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The Importance of a Business Plan?

In all parts of the world there are many people with a negotiating spirit and great creative potential. But, unfortunately, they fail loudly when they start and start their industry.

The main reason is that from the very beginning they did not think about basic concepts such as profitability or profit margin, or could not know how long their trade would start to make a profit.

And many entrepreneurs do not make a business plan.

Development of a Business Plan?

A business method is a document in which we create an orderly procedure for our business. Its goal, potential market, the capacity that we face, our additional services and products or services that our company offers.

It also reflects initial investments and how they should be invested and how we want to position ourselves in the target market that we want to achieve. However, the most exceptional is that it is an estimate of sales, which represents (revenue from our business) and expenses (water, electricity, cost of sales, etc.). I would like to thank the speaker, Mr. President. on the board, for his excellent work and for his excellent work. This, in turn, gives us a good idea of ​​how profitable our business will be and how long it will take us to make a profit.

It is important to note that a business plan can handle various levels of detail. A two-page document may be enough for a small business. But for a unit that employs other people and needs external funding, a much longer title needs to be developed.

Why is it worth considering a business plan?

Firstly, because we can understand from the very beginning how high the costs and expenses are.

From this chart we know how much we need to sell for breakeven (that is, “take out” the tables) and allow the company to make a profit.

Starting a business without knowing it is like jumping into a void blindfolded.

However, a business plan is also an important tool when applying for funding, either in person (looking for partners who can join you) or through a financial institution. No serious person will invest in a transaction that will not benefit from a detailed business plan indicating a possible return.

 

What does a business plan include?

To get an excellent business plan, consider the following:

Summary. Although this goes to the beginning of the plan; This will be the next thing to write, and it must be done in a very comprehensive way.

Company Description. Power; What is the difference between our business and competitors and the target market we are aiming at?

Market analysis. Before opening our store; It is important to think about our industry. Market and competitors.

Organization and management of the company. The agency is developing as a company; Shareholders will be and what their organization will be. It may also include an organizational chart and a summary of the partners and / or key officials who will manage it.

Products & Services. What we sell. What benefits do our competitors get? We will tell our story. Tell the whole experience and make it very convincing and creative.

Products & Services. What we sell. What benefits do our competitors get? We will tell our story. Tell the whole experience and make it very convincing and creative.

Financing needs. If our company requires external financing (partners or loans to start work), it is important to provide all the necessary information about our company so that you can explain what your company is about.

Financial forecasts. Here we place our preliminary expenses; both fixed (local; electricity; water, etc.), and cost of sales (for example, the cost of the goods we will sell, or the cost of the services we offer). But also our estimated income (sales, unit price and total revenue) and the result. It is important to indicate some key financial reasons. how the margin arrived; Return on investment; among other things.

By managing all this information, we can make a good summary of the information that we will process about the business that needs to be done, and better manage the income received in order to make real profit. However, keep in mind that to create a good business base you cannot collect money for additional expenses, but you can support basic services for starting a business.

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