Business Plan what is it? One of the main pillars of entrepreneurship and all types of companies, developing your business plan will significantly increase the chances of success of your business idea or projects. For sure, it is a key tool for all types of entrepreneurs and professionals.
So, understand now what a business plan is and the right steps on how to put yours together in a very practical and summarized way! You want to receive tips and information to set up your own business. So subscribe to this channel and stay on top of everything you need to know to open your own company.
To make this subject clear to you, let's address the following points: 1. WHAT IS A BUSINESS PLAN 2. WHY IT IS SO IMPORTANT 3.
HOW TO ASSEMBLE YOURS IN 8 PRACTICAL STEPS So, let's go! 1. WHAT IS A BUSINESS PLAN?
Basically, it's a guide for your business that points out goals, dates and details on how to achieve the specific objectives of your project. That is why it is considered a tool that draws a faithful portrait of the market, the product and the attitudes of the entrepreneur. At the same time, the business plan aims to minimize the risks and uncertainties of the project.
With it, it will be possible to identify business potential. As well as possible failures, threats and project errors before putting it into practice on the market. That is, it will be with him that you will be able to analyze whether your business model is viable or not.
However, always remember: a business plan will guide you, but you don't always have to follow it faithfully. It is fully changeable throughout the project. Therefore, it will be up to you to identify the moment to update it and change it as it evolves, agreed?
Following this reasoning, the Business Plan should be prepared from the moment that you have already chosen your favorite business idea and the type of market that you will operate in. 2. WHY IT IS SO IMPORTANT When creating a business plan, different scenarios will be created to better understand the favorable and unfavorable situations that the company may face along the way.
This helps to identify opportunities and threats, in addition to contributing a lot to decision making . The lack of alignment of information can cause conflicts between the team involved. And that can really hurt any kind of business.
And that's exactly what the Business Plan avoids. It is able to keep all the relevant information organized, well aligned and also recorded. This makes everyone involved aware of the details and processes.
Avoiding misunderstandings and misinformation. In addition, the identification of possible problems that may arise during the company's trajectory will be real. In this way, strategies will be developed to deal with any type of adversity or obstacles that may appear.
Likewise, if it is necessary to seek investment from third parties or some type of financing, the business plan is capable of identifying ways to raise financial resources for the business or project. Furthermore, it provides a clearer and more assertive view of each phase of the process as a whole. As well as the possible results that need to be achieved at each moment.
And if something doesn't come out or happen as expected, you can make adjustments to correct and improve what you need. Thus, keeping the progress of the project always up to date and in the planned and expected direction. 3.
HOW TO BUILD YOUR OWN IN 8 PRACTICAL STEPS A traditional business plan is divided into 8 parts: 1- Executive Summary 2- Market Analysis 3- Marketing Plan 4- Operational Plan 5- Financial Plan 6- Construction of Scenarios 7- Strategic Assessment 8- Business Plan Assessment So, let's briefly explain each one of them: 1. EXECUTIVE SUMMARY It will be an initial summary of your business plan, serving as a brief presentation of your business for anyone who will have access to this plan. At first, it should address points such as: Description of the company, Who are the entrepreneurs, Products and/or Services that will be offered, Market in which the company operates, Location of the company, Mission, Legal Form and Tax Framework, What will be the required initial investment 2 .
MARKET ANALYSIS Here, it is necessary to point out how the situation is of the market that will be worked. Analyzing whether there is demand for the product/service in question and how big it is. In short, 5 points are worked on here: 2.
1. TARGET PUBLIC: You need to study your target audience well, defining points such as: Who will buy? What will you buy?
What is the reason for the purchase? What is their buying habit like? What is the lifestyle?
Where they live? What age group? What is your cultural level?
What is your income? Therefore, the idea is to map the profile of your target audience as much as possible to be able to understand their behavior and analyze whether it is consistent with your business. 2.
2. MARKET TRENDS: Identify the most important changes happening to your audience and see if you can spot any trends. For example: if you are developing a pet products and services company and you notice that your target audience uses this type of product/service more and more, then this is a sign that your business is on the right track to conquer part of that market.
That is, there is a good demand for what your company intends to offer. 2. 3.
