Learn what the business plan is, why it is important and all the requirements for yourself to create one in your company.
Many new entrepreneurs end up experiencing several difficulties, in the initial months of opening the business, for not planning correctly. In addition to having ideas, finding a commercial point, and knowing the costs, planning the company’s future is essential. To avoid future risks, the preparation of the business plan is essential.
The business plan is the ideal instrument to draw a picture of the market, the product, and the entrepreneur’s attitudes. It is through it that you will have detailed information on your industry, products, and services, customers, competitors, suppliers, and, mainly, the strengths and weaknesses of the business, contributing to the identification of the viability of your idea and the management of the company.
Why is the business plan important to my company?
The business plan is important both for those who are opening the business and for those who are expanding the enterprise. It is worth mentioning that this planning does not eliminate the risks, but prevents mistakes from being made due to the lack of analysis, reducing the uncertainties of your business.
- Organizes ideas when starting a new venture.
- It guides the expansion of companies already in operation.
- Supports business management, whether in numbers or strategies.
- Facilitates communication between partners, employees, customers, investors, suppliers, and partners.
- It raises funds, whether financial, human, or partnerships.
The elaboration of a business plan is part of the entrepreneurial process. Watch the video below and understand the phases of the entrepreneurial process.
How to make the business plan?
1. Starting the business plan
Knowing the industry, defining products, and analyzing the place of the establishment are some measures that the entrepreneur has to take into account when setting up his business.
In the next video, you will see how to describe aspects of your company and its competitive advantages, arousing the interest of those who read.
2. Market analysis
Analyzing the market is one of the steps for preparing the business plan. It is essential to know who the customers, competitors, and suppliers are, in addition to the offering which products or services you are going to offer. By defining your target audience and how to reach them in the best possible way, you save resources, giving your goal a clear shot.
After profiling the target audience, it is important to think about the positioning of your product. How will the market see it? Is it good quality and cost-effective product? Quality and with an above-average price?
The information collected will draw a picture of the market and indicate whether the company is going in the direction of what future customers want. The results will dictate the promotion and marketing actions for the company to win over the public at the very beginning of its operations.
3. Marketing plan
Marketing is a set of activities developed by the company to meet the wishes and needs of its customers, Marketing activities can be classified into basic areas, which are translated into the 4 “Ps”: Product, Points of Sale, Promotion (Communication), and Price.
It is important to know the value that your product carries, both in price and quality, to make specific decisions when announcing it. Knowing what you are selling helps to convince others to buy it.
4. Operational plan
This part of the business plan is about “how to.” The operational plan describes how the company is structured: location, physical facilities, and equipment. The entrepreneur also makes estimates about the productive capacity or how many customers he can serve per month, in addition to plotting how many will be the employees and the tasks of each one.
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5. Financial Plan
In the business plan, the entrepreneur will be aware of how much he should invest in making the company a reality. The document should contain the estimates of initial costs, expenses and revenues, working capital and cash flow, and profits.
Tips for making an excellent financial and operational plan:
- Present each item in detail, step by step, to offer an initial overview of the business’s operation, to avoid waste and optimize routines.
- Pre-operating costs must be projected, identifying what will be necessary to acquire for the company to be opened, such as rent, space renovation, and registration fees.
- The list of equipment (tools and vehicles, elements that the company will need to function) falls within the group of fixed investments.
- At that time, each item’s immediate need must be observed or even if some of them can be rented or outsourced.
6. Scenario Analysis and Strategic Analysis
Scenario analysis helps the entrepreneur to predict situations that may affect the company’s results. If so, which paths to follow? What alternatives can be chosen? Scenario analysis is a subsidy for strategic analysis, that is, based on possible scenarios, which strategies should be implemented?
7. Evaluation of the business plan
There, your business plan is complete! But it doesn’t end there. Now, it’s time to evaluate every detail and put the plan into practice. Remember that the business plan is a management tool and should be reviewed periodically.
Learn how to create your business plan
The Sebrae prepared a manual, exclusive, which will guide you in creating your business plan. In it, among other questions, you will find:
Explanations of what it is and how to proceed at each stage of the plan’s elaboration.
Tips on specific issues important to building an efficient plan.
Tables to be filled out to practice the points presented, as well as examples.
A business plan template that you can use for your company.
Remember that preparing a business plan is not an easy task, as it requires persistence, commitment, research, hard work, and a lot of creativity.