7 Basic Steps To Write a Business Plan

Good intentions are insufficient to succeed, you have to plan every step you take; An excellent project intends to study the niche markets a...

Good intentions are insufficient to succeed, you have to plan every step you take; An excellent project intends to study the niche markets and how to position the business.

To start a successful business is not enough with good intentions, you must have a professional guide or a good business plan.

One of the most frequent mistakes of entrepreneurs when starting their business is that they do not have in writing what their objectives are, what the company consists of and not see possible results.

7 Basic Steps To Write a Business Plan
This tool is not a simple document, is to translate the project itself into a paper to identify the strengths, needs and above all, to appear in case of requiring advice or financing.

Among the advantages of developing a business plan is to avoid wasting resources in payment of incomes, wages and raw materials that are bought 'by intuition.' The plan also offers performance indicators to correct the course or, at worst Of cases, cancel the project in time to not lose more money.

Hence the need for micro and small entrepreneurs to have a basic plan and an investment project.

7 Steps To write a business plan

Here are the seven steps to do this, although these can be adjusted according to the complexity of each business unit.

1. Description:

It is the basic information of the company and must include its corporate vision, who you are, what you will offer to the customers, what market needs you will try to satisfy and why your business idea is viable.
Also read: How To Create a Business Plan in Just 2 Minutes

2. Desired market niches: 

It is one of the most important parts and must take into account the current size and market trends. Once the niche is defined, describe it by geography, business size, business organization, lifestyle, gender, age, occupation, and other characteristics necessary to portray the business or consumer you are likely to buy your product or use your service.

3. Business positioning: 

This is the identity of the company in the market: it is the way in which you want the market and the competition to perceive your product or service. The page www.herramientaspyme.com, recommends answering these questions: What makes your product or service unique? What needs the customer covers? How do you expect people to perceive your goods and/or services? And how is the competition positioned?

4. Competition: 

This indicates if the products and services are suitable for the competitive environment. If you include it, you will demonstrate that you understand the industry and are prepared to deal with some of the obstacles that the company will encounter. Briefly, describe the major enterprises in the competition. Evaluations should include comments on the ways in which they satisfy rather than the needs of clients. Explain why you think your business can get a market share.

5. The cost of production and development: 

In this part, the budget comes into action. It should include the cost of the prototype design and the costs of its production in the case of products. Regarding services, you must bear the expenses of consulting, training, preparation of material, etc. Be sure to include labor. When you plan the costs, it gives a contingency plan that mentions what would happen if there were problems like delays, difficulties in complying with the company's standards, mistakes, etc.
Also read: How to Quit Your Job and Start Your Business in 90 Days

6. Sales and Marketing: 

Describes both the strategy and the tactics you will use to get customers to buy your products or services. Sales and marketing are the weak links of many business plans, so it is important that you dedicate them as much time as is necessary. A well-prepared sales and marketing section can serve as a roadmap. It also assures prospective investors that you have a viable plan and resources to promote and sell your products and services.

7. Managerial Strengths: 

An excellent management team is able to take an idea, even if it is mediocre, and make it fly. This section of the business plan refers to the direction of the company that must clearly show that the team you formed or form, is a winning team. It is essential that each member has the talent and experience relevant to the business.

Remember that although at first, you think that elaborating this plan is a waste of time, doing so will allow you to correctly address your business and congratulate you on the completion of the project.

Writing a business plan is critical. It needs to have some deep insight. Create a strong business plan in seven steps to make your company successful.  

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