The process of preparing the business plan provides:

* a good structure for the development of your idea and helps you to do the planned activities
* a more realistic picture of the planned activities, and says nothing about future prospects and potential
* a written summary of: knowledge and abilities, business, products / services, target groups / market choices, selected strategies, market potential, organization, and economy of effort

Why you should prepare a business plan?

* it prepares you to start establishing their own or expansion of existing companies and enterprises
* it explains what and how to do it, while it shows you and others why you do it
* it clarifies a number of goals that you and others can relate to you
* it gives a realistic picture of the business – future plans and opportunities
* it gives you a basis for commitment and an awareness in relation to the choices and decisions that you face

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Market research is a method to collect, analyze and report the findings related to a specific market situation. It is used to make decisions about:

* The market introduction of a new product or service
* The most appropriate distribution channels for the product
* Changes in promotion and advertising strategies

Market research shows:

* Changes in consumer behavior
* Changes in shopping habits
* The views of consumers

The purpose of any investigation is to obtain important information about our market and competition, which will guide decision making.

There should be limited only to the research process when you start a new business. On the contrary, it must become an ongoing activity.

Market research involves the use of several tools to analyze consumer trends. Some of these tools include: surveys, statistical studies, observation, interviews and focus groups. The research will provide information on the profile of our customers, including their demographic and psychological data. These data are specific characteristics of our target group needed to develop a good plan for marketing to our primary audience.

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Advantages:

The main reason to buy an existing business is the drastic reduction in the main start-up costs: time, money and energy. And thanks to the existence of an inventory and accounts receivable, you can have an immediate cash flow. Other benefits include preexisting customer preferences and easier financing opportunities, if the business has a good record.

Disadvantages:

The biggest obstacle in buying a small business, the initial cost of the acquisition. Because it already has the concept of the company, an established clientele (customer base), trademarks and other key roles, the financial cost of acquiring an operating business, it is usually higher than the starting one from scratch. Other possible disadvantages include hidden problems associated with revenue and accounts receivable, which are valued at the time of purchase, but later may prove uncollectible. It is therefore of utmost importance to have good research to avoid these problems.

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A business plan precisely defines your business, identifies your goals and serves as the company’s curriculum. The basic components include a current statement and pro forma (model), an income statement and a cash flow analysis. The business plan helps you allocate resources properly, handle unforeseen complications and make good business decisions. A good business plan is a crucial element of any loan application because it provides specific and organized information about your company and how to pay the money you borrowed. In addition, reports sales staff, suppliers and others about your operations and goals.

Plan Your Work

A comprehensive business plan and well prepared is extremely important. Much hinges on it: outside funding, credit from suppliers, management of its operations and finances, promotion and marketing of your business and achieving your goals and objectives.

“The business plan is a necessity. The person who wants to start a small business and do not know to develop a business plan is going to have problems, “says Robert Krumm, Jr., president of First Business Bank in Los Angeles.

Despite the critical importance of a business plan, many entrepreneurs find it hard to prepare a written document. They argue that the market changes so rapidly that a business plan does not find it useful, or not have enough time. But in the same way that a manufacturer can not start building without a blueprint, entrepreneurs should not rush to start a business without a business plan.

Before you begin writing your business plan, consider the following questions:

* What product or service provides your business and what needs to satisfy?
* Who are the potential customers for your product or service and why you would buy it?
* How would your potential customers?
* Where will the financial resources to start your business?

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The pension plans are similar in some ways, a life insurance contract that covers joint contingency of death, disability or retirement.

Retirement plans are in life insurance that combines risk and savings.

The contributions of the holder can be made as follows:
- In a single payment (known as single premiums)
- In a regular or an extraordinary way and no limit to the amount of tax such contributions, unlike what happens with pension plans.

For its part, the benefits obtained from retirement plans may be in the form of capital (on a single charge), in the form of income, and in mixed form.

An important difference between retirement plans and pension plans is that contributions made to retirement plans can be recovered or rescued, by statute, from the two years, although in some cases this period is shortened without having to wait until retirement or other status legally admitted as in pension plans.

In any case, the right of early redemption of retirement plan has a financial penalty (redemption fee) will be greater the sooner the rescue.

Other important differences between pension plans and retirement plans are with regard to the latter, the following:
- No limit on annual contributions, like pension plans.
- Unable to switch from one retirement plan to another without paying taxes for it.
- It allows pension plans guaranteeing a certain return (technical interest)

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This presentation should be accompanied by audiovisual aids. The use of PowerPoint slides could be a good alternative.

Another support for our presentation, could be the physical presence of the product that we create as well as some of the elements related to it as, for example, some elements of advertising.

Also, if possible, you should submit a copy of our business plan to each attendee.

We note that our presentation should be a summary of the highlights of our business plan, so it should not last more than 20 minutes. A higher exposure to that time, could lose the interest of attendees.

Our oral presentation does not necessarily follow the same steps that we have developed in the written plan. A good oral presentation could include the following:

* The definition of the project: the first thing we do in our presentation is to explain clearly what our business or product, and to identify what will be its main features, highlighting those features innovative or differentiated.

