To undertake a successful business with good intentions is not enough, we must have a professional guide, or a good business plan.
“One of the most common mistakes entrepreneurs to start their business is that they have in writing what your goals are, what the company and not seeing results achievable,” said public accountant of the National Autonomous University of Mexico (UNAM), Gregorio Perez.
This tool is not a simple document, is to translate the project itself on paper to identify strengths, needs and above all, to stand if they require advice or funding.
Among the advantages which represents developing a business plan is to avoid wasting resources on payment of rent, wages and raw materials are purchased ‘by intuition’: “The plan also provides performance indicators for course correction or, at worst cases, cancel the project in time to avoid losing more money, “said Perez.
Hence the need for micro and small entrepreneurs to have a basic plan and the investment project.
UNAM counter proposes 7 steps to do so, although they may be adjusted depending on the complexity of each business unit.
1. Description of Business
It is the basic company information and must include your corporate vision, who you are, what you shall offer, which will try to meet market needs and why your business idea is viable.
2. Desired Market Niches
It is one of the most important and must take into account the current size and market trends. Once the niche is defined, describe it by geography, size of company, business organization, lifestyle, gender, age, occupation and other characteristics needed to portray the companies or consumers that are likely buy your product or use your service.
3. Business Positioning
This constitutes the identity of the company in the market is how you want the market and your competitors to perceive your product or service.
Page www.herramientaspyme.com recommends answer these questions: What makes your product or service unique?, what customer needs covered, how you want people to perceive the product or service? and how competitive positions?
4. Competition
This indicates whether the products and services are fit for the competitive environment. If included, show you understand the industry and are ready to tackle some of the obstacles you will find the company. Briefly describe the major companies in the competition. Evaluations should include comments on the ways in which they meet and not the needs of customers. Explain why you think your company can get a market share.
5. Cost of Production and Development
In this part of the budget comes into play. Shall include the cost of prototyping and production costs in the case of products. As for services, carry the costs of consulting, training, material preparation, etc.. Be sure to include labor. When planning costs, gives a contingency plan to mention what would happen if there are problems such as delays, difficulties to meet company standards, mistakes, etc..
6. Sales and Marketing
describes the strategy and tactics used to get customers to buy your products or services. Sales and marketing are the weak links in many business plans, so it’s important that we spend as much time as needed.
A sales and marketing section can serve as solidly prepared roadmap. It also assures potential investors that have a viable plan and resources to promote and sell your products and services.
7. Management Strengths
A good management team can take an idea, albeit mediocre, and make it fly. This section of the business plan refers to the direction of the company must clearly show that the equipment is or will be, is a winning team. It is essential that each member has the talent and experience relevant to the business.
Remember that although at first believe that developing this plan is a waste of time, “it will allow you to properly address your business and will congratulate the project,” concludes Gregorio Perez.