The Ingredients Of A Good Business Plan
Business planning is essential for the success of any company, so the development of a good business plan is essential: in addition to describing the main objectives of your company and the strategy with which you plan to achieve them in a given period of time , a business plan can help you prioritize tasks, keep the flow of tasks under control, allow you to measure progress and plan for the future.
In addition, it is generally a vital requirement in the process of obtaining external financing. Now, what are the characteristics of a good business plan? An effective business plan brings together the following elements:
A Brief Description Of The Business And Its Main Products Or Services
This section includes an overview of your company, a presentation of the services or products you offer and a concise summary of your objectives, divided into categories according to the term (short, medium or long) in which they are trying to be achieved. In addition to this information, you can add an informed opinion about the past and present of the industry in which you operate, and the way in which your company is able to adapt to market fluctuations.
The Skills And Experience That Guarantee The Company
Any type of experience you have in the market sector in which your company is operating will help to generate trust in the eyes of clients and investors. If you do not have experience per se, you can include transferable skills or life experiences whose results can support your competence when facing the business project.
An Analysis Of The Market
To achieve a complete analysis, the description of the public you are targeting must be classified according to age group, gender, average monthly income and behavior on social networks. This will not only help you to correctly identify the target customers, but also to focus the strategies in a precise and accurate way.
Some online service platforms , by presenting the two poles of a particular market sector (customers and suppliers), can help you study their behavior and give you an idea of what communication is like within that sector. When it comes to the competition, it is important to mark what differentiates you from them in terms of price, quality, brand, strategy, public and objectives, and how you plan to maintain that gap to ensure customer loyalty.
When it comes to the competition, it is important to mark what differentiates you from them in terms of price, quality, brand, strategy, public and objectives, and how you plan to maintain that gap to ensure customer loyalty.
Sales And Marketing Plans
This section must explain the strategies to be used to generate demand and position yourself within the market, and includes a description of the methods to be implemented: will direct advertising be used or will something more indirect such as content marketing be chosen? Will you participate in social networks or will the interaction with the client be moderated by other means?
This section must also include information on the distribution of products or services, the price applied to them and other conditions or extra benefits such as guarantees, bonuses, etc.
This section depends on the business model, and includes operational data such as where to operate (in an office, external location or from home? with or without employees? how many?), some customer service characteristics (does it operate to the public or is it only attended by indirect means such as telephone or email?) and legal and tax information on the company and the industry to which it belongs.
Finally, a business plan must include a financial section describing the method of financing the activities described above and what income is expected from them. It is also important to offer a diagram of the cash flow and which are the activities in which the budget is prioritized.