What exactly is a business plan? A business plan is similar to a plan of a building, i.e., a document (in this case written) which describes in detail how a business project must be carried out. In the case of a building plan graphically detailing its structure, the facilities available to it, the way will be constructed as will be seen when ready. In the case of a business plan, talked of a document which is intended to detail the structure of a company, the form that should take, the cost (initial opening, operating, advertising, etc.) and scope of same (mission, vision and objectives).

Planning. In planning describes the business idea, the name of it, the history of money, a brief description of the company and the products sold by the company. Here we will try to answer the questions: What do you spend your business? What products or services produced?
Marketing. Afterwards comes the marketing phase, where they analyze the market you will be directed products (target market) and will define the strategy to reach them (marketing plan). This phase will include “market research”, which consist of executing a thorough investigation to determine the commercial viability of the project.

It is worth mentioning that it is very dangerous to assume that it will succeed because “you already know the market.” There are always variables that can influence not contemplated in the project’s feasibility, economy, competition, fertility market, growth prospects, and so on. A market study, being conducted by a professional in the field, minimizes the risk of not considering some of these variables.

The marketing plan will detail the objectives, strategies and activities necessary to execute the marketing and the approximate cost. In detailing the steps to get products to market, the means used channels of distribution, product prices and so forth. Arguably, this marketing plan is the backbone of the business, because if this fails, we run the risk of failure due to lack of flow.

Operation. This section defines the human resources necessary to operate the business (organizational structure) as well as techniques for producing goods and services and administrative policies.

In the organizational structure will be defined who will lead the company, the number of employees required and their hierarchy, the type of work performed, the payment structure and responsibilities that should count.

In the production, section should be considered: key suppliers, the minimum stock (if you sell physical products), delivery dates and minimum elements necessary to make the distribution, freight, packaging, etc. (if applicable).

As the administration will be defined: credit policies, management of creditors, management of accounts receivable and accounts payable, discount policies, as well as the cost of opening and financial plan, i.e. the projection of sales, cash flow, profitability and breakeven. In addition, if you are not the only investor, you must describe how they obtain the necessary funds.