Definition:
The business plan is a document written in clear, precise and simple, that is the result of a planning process. This business plan serves to guide a business, because it shows from the goals to be achieved until the activities daily to be undertaken to achieve them. What this paper seeks to combine the form and content. The form refers to the structure, drafting and illustration, how much attention, how "friendly" content refers to the investment plan as proposed, the quality of the idea, financial reporting, analysis and market opportunity. ;
The business plan is an essential tool for entrepreneurs, managers and people who want to start a business. Regardless of the size of the company, this is an element necessary for the performance of this in the context of market competition.
business plan , is the most powerful tool you can use a company that starts or operates in today's global economy, as this is a document that outlines an orderly and systematic operational and financial aspects of a company. Like a road map to a traveler, the business plan to determine in advance where we want to go, where we are and how we need to reach the target.
business plan is also a working tool, as during preparation is assessed the feasibility of the idea, seek alternatives and suggests courses of action, once completed, will guide the implementation.
business plan together in one document all the information necessary to evaluate a business and general guidelines for starting it. Submit this plan is essential to seek funding, partners or investors, but also serves as a guide for those who are in charge of the company.
The extent and depth of a business plan depends on the requirements external financing, or the need to find partners, investors or potential buyers of the company. Like a resume is the written presentation of a person, a business plan is the early and written description of a company. The most modern theories incorporate the business plan as a basic part and even rescue its importance in the operating companies.
is a document that is written, modified and rewritten, as is getting the relevant information
make decisions on each of the elements and variables that comprise it. This is a document that presents a series of interrelated analysis ongoing feedback, which often requires going back in and repeat the process in several stages.
It is therefore important that you know to write a business plan:
is a document that is written, modified and rewritten, as is getting the relevant information
make decisions on each of the elements and variables that comprise it. This is a document that presents a series of interrelated analysis ongoing feedback, which often requires going back in and repeat the process in several stages.
It is therefore important that you know to write a business plan:
- is not necessary to have completed the analysis stage of the business plan to continue with the next stage.
- There is a sequence on the development of business plan and its rate is only a reference.
- Each participant involved in developing the business plan should start your creativity, flexibility, knowledge and initiative.
- should be developed with a spiral approach, meaning that every time you make a decision somewhere in the business plan is necessary to review whether the decision requires to adjust other parts of the plan. To illustrate this point, assume that ABC is a garment exporting handmade decided to change their supplier. This change could have an effect on the cost and product quality and consequently on the price, sales volume and customer satisfaction.
Objectives:
The business plan can serve as a planning element of the company with two main objectives:
- Internal organization of the company.
- communication bridge between the company and third parties to obtain financial or technical support.
Business Plans are intended to demonstrate the economic and financial viability of a project. For Business Plan emphasizes market analysis.
There are several advantages associated with this process, with the following key:
What are the Business Plans?
Business Plans usually used to justify before the financiers, investors and promoters project, the advisability of carrying out the investment project. This important feature, however, is not the only convenience of developing a business plan awareness. There are several advantages associated with this process, with the following key:
- Businesses with written plans are more successful. This fact alone justifies the expense and work to make a business plan.
- helps to clarify, focus and investigate the business without leaving "Erroneous Zones."
- Help coordinate the various aspects of a business that are necessary for success. Lets compare
- ideas to reality because the dynamics of force plan to consider all relevant factors of the business, without "forgetting" to none.
- is a very useful tool to obtain the support of key business, investors, suppliers, management team.
- is a timeline of tasks that can launch tasks according to a schedule.
- is a business modeling tool that can work on changes when some of the factors of the business has a variation.
- is a reference system to assess project progress and adjust the plan according to partial results.
- is a benchmark for future planning of new projects that appear as the business evolves.
- better understand your product or service.
- Identify your goals and objectives.
- Anticipate potential problems and failures.
- where will clarify their financial resources. Having
- parameters to measure the growth of the company and more or less meeting the objectives.
- is a communication tool to familiarize employees, sales staff and vendors, all associated with the objectives of the company.
- Saves money by The organization focuses on what's important.
- detailed knowledge of the environment in which develop the activities of the company.
- spell out the opportunities and threats in the environment, as well as the strengths and weaknesses of the company.
- Watch for changes that might pose a threat to the company and thus to anticipate every contingency that would diminish the likelihood of success of the company.
- Publicize how to organize the resources of the company according to the objectives and vision of the entrepreneur. Attracting
- those required for the business team and executive team.
