On October 28, 2008
Business plan. Read this if he wants to initiate a profitable business
For: 100 Business In: Business plan
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Most of the profitable business begin with a business plan. And the reason is simple: one begins for the planeación because it serves like map for the way. You imagine that you go out of trip to some distant place, the most suitable thing it is always to take a map and an exact idea of where he wants to go. That must happen in the new business, otherwise, the future is not foreseen.
Nevertheless, I believe that it is necessary to distinguish between two types of plans for his business: the one that appears to obtain a credit for the bank and the informal plan, for a smaller business.
In my experience, when you ask for a credit to a bank, it is very important that the business plan is well endorsed, that it is a based file and that it contains all the financial information that give certainty to the banking house from which his money will be able to recover.
The plan for a small business, if you are not going to ask for a credit, is simple since it is not going to present it to other persons, if perhaps to any associate or investor. I have seen plans in a napkin, or even in a pair of sheets. So it does not have to be anything too complicated.
First of all, I would like to present to him some of the fundamental points that must be present in all the business plans.
1. Executive summary.
In this point there is done a punctual description of the business of rapid form. Of such form that any banker could read it in a pair of minutes. This summary must answer all the fundamental questions of the business: what product, what value is offered, what the profit of the business will be, as soon as time will be begun to do money, how much money is proper and for how much one will ask to the bank, etc.
2. General description of the business.
There is described the company that is going to be founded, with what resources it relies on, if it is constituted legally, in what title he competes, in what city it is located, how many associates compose it, with how many personnel it relies on, how many years it has been on the market, etc.
3. Products and services.
In this point, there appears a catalog of products and of the value that each one presents. Depending on so complex what is it the product or service, it is possible to give a more technical explanation of the functioning and the potential of market that it would have.
4. Plan of marketing or marketing.
There are described the actions that the company will take to be promoted. From the product, the price, the points of sale, the distribution and the forms of promotion in practice. It is possible to do a plan and a budget of how it will produce this.
There can be included studies of the profile of the consumers and previous market researches that describe the product or service.
5. Financial aspects.
In this part of the business plan there have to be included financial conditions, budgets, cash flows and everything respective to the handling of the dineros of the company in question. The initial expenses of the company must be included and especially a summary of how the associates try to capitalize the company.
Surely there is opportunity to add other studies and documents that endorse the viability of the business.
It is important to say that a business plan does not have to be a long book or the most detailed report, but yes he has to answer to the questions of profit and viability of the project.