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Legal Aspects of Business Plan - Outline /

The executive summary is a brief presentation the most important aspects of business plan has been developed. Its aim is to capture the attention of investors and to continue reading the rest of the document. In just two or three pages, the summary should provide an overview of all business opportunity. It is the most important section of the business plan, as is often the only read.
This part of your Business Plan, which can only be prepared at the end its preparation should be placed at the beginning of the document, ie, before the description
Business Plan, and immediately after the title page.
should also include some financial data importance, the necessary amount of external financing and exit opportunities that the project offers to investors.
The language should not be complicated so you can read faster. The presentation will be get clear and attract the attention of the reader. The aim is that investors show interest in him.
The summary provides another advantage. Synopsis of our perceptions, can be the basis for clear and concise in a brief oral presentation , for example, all key points are well treated in two minutes.

In this section we answer the following questions:
What should contain an executive summary?
The executive summary should provide specific audiences, an overview of the purpose
business plan. To do this you must answer the following questions:
• What is the name of the company?
Company name.
Type of company (EIRL, LLC, SAC, SA)
• What is the business structure?
shareholders or founders. People
key to business success.
• What type of business or sector will develop the company?
Production, trade and services.
Textile, agribusiness, jewelry, livestock, tourism, services.
For the domestic market, international.
• What are the needs that the company plans to meet?
Food, clothing, shelter, status, ego, self-fulfillment, logistics, security of supply , timeliness of delivery.
• What are the products or services the company plans to offer to meet those needs ?
Description of the product or service.
distinctive attributes of the products or services that will make market entry is
successful.
life cycle stage which is the product and industry
• Who are the customers, competitors and users of the goods or services offered?
What are its characteristics, where they are and how important they are.
• What is the business model that the company plans to develop to meet your goals?
Who, how and to what facilities would the product.
Who, how and where local service will be provided.
What activities will take place and what will be outsourced.
How will you ensure the quality of the product or service.
What intangibles (patents, copyrights, trademarks) could contribute to generate the company's competitive advantage.
think How to attract talented staff.
• What are the projected economic and financial results?
initial investment, working capital and operating expenses.
Breakeven Company.
Business Profitability: NPV and IRR.
How useful will be achieved and ensure profitability.
• "What are the reasons economic, social, technical and / or environmental make successful and sustainable business?
What are the strengths of the company that could contribute to the generation of a
competitive advantage.
• What are the positive and negative impacts of your company / product or service in society?
What factors would make the whole society to take action for or against their
entrepreneurship.

Example: Past
SRL is a company dedicated to the manufacture and sale of dry pasta in Buenos Aires and has recently started marketing in other cities in the country .
The company, which had its origin in a de facto partnership, was created in 1991 and since been growing in activity and business development. Now plans to extend its business all the country and in a second phase, the Mercosur.
It has therefore studied the Argentine market, and has built a partner with extensive experience, reputation and contacts within the country and in Brazil, and has already made early trade inside the country results.
To meet projected demand resulting from market research conducted provides for the purchase of industrial equipment manufactured in the country with modern Italian technology, which allows you to make a leap in production and efficiency.
main competitive advantages of the company are

• Working with commodities produced in the country to international prices
• A marketing system and customer network in the City of Buenos Aires and part of Buenos Aires
• Having qualified and experienced staff.
• Location near production centers supply raw materials routes and polymodal
• Career and brands in the City of Buenos Aires.

The jump is our company aims to reach the market, more geographical area beyond its current performance. This market presents a significant growth in recent years, the segment of the pasta consumed by people more resources. This sector currently caters to a large extent, imported products.
The marketing strategy was to incorporate an experienced partner, prestige and extensive experience in the target market, to facilitate entry our product in the belief that quality, price and customer service will become then success factors of our business.

To date we have an excellent opportunity to expand our business.
Major projections of production data, economic and financial are
Expected date of commissioning: 1 January 2002
Net Investment: $ 600,000
Need Funding: $ 480,000
Objective: purchase of domestic equipment
Production budget: 1 460 000Kg./año of dry pasta in the first year
Relationship total consumption: when it reaches peak production scheduled, the company will supply 1.5% of market, from the 4th year.
Net Present Value (12% discount rate): $ 230,720.26
internal rate of return: over 30%

P Unto balance of production: 1,350,000 kg. year.

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Executive Summary Business Plan - Business Plan Basics

multiple and different uses of a Business Plan requires the availability of adequate knowledge about the forms of processing, as well as knowing beforehand the purpose and scope which will, depending on its use, nature and magnitude Company and environmental conditions.