* Market Analysis: At this point we should point out what our target audience, what are its main features, what our sales forecast and what are some of our key business strategies, highlighting those that will enable us to bring our products to consumers .

* Organization: At this point we should point out who will be responsible for carrying out the project, which will be the structure of the business, what your areas, positions, functions, information systems. At this point we give the impression that our business will be a professional and well organized business.

* Investment of the project: at this point we should note what the investment required for our project, how much our fixed investment amount, how much our investment in intangible assets, how much our working capital, and then point out how much capital available and what we require external financing.

* Evaluation of the project: At this point we have to summarize the results of our financial assessment.

* Conclusions: and finally, at this point we must note the main conclusions we reached in developing the business plan. Among the findings should include the reasons why we have found our business idea attractive, and the reasons why the project is feasible and profitable shows.

By doing our oral presentation, we should not try to tackle it all, we must remember that every bit of detail in the plan should be written so in the oral presentation should highlight only the most important.

We must also remember that our main objective is to create interest in the project, so as in any show, we show security both in ourselves and in our idea.

And finally, one topped our presentation, we invite the audience to ask the questions that we see fit. If individuals know all of our project, we should have no trouble answering any questions.

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What factors should be reflected in a business plan?

Although business plans vary in length and scope, all successful business plans have common elements. Now showing to be included in any business plan.

The abstract (Company Description)

The summary outlines the key factors of your business plan and is often considered the most important section. Located at the head of the plan, the summary is usually the first section that reads a potential investor or lender and may well be the only section to be read, if this summary is not prepared properly.

This statement is crucial:

* Present the highlights of each of the other sections to explain the basics of your business;
* Be attractive enough to encourage the reader to continue reading your business plan;
* Be brief and concise – not more than two pages.

Even if the summary is the first section of the plan, you should write it last.

Describe your business plan

This section of your business plan should clearly describe what your business is to say what products / services it offers, and what vision you have for the future thereof. So you need to indicate:

* Who you are;
* What you do;
* What you have to offer;
* The market you want to target.

Remember that the person reading the plan was perhaps not as good as you know your company and its products, services or processes, so avoid jargon. A good idea would be to ask someone who has nothing to do with the company, read this section of your plan to make sure everything is understandable.

You must state:

* If a new business, buying an existing business or expanding an existing business;
* The business sector your company belongs;
* Your product or service and its uniqueness;
* Your competitive advantages;
* Vision and key objectives of your business;
* The legal structure of your business (sole proprietorship, partnership, corporation).

Also indicate the date of registration / incorporation, the name and address of the company and all contact information.

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There are many mistakes that inexperienced entrepreneurs discuss writing a business plan or do not understand why potential investors reject their plans.

But there are a few mistakes that are common to almost all of them:

1. Ignore the competition

A business does not operate in a vacuum. There are direct and indirect competitors will fight tooth party to maintain its current customer base and market share.

Often, the entrepreneurial team declared that their products or services are so impressive that they have no competition.

This statement tells investors that the management team is over confident and can not anticipate external factors that can impact the business.

It is of course also the possibility that it is true that there is no competition because there is, at least at that time, a market for that product or service.

2. Financial projections unrealistic

What investors want to see is a growing company, but we also want to see financial projections are realistic and achievable.

The financial data inconsistent with the usual rules in this very aggressive business or can quickly archive your project. It is better to be conservative and work with our professional accounting numbers to show attractive but realistic.

3. Millions of consumers

Pretend that your market is huge and that everyone is a potential customer will quickly lose your own credibility in your business plan. You may be able to undertake in the future different market segments, but for now it is better to focus on one or two niches that you can actually attend.

By showing that you understand the needs of a small market and you can serve your needs, you gain the confidence of potential investors or your bank.

4. Procrastination

Many / os entrepreneurial / s underestimate the time and effort required to build a successful business plan. Do not delay. If you’re going to need capital in six months, now is the time to establish a plan and raise the money.

5. The big deal

A company may have signed an agreement with a large company but the overemphasis on that agreement may be perceived as weakness. If 80% of your income comes from a contract, your company can deal very badly if the agreement fails.

Stresses that your company is likely to forge strategic alliances and / or winning big contracts and will use this ability to diversify your customer base.

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Comprehensive
1. A good business plan should include an Executive Summary plus seven sections: Market Analysis, Company Description, Organization & Management, Marketing & Sales Management, Service or Product Line, Funding Request and Financial Information. It can also include an Appendix.

Specific
2. Use exact numbers and as much detailed information as you can. Example: Our target market is women ages 25 to 50 who are employed full-time.

Compelling
3. Your business plan should present all the necessary information (who, what, when, where and why) and be written in a way that keeps readers interested in the success of the business.

Logical
4. A well-written business plan will provide a framework for your business. The act of preparing it will give you focus and carrying it out will require discipline.

Flexible
5. Update your plan regularly to stay current with business conditions. Unlike a contract that remains unchanged once it is signed, your business plan should be a living document. It can be used in daily business situations and updated as circumstances change.

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