A business plan is a document that explains in detail what the business you are starting will consist of.
It is a roadmap of your business project. What is your business idea, what need does it satisfy, what is your target audience, how will you carry it out and how will you finance it?
If you are about to undertake a new project, open a new business unit or simply launch a new product, it is very useful for you to take the time to capture everything in this document.
Importance of the business plan
Entrepreneurs are a powerhouse of ideas that never rests, from the most sensible to the most insane, from those that all our family and friends applaud when we entrust them to those that only we seem to see as possible.
It is the business plan that will allow us to know if our great idea is potentially viable, by answering a lot of questions that perhaps we had not even asked ourselves. What is my target audience? Are there suppliers for the supplies I need available? What is the cost of my product or service? What will be its price? Will my target audience be willing to pay that price? How is my competition? Does my proposal have any differential? How am I going to make it known? …and many others.
Organizing all the information in a structured way, assigning probabilities of occurrence to different scenarios and translating our projections into numbers will allow us to know in advance if it is feasible to put our idea into practice.
“The importance of the business plan lies mainly in that it allows you to know in advance if your idea or project is economically and technically viable.”
Estructura del plan de negocios:
• Executive Summary
• Description of the idea
• Work team
• Market analysis
• Context analysis
• Analysis of our company
• Strategies to apply
• Investment and funding analysis
•Economic aspects and feasibility analysis
Other points to keep in mind:
Who is it for?
It is very important that you know very well who you are going to present your business plan to. The approach you give to it to be more effective will depend on it. It is not the same to present it to a public institution than to a bank or a possible business partner.
In the post “Visual aspects of your Business Plan or Business Plan” we develop in greater depth the importance of not only the content, but also the presentation of the Business Plan depending on the interlocutor to whom you want to send it.
The visual aspects of a business plan are important because they can help attract the reader’s attention and make the document easier to understand and remember. Graphs, images, and tables can be used to present information in a concise and visually appealing way, which can be especially useful for communicating numerical information or statistics. Additionally, a well-presented business plan can convey professionalism and confidence to potential investors or business partners, which can be key to the long-term success of the business.
It is a good idea that a business plan also contains a Roadmap, in this link we tell you what it is about.
A business plan provides a clear and detailed vision of the company and how it is planned to be carried out. Helps identify and assess business risks and opportunities, set short- and long-term goals and objectives, and develop a strategy to achieve them. Furthermore, it allows entrepreneurs to communicate their vision and persuade investors, partners and other stakeholders to support and believe in the business. In short, a business plan is essential to the long-term success of any venture, providing guidance and a framework for making informed decisions and measuring progress.