How to make a business plan

Carrying out a credible and realistic business plan is very useful in the event that we need to obtain a loan to set up a new business, or to obtain financing from investors, among other possibilities. However, there are many issues to consider and it cannot always be easy, so in this article we will give you some guidelines so that you know how to make a business plan.

Steps to follow:

1. The first thing we need to create a good business plan is a business idea, around which our plan will revolve. Along with the idea, we must determine the product or a series of products that we have to offer to the market, and in turn, who are the potential consumers of this product. Once we have defined these fundamental details, we can begin to study each of the points of the business plan.

2. We will have to carry out a market analysis, to know who our potential clients are, how much market share we can reach or what news has been in this market recently. That is, everything that surrounds us: the company”s macro environment. For it:

• Knowing our competitors: what they offer.
• Market prices in that sector.
• Distribution methods.
• Market innovations.
• Competitor marketing strategies.

3. Another important issue is the organizational design of the company, that is, how it is going to conform and function in order to function and offer its products:

• Selection of the legal form of our company: limited, anonymous, sole proprietorship, cooperative, etc.
• Organization chart and formal work organization.
• Human Resources.
• Physical location of the place of sale, the place of production and the warehouse.

4. Once we know what the environment around us is like and how we structure the company internally, we will have to make a marketing plan to ensure that our product reaches consumers:

• Analysis and coordination of the variables of the 4P or marketing mix: price, promotion, distribution and product.
• Segment the market, to know the demand and know who we have to address in such a way that we have greater success.

5. Finally, we have to know if our project is economically viable, because if it is not, our company would not make sense. We will need:

• Know from where we can obtain the financing, we need to start it, as well as the interest and the terms at which we will have to repay the loans.
• Future sales and income
• Calculation of fixed and variable costs. Such as the rental of premises or warehouses, personnel, raw materials or purchase of products, among others.
• Analysis of possible risks that we may face. A SWOT analysis is recommended.