This paper analyzes the importance of a business plan within the current trends; To define first the plan and the guidelines that it wants and it brings us both within reach and its possible weaknesses within a globalizing context that to this day every economy has to be living, nor should we forget that each region has its problematic and Therefore its characteristics are very well defined, however, the analysis of an integral way is shown on what the entrepreneur must to overcome and above all to be able to change the attitude of the entrepreneur.
In the present document, an analysis is performed that represents the importance of a business plan within the present tendencies; It is not necessary to define the plan as well as the directives, and this entails that it is not necessary to forget the fact that each region has its own weaknesses. It’s problematic and therefore its very well defined characteristics nevertheless are to the analysis of an integral way envelope which the entrepreneur must draw and be able to change the attitude of the industrialist.
Many times in the business world, people can have extraordinary ideas for investment projects ranging from the creation, reinvention, improvement, expansion, etc., of a product, good or service; However, there are a number of reasons that hamper the implementation of these ingenious ideas: fear of failure, lack of capital, lack of support from managers, fear of change of independence, and so on. This is where we come across the importance of a business plan, this should be done to survive within a business environment and that it must be indispensable to make a plan, shape the ideas and be aware that through The planning is possible to materialize, as long as it is real logic and above all attached to the reality that society is waiting.
Becoming an entrepreneur, or better yet an entrepreneur is a process, knowing how to prepare a good business plan is only a part but it is of vital importance in that order, because it is not simply a document with all the ideas that Come to mind, if not an activity that requires honest thinking about your business concept, the competitive landscape, the keys to success and the people who will be involved. Otherwise, an idea without a business plan generates uncertainty and obstacles to an undertaking, because in today’s world a sophisticated investor / financial institution will rarely consider investing in a new business without having reviewed appropriate development.
The function of an appropriate business plan is to shape the perceptions, decisions, and behaviors of those who direct or influence the direction of a company or organization, inculcating a business philosophy and therefore inviting its subordinates and Employees to communicate with him and get on the project boat. This business plan constitutes a model or prism through which the reality is perceived and analyzed and, consequently, certain decisions and courses of action are taken, all always focused on continuous improvement within the administrative process.
Check This Out: How To Make Better Lead Generation Experience
Definition of a business plan
During the analysis has commented on the business plan but what is the Business Plan? We will define it in the following way for a better understanding of the article: it is a document of analysis, made by the entrepreneur, whose purpose is to document the most important information related to the company and its market. The business plan has among its characteristics a document demonstrating the areas of opportunity, which shows the profitability and viability of a project.
A Business Plan can also be seen as the document that clearly identifies the objectives of the company, the routes to follow to achieve the objectives, the obstacles that will meet in the way, the tools that the entrepreneur will use to overcome the obstacles and the mechanisms to measure the progress of the process. In such a way that a business plan is an instrument that allows us to carry out or capitalize the idea of the project.
Therefore, we can say that a business plan is an instrument that prepares the entrepreneur and the company is this micro, small, medium or large to face all the variations that are presented in the markets.
What a Business Plan serves us
The business plan is a basic tool to give consistency and direction to the company, besides helping to focus it in order to reach the objectives, assuring the interests of the company. It allows organizing the resources and the tasks that will achieve the excellence and growth of the company.
To be more precise, a business plan is used to:
- Define the product or service that is intended to be marketed.
- Analyze the capital required for each phase of the project
- It allows knowing the vision of the investment project.
- Specify the physical and human structure.
- Study the market of interest.
- Study marketing strategies and distribution channels.
- Analyze the time required to start generating income
- Analyze ways to obtain the most convenient financing
- Find a partnership with major investors
- Facing the problems that may arise in the future and thus be able to adapt easily to changes without affecting too much.
- To demonstrate that the project is viable.
How to prepare a business plan?
Every business or small business that needs to develop a business plan and although this takes time and even capital, it is worth doing to be able to face the opportunities and obstacles expected and unexpected that arise in the future. To do this, you should look seriously and carefully at each element of the plan.
