Business plan (What is it and how is it composed)

  • Jul 26, 2021
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In the business world, having clear objectives allows the development of strategies that position the company where it is wanted. The business plan it must be differentiated from the business model, although the two are closely related and will be defined below.

In this article you will find:

What is a business plan?

The business plan is a written document that will serve as a compass to know where you want to go, and is the key ingredient for a successful business, this business plan has a clear structure in the presentation, which starts from what is the summary executive, thecompany, marketing plan and financial plan, but when executing it, it must be in a fairly rigorous order.

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Marketing plan

It is necessary to start from a market analysis because it is the client who defines what he wants and how our product or service is going to cover that need. In this way, it is imperative to establish who will be our target audience, what type of product or service is going to be offered, and analyze businesses and companies. Similar.

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In addition, to know the clients of the competition to know what deficiencies exist in the market that one can cover, and propose three strategies that will lead you to differentiate yourself from business existing.

In marketing there are three basic activities that must be developed to achieve the objectives of the campaign:

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  1. The first is to determine the customer's need, in this way a product or service can be developed that meets that need.
  2. The second thing is to develop products and services according to that need hand in hand with the client, Through a study of perceptions, habits that allow to determine exactly what the client is needs to.
  3. Finally, bring the product closer to the consumer according to the channels used by that target audience.

Study of perceptions, habits and attitudes (PHA)

Carrying out this study is very important because what you perceive of your product may not be the same as what your client perceives and if you product or service is going to align with the habits of your client and the attitudes that the client demonstrates towards that product or service.

Segmentation

Segmentation of our target audience is a very important step that should not be lacking in any plan of businesses since this step will allow us to delimit our market and in this way know how to get to he.

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The idea of ​​value

There is a big difference between value and need, and everything goes through two simple questions: What do I need? And what do I value?

There are customers who need "A" but value "B", at the end of the process they will end up buying what they value and not what they need. In addition, it is essential to determine if what the client buys me is the same as I sell, and thus one is going to position within a specific segment, specializing so that customers choose us for what value.

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Differentiation by service

People today buy if they feel comfortable, differentiation by price is the worst strategy you can apply if you are starting because it simply always goes to have someone bigger than you who can lower the price much more, that is why the imperative is to differentiate yourself by service so your customers will always be at ease.

Positioning

We say that a brand, product or service is positioned when it is the first thing that appears in the customer's mind when a need arises.

The company

Determining the raison d'être of the company is fundamental within a business plan and we achieve this by define what the client wants, how he wants it, why?, when does he want it?, this is the mission of the business.

The other fundamental point is to establish the vision of the company, which is nothing more than the projection of the company, how and where the company will be operating in five years, in addition to setting short, medium and long objectives term.

Within the company it is necessary to establish the strengths and weaknesses this will help us to know where we are and where we are going as a company.

Organizational structure

The business organization or structure of the company is how the company is composed in relation to the tasks and duties, how many people make it up and what are the responsibilities of the different charges.

Financial plan

Within our financial plan we must establish the way in which the initial capital will be invested, for that we determine how much money is available to start the company.

One of the most common mistakes we make when starting a business is that we assume the initial investment as operating expenses and we do not have in Note that the company will not generate dividends in the first months, therefore, it is necessary to separate the working capital from the capital of investment.

Initial investment

It is the capital we have to start a business, if you want your company to be successful you must take into Note that the initial investment capital must guarantee the operability of the company during the first six months.

Cash flow

Cash flow is the tool that will help us define the fixed costs and variable costs of the company and determine the amount of money that comes into profit and the amount of money that comes out as a concept of productivity and maintenance of the business.

Breakeven

The breakeven point is a projected cash flow in a given period and here the amount of money to be expects to earn within that previously established period of time and thus we establish when we will recover the investment initial.

Investment analysis

At this point we study if this investment is profitable under the investor's concepts, in addition to defining how long the invested capital will be recovered if it is in the short, medium or long term.

By not performing a business plan we limit ourselves to the circumstances that take the reins and the future of the company. Don't let this happen, start making your own plan and take control. Thank you for your visit!

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