresponding Mercantile Registry. From a labor and Social Security point of view, the company must carry out the following procedures: Registration with Social Security (only if it is going to hire workers) Affiliation and Registration of Workers to the General Social Security System Hiring of Workers.Social security contribution.
ANOTHER WAY OF VIEWING THE COMPANY PLAN
The structure and order of a business plan may differ but it always maintains a scheme in which important points are discussed that in no case should be ignored, because if it is done, there is a risk of starting without knowing important aspects that will surprise us later. (surely for the worse)
A simple way to visualize a business plan will be:
- a Vision and Mission. Internal and External analysis: SWOT analysis (Weaknesses, Threats, Strengths and Opportunities). Strategy and objectives. Production Plan. Marketing Plan. Financial Plan. Executive Summary.
A-The vision of the company
The plan must start with the basics, and therefore the first step is to write the Vision.
The Vision represents the perfect future of the initiative and is realized by formulating an ideal image of the project and putting it in writing, in order to create the dream (shared by all who take part in the initiative) of what the future should be. business. The Vision is therefore the narrative of said business dream.
To do this, it is necessary to ignore for a moment the obstacles that may appear on the horizon and assume that this world is ideal. From this premise, a Vision should be written that, if possible, should provide answers to at least these questions.
- What will the project be like when it has reached maturity in a few years? What will be the main products and services it offers? Who will work in the company? What will be the values, attitudes and keys of the company? How will they talk about the company, clients, workers and people in general who are related to it?
The usefulness of the Vision lies in:
Being a source of inspiration for the project, represents the essence that guides the initiative, strength is drawn from it in difficult moments and helps everyone who is involved in the business work for a reason and in the same direction.
The Vision begins to focus creative forces in one direction and serves as a guide in moments of doubt or difficulty.
In a paragraph define the vision of the company, give it coherence, see your future dream reflected in it and you will have laid the first stone.
B-The Mission Defining the business.
The mission, a concept linked to the vision, represents a definition and concretion of what activity the company is engaged in, how it carries it out and what sets it apart from others. Although this may seem like a simple step, it is surprising the number of companies that do not know what they do or that define their activity in a very vague way, so that the efforts to achieve the objectives are also diffuse and are diluted by pursuing each time a thing or staying in a vagueness.
Therefore, the second step will be to write a mission, a definition of the activity that should answer these questions:
1.- What business is the initiative dedicated to?
We must specify to which products or services we dedicate the activity.
2.- What differentiates your business from others both now and in the future?
We must always think from the perspective of differentiating ourselves and innovating, so we must detect from now on the difference that will make them choose us over others, our competitive and sustainable advantage over time (this is important).
3.- What are the values and principles that drive our initiative?
There must be a series of values that identify our initiative (quality, speed, service, whatever they are) and we must briefly mention them here.
4.- How does the company see and treat its employees, suppliers, partners and customers?
In the Mission there must be room to dedicate a sentence to how the company will interact with the rest of the agents who will be immersed in our activity and how it considers them.
By carrying out this step we will not only have defined our activity but we will have done it with an appropriate approach, not restricting ourselves to a mere descriptive exercise but thinking and highlighting, from the beginning, the advantages, differences and values that will be the banner of the company, that's the right way.
In the next installment we will enter the field of analysis to obtain the relevant data for our plan.
C-External analysis
Knowledge is fundamental, basic to define strategies and actions, without knowledge we will walk blindfolded through a field full of stones. To avoid stumbling as much as possible it is necessary to acquire the key knowledge for our business and this is achieved through analysis.
An external analysis involves the collection of information, its proper analysis and the drawing of relevant conclusions. Below are some essential questions that must be answered, likewise, depending on each initiative there will be many more questions related to that aspect that will have to be answered.
The general situation.
Does the economic context affect us in a relevant way? Are there laws or policies that we have to take into account? Are we in recession or economic expansion? Are there trends we should consider?
The functioning of the sector
Is our sector in decline, booming, starting? Do we know our suppliers and how they work? Is there a concentration in a few companies?
The clients.
Who and how are they (age, gender, social status)? What are your tastes? What decision elements lead them to demand the service or product?
The competition.- Is there a lot or a little? Are there outstanding leaders? How do they do it? How will the competition affect us? And your pricing and service policy?
Remember these are some of the important aspects to take into account and the previous questions are indicative, many more will arise and the more we know the better.
We can see that aspects that favor us (Opportunities) and that hinder us (Threats) arise. Detail them, they will be useful to us.
- Internal analysis
It is just as necessary to know the external factors that surround us as it is to know the internal ones that will influence the development of the initiative, or what is the same, to know ourselves. The importance of knowing and analyzing the internal factors of the company, independently, without being excessively lenient or extremely strict, will give an idea of possibilities and capabilities, as well as of strengths to enhance and weaknesses to cover and amend.