- assess the real potential of demand and characteristics of the target market.
- Identify critical business variables and those that require continuous monitoring as the critical points in the process.
- evaluate various scenarios and make a sensitivity analysis according to the factors of greatest variation, as might be the demand, the exchange rate, the price of higher-value inputs, among others.
- Establish a plan strategic business and action plans for short and medium term for each of their functional areas. In this sense, seeks to allocate responsibilities and coordinate solutions to potential problems.
- make decisions with timely, reliable and truthful, and not only on the basis of intuition, reducing business risk.
- have a master budget and budgets by functional areas, to evaluate the development of the company in economic terms and provide capital requirements. Show
- entrepreneur's entrepreneurship. Show
- possible outcomes of the company, according to simulations to test different scenarios and strategies.
- Knowing where financial resources originate, to which they are intended and also leads the owner to spend more time the administration and the future of the company. The vast majority of small business you do not know how the money flows, escaping from their hands the control of the company.
- Understand, evaluate and justify proposals for financial support and / or technical assistance, and agencies to support (financial and non financial services) need to know the reality and prospects of the company. A well prepared Business Plan, although it takes time and incurring additional costs, easy access to sources of funding and other support services, with greater chances of success.
- Provide the owner of knowledge that will lead to the conclusion on the feasibility of the business and making decisions about changes needed to be encouraged to ensure the future of the company. Changes in the operational strategies of the company, when you have a business plan is made within a planned context and not improvise, knowing beforehand the possible consequences.
- know the Strengths and Weaknesses of the business and the opportunities and threats in such a way that facilitates the identification and definition of objectives and strategies.
- Help discover and correct faults or issues in the business concept, helping to prevent progress with the problems until the end when there is no solution. Start
- ongoing strategic planning process, which allows the owner to have a business vision into the future, to keep abreast of developments in the operations, make sound decisions and assess its performance in terms of results comparable to those goals proposals and industry indicators. A good business plan saves money, because the focus of enforcement to the important and without neglecting the supporting details.
- A Business Plan provides further determine and implement financial and operational strategies to meet tax obligations, municipal and social security and make use of tax shields set in tax law and benefits of health programs and training for human resources.
- is a communication tool to familiarize employees, sales personnel, suppliers and partners with the aims and objectives of the company.
- Continue implementation of the company with a well defined north, if the employer became disabled or died, so the company does not leave one at the expense of external forces. Yes not know where you will end anywhere.
- The quality of decisions is higher when ideas are put on paper, in fact, contribute to the process of reasoning.
- Finally the Business Plan document is of a commitment by the employer, something like a contract with himself, which is obliged to execute transactions under a certain strategy, pre-established terms and conditions. The written plan serves as a psychological tool to reaffirm the implicit commitment to strengthen steadily.
In short a business plan becomes a management tool for the controls, eliminating unforeseen factors, reducing risk, making investment decisions, as well provide clear goals and the feasibility of achieving them through a detailed analysis of market share, sales targets and expected results.
Preparing a business plan does not guarantee success in obtaining investment and support, but their absence ensures almost certain failure. exercise is a difficult and painful, but essential. The planning process requires a clearer understanding of what to do and how. Although not required external support, a business plan is important to avoid mistakes and recognize hidden opportunities.
A well prepared Business Plan, therefore form the basis on which to raise a Business Idea and used to obtain the financing necessary to establish and develop a successful business.
On the other hand, the role of external financial or business plan is aimed at:
- The search and implementation of project resources, especially financial.
- inform potential investors, whether banks or any other person or entity, about the expected return and the return period of investment.
- Find suppliers and customers with whom to establish trusting relationships and long term, to generate commitments among stakeholders.
- Sell the idea to potential partners as shareholders, suppliers, customers, society as a whole.
- In general, the essence of a business plan is to communicate to all stakeholders (interest groups) that the company:
- has a great product or service with many customers willing to buy them.
- has an excellent business and management team, with people skills, outstanding technical and administrative.
- Keeps well informed customers and suppliers about the mode of operation, expected results and strategies that will achieve the stated objectives and fulfill the vision of the entrepreneur.
The depth analysis of the environment and resources of the company, the coherence, consistency and integration objectives and strategies set and honesty and seriousness in presented work, are essential to assess the possibility of setting up a business .
Source: BUSINESS PLAN
tool to assess the feasibility of a business.
Author: KAREN WEINBERG VILLARÁN
tool to assess the feasibility of a business.
Author: KAREN WEINBERG VILLARÁN
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