Well, in case it can be of any kind of help, below I make an outline of what could be a Business Plan, it is a bit generic because then from these models each one has its specialization and type of business, but it can serve as an index
The business plan is the guide that will allow you to dump and clarify your ideas
Just as a professional develops a Curriculum Vitae to present himself as a candidate for a job, the business plan is the document that allows you to present yourself to investors to make them believe in an idea
And, just as you may or may not fit in as a candidate for a job, you may or may not fit in with one investor or another, in fact, the fact that an investor tells you that he is not interested in your project does not necessarily mean that another investor is not interested in it
Investors, as well as companies specialize in a type of companies and entrepreneur profiles with a business plan focused on a series of sectors, with which they feel comfortable or to which they can add value with investment or with other options such as experience or contacts
Key points of the Business Plan:
1.- Executive summary
2.- General description of the company
3.- Products and services
4.- Marketing Plan
5.- Operations Plan
6.- Management and organization of the company and personnel plan
7.- Company expenses and investment needs
8.- Financial plan
Breakdown of the business plan by points:
1.- Executive summary
In this point of the business plan you have to give an overview, and in fact, although it is the first point of the business plan, it is the summary of the whole plan, so you have to do it at the end
Do not do more than two pages at the beginning of the business plan, it must be direct and it must be clear what is the focus of the business plan, it would include everything that could be included somehow in a 5-minute interview with an investor as if it were the concept of an elevator speech.
I recommend you at this point to read my article: 10 points that investors want to know the internet entrepreneurs, it can also serve as a guide
In short steps, you have to explain; what will be the product or service, who will be your customer, a small detail of what you think about the industry in which you are going to operate and why a company like yours can exist, what makes you different, etc. A brief detail on the entrepreneurs and team’s business plan, etc
2.- General description of the company
At this point of the business plan you have to indicate; what kind of company you will be and what you will do. It is a fundamental and key point that you indicate in this point of the business plan which is the mission of the company, that it is direct and clear
Also at this point of the business plan you have to indicate the objectives you want to achieve and the keys to achieving them, for example, if you want to achieve a certain market share or a certain turnover, you have to indicate what you will rely on to achieve it, such as an excellent customer service, or a technology that allows you to provide a unique value, etc
You must also include in this point of the business plan what your company philosophy is, that is to say, what is important to you, for example, that it is a trendsetting company, that it has and exhibits certain values, etc
Also include in this point of the business plan a good description of the industry or sectors in which you move, what kind of industry growth is expected or the movements and market changes that this industry may have in the coming months or years and how you as a company can take advantage of them
It is important that you also define what the company’s strengths and core competencies are, what the core competencies are, and how you believe these strengths can be valued, and also make an assessment of your experience at this point in the business plan to understand what strengths and knowledge you and your team bring to this new business venture
In the business plan, at this point also, you can define the type of company you want the company to be, Corporation, Limited Company, etc. the social form that you think should be appropriate and why
3.- Products and services
At this point of the business plan you have to explain in detail your products or services, it is important that you define well the products with technical details, with pictures of them, ways of use, etc
It is also important that you detail the advantages and disadvantages of using these products, for example, it is important to know what are the details that make them unique or that make the product or service different from the rest
And it is also very important that you define what will be the pricing strategy to follow for these products, being able to set the margins and have a good pricing strategy will make the financial plan can focus much better
4.- Marketing Plan
Because of the length of this point of the business plan, I will develop it in a new post: How to Develop the Marketing Plan
5.- Operations Plan
Because of the extensive nature of this point of the business plan, I will develop it in a new post: How to develop the Operations plan
6.- Management and organization of the company and personnel plan
It is important in the business plan that it is well defined who are going to be the people who are going to be in the day-to-day management.
At this point of the business plan it is also very important that you make clear what kind of skills these people have and what would happen in case there was a problem, that is, if something happens to any of these people, would the company stop working well? Would there be problems for the management?
This is a key point of the business plan, since this way investors can take into account contingency measures and search for alternative profiles in case something happens to one of these key people, or if they simply want to leave the company
If the management is managed by more than 5 people, make a business plan organization chart of who does what, it is important to include the cv’s of both the entrepreneurs and the key employees and a brief description of the competencies or capabilities that each one brings
At the level of the company’s organization you also have to organize your business plan in such a way that you get to have all the consulting needs covered, for this you can have a series of options with some additional profiles that provide you with knowledge, such as
- Advisors of the company (profiles integrated by specialists that can provide additional visions and decision-making)
- Lawyer (fundamental in expansion processes or in management processes that require a legal point of view, there are more than you think)
- External accountant (in charge of all issues related to accounting and fiscal management)
- In some cases, and depending on the sector and business, an insurance agent is also useful, who can advise you on insurance options for certain movements of the company in case there are problems
- External consultants, who can provide you with knowledge in specific areas
- Mentors, it is essential to have professionals who have gone through the creation and management of companies that may be similar to yours and who can provide you with a lot of experience, cost and time reduction and a reality check from time to time
7.- Business expenses and investment needs
It is important that in the business plan, you have well-defined what are all the necessary expenses to cover until the time when the company starts operating
If you do not have experience in these cases ask other entrepreneurs who have made a business plan, They are expenses that are more or less necessary in all companies, although they vary in each one, but this is important that you leave it defined since they are expenses that are part of the business plan in the financial plan and that the investor has to contemplate also
These expenses range from those related to the incorporation of the company, notary and registry fees, etc. Depending on the country in which you set up the company they can be more or less
8.- Financial plan
Due to the extensive nature of this point of the business plan, I will develop it in a new post: How to develop the financial plan