How To Make A Business Plan In 8 Steps

How To Make A Business Plan In 8 Steps

Business Plan: In this post we explain why a business plan is made and how to do it step by step. We also give you a business plan guide that you can always have on hand.

You can’t launch your project without a business plan.

You cannot grow without a business plan and you cannot have the foundations of your startup well laid without a well-defined business plan.

So bet on this document. It will also allow you:

  1. Establish your company objectives
  2. You will be able to detail its structure
  3. Make a budget for opening, operation and advertising
  4. Define the amount of funding required to finance your project.
  5. Create some ways to address any future issues.

But there is much more!

Well, pay attention because you don’t need to have a master’s degree in finance to make a good business plan. Open your eyes wide! In this post we explain step by step how to make a business plan.

What Is A Business (or company) Plan?

Business plan

The business plan collects such information and allows the entrepreneur to present his business to investors, accelerators, etc.; and explain how to get started and next steps. It is a living document that must always be updated.

The business plan, for its part, describes and analyzes the opportunities that the company has according to the viability of the sector. It also establishes short, medium and long-term goals and expectations; thus and the strategies to follow to reach them.

Why Should You Make A Business Plan?

We start by giving six reasons why every startup should have a good business plan before launching its project, here you go!

  1. The business plan will serve as a roadmap and strategic analysis
  2. It allows you to know the sector and the competition.
  3. It helps you check the internal consistency of the project.
  4. You study the technical and economic viability of the project.
  5. It makes it easier for you to communicate your idea to potential investors, partners, clients…
  6. A business plan is used to envision the short-term future.

As always, we encourage you to participate, so if you think you would add any more reasons, tell us!

8 Steps To Know How To Make A Business Plan

Now yes, below we explain what steps every business plan document should include so that entrepreneurs work in the same direction, capable of leading their startup to achieve success more easily, take note!

Executive Summary

At this point you should review the most important aspects that you will include in the business plan (later explained in more detail). Think that with this first point you will have to be able to capture the attention and interest of future investors, so… go for it!

Product Description

This is where you will have to perfectly explain the product: its concept, origin of the idea and main characteristics. Once interested parties know what we offer, you must specify which target it is aimed at, why and the needs it satisfies.

Market and competition analysis

This point is critical to our business plan. In this we will analyze, on the one hand, the market in which the product will be introduced, its size, the success factors that characterize it, what entry and exit barriers we may encounter, what is its evolution and natural growth, its consequent current pace and trends.

Business model

Here we will define the business model and the financial plan , which will detail the financial agreements, the central portfolio of products or services that the organization offers and will offer based on the actions necessary to achieve the strategic goals and objectives, among other aspects relevant.

Description of the team and corporate issues

It is critical to describe the human team that constitutes the startup. Investors attach great importance to this point to check whether these entrepreneurs are capable of carrying out the business correctly.

Regarding corporate issues, it is necessary to state the corporate and commercial name of the company, its corporate purpose, the name of the founders, the share capital, specify the administrative bodies that the company has and what obligations it has partnership with Public Administrations.

Business development status

It is important to specify here what phase the product is in, whether a test has been carried out (application of the Lean Startup methodology) or whether a prototype has been developed, etc.

Marketing strategies

At this point we will begin by detailing the decisions about actions and resources to be used both in the online and offline media, which will allow us to achieve the final objectives of the company or organization , as well as specifying whether we are going to work with a communication, advertising or other agency, online marketing consulting.

Contingency plan

As in any new project that is launched, risks have a place and must be taken into account. Therefore, it is important that we take them into account and put them on the table in this document, in this way investors, partners… They will be able to know from us what the risks they would face could be.

Adapt The Business Plan According To The Recipient

Something essential when developing a business plan is to take into account your recipient.

It is very important that you adjust your speech to your audience. Talking to a bank is not the same as talking to the public administration or an investor. Therefore, depending on who receives your business plan, you must include some nuances or others.

  1. Banking: For example, if you go to a bank, make it clear how they can get their money back. A bank needs repayment guarantees, so we recommend that you talk about the profitability of the business, the company’s properties, etc.
  2. Public administration: On the other hand, if you go to public administration, it is best to emphasize the objective being pursued: job creation? Territory development? Read the rules well, analyze your business and highlight the part that aligns with the objective of the call.
  3. Investors: On the other hand, if you approach a venture capital fund or a business angel because you are looking for investment, you will have to make it clear how they can exit the business (what in investment we call “exit”). After all, they are investors, so one of the things they value when making the investment decision is being clear about how to divest (exit the business). Additionally, if they are a business angel, they may want to get involved at an executive level, so we recommend highlighting the attractiveness of your sector or business, and how it can add value.

Example Of Structure For The Business Plan Of Your Company Or Startup

Executive Summary

  • Project description
  • Competitive value
  • Market
  • Customers
  • Financing requirements
  • Equipment
  • Critical aspects of the business plan

Project description

  • Clear and concise description of the project, and the problem that the idea, the business project or the startup, solves.

Market Description

  • Market Analysis
  • Market maturity
  • Business sustainability

Differential Value and Competitive Advantages

  • Description of the differential value of the value proposition (product or service)
  • The competitive approach to business

Equipment

  • Description of the professional team that makes up the project and the tasks and positions held by each of them in the organization

Strategy and Value Chain

  • Production, marketing, sales and internationalization model

SWOT Analysis

  • Evaluation of the internal aspects – weaknesses and strengths – and external aspects – threats and opportunities – of the business

Current Status-Milestones

  • Description of the current business situation, roadmap, upcoming milestones‚Ķ

Economic-Financial Aspects

  • Balance Sheet Projections
  • Income Statement
  • Cash Flows over a time horizon of 1-3 years of the project and scenario sensitivity analysis
  • Determination of key financial indicators and the Internal Rate of Return (IRR) of the project

Risks

  • Identification and description of the risks inherent to the project

Also read : Market Study

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