Business plan - What is it? How to prepare it? examples and more

Business plan

Document used to communicate the plans, strategies, and tactics of a business.

What is a business plan?

A business plan is a written document used to communicate the plans, strategies, and tactics of a business's managers, partners, and investors. It is also used when applying for bank loans.

In this way, it is a roadmap that allows following a planned direction and the necessary maneuvers to achieve the proposed objectives. In addition, it forms the general plan of the company, since it shows its history, training, what it does and what it intends in the future.

Why is it important to develop a business plan?

Having a written business plan is extremely important, due to the following issues:

• Helps coordinate the different areas of a business that are key to success ( Marketing, Finance, Operations, etc.).
• It allows identifying the value of the business by establishing the value proposition of its products and services, along with its strengths, weaknesses, opportunities, and threats.
• It facilitates the request for a loan since it presents organized information on the financial plan, the size of the market, the analysis of competitors, among others.
• By describing in detail the different activities and sectors involved, it allows early detection of needs and problems.
• It serves as an orientation for the different audiences of the company ( employees, investors, etc.) since it marks the course that is intended to be followed.

How do you elaborate a business plan?

The business plan has different sections that vary, in composition and quantity, according to different authors. Beyond the different formats, a business plan contains the following information:

1. Executive summary: a brief description of the company, product or service, and value proposition. The team that integrates it and the investment scheme sought are described.
2. Description of the business: history of the company, what it does, its current financial situation, legal structure, how the business currently operates, vision and mission.
3. Products and services: line of products and services offered by the company, together with their respective attributes, including their production process, costs, and profits. The customer's profile is also reported with their preferences, needs, desires, and emotions involved at the time of purchase.
4. Industry analysis: factors that influence the company's external environment and over which it has little or no influence (government regulations, entry and exit barriers, economic policy, exchange rate, inflation, etc.).
5. Market analysis: this section analyzes the size of the market, the niche served or intended to enter, current competitors, sales, and profits in the sector, among others.
6. Marketing strategy: the target markets are identified and the strategy for attracting new customers and the loyalty of current ones is defined, establishing promotions and discounts for products and services, among others.
7. Operations and Administration: Information about the operations plan and its administration, both for an internal and external public. Describes the distribution of facilities, production methods, and processes, administrative purchasing procedures, inventory management, distribution, etc.
8. Implementation plan: describes the tasks to be carried out, the description of each one of them, the dates of completion, and the assigned managers.
9. Financial plan: determines the viability of the business, that is, the analysis of the cash budget, the sales forecast, the human resources plan, the general and administrative budget, the income statement, etc.
10. Contingency plan: identifies the potential risks ( liabilities, termination of contracts, etc.) and the plan to reduce or eliminate the identified risks or threats.

business plan examples

Some business plans are referenced below. Although the presentation format may vary according to the author of each plan, the content of the sections is usually the same, although it is presented differently.

• Coffee shop business plan. Recovered from the University of Chile.
• Business plan for a women's clothing and accessories store. Recovered from the Peruvian University of Applied Sciences.
• Real estate business plan. Recovered from es.slideshare.net.

 

 

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