Bear in mind that for all cases only relevant aspects will have to be detailed, if unimportant subjects are detailed, a lot of "noise" will be produced in the analysis.
In the external analysis we had Threats (negative external factors, such as a lot of competition) and Opportunities (positive external factors, for example a rising sector) along with the strengths and weaknesses, we have what is called a SWOT analysis (Weaknesses, Threats, Strengths, Opportunities) an analysis that determines the key positive and negative points, both internal and external, relevant to the initiative, which must be brought to light and ordered in these four sections.
The SWOT analysis will have valuable elements to correctly carry out the following points.
Formulating objectives
In the previous steps we already know our mission, our limitations and potential, the points that play in our favor and against us, etc. With all this, you should already begin to be able to develop some first objectives for your activity and that is what this step consists of.
The question is to set goals, objectives to reach and meet.
These objectives must always meet the following conditions:
1-Adequate: to express what you really want to achieve, remember your mission and your vision.
2-Realists: go back to your analysis, both internal and external and do not put figures that are not real. It must be consistent with what you have discovered in the previous steps, if our position is not that of leader, we cannot aspire to set ourselves the same goals as that leader.
3-Timely: it is necessary to clarify when these objectives are to be achieved, both the final critics and the intermediate ones: what is there to know, in what time do we want to achieve the objective, why if we do not put the temporal dimension as a limit they become diffuse.
4-Measurable: we must establish specific figures, 100, 200, 300, whatever, but that can then be contrasted with reality and modify if necessary, because if not we will never know if we arrive or if we pass.
5-Achievable: this has to do with being realistic. You have to aim high, because you must have aspirations and fight for them, but do not put figures of impossible dreams in an equally impossible time.
Review the list of objectives that have been set, check that they meet the above conditions and that they are based on assumptions (because this part will always be an estimate) that are real and are based on the previous analyzes and not only on intuition.
It must be understood that we have reached the point of making forecasts and those forecasts are assumed, everyone is wrong with them, but there is less risk and margin of error if they are based on the premises of a serious analysis, both of the market and of our own..
E.1. The strategy
Many times the SME, the entrepreneur or the self-employed seem concepts not linked to business strategy, a hidden science that belongs to large corporations. That is the first big mistake that is usually made and that is usually paid for with the disappearance of a large part of the initiatives.
So what is strategy, what is it for and how can I apply it? To begin with, by following this course, we are already acting strategically. The strategy is the resolution of problems in the most optimal way, that is, in a situation where we want to achieve something uncertain, analyze and implement the best way to achieve the objective is to act strategically.
For this, the strategy is to have a clear vision of who I am, what I want and how I want it. That is to say by:
Know the point to which I want to take my activity and develop the specific objectives of my activity (point seen in the previous installment)
Analyze said activity in depth (its characteristics, the environment, competitors etc. a point already made in previous deliveries)
Draw up a plan (as complex, simple or structured in stages as required) to take my activity from the point where it is currently to the point where I want it to be in the future.
The conscientious analysis of all the previous elements will give multiple clues about the strategy that should be used (in fact, many times the simple analysis already tells us, almost shouting, what we should NOT do in our strategies). Our actions must be thought of taking into account all the above elements, actions that ignore elements as important as competition or the market, or that require our weakest points to be carried out successfully (for example, if If you are a small company whose weak point is the financial structure, it is crazy to embark on a strategy based on the price war).
As can be seen, the strategy consists of designing a way to achieve the objectives in the most optimal way and always based on the analysis of the situation.
The formulation of strategic alternatives
We have the analysis and now it is time to define how you are going to achieve your goals by determining strategic alternatives, that is, it is time to think and design strategies to achieve your goals.
This part is creative, it involves creating coherent paths to your goals.
To do this, first on a blank paper you should start to write down all the ideas that come to mind, all absolutely, put as many as possible (this is called "Brainstorming"). You do not have to worry about a first moment of whether they are applicable or convenient, the idea is to draw potential ways to achieve your purposes. You have to look for all possible options.
When finished, analyze and evaluate them according to these criteria:
1-Do they make good use of the resources that you are going to have or have at your disposal?
2-Which ones maximize the differential between return and risk of your business?
3-Which ones are more related to the evaluation of opportunities that you have done before?
4-What are the ones that best suit the needs of your customers?
5-Which ones are more consistent with your vision and mission?
6-Which ones exploit your strengths?
7-What exploits the weak points of my competition?
Once analyzed there will be better and worse alternatives, the best will be the raw material for the next step.
F.1. Choosing a strategy
It's time for strategy.
