Structure of the plan of businesses

3 January 2009 - 16:02

A structure or usual format in the development of a plan of businesses, is made up of the following stages:

• Summary of the business.
• Study of market.
• Technical study.
• Study of the investment.
• Study of the income and debits.
• Financial study.

We see next each of these stages, as well as the elements conform that it:

1. Summary of the business

In this stage, well-known also like the executive summary, we must indicate the initial datas of the business, as well as a summary of the plan of businesses (of the other stages conform that it), reason why this stage must be developed after the elaboration of the others, but be put at the beginning of the plan.

Labels: Creation of businesses, Tools of business, Step by step, Plan of businesses

Published in Creation of businesses | 7 Commentaries”

The TIR GOES and

31 December 2008 - 13:07

THEY GO and the TIR is two financial tools coming from the financial mathematics that allow us to evaluate the yield of an investment project, being understood by project of investment not only like the creation of a new business, but also, like investments that we can do in a business in march, such as the development of a new product, the acquisition of new machinery, the entrance in a new heading of business, etc.

Net present value (VAN)

THEY GO is a financial indicator that measure the flows of the future income and debits that a project will have, to determine, if after to discount the initial investment, we would have left some gain. If the result is positive, the project is viable.

It is enough with finding GO of an investment project to know if this project is viable or no. THEY ALSO GO allows to determine us which project is most profitable between several options of investment. , If somebody offers to us to buy our business, with this indicator we even can determine if the offered price is superficially or below which we would win of not selling it.

Labels: Concepts, Finances, Tools of business

Published in Finances | 33 Commentaries”

Financial mathematics

30 December 2008 - 14:12

The financial mathematics allow us to solve problems based on operations of investment (for example, to know the yield a business project) and of financing (for example, to know which is the interest that we must pay by the acquisition of a loan).

Two operations that seems opposite, but that they are the same if they are seen from two different points of view, for example, if we asked for a loan in the bank, we will be conducting an operation of financing, whereas the bank, at the same time, would be conducting an operation of investment.

This article we will not enter depth in the study of the financial mathematics, we will only see the definition of its main elements, so that it as guide serves or reference to us for a later study.

Labels: Concepts, Finances, Tools of business

Published in Finances | 2 Commentaries”

The budgets of a company

29 December 2008 - 16:26

A budget is a tool of management conformed by a document where prognoses or forecasts of different elements from a business are quantified.

The budgets usually are related exclusively to the income or debits that a company will realize, nevertheless, we can make use of these tools to quantify prognoses or forecasts of anyone of the elements of a business, for example, we can budget the collections that we will realize, the payments of ours of debts, the products that we will make, the materials that we will require to produce these products, etc.

The budgets are fundamental tools for a business since they allow us to plan, to coordinate and to control our operations:

• planning: the budgets allow us to plan activities, to plan objectives, resources, strategies, courses to follow; anticipating themselves to the facts and, therefore, helping to reduce to the uncertainty and the changes us.
• coordination: the budgets serve as guide to coordinate activities, being allowed us to harmonize and to integrate all the sections or areas of the business, as much between these, as with the objectives of the company.
• control: the budgets serve like reference instrument and evaluation, they allow us to compare the results obtained with the budgeted ones so that, that way, for example, to know in what areas or activities exist deviations or variations (differences between obtained and the budgeted thing).

Labels: Concepts, Finances, Tools of business, Step by step

Published in Finances | 11 Commentaries”

The balance point

28 December 2008 - 15:05

The balance point, in terms of accounting of costs, is that one point of activity (volume of sales) where the total income are equal to the total costs, that is to say, the point of activity where it does not exist utility nor loss.

To find the balance point is to find the number of units to sell, so that it is fulfilled the previous thing (that the sales are equal to the costs).

And to analyze the balance point is to find the balance point and to analyze this information so that, on the basis of her, to be able to make decisions.

For example, we can find and to analyze the balance point stops:

• to allow one first simulation us that allows to know us from what amount of sales will begin to obtain utilities.
• to know the viability a project, to the knowledge if our demand surpasses our point of balance.
• to see from what level of sales, I could be recommendable to change a Variable Cost by a Fixed Cost or vice versa, for example, to change disposal boards, by a fixed pay in a salesman.
• knowledge that number of units or sales is due to realize, to obtain certain utility.

Labels: Concepts, Costs, Finances, Tools of business, Step by step

Published in Finances | 23 Commentaries”

The service life of the product

7 December 2008 - 23:46

The service life of the product is the set of stages through which it passes a product from his launching to his exit of the market.

The service life of the product is based on the fact that all the products have a finite life. As it happens to the alive beings, the products also are born (with its introduction to the market), have a stage of growth, one of maturity, and then, one of declivity (that culminates with its exit of the market).

The service life of the product is used like a management tool, since to the knowledge by which stage it is passing a product, we can define better our commercial strategies.

Stages of the service life of the product

We see next each one of the stages that conform the service life of the product, as well as some of the marketing strategies that we can apply in each of them:

Stage of Introduction

In this stage, the product makes its appearance in the market, the sales are low, but they begin to increase slowly, it is reversed enough in the development of the product and the publicity. Generally, the costs and expenses usually are majors that the income, reason why usually are no utilities and, in case of having some, this one she is minimum.

Labels: Concepts, Tools of business, Marketing, Product

Published in Marketing | No commentary”

Concept of the Benchmarking

28 November 2008 - 19:37

In this summary we will see the concept of the Benchmarking and examples of how applying it in our business.

The Benchmarking, briefly, is a technique or tool of management that consists of taking like reference aspects from our competition, and to adapt them to our business or company.

In order to make use of the Benchmarking, in the first place we must study our competitors (especially to the main ones or the leaders), to compile all excellent information envelope they, to analyze it, and to identify or to emphasize the aspects or strategies that are using or applying and that better results are giving them.

Followed step, we come to take like reference these aspects or strategies, and we adapted to our business, adding to him our improvements and our creativity.

For example, we can take like references its products, their services, their commercial processes of work, their policies, their strategies, their advertizing channels, their points of sale, their promotions, their methods of sales, etc.

Labels: Concepts, Study of market, Tools of business, Marketing

Published in Marketing | No commentary”

The analysis of the competition

28 November 2008 - 19:10

The analysis of the competition consists of the study and analysis of our competitors, so that later, on the basis of this analysis, to make decisions or to design strategies that allow us to compete suitably with them.

The importance of the analysis of the competition is in which when counting on certain information of our competitors, we can remove benefit from her and use it to favor ours, for example, can take advantage of its weak falencias or points, take like references its strategies that better results are giving them, or can take our precautions when knowing a future strategy that are about to apply.

In the first place we must compile all excellent information on our competitors, or are businesses that sell products similar to ours (competing direct) or businesses that sell products substitutes to ours (competing indirect).

Labels: Concepts, Study of market, Tools of business, Marketing

Published in Marketing | No commentary”