What is a plan of businesses?

6 August 2009 - 17:57

A plan of businesses, also known like company plan, consists of a written document where to a business or project is described that is about to be realized and everything what it is related in this way, as the objectives of the business or project, the strategies that will allow to reach these objectives, the study from the market to which is going away to penetrate, the form in which they are going away to commercialize products or services, the investment that are going away to realize, the required financing, the projection of the income and debits, the financial evaluation and the organization of the business or project.

Usually one thinks that a plan of businesses is only elaborated at the time of creating a new business or company, nevertheless, a business plan also is accustomed to and must elaborate when it is counted on a business in march, and it is sending a new product to the market, acquiring new machinery, penetrating in a new market, penetrating in a new heading of business, and every time it is about to realize a project where it must invest a considerable amount of money.

To elaborate a plan of businesses is not nor must be a simple task, but it is and it must be an activity that requires of time and dedication, every time this one account with several parts and requires of abundant information, being able it to be necessary the accomplishment of a previous investigation that allows to know all the aspects related to the business or project.

Also, a plan of businesses is not a document that circulates a single time, and soon is forgotten in some place of the company, but it is a document to which it is due to go time and time again (as much at the time of implementing the business or project like at the time of managing it), or to follow the lineamientos that this one entails, or to make sure that the obtained results agree with the planned ones.

Objectives of the plan of businesses

The reasons to elaborate a plan of businesses, basically are three:

• To serve as guide to initiate a business or project, and to be able to manage it: the plan of businesses allows us to plan, to coordinate, to organize and to control resources and activities, and, that way, to be more efficient in the creation and management of our business or project, and to diminish the risk.
• To know the viability and yield the project: the plan of businesses allows us to know the viability and yield the business or project and, that way, of knowing if it is worth the pain to realize it, or if we must look for new ideas or projects.
• To demonstrate attractive of the business or the project to third people: the plan of businesses allows to demonstrate before third parties, attractive and profitable of our idea or project, and, that way, to be able to convince them that they grant a loan to us, of that they invest with us, or of which are our partners.

Structure of a plan of businesses

In order to elaborate a plan of businesses a defined structure does not exist, but one can always adopt the one that creates advisable according to its objectives, but making sure that this one grants order to him to the plan, and makes it easily understandable for which it reads it.

The following one is a common structure, that it counts on all the parts whereupon would have to count a plan of businesses:

• Executive summary: the executive summary is a summary of the other parts of the plan of businesses, this one usually includes the description of the business, the reasons that justify the project, the differentiating characteristics, the competitive advantages, the required investment and the yield of the project.
• Definition of the business: in this part to the business and the products or services are described that are going away to offer, the objectives of the business or project, the main strategies that will allow to reach these objectives, and the initial datas of the business, such as the name, the type of business and its location.
• Study of market: in the market study one describes the main characteristics of the objective public, the main characteristics of the main competitors, the prognosis of the demand is determined, and to be developed the marketing plan.
• Technical study: in the technical study it is indicated the physical requirements, describes the productive process, the infrastructure, the size of the business, the capacity of production and the disposition of plant.
• Organization: in the part of the organization the legal and organic structure of the business is detailed, are indicated to the areas or departments, the positions, the functions, the pays and the information systems.
• Study of the investment and financing: in this part it is indicated the required investment (the fixed investment, the intangible assets and the capital of work), and the required external financing.
• Study of the income and debits: in this part to the projections or budgets are developed, including the budget of sales, the preposition of cash or projected flow of box, and the operative budget or state of gains and losses projected.
• Evaluation: and, finally, in the part of evaluation the evaluation of the project is developed, it determines the period of recovery, and the results of the used indicators of yield.

In order to know a little more on the parts than they conform a plan of businesses, we invited to you to read the article: structure of a plan of businesses.

Labels: Concepts, Creation of businesses, Plan of businesses

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Related contents:

1. The plan of businesses
2. Plan of businesses (part 8): The evaluation of the project
3. Requirements to elaborate a good plan of businesses
4. Plan of businesses (Part 1): The executive summary
5. Advice at the time of elaborating a plan of businesses