The work of the previous installment must be resumed and based on it, a strategy is drawn up that makes the options that have been chosen in the previous step clear and consistent.
It is time to outline, to clearly define what was previously a sketch. The strategy will be well written when everyone is able to understand it, because that is what those who will work in the company team will have to do, if not, it will not help.
The strategy should contain, at a minimum:
1-A definition of the markets, products and services
2-The commercial and price policy.
3-The key points of the promotion strategy that will be carried out.
4-The company culture and the image it wants to give.
The strategy is a product of all the analysis you have done before, therefore, it must be integrated into it as a perfect piece, that is, if a weakness was your financial structure because you have had to ask for a large loan, the commercial strategy does not It may be based on a price war because in a few months it will lose for lack of funds.
This strategy will determine:
1-What is needed to start it (material resource plan)
2-How much money is needed (financial plan, that is, from where, how and how much money should you raise)
3-How to promote the business (marketing plan, identifying the target customers, their needs and the ways to reach them and make them buy from you, planning the promotion, etc.)
4-The personnel that will be needed (human resources plan, where the personnel will be established.
The Marketing Plan
The following should be considered first:
1-No matter how good one is or how excellent the product is, if nobody knows it, it is useless, because nobody will buy it.
2-It is necessary to invest in marketing, although in the short term it seems like an expense it is not, it is an investment.
3-We must take into account an essential law of marketing. All marketing action will have a long-term result, that is, it will be the long term that provides the results. Time is very important in marketing, it must always be considered that marketing is not something specific but a process that must continue and be maintained over time.
That said, marketing should be designed by meditating on three essential points:
- The price. Price is a fundamental buying element and you must decide what your pricing strategy will be. Also, if you opt for a high price because you have seen that your audience is high-level people who appreciate quality and do not mind paying more, your entire company image and marketing must be consistent (that is, do not give the impression of be cheap). Know where you want to position yourself and always keep in mind how your competition does. The promotion.Promotion actions must be designed and assess not only how much they will cost, but also what you will obtain with them, controlling what we obtain with certain marketing actions (the analysis will have to be "a posteriori") will help to focus the marketing investment on what more profitable. A technique similar to that used to define strategic alternatives should be used. That is consistent with the philosophy of the company and its public. The product. Your product must be in accordance with the target audience, the strategy and the rest of the marketing actions, not transmit an image and have a product that in reality is otherwise.
The Financial Plan
The Financial Plan is the translation into numbers of the rest of the plan. Collection of information about what we need to start the company, the people we are going to hire, the sales forecasts we have made, etc. It is time, in this part of the plan, to translate it into numbers in order to see the viability of the project and what the forecasts are.
The financial plan is usually made up of:
- Investment plan: everything necessary to start and how much it costs (purchase of computers, local arrangement, notary fees, etc.) is recorded and then it is specified with what we are going to pay it. If we cannot cover the total necessary to start shooting with the own funds that we are going to put, we will have to look for external financing (that is, request a loan). Expected income statement:we will have to analyze on the one hand the income that is intended to have and, on the other hand, the necessary operating expenses. Once all together, we must see the result month by month during the first year to see the profit or loss. We must also do it for the following years (accumulated by months or quarters during, for example, the first 3 years) the most normal thing is to close the first year with losses. Provisional balance: we must record what our final balance will be for each year. With our assets, liabilities and net. Treasury budget:similar to our budget of expenses (which we make for the income statement) but taking into account payment times, not expenses (that is, when the money leaves our account, not when we contract the debt) that will allow controlling the treasury, question essential in any company and particularly in new ones, where it is vital to have liquid resources and habitual that they become a delicate issue.
These previous elements are basic, but others can be added as a break-even analysis, for example.
Key tips:
- It is not time to be creative, but serious, so if you are not sure it may be better to consult a professional. Several scenarios should be done, one pessimistic, one normal and one optimistic.
The executive summary
The executive summary is the last part of the plan but the one that is put first in the plan, therefore its realization is essential, since those who analyze the plan will have two unavoidable actions, first they will see the summary and then the financial part. If you can attract attention with these two parts, then they will already be deeply immersed in the other aspects of the plan.
Therefore, the executive summary is a part to be done with great care and care. The executive summary is intended, in a couple of pages at most, to highlight the really important points and essential conclusions.
You must say in a concise and sure way what those who read the plan want to hear, that is: what the business does, what market is it oriented to, what are the advantages and what you intend to obtain (record the important figures, defining well both the moment in which you expect to obtain a profit and the amount in which, more or less, you expect to establish, or the annual growth rate ¿) that is, you have to go to the financial plan and the outstanding figures, the important elements, defines them there. If they attract the reader, they will go to the end of the plan to see the financial planning and from there to the rest of the document.
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