If you are interested in the title of this article it is because many times you have thought about starting a business and you still don’t dare.
So the first thing I am going to tell you is not to think twice and go for it, you won’t regret it! That’s why today I bring you an article where I explain the steps to follow to build your business plan, so you can evaluate your market and investment and avoid any mistakes in the future.
Let’s start by defining: what is a business plan?
A business plan is a tool that will help you define the most viable way to carry out your business idea. Here you can detail from the technical, economic, and financial points of view what you have and what you need to ensure the success of your business.
Now, I can tell you that there are many ways and structures to make your business plan, but what should never be missing is the following.
- Description of your business idea
- Internal and external analysis
- SWOT analysis
- Objectives approach
- Define your target
- Establish your marketing plan
- Action plan
- What will be your legal, fiscal and juridical structure?
- Detail your financial plan
Now I will guide you step by step, let’s go through one by one
Description of your idea:
In this first stage, you must seek to incite reading and hook your potential investors. So be specific about what your company seeks to solve or improve in the market, for whom it is intended, and what is your value proposition. Here you should also define the company’s mission, vision, and values.
Internal and external analysis:
This is where you will be able to evaluate your current situation and become aware of what means and resources you have at this moment and which are the ones you need to carry out your idea. On the other hand, in the external analysis, you can analyze the environment and evaluate positively or negatively its feasibility. Take into account the political, economic, sociocultural, technological, ecological, and legal factors that may interfere with the development of your business.
SWOT analysis:
Analyze the weaknesses, threats, strengths, and opportunities of your business. This will help you to complement the internal and external analysis previously done. Here you will be able to better visualize what things you do well, what you have to improve, and those factors that benefit or harm you, better planning a strategy to take advantage of them or face them.
Objectives planning:
This is one of the most important stages since you will be able to determine which is the way to follow in order not to make decisions on the fly and avoid burnout and minimize the margin of error define quantitative and qualitative objectives. Short, medium, and long term.
This way you will stay on the line and see progress step by step without despairing. It is important that you fill yourself with patience and set real objectives. We know that you want to reach success quickly, but remember that in a hurry you will only get tired.
Define your target:
Who are you selling your product or service to, what would be your ideal customer, and how does your idea bring value to this group of people? Is it a big enough market to make your idea a profitable business?
This is the ideal section to develop these types of questions that will help you develop clearer strategies and actions to reach them directly with a clear message. With these answers, you will see that you will have better results.
Marketing plan:
In this section, you should at least develop the 4 P’s of marketing, i.e. product, price, place, and promotion.
In the product section, describe the characteristics of your products or services, their benefits, types, and packaging. In the price section, you must establish what price you have set for sale, taking into account everything related to manufacturing, packaging, and distribution, as well as what your price would be at the time of a promotion or discount, forms of payment, and any other related variable.
In the distribution section, specify how you will get the product to your customer if it will be done through distributors, delivery services, or any other. And finally in the promotion section, explain how you will let your customer know that your product exists and is an option, either through offline or online channels.
Action plan:
Create a calendar of strategies and actions. From the smallest to the most important must be there and week by week feed it and adjust it. This way you will be able to evaluate the progress of your project and see how the planning helps you to start your business.
Legal, juridical and fiscal structure:
Whether you are a personal brand or a legal entity, if you work alone or with partners, this is the time to evaluate which structure suits you best, what type of company you will register, and what you need to do it.
Financial plan
Once all of the above has been defined, the time has come to evaluate its economic viability. Here you will be able to estimate the resources you need to carry out your business, and how you are going to recover the investment; if you will do it with your capital or if on the contrary, you will look for investors, so you will have to detail your investment plan, financing plan, and sales and benefits plan.
Everything with as many details as possible, so that there is no doubt about how successful it will be.
I hope you liked this publication, if it helps you, keep it. If you think someone you know might be interested in it, share it.