“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.

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These should include:
Defining the relevant market
often fail poor presentation to properly define the size of the market. Investors tend to occur immediately when the market overestimated. A more effective strategy would be to define clearly the market, with sales expected to reach x% of this niche, which will provide potential investors with better numbers overestimated expectations.

Focus on the past achievements
of the company’s record will be the most accurate indicator of future success. It is important to your business plan to demonstrate the milestones have been achieved with previous funds available, as well as present the achievements of the management team to show how they will overcome the challenges ahead.

Focus on customer needs
The relationship between a company and its customers is absolutely crucial for investors. The business plan must clearly demonstrate how our products and services meet customer needs, and must include specific details that best illustrate these needs. Show by means of a clear roadmap for how the company will serve its customers is also an important part of the business plan.

Barriers to entry
in the current financing environment claim not enough to simply have the advantage of being the first player, this is not reason enough to attract an investor.
In contrast, an effective business plan and convincing to prove the existence of entry barriers by demonstrating clear strategies that show how the company will build barriers around their customers.

Realistic financial assumptions
The financial section of the presentation of the business is often the first section that potential investors look at. For this reason a company should refrain from “scare” with unrealistic assumptions and projections. Any plan that highlights market penetration rates unrealistic revenue or operating margins inconsistent or poorly reasoned, could damage the credibility of the business plan.
Realistic and accurate projections will be much more effective to demonstrate the maturity and credibility of the company operating.

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Among its benefits are: to determine if your idea can be transformed into a structured and function, to identify their strengths and weaknesses, know what resources you need, what is the potential of your business in the market, understand what team work is needed, identify risks and design a course of action.

Here’s all you need to know before making a business plan.

Eight parts of the business plan
1. Design of an executive summary. It should be a clear, concise and attractive of the most important aspects of entrepreneurship, you have everything that a reader with little time should know about the business plan. This should be placed first, before any other section (whether the latter is done) and be clear, concise and eloquent.

2. Definition of the product or service . Remember that everyone has ideas, but not all ideas are embodied in business, so the first thing to do is check if the object of the initiative is to solve an existing problem or meet a latent need. A business idea must provide a benefit to the customer, have a market, a profit and be able to be protected. It is important to be open to criticism and consulting experts.

3.Elaboración marketing plan . The key is to outline the most relevant in determining whether the initiative has a real chance in the market. Implementation of this plan should be given in three steps: one is the analysis of market and competition, the other is the selection of the target market and the last, is the design of marketing strategy (in which fixing are the characteristics of the product, how it will capture the attention of customers, where they will sell, what media are going to do the promotion and what is the suggested retail price).

4. Identification of the business model. It should be noted what the focus of the companies, their core competencies and key variables for establishing the design of the organization. To define the right system for the company suggested to start by studying the business system in the industry. The typical business system of a company’s goods or products: research and development, production, marketing and sales, distribution and service.

5. Development of a risk analysis. The idea is to show how to integrate environmental threats and risks to the planning processes. Having identified the potential risks and how they can be realized, help ground for entrepreneurs and detect what are its weaknesses. There are financial risks, market, legislation and the organization.

6. Choosing the team. It is necessary to define who should be part of the team, setting the strategic role and importance of each team member. Remember to submit the necessary information on the experience of the management team in order to demonstrate its capabilities.

7. Developing a financial plan. What is sought is how much capital is required to start the business, and to determine their economic viability. This plan serves to identify capital requirements, define the best financing structure (through debt or equity), to determine the profitability of the project (details on projected revenues and profits) and to monitor financial performance through the monitoring of indicators.

8. Develop an implementation plan . Before starting to run the business, it is essential to identify the critical path of the processes to be adopted. You have to describe the activity and key steps for the development of business and identify what will be planned investments.