The basis for the development of Business Plan lie in the entrepreneur's vision, defining your own business, the objectives to achieve, the results of the company's internal analysis (diagnosis) and in industry analysis.
To properly design and develop a Business Plan is necessary for the owner of the company has a strategic business vision and aimed by the response to the questions or relevant circumstances without being exhaustive, are listed below:

• Who we are, what business we are or what kind companies we are talking about?
• What is the key message or phrase that best describes your business?
• What is the reason or basis and get into that business?
• What is the history? Where
• want to be in the next goals (five) to you?
• What are our strengths and weaknesses?
• What are our chances and threats?
• do you want to start or expand the business?
• What products or services will sell?
• are the outstanding attributes of the products or services?
• How to differentiate your product or service from the competition?
• are the product applications and their connection with other products or services?
• Who is going to sell?
• Where will sell?
• How is going to sell?
• Who and where are the competition?
• What are the factors of competition?
• How is structured sector?
• What is the trend in the industry, products or services you want?
• are you doing or plan to compete?
• How will occur?
• What technology is needed to produce?
• would increase the efficiency with automation?
• are the restrictions for these activities?, Paying particular attention to the environmental variable.
• That degree of specialization is required for human resources and their availability?
• operational team and management do you need?
• How will organize, direct and control tasks? Which
• investments and how much they cost, and the financial plan necessary to achieve the goals?
• What are the options for financing according to the nature of the company and guarantees available?
• much money is needed and what would be the sources of financing, indicating the terms and conditions appropriate?
• How are income and they are sufficient to cover operating costs and expenses? There
• ability to pay the required funding?
• What will be the development of the market, considering the size o the same growth rate, segmentation, positioning and marketing mix? What
• are the additional implications in the legal, organizational and management of the company?
• Make financial projections and business simulation and analysis of Balance Point. Also

should determine the mission and objectives of the company through the full knowledge of the internal aspects (strengths and weaknesses) and environment (opportunities and threats) analysis of products and services present and future and the implications thereof on the goals of the company.
To prepare the Business Plan is a diagnosis of the company, including SWOT analysis, defines the mission of the company and makes the general and specific objectives, then design and develop the strategy to follow and the actions to be executed and finally preparing the general budget details the scope warrants, including monitoring and evaluation system.
define the segment of potential consumers based on the analysis of the industry, competition and consumers today, leads us to define and decide on: characteristics that must be the product price at which they should sell, distribution channels and sales and means for communicating with customers (advertising). It also leads us to know more detail who would be direct competitors with would share the market and design ar positioning strategy.
The marketing plan is a combination of decisions about target customers, products, pricing, distribution and communication. In combination with the knowledge of competition and market size, can make decisions about the advisability of investing in costs associated with improving the product or service.
Having identified the market segment, positioning to be looking at the client and the characteristics of the product or service, is passed to the determination of production capacity in physical units in a period of time, considering the limitations in production process, such as raw materials, spare parts, skilled labor, money, level of technology, possible extensions, power supply, etc., without neglecting the needs and characteristics of physical space for the production process, in-process inventory, finished goods and the showroom and sales, if applicable.
is necessary to define the level of sales and production which the company covers the total costs, by calculating the equilibrium point as earnings levels are obtained that satisfy the desired or expected profitability. In practice
Small firms set prices based on competition (following the leader). An analysis price sensitivity would greatly help the employer to know how far he can change the prices and their impact on profits and ability to repay the financing.
The results could be that prices can not be raised, rather will have to download them (current situation of the country) and on the other hand does have limitations in capacity, therefore the decision would be taken to reduce costs, reduce processing time, increase productivity, expand capacity or a combination.
The chain is of vital importance for a small company, as is the relationship between it and the consumer and that is one aspect underserved by entrepreneurs
The decision on which distribution system to choose or take, depending on the nature of the products, production volume, geographical dispersion of customers and whether or not they with their own sales force. You must consider the compatibility of the distribution channel with the characteristics of the product, market segment and procurement processes for potential customers.
communication strategy with customers should be based on the answers to these questions:

1) What information should be conveyed to the customer?
2) It should contain the message?:
a) I NSTRUCTIONS preparation, assembly, maintenance, conservation,
b) Special Features of the Product, durability, resistance, additional applications, etc..;
c) Distinguishing features such as brand sizes, presentations, colors, flavors, etc.;
d) Identification of the company, management and distribution points (see the laws that govern the marks, labels, etc.).

3) What media should be used to convey the message? When they are exposed mostly or potential customers of the segment, often with which they are exposed, time and cost of the use of the medium. Finally

to assess for yourself the business plan developed, it should ask the following questions and get a satisfactory answer or explanation.

• The data provided are sufficient and reliable or require more information?
• have been identified and clearly defined problems, their implications and trends in the diagnosis performed on the company?
• has been properly evaluated the macro environment?
• have been thoroughly analyzed the capabilities of the company?
• have been clearly identified opportunities and threats?
• Have been identified and analyzed the risks and critical factors of business?
• objectives are realistic and appropriate?
• have been considered all possible strategies and does flow in a logical way the marketing mix from the chosen strategy?
• are clear and consistent economic and financial data presented?
• have a logical basis, consistent and supported the projections or assumptions in the strategy of the Business?
• have been established benchmarks and controls for the evaluation of the execution?
• Supports Business Plan with the attitudes, interests and opinions that prevail (Ie, corporate culture, management capacity, public image)?
• is descriptive and analytical enough to be understandable and credible business plan and can defend?
• Given the importance of work, might be useful to the Business Plan document the benefit of sober criticism, asking an impartial third person to play and the role of "devil's advocate" and try to find the inconsistencies, weaknesses and failure of the Plan.

Source: The Business Plan Small Business
Alfredo A. Garcia - Murillo