How to prepare a Business Plan

Due to the great boom of micro and medium-sized entrepreneurs in Peru, approximately 90% of them, after three or four months from the beginning of their operations, leave the Market, mainly due to the lack of planning of their ideas.

Any small, medium or large entrepreneur needs to put their ideas into a black-and-white document called a BUSINESS PLAN. This document will serve so that the entrepreneur is convinced of the strength of his venture and can obtain bank financing and/or partners to help him carry out his ideas.

WHAT IS AN ENTREPRENEURIAL PLAN?

A business plan is a document that changes over time and sets out the details of your business. It covers all kinds of information, including what your business will sell, what its organizational structure will be, what the Market will look like, what your plan to sell the product or service will be, what your financial projections are, and what permits, rents or other types of documentation will be necessary.

A business plan consultant will help you demonstrate whether or not your business idea is worth it. It is the best way to take your time, look at your idea comprehensively and solve problems that may arise in the future, even before starting operations.

1. EXECUTIVE SUMMARY

The purpose of an executive summary is to give readers a big picture of the company and the Market before delving into the details.

This document should be written after having finished preparing the Business Plan so that the key points of this document can be extracted more easily.

Executive Summary: Briefly explains what the company does, who its promoters are, where it is located, what it sells and who its customers are.

Business Description: Briefly explain the structure of the business, who owns it, what previous experience or skills they will offer, and who the first employees might be.

Products or Services: Briefly explain what your company will sell.

Market Study: Briefly explain the main findings of your market study.

Financial Considerations: Briefly explain how you plan to finance the business and your financial projections.

2) DESCRIPTION OF THE COMPANY

Next, the company must be described; this part is where you have the opportunity to offer a summary of what your company does, what its mission is, its commercial structure, the data of the business owners, details of the location, the Market needs that your business will continue who you're trying to help and how your products or services will do that.

3) MARKET STUDY

when should be one of the first things you think about Evaluating your business idea is whether that proposal has a place in market. In short, the Market will determine your business's success or failure, who your target market is and why they would be interested in buying your product or service.

Here you must be specific; For example, if you plan to sell beds, you should not include all the people who sleep in a bed in your target market.

First, you should focus on a smaller group of customers, such as teenagers from middle-class families. Once you have defined this, you could answer the following questions:

How many teenagers from middle-class families are there in your country?

What types of beds do you usually need?

Does the Market continue to grow, or is it static?

It includes the market research analysis that other people have carried out and the market study you have carried out.

In this section, you should also include an analysis of the competition.

Following the same example, we will answer the question:

How many other bed sales companies already exist in the Market, and what are they?

Describe the strengths and weaknesses of your potential competitors and the strategies that could give you a competitive advantage.

4) PRODUCTS OR SERVICES

In this section, you can develop the details of what you sell and how it will benefit your customers. If you can't explain how your business will help customers, then chances are your idea isn't the best.

Start by describing the problem you want to address. Next, explain how you plan to solve it and the role of your product or service in this solution. What other companies already offer solutions to this particular problem? And what makes your solution stand out from the rest?

Lastly, it determines the competitive landscape.

5) OPERATIONS AND MANAGEMENT

Use this section to develop your company's organizational structure and unique management. Keep in mind that you can code it later.

Should you explain who will be responsible for each area?

How many tasks and responsibilities will each person or team be assigned?

You should include short biographies of each team member and highlight any relevant experience and training to justify why those people are ideal for those positions.

If you have not yet found staff for the necessary positions, it does not matter; just be sure to identify those roles and explain the employees' responsibilities.

If you want to hire a business plan consultant then get in touch with Maven Business Plans. It is the best company all over the USA and has written many successful business plans.

6) MARKETING AND SALES PLAN

This is where you can develop your comprehensive marketing and sales strategies. You must include comments about how you plan to sell your product before you start to work on your marketing and sales plan, which should include how you plan to sell your product. Before starting your sales and marketing plan, you must fully develop your market research and select the buyers representing your target market or ideal customers.

When it comes to marketing, you will need to answer the following questions:

How do you plan to introduce your company in the Market? What will you do to boost the growth of your company? What channels will you focus on to carry out the distribution process of your product? How will you communicate with your customers?

Regarding sales, you must answer the following questions:

What is your sales strategy?

Who will your sales team be, and how do you plan your long-term growth?

How many calls will you need to make a sale? Or do you use digital marketing tools?

What is the average sale price in the Market vs. your price?

What advertising media will you use to achieve your sales goals (Radio, TV, Internet, etc.)

This is where you should analyze your pricing strategy in the short, medium and long term.

7) FINANCIAL PLAN

In this part of the financial plan, the initial investment amount, the financial projections and a request for financing if you seek to attract investors or resort to the banking system.

The initial costs refer to the resources you will need to start your business and an estimate of the cost of each of the goods, such as equipment and furniture in general (supported with proforma invoices).

·         Will you rent an office space?

·         Will you need one computer or several?

·         Will you need furniture and other ensures?

·         Prepare a list of all those necessities and how much they will cost, and be honest and conservative when drawing up your budget. You don't want to run out of money.

·         You must prepare the following:

·         An initial investment estimate

·         A flow of funds between three and five years

·         Balances projected between three and five years

·         Profit and Loss Statements for three to five years

·         IRR: Internal Rate of Return