Business Plan Essentials: Key Elements and Benefits
Classified in Other subjects
Written at on English with a size of 3.64 KB.
1. The Plan for Firms
1.1. The Strength of a Business Project
It is impossible to launch any business project without a prior specification of the business idea. The idea upon which the business plan is based is the identification of a business opportunity not yet exploited, or the detection of some capacity to innovate and do things differently from others, in order to improve them.
In order to implement a particular business idea, there must be positive possibilities of success for the new company. Therefore, it is crucial to plan the entire business beforehand to draw conclusions regarding the potential applicability of the idea.
1.2. Definition of the Plan's Axioms
The business plan is a strategic plan that affects all areas of the company over a long period of time. It aims to analyze the viability of the business project, examine its goals, and discover its disadvantages.
1.3. Elements of a Plan's Axioms
The components of a business plan include (this list is not exhaustive but indicative):
- Business idea: Background and promoters, description of activity
- Legal form of the firm
- Location and situation
- Marketing plan: Market study, product policy, promotion, and distribution
- Structure of the company: Areas of operation
- Plan of investment and financing
- Legal and administrative proceedings
- Programming actions
1.4. Purpose of the Plan's Axioms
The purpose of formulating a plan is not only to analyze the extent to which the business idea has possibilities of success but also to create a bridge between the current situation and the desired future. Indeed, this planning is the basis upon which sound management is based, as far as possible, for a particular organization, direction, and control of the business. Furthermore, planning makes it easier to obtain external resources that allow for the proper development of the company.
1.5. Advantages of Elaborating a Plan's Axioms
The advantages of formulating a plan are not limited to analyzing how much potential success the business idea has. Additionally, the role of planning is to create a bridge between the current real situation and the desired future. This planning is the foundation upon which sound management is based, regarding a particular organization, direction, and control of the business that otherwise would be almost impossible (internal benefits). Furthermore, based on planning, it is easier to get external resources to enable the proper development of the company, and also easier to convince suppliers and customers (external benefits).
1.6. The Promoters of the Business Plan
A human element is needed to take the initiative in creating the company.
a) Management Skills That an Entrepreneur Must Have:
- Should take on challenges and risks to move projects forward.
- Must have new ideas.
- Ability to create and manage a technical organization.
- Ability to engage staff with their idea of a collective project.
- Power of adaptation and negotiation.
b) Data Needed to Know the Promoters of Companies:
- Description of the curriculum: Personal, training, work experience, etc.
- Degree to which they want to get involved in the company.
- Level of responsibility they will assume.
- Contributions, economic or otherwise, that they can make.
- Level of salary they expect to receive.