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domingo, 7 de febrero de 2010

How to Develop a Business Plan


Introduction

Develop a good business plan is essential for an entrepreneur decides to venture into a particular project. What content should be present in the plan? What structure should possess? Here some important data.
The business plan should be a convincing argument that there is an interesting business opportunity and that there is a way to capture it. For the entrepreneur, Built the plan is to convince Himselves to devote several years of his life to creating that business. If the plan is not passionate about the entrepreneur probably not a good idea to implement it, because without passion is hard to overcome the many frustrations that typically occur.
The business plan is also a communication tool, a mechanism for transferring the interesting potential partners who may be involved in the business. The information must be balanced as to interest in reading and meet the expectations of content. It is also a strategic exercise. Should indicate how key business variables affect the outcome, and therefore losing relevance as far as the context changes.


The exercise of built the plan allows us to understand how context affects the results and helps us to reposition the business mind to these new circumstances. The plan also allows us to monitor the evolution of the business:


  • See deviations between plan and reality.


  • Identifying their causes.


  • Take corrective actions.


Its value is not so much in their predictive ability as is his ability to motivate and understand the relationship between context and business results.


Business Plan Content



The first section of a business plan is the executive summary, which typically has an extension of 2 to 3 pages and that is primarily a sales tool. With few words should be able to show that there is an opportunity and highlight how it is intended to capture. The executive summary should be written after completing the business plan and aims to enthuse the reader to read it completely. Each plan can have a different structure because the nature of the opportunity and to capture the main variables are specific to each business. Therefore more useful to describe the sections is to describe the issues that should be in every business plan: opportunity, business model, entry strategy, resources and risks.
There is an opportunity when connecting a need with a solution that satisfies better than the alternatives. Therefore in necessary to explain clearly how the product meets the market need and their advantages or disadvantages compared to substitutes. But the opportunity is evolving with the interests of customers and the action of competitors, which is why it is important also a section describing the industry and how we hope to change.


The business model: taking a chance we can define a strategy to capture: where we are, where we want to and how we're doing. The business model describes where we want to. First, you must specify how to make money: who, how and why you're charged. Secondly, we must show how the product: what activities will be conducted by the firm and which outside. We must also explain how to defend this model, what advantage difficult to imitate by competitors, is intended to generate?
The entry strategy: with a clear business model how we can develop it. Here our strategy is particularly relevant customer input: defining how the client meets your needs now and what benefits you our product, how we communicate and how will these benefits so you can find items to purchase. It is the marketing and distribution plan. The advantage offered by our product should be large enough to motivate him to choose ours. The communication strategy includes our advertising and other forms of communicating with customers as word of mouth. In this respect we should show what marketing channels we use to reach that segment, and why we support the owners of these channels.


Resources: having described our strategy, we must identify the human, technological and pecuniary we need to implement the strategy. To achieve these resources, we must offer their owners better than their alternatives. We understand your goals and make an offering in these terms.
With costs of resources and an estimate of potential revenues can arm the projected cash flow, which are reflected all revenues and expenditures that will occur in each period. At first, commonly expenditures exceed income, and you need to cover this deficit through the initial investment. The cash flow also allows us to calculate the return and the expected value of each project to choose among the alternatives we have. Finally, a good business plan includes a section identifying key risks and contingency plans to define the most critical.




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