Plan of businesses (Part 2): The definition of the business

After the executive summary, the second part or section of a plan of businesses is the definition of the business, which consists of the description of the business and the aspects related to this one.

The objective of the part of the definition of the business is that the reader understands in what consists the project or proposed business, and knows the reasons for which he considers himself that this one will be successful.

The elements that would have to conform the definition of the business are:

Name of the business

In this point we must indicate to the name of the project or business, as well as other initial datas such as the location, the type of company, the type of economic activity (if it will be a producing company, marketing or of services), etc.

The description of the business

In this point we must explain of what the business consists that we are going to realize, and of describing to the product or service that we are going to offer, indicating its basic characteristicses.

Differentiating characteristics

Those characteristics on which it is going to tell to the business or product, that is going to allow to us to differentiate to us or to distinguish to us of the competition. Examples of differentiation can be a special attribute in the product, low prices, a good attention to the client, etc.

Competitive advantages

Those advantages that we are going to have in some aspect of the business, that is going to allow to us to excel and to emphasize before our competitors. Examples of competitive advantages can be to count on a system of efficient distribution, the being first in the market, having a good location, etc.

Objective public

The objective market to which we are going away to direct, the main characteristics of the consumer conforms who it, and the reasons for which we have chosen this market. For it, in the first place we must realize a segmentation of markets that allows us to choose the most attractive market to penetrate.

The vision of the company

The declaration of the vision of the company, which indicates towards where this one in the long term goes, or what is that one in which tries to become.

The mission of the company

The declaration of the mission of the company, which indicates the object, intention or reason of being of this one.

The reasons that justify the proposal of the business

Reasons by that has been attractive the business idea, by which the idea like a business opportunity has been considered, or by that it thinks that the project will be successful. Examples of these reasons can be an unsatisfied necessity, a market in growth, some competitive advantage that we have and we want to be useful, etc.

The objectives of the business

The objectives of the business, general as as much specific, that they will look for once position this one in march. Examples of objectives can be the being a mark leader in the market, increasing the sales in a 20% for the second semester, obtaining a participation of 15% from the market when finalizing the first year, etc.

The strategies of the business

The main strategies of the business that will be used and that will allow to reach the proposed objectives. Examples of strategies can be the differentiation as far as which to the design of the product it talks about, counting on consumptions of first quality, counting on located points of sale strategically, etc.