- Define your target market
- Evaluate your risk and reward
- Identify your competitors
In order to carry out a business plan, it is necessary to give it the importance it deserves since its structure will depend on the success or failure of the project. The planning, among other things, allows you to think about the opportunities for potential businesses, as well as the threats you may face, all of which facilitates decisions for the company as it helps to mitigate risks through designed and reasoned actions Previously in strategies but based on the truthful and reliable information.
A business plan can carry an 8-step structure as presented below:
#Step 1: Justification
Within this stage describes the why the idea, which is what it pursues and where it wants to go, that is. Explain your MISSION, VISION, AND OBJECTIVES.
All project justification must be in a logical way and in accordance with our capabilities in the environment that we are going to develop
#Step 2: Conduct a SWOT analysis In
other words, analyze the current situation of the company, identifying the threats and opportunities that arise from the environment as well as the internal strengths and weaknesses of the organization.
#Step 3: Analyze the competitive advantage
Within this process the purpose is to indicate which are the competitive advantages with which it counts as for example:
- Technological Advantages
- Business Orientation
- Description of the product or service
- Status of the project and its feasibility
- Generic strategies (cost reduction, differentiation)
This is how some of the criteria are pointed out, depending on the business you can have as part of a competitive advantage.
#Step 4: Structural analysis of the sector
Within this analysis the following points should be taken into account:
- The entrance barriers we will face
- The bargaining power that will be taken with suppliers.
- The risk to substitute products that may arise later
- The bargaining power that you should have with buyers, how good you can be to persuade and attract the most customers to the company.
- And finally, determine the rivalry that they will face within the sector.
#Step 5: Analyze the Market
It is to analyze the market that you want to introduce, in such a way that you must know the real possibility of participation of a product or service in that market.
For this you must know:
- The entire environment of the company was either internal or external to the company
- The segments of the market in which
- Identify the target market
- Your expected competitiveness of the organization
- Define the size of the market.
#Step 6: Elements of marketing
Within this step, which in fact is one of the most important and that on it largely depends on the success that the product or service that it is intended to have in the market, it is due:
- Clearly, defining the strategy to use.
- Describe the attributes that will shape the product or service.
- In the same way, establish the price of such product or service.
- Above all, it is necessary to define the corporate image and determine the distribution channels to be used.
From the beginning of the project, the organization or person must have an expectation of the differentiation and positioning that is expected to obtain in the future.
#Step 7: Organization and Operations
Here we describe the personnel that is necessary to carry out the project and is illustrated in the best way in a functional organization chart, it also specifies the necessary resources for the implementation of the project as they are:
- The installations
- The machinery, instrumentation, inputs and adequate equipment
- Structure of the organization
- Human and financial capital
- Description of the activities to be carried out by each participant
- Establishment of policies within the organization.
#Step 8: Risk factors
For a company, it is important to analyze all the risk factors that are faced by children that look like this way can include concrete measures to address those risks.
The typical risk factors you may face are:
- Financial Services
These eight steps are the most important to consider within a business plan so that the project does not drift, but is sustainable from truthful and confidential information.
Conclusions of the importance of a business plan.
In order to carry out a business, it is most advisable to make a plan that includes all the necessary information as mentioned above, in order to know what direction our project is taking, the risks involved and what strategies to follow. The pursuit of our goals.
You May Read Also: How To Make Money In Mobile Marketing
It is necessary to clarify that the fact of having a business plan does not ensure the success of a company or business but if it makes us the way and the accomplishment of it easier and accurate since having a developed plan this allows us to anticipate and to warn us of certain events and in the worst case helps us to cushion the impact and make it as light as possible.
A very important key to why it is necessary to have a well-prepared business plan is that it helps us to obtain financial resources because depending on how feasible the project is, it is easier to obtain the resources for investment, either with Partners interested in the project or through financial institutions.
Rashed Ahmed regularly contributes to lifestyle magazine online and living ideas to various blogs around the web. When he’s not busy working with the work, you will find him undertaking many of her own lifestyle-related topics and living ideas! He has a lot of dreams. He works hard to fulfill his dreams. He loves to share his ideas, tricks, tips, and information by blogging. He also works at best business ideas, a business marketing company that committed to helping businesses with online marketing.