Are you interested in knowing how to make a business plan? Today from UIE we tell you what 7 steps you must follow to be a business success.
But before we start: why is it so important to have a business plan? What exactly is it? Is it essential to have it before starting a business? Let’s see it together!
What is a business plan?
A business plan is a document that describes the relevant aspects of business activity, products (or services), sector, environment, management, perspectives, KPIs, etc. In reality, the information contained in it is extensive, since it covers all aspects of a business.
The purpose of this business plan is to present your business (or your business idea) to other agents that may intervene in its development (investors, suppliers, customers, banks, etc.). In addition, it can also serve as a guide to shape your project and organize all your processes.
It is therefore of great importance for business success. If you do not know how to make a business plan, you can see that it is easier than you think by following these steps.
How do I make a business plan in 7 steps?
Each of these steps is focused on one of the areas that your business plan should have. This way, you won’t leave anything out of control.
1. What is your activity?
At this point you not only have to present your company and clearly define what need, but you must value the competitive advantages of it. What do you do to differentiate yourself from the rest?
A business is not only based on marketing a product or service, you also have to work on the customer experience, your brand and add value at all times.
As a tip, leave this point for the last (although your business plan should be the first). At the time you have written all the others it will be easier for you to define what makes you different from your competition.
2. Analyze the market in which you operate
Perhaps, in your opinion, you have a good idea, but it turns out that there is no market for it. It would be a shame if you worked so hard and saw that you can not market your idea and therefore it is convenient that you determine if there is an audience to which you are addressing and which is concretely.
Then, you can expand your market; But in principle you have to investigate and make it clear that there is a market.
Besides, you’re not just in the market. You also have to analyze who your main competitors will be, as well as their strengths and weaknesses. This step will help you a lot to better define what your competitive advantage is.
3. Your products (or services)
It is simply about developing the characteristics and benefits of the products or services you market. In principle you have to think about what need they cover and how they solve it.
The moment you are clear about this point, you will be in a position to know if your idea is good or not (which will help you defend it against investors, customers or banks).
4. How do you manage your business?
Every business plan must have a plan in which the structure and operational processes are specified.
Normally, these issues evolve and you can always change them. But having well expressed what tasks have to be done and who is going to perform them, is fundamental. This step will determine your operating costs and give you the ability to have everything under control.
5. Don’t forget about Marketing
Even though you have a good product or service, you also have to think about how you will make it known to the market and how you will make it reach consumers.
The positive part is that you have already developed which market you are targeting. This will help you a lot to know where your target audience is moving. In addition, you also know your product in detail, so you can also determine what message you want to convey to get it across.
It also defines a sales strategy. This will give you knowledge of what your business costs will be and fine-tune with your pricing strategy.
6. It’s time for numbers
Another section that cannot be missing in your business plan is related to finances. After all, it is what may interest those who decide to bet on your project the most.
Since you already have quite advanced your business plan, you have a great knowledge of your total costs, the price of the products, what capital you will need to implement the idea, etc.
Now you have to translate everything into a financial plan to accurately establish your budgets and financing needs (the justification of where each euro goes will give a lot of credibility to achieve it).
7. Companies are made up of people
As a culmination for the document that will determine your success, include the résumé of all the founders or people who occupy a relevant position in the organization chart.
After all, business is an agreement between people. Knowing who is behind the project and what their experience is invaluable in gaining confidence.
You can put this information as an appendix, along with all the legal documents (deeds, records, etc.) that you must attach to your business plan.