Characteristics of a business plan
Investors generally are people who know very well the business world, which are used to hearing many proposals before making an investment decision, and do not have much time to listen to your negocio.Así is here we present some recommendations:

A good business plan is impressive for its clarity. The reader should find the right answers to each of your questions and have the facility to locate topics in which you are particularly interested.

A good business plan convinces by its objectivity. Although enthusiasm has its advantages, an objective tone gives readers the opportunity to analyze the arguments carefully. We must be careful not to create expectations of potential investors.

A good business plan is written in a uniform style. Use very few adjectives and note that the spelling and writing are important. Remember that the sources must be appropriate to the language, structure and content and graphics must be clearly inserted in the text, making reading material.

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1. Make your first investment in a well-structured plan
The time spent in the development of this document should be understood as the first and most important investment you will make as a company. Moreover, the company began its journey in real time of writing develop the ideas we had in mind, it must be done in a structured way, it’s about exposing what we will assume responsibilities, what expenses are necessary, what benefits we can get, what commitment is becoming a partner in the company, etc.. The business plan itself can be considered as a marketing tool and will serve as a presentation for funding, and that potential investors need to know the viability of the project.

2. A presentation face and eyes
In short, the business plan must collect all the keys and classroom activity forecasts but written in a simple way, since it is directed at the same entrepreneur. If I had to do to others, you can also choose a multimedia presentation. The document must begin with the presentation of the company or project summary and a presentation of the promoters by way of curriculum who each one of the entrepreneurs. In any case, what should be clear is the business idea, the project’s evolution: its origins and current status, appraisal with strengths and weaknesses. When you have a format, almost all follow some common rules: a main pack shortly, with a short summary on the findings of market research, comments regarding the financial studies and technical data display, and a mandatory summary one or two pages which exhibits a more attractive a synthesis of all aspects of the project.

3. Define the product
It may seem obvious, but we must consider in detail the product to be offered, explaining how it differs from what already exists in the market. This is very important, do not forget to list the advantages, technical qualities, economic and commercial aspects of product and market research that is targeted. It would be interesting to ask: what needs to be covered and what your target audience. In today’s competitive market you have to be original when looking for an idea, but also at the time stated.

4. Do not forget the competition
In this same analysis should not be forgotten: what competitors are, how they work and how they sell, what is your market and because of there trying to figure out what advantages and disadvantages will present our company with respect to them. It is important to devote a section to the barriers that we can find the time to go, to try to bring solutions. The most common are those related to economies of scale. manufacturing costs decrease as production increases due to the existence of high fixed costs. This leads to the already established businesses in the sector, capital-intensive sectors and difficulty in accessing distribution channels.

5. It has a good marketing plan
Just follow a few steps to arouse public interest in buying. That’s the goal pursued by a good marketing plan. We must study the project’s commercial variables: product, price, distribution and communication. This is accomplished by the marketing plan should be appropriate to the overall business strategy, must be qualified, subject to review and, above all, practical, and must contain achievable goals. The advantages of having a good marketing plan is that is the connection between the various departments of the company and helps to identify new business opportunities. The marketing plan should be based on market research. It sets the right policies to bring to market a product or service and explain how they are expected to evolve. Different models from the marketing mix, which includes the study of variables such as product, price and distribution, merchandising.

6. Exhaustive processes of production and purchasing
The business plan must reflect all production planning and procurement to explain how they will manufacture the products to be sold and that includes both vendor selection and setting of delivery dates and quantities of the characteristics materials techniques and materials, analysis of costs and quality controls and inventory management. Furthermore, other fundamental aspects of storage and costs. For this part of the plan must take into account whether there is need for specific equipment, the costs of manufacture or provision of services , the organization of the production process and the purchase of raw materials and products needed.

7. Introduce yourself and your team has
Who are you? What is your experience? And the experience in the sector in which you want to work? These questions must be answered by the business plan: you have to come forward and get it right. Should be clear who are the partners whom they invest, the company organization and functions of each, and the responsibilities that are granted and the distribution of tasks. Knowing in advance the human team that will tell the company is an important step to consider foreseeable costs and time to be used in the selection and training of employees and how to evolve the template. Interestingly, depending on the size of the company, having a human resources department and use the services of a recruitment company.

