Do you want to know if your business idea is profitable, what resources do you have and what do you need to make it happen? You must start by putting your ideas on paper and learning how to make a business plan step by step. In Hispanic Entrepreneurs we present you what you should include in this document.
Why write a business plan?
The business plan is a document in which you explain in detail your business idea and why it is profitable. It contains information on what you will do to make the company profitable, the resources you have and what you need. In addition to the organization, necessary financing, information on the market and the industry, among other aspects.
The objective of the plan is to draw a map that will take you from where you are at the moment to the proposed goal. So you should start by defining what is the vision of your business, where do you see yourself in the next five years.
Presenting this plan is usually not a requirement to register the company or start operating. However, you need to have this document if are you ready to start Because it will help you define every aspect of your business. This way you will know if it is viable or what changes it needs to be.
When applying for a loan or looking for investors, the first thing they will ask you is the business plan to confirm that it is a profitable idea. Also, the plan will be your working guide. As your company grows you will know if it does it according to what you established in principle. Get familiar with the steps to develop a business plan and start preparing yours.
How to make a business plan step by step
If you have never done so, writing a business plan can be difficult. You have to describe the company accurately and attractively. Consider who will read it, if it is only for the use of the company, to attract investors or request a loan from the bank. Depending on this you may need additional information.
It begins by defining what the company's mission, vision and objectives are. From there you can start mapping strategies and what you will do to reach the goal.
Look for a business plan model, but it is recommended that this is not very extensive. If you have too many pages, it is unlikely that someone will read it.
Here we show you how to make a simple business plan.
Write the executive summary
In this part you will make a brief description of the business. In two pages at most it talks about your proposal, specifies who the clients are, the profitability you expect and if you need financing.
Present the product or service you are going to offer, its opportunity in the market and competitive advantages. Within the structure of the business plan it is placed after the presentation, but you can write it after the rest of the document is ready.
Describe the company and the industry
In this section you will give more details about the description of the company. The problem to be solved is presented and what is the solution provided by your business. It indicates the vision and mission of the company, the long-term goals and objectives that will serve to measure progress.
Introduce those who will be in charge of running the business and indicate the type of company you plan to register.
It is also important to talk about the industry to which it belongs and how your business is positioned within it. Indicate who your competitors are and what your advantages are over them.
Present the products or services
Delve into the description of the products and services you offer. It presents the technical specifications and the price structure that you are going to handle. It also indicates the advantages and disadvantages they have compared to the competition.
Describe the operating process
It talks about the management of the company, who is in charge, their experience and the tasks to be carried out daily. This section also includes the procedure for hiring personnel, insurance, necessary permits, patents, the type of location required to operate, the number of personnel, among other aspects.
In the same way, the production process, the raw material needed, equipment, suppliers and other resources are explained.
Create the marketing plan
Between the elements of a business plan that they cannot miss is the marketing plan. It is necessary to do a market study to know, among other details, the size of the market, where it is and income level.
Also, you will know if your product or service is in demand and the willingness of potential customers to pay for them.
You will identify who your competitors are. Make a list in the document mentioning the competition, its strengths, weaknesses and the commitment of users to these brands.
You must also define your niche and your ideal client. With all the information above it will be easier to do.
Finally, indicate what the promotion strategy will be and the actions you will take to fulfill it.
Define the financial plan
Indicate how much money you have and the source of income to start the business. Make a projection of the gains or losses you may have during the first operating year. As well as the budget you have for this period.
It's about bringing all your plans to the numbers. It is important that you include an action plan to deal with any problem that arises.
With this information you will know how to develop a business plan step by step. If you want to know about other ventures in Clarksville we invite you to read our magazine.