What is included in a business plan?

Today Hispanic Entrepreneurs we will talk about what is included in a business plan and why do you need one. Having a guide when you go to open your own business will help you make better decisions and make it attractive to potential investors and lenders. Read on and learn more about it.

What is a business plan and what is it for?

A business plan is a document in which the project is described and its viability and profitability are analyzed. It will help you manage it and make it grow.

It is also known as a business plan and it gives details of all aspects related to the business. Either new or already underway. The business idea, the objectives and how they will be achieved are described; The market is also analyzed and the amount of money required to operate is calculated.

There are owners who overlook the preparation of this document, but it is not the ideal situation. By analyzing the plant, you will find out if the business is viable or not, so you can act in time to not lose the investment.

In addition, it will also help you show potential investors that your idea is attractive and profitable. So convince them to grant the capital you need or become partners.

Finally, within the plan you describe the operations, which will serve as a guide for you and the employees. So you don't have to improvise or make decisions on the fly.

If you think it is complicated, you can get a business plan model and adapt it to your company. You will still need it when you go to start from home.

What is included in a business plan?

Before starting to write the plan, you must gather all the information that you need to capture in the document. This way you will have clearer ideas and the process will be more fluid. In general terms, the data included are the following.

• Identify the business idea. Here are details about the problem you are going to solve; what product or services you propose to solve it; the ideal client; size of the market; scope of business, etc.
• Surrounding analysis. It refers to all external aspects that can affect the business; for example, laws, economic and cultural policies, entry barriers. The industry is also analyzed to get a closer look at competitors, potential suppliers, and more details about customers.
• Internal analisis. It consists of analyzing the company from within to identify the resources it has; what makes the idea unique; as well as the strengths, weaknesses, threats and opportunities.
• Strategies development. At this point you can already set your business objectives, how you will measure performance and what will be the competitive advantage.

Gather as much information as you need to move forward with the development of the plan.

How to make a business plan in Chile?

Here is a general structure for the document. However, it must be considered that there is no single model and you can adapt it to your own business.

• Executive Summary. It concentrates the most relevant information from the entire document. It must be precise, concise and attractive because it will depend on this that the interested party reads the rest.
• Business description. Here you explain what you are going to do, what the idea is, its objectives and the business model. In addition, you must include the name, the place where the business will be and the type of company.
• Market research. This seeks to explain the context in which the company will develop. The most prominent elements are the definition of the target market and the competition. You must identify what will differentiate you because it is important to convince investors.
• Marketing Strategies. You specify what strategies you will use to face the competition. This includes distribution, price, promotion and product.
• Operations. This section refers to the technical requirements of the business to operate. For example, the infrastructure of the premises and the details about the processes to be followed.
• Organization. It specifies the functions of all the members of the company, from the directors to the last echelons. It is important to highlight the trajectory and achievements of those who will manage the company and include personnel expenses.
• Financial information. Provides details on projected income, expenses, and profits. If it is an already active business, the data will be real, including losses, if any. It specifies the assets the business has and what it needs to get going.

What is the most important part of a business plan?

The entire business plan is important and must be compelling to achieve your goals. But there are certain points that must be very well raised if you are looking for investors.

The first is to show that your product or service is superior to the competition, you have to have elements that support this approach.

The following is the marketing plan because you must show that you know how to sell, with a clear message that reaches the market with force. Doing so will bring you closer to convincing your readers.

Then there is the management of the business. Investors or potential partners want to know who will run the business and if they can trust them to do a good job.

Last are the financial projections. You must calculate how much the business will earn, make real and credible projections.

Now you know what goes into a business plan. To clarify your doubts on this subject, seek advice.