8. Study well the legal obligations, tax and labor
Determine how the company’s legal and tax obligations that we must address is a PO indispensable in the business plan and should be well reviewed. It is assumed that before deciding on a legal system or another will have been chosen among the different possibilities the most suitable. When starting a business no one is free to make a series of tax procedures. The company’s relationship with potential workers hired must also be explained: what type of contract, duration, expectations, etc.. Furthermore, it should list the various permits as may be required to obtain for developing the business.

9. Specifies the collection system to customers. Where will the revenue.
All await the arrival of this point: how we will survive, where will the revenue, how to charge customers. All these aspects must be related to the type of activity we have in hand, this means that one is not the same goods company fashion that another service to business, the payment is different. What we must always indicate the period of receivables and the payment period to suppliers. The goal is not to enter in critical situations, we must generate sufficient resources to meet any debts and recover money.

10. Details of the investment plan
Having defined our business concept, its objectives, sector of activity, expectations and guidelines work touches go into the investment world laborious. A key area and necessary. We need to develop budgets, know where they will spend money and how much and what type of investment study will be performed and how. In short, find the sources of the financial resources that the company will start its activity, if money or property and what to do with them. It is the most complex, if you do well as the budgets are intended to express in economic terms the contents of the business plan and its implications.

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Develop a good business plan is essential for an entrepreneur decides to venture into a project.

The business plan should be a convincing argument that there is an interesting opportunity for business and there is a way to capture it. For the entrepreneur, build the plan is to convince the body to devote several years of his life to creating that business.

The business plan is also a communication tool, a mechanism for transferring the interesting potential partners may be involved in the business. The information must be proportioned to engage in reading and meet the expectations of content. Also, it is also a strategic exercise. You must indicate how key business variables affecting its outcome, and therefore losing relevance as far as the context changes.

The exercise of putting together the plan allows us to understand how context affects the results and helps us to reposition the business mind to these new circumstances. The plan also allows us to monitor the evolution of the business: see deviations between plan and reality, identify their causes and take corrective action.

Contents of business plan

The first section of a business plan is the executive summary, which typically has an area of ??2 to 3 pages and is primarily a sales tool. With few words must be able to show that there is an opportunity and highlight how you intend to capture. The executive summary should be written after completing the business plan, and aims to excite the reader to read the whole thing. Each plan may have a different structure because the nature of the opportunity and to capture the main variables are specific to each business. Therefore more useful to describe the sections is to describe the issues that should be in any business plan, opportunity, business model, market entry strategy, resources and risks.

The business model: taking a chance we can define a strategy to capture: where we are, where we want to go and how we’re doing. The business model describes where we want to. On the one hand, you must specify how to make money: who, how and why you are charged. Secondly, we must show how the product: what activities will be conducted by the firm and which outside. We must also explain how we defend this model, what advantage difficult to imitate by competitors, is intended to generate?

The entry strategy, with clear business model can work out how we got there. This is particularly relevant to our strategy of customer input, define how the client meets your needs today and what advent
ages offered by our product, how we communicate and how will these benefits so you can find the product for purchase. It is the marketing and distribution plan. The advantage offered by our product should be large enough to entice you to choose ours.

Resources: having described our strategy, we identify the human resources, technology or money we need to implement the strategy. To achieve these resources, we must provide their own better than their alternatives. We understand your goals and make an offer on these terms.

With the costs of resources and an estimate of potential revenues can arm the projected cash flow, which recorded all receipts and expenditures that occur in each period. At the beginning, expenditures exceed income generally, and need to cover this deficit through the initial investment. The cash flow also allows us to calculate the return and the expected value of each project to choose among the alternatives we have. Finally, a good business plan includes a section that identifies the key risks and contingency plans to define the most critical.

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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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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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