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Business plan

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business plan  is a type of document that turns out to be essential for any business to function properly and must exist before the business begins to operate . Trading without a business plan is generally not a good idea. In fact, very few companies can go long without one. Without a doubt, creating a good business plan and following it has more advantages for companies as it helps them reflect on ideas without having to invest too much money in them and, ultimately, lose in the end.

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What is a business plan?

A business plan is a document that gives the entrepreneur the possibility to analyze and study the current market situation where he tries to position his company, the sector and the environment in order to present it to investors and clients .

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  • Definition of business plan
  • Source
  • Characteristics of the business plan
  • Types
  • What is a business plan for?
  • How to make a business plan
  • Ideas
  • Importance
  • Examples

Definition of business plan

business plan is a document that must be part of every company in which the creation of a new commercial project must be proposed , which will focus on a certain good or service . Through this type of plan, the company has the ability to make an assessment regarding the characteristics of the project and then be able to present it.

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A good business plan must expose all the anticipated costs and the possible risks of each decision that a company makes. It is rare that business plans, however, all often contain the same basic elements , such as an executive summary of the business and a detailed description of the business. The plan should include the least one view overall of the industry of which form part of the company and how the company thinks distinguish between possible competitors .

Source

Business plans in the modern sense have quite a long history . Henry Mintzberg said the business planning with modern features was practiced earlier in the mining industry in France during the nineteenth century.

The way these plans are known today were promoted in the US . in the 1950s as an extension of budget processes . It then became a very important business activity and continues to be so today.

Characteristics of the business plan

Among its main characteristics are the following:

  • It is efficient and must, for this reason, contain all the aspects that investors need to know.
  • It is well structured , simple but at the same time clear which makes it easy to follow.
  • It is understandable and therefore must be written using simple words, clear with a vocabulary that is necessary , avoiding extreme technicality.
  • It should be brief , generally it does not exceed 25 pages.
  • It has to be easy to understand for the person who reads it.
  • You must have flexibility in case you need to place new factors.
  • They must contain in detail the descriptions of the projected products or services and also explain the possible insertion of these in the market.

Types

There are several types of business plans that are used by companies depending on when it is carried out or towards whom the plan is directed. The types are as follows:

  • Business plan according to the moment in which it is made : in this group you can find two different types of plans which are:
    • Business plans for new companies : they are made with the objective of being able to describe a business-type project that you want to develop promptly.
    • Business plans for companies already in operation : these must take into account the situation in which the company is at present as well as its business objectives to achieve a better result.
  • Plans depending on the type of business and to whom it is directed : it will depend on the people that you want to take into account within the plan. There is a lot of types:
    • Business plan for administrators : they focus on showing the right path for the company both in the present and in the future. It is a type of work guide that will help good decision-making by the company and its leaders.
    • Business plan for investors : this plan is intended for those investors who need to know the idea of ​​the business that is being raised as well as all the aspects related to economic and financial stresses.
  • Depending on the form and objective of the business: in this group we can find the following types:
    • Agile business plan : this plan is quite simple to manage and must include all the fundamental aspects of the plan including strategies, objectives, economy and budgets.
    • Standard business plan : this is the most widely used type of business plan and can be shown to anyone who is interested in the company. Displays main information and a description of the parts of the plan.
    • Business plan for startup : describes the project and its viability.
    • Feasibility plan : shows the analysis of the possibilities of success that a company can have by studying the possibilities of the same and the products they offer.
    • Expansion plan : focuses on the growth of the company.

What is a business plan for?

A business plan is a document that serves to capture the idea , organize the projects and thus be able to materialize a specific company, always taking into account all the processes that are needed to achieve the objective as well as the costs and expenses of the investment initial and constant of the business. It also serves to determine the activities that will be needed in order to implement management and business , being a control and evaluation instrument .

How to make a business plan

In order to carry out a good business plan, it is important to follow a certain structure which is based on several relevant aspects:

  • Structure of the administration that the company has including statutes, rules, administrators and functions.
  • Legal and commercial structure that includes the company and all commercial and tax procedures.
  • Economic structure of the company which includes the market, the environment, the object of the activity and the competition that exists.
  • Marketing plan that will indicate to the company what is the best way to act.
  • Sales planning that includes sales systems and collection management.
  • Human resource management where the selection, training, coordination and salary processes are established.
  • Finance and accounting plan that includes the valuation of investments and projects, cash flows and capital stock.

Ideas

When it comes to business plan ideas, there are many different models and ideas today. It is important that the person who makes the plan, chooses a business idea that he is really passionate about and that before proposing the plan, he determines if there is actually a good demand for the product that he wants to offer.

Importance

The business plan is very important because it is a type of guide through which you can start and manage a business . It is a type of instrument by means of which it is possible to plan , organize , evaluate and control all the activities that a company carries out in order to obtain benefits . It is very useful to be able to properly plan the resources of a company as well as its strategies to improve efficiency.

Examples

Some examples of business plans are:

  • Online teaching : The demand for online education has opened up a wide possibility for entrepreneurs to start their businesses.
  • Application developer : If you have knowledge and experience in technology, you can consider a career in application development.
  • Crafts training workshops .
  • Tailoring workshops .

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