SITUATION OF THE MARKET IN WHICH YOU WILL OPERATE Here, research and understand how the market behaves . Check if there is growth due to demand or if it has been stagnant for some time. For example, a growing market can be exciting.
However, if it's close to stagnation, it could pose a risk to your business. 2. 4.
COMPETITORS Likewise, study the competitors your target audience is looking for to meet their needs. Once this is done, point out how your business model would bring a better solution compared to what is offered by the competition. That is, understand in a very deep and sincere way why consumers would choose your company over the competition.
2. 5. SUPPLIERS: Look for and select suppliers that can meet your company's needs.
As well as respecting delivery production deadlines, desired quality and prices consistent and feasible with the reality of your business, for example. Therefore, study them carefully to be able to build your advantages in the market. Since the suppliers will be your longtime partners in the journey of entrepreneurship.
3. MARKETING PLAN In short, it is about planning the Marketing actions of a company that seeks a certain objective. And it can be developed for a brand, a particular product or service offered by a company, for example.
In other words, it is a management tool that helps a company to be and remain competitive in the market in which it operates. All this through marketing strategies and tactics. So, understand the product or service that will be sold and elaborate on how it will be built and publicized.
Therefore, this will be the moment when you will decide how to position your product/service in the market. What will be the working price? How will the disclosure be?
Distribution channels (how will the product/service be delivered to the customer)? Among other very important points So, if you want to understand more about the Marketing Plan and how to put yours together the right way, watch our very practical video that explains exactly these points. To do so, just click on this button above or on the link in the description.
4- OPERATIONAL PLAN Determine how your business/company will function. In a nutshell, operational planning is the work plan. It turns strategic (or tactical) goals and objectives into smaller, actionable tasks.
This is where methods, processes, systems, people, responsibilities, tasks, necessary equipment are defined. That is, in this part, describe how the team will be, physical or digital structure required, production capacity and the time required for each step are items that will be worked on at this time. 5- FINANCIAL PLAN In this step, you need to define how the cash flow will work in your business.
How big is the initial investment required? What is the working capital (amount of money you need to operate the company, especially in the first few months)? What are the operating costs?
When will the break-even point be (ie, the minimum revenue the business needs to generate in order not to incur losses)? What will be the return on investment (ROI)? of Results.
In fact, by analyzing these points, you will be able to analyze how profitable your business/company will be. 6- CONSTRUCTION OF SCENARIOS Work and build simulations of the market to project how the responses would be in different situations to assess the capacity of the business. That is, develop a pessimistic and an optimistic situation for your business for a certain period of time.
If you prefer, you can even add a median situation as well. Thus, you will have a deeper and more solid vision of the scenarios that you may face with your business or project. And prepare very well for each one of them.
As a result, you will have a concrete basis to be able to analyze what actions would need to be taken for each of these scenarios. 7- STRATEGIC ASSESSMENT At this point, assess the company's internal and external environments to identify possible opportunities and threats. In addition, make clear the strengths and weaknesses of the business/company to know how your behavior and reaction power would be in the face of positive situations, but also adverse ones.
8- BUSINESS PLAN ASSESSMENT Finally, assess whether your business/company is viable or not. But remember that the market is constantly changing, so always make sure your business plan is up to date with reality, okay? Have you seen how the Business Plan is fundamental to the success of your company or project?
However, there are several ways to develop it. Including several models that may fit your profile or need even better. Therefore, if you want to understand even more the Business Plan with many practical tips, models and possible mistakes to be avoided, watch our playlist that shows everything you need to know to develop yours in a professional, assertive and very powerful way.
If you want to watch it, just click this button above or the link we left in the description, all right? And there? Did you like this video?
So, if you can, click on the “Thanks” button below and help our channel to continue producing and improving videos and content of this type for you. And just to recap what we talked about here: 1. WHAT IS A BUSINESS PLAN 2.
BY WHAT IS SO IMPORTANT 3. HOW TO ASSEMBLE YOURS IN 8 PRACTICAL STEPS We hope you enjoyed it! And if you want to learn more about how to set up and manage your own business, visit our YouTube channel where we have several videos on this subject, okay?
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