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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



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