The business plan: guide to starting your business

business planning

The business plan is the central base, the pillar that supports an organization that can become a guarantee of success. Planning in a business serves as a guide for its creation or expansion, as well as to focus on new products or detect new opportunities. Ultimately, it is about providing lasting economic viability and anticipating changes.

In this article we explain how planning can help you when making decisions. From new product development to financing.

How to make a business plan step by step

The concept of business planning is something strange if we do not have experience or it is the first time that we are faced with the task of opening a business . In summary, we can indicate that, broadly speaking, a business plan must have these steps:

  1. Development of the mission and objectives : we must know what we want to carry out, where we want to go and to whom.
  2. SWOT plan : the SWOT plan is an internal and external analysis of the organization, idea or product. It is about analyzing weaknesses, threats, strengths and opportunities, recognizing what position we occupy or are going to occupy and at what points it is necessary to carry out an improvement.
  3. Define strategies : here we must define how we are going to achieve it and for this there are three tools
    • Market development
    • Product development
    • Market penetration
  4. Develop strategies : through strategic plans. We will base these on the knowledge defined in the previous point, we can determine which part each part of the company is going to carry out.
  5. Analysis of the result : what was the result? Is it expected? Has the expectation been exceeded? Is there to improve? To learn from our mistakes we must first know them. If necessary, return to point 1 or continue with the development of the strategy that we have determined.

An example of a business plan? There is no single business plan model if not many examples to follow. You can take our guide as a reference or seek help in centers specialized in advising start-ups, both public and private.

Finance the business

The entire business financing process can come to nothing if you cannot find the necessary financing to promote your project. At Taichi Arts we have explained in different articles the financing options that you can have at your fingertips. This is a brief summary.

  1. Lines of Credit : it is a very successful formula among companies as it allows access to almost tailor-made financing. From a total credit amount, we can partially use a part and return only that part, keeping the rest for eventualities . This type of financing fits very well in the development of the strategic plan within the business planning.
  2. Loans for freelancers : these are financing offered by private online lenders aimed at people who are self-employed and do not receive payroll from month to month , which is often one of the basic requirements when contracting a loan.
  3. ICO loans : the Official Credit Institute allows access to financing for business projects through banks. Although they work like traditional bank loans, they are somewhat more flexible . In addition, they have less interest than traditional credits, yes: you must justify all purchases for the company.
  4. Capitalization of unemployment : it is a formula in which, if you have become unemployed and want to start a business activity, you can receive money from your unemployment benefit for your project.
  5. Apply for a fast loan online : the credits in 15 minutes offer great flexibility and money almost instantly, without paperwork or justifications.

Financial planning

One of the instruments that can help you get better financing is the figure of the loan broker . Sometimes we get lost among so many concepts and we do not have time to know what financing options can be more useful: an ICO loan? A traditional loan? A line of credit?

At this point financial planning comes into play in the business plan. It will be completely impossible to carry out a business project both in its beginning, as in its intermediate phase or when you must hire personnel.

At all times we must guarantee the economic stability of the organization and it is absolutely necessary to maintain the square numbers . You must learn to anticipate possible turbulence and financial planning should be a very important part of the entire business planning strategy that you carry out in your company.

What are the keys to the business plan?

To achieve the objectives we have set, it is necessary to follow a clear, concise and flexible roadmap. If so far we have seen the previous work, based on analysis and funding, then we have to focus on how we are going to develop the work itself. Here the keys to planning come into play .

  1. Identify the risks and inconveniences to anticipate, without forgetting that there will always, always, be a part that will be impossible to face.
  2. Define what values ​​will mark the success or failure of a specific or general initiative of your business project.
  3. Define a methodology in which you encompass all aspects of the job. You will define what tools you are going to use to organize the tasks and the tactics to face a project.
  4. Don't be afraid to delegate . Establish those responsible for each section or task and that they are the ones who organize and plan the project.
  5. Establish clear deadlines that even include a margin of safety to face eventualities.

With an eye to the future

All these steps should help you to bring the ship to good port, keeping in mind to guarantee the financial needs of the project. To do this, we must be able to draw up an exhaustive plan with a view to the short, medium and long term and with the possibility of facing eventualities or unforeseen events that threaten the survival of our project.

Remember that planning is not a fixed roadmap, but it can change. What's more, it would be positive to modify it over time . This implies that your organization is adapting to changes on the fly, interpreting what customers want and what the organization needs.

The business plan: a must for all companies

Whether you are starting an SME or are self-employed , developing a business plan is absolutely necessary to ensure that our idea can be a success. Naturally, there are many factors that can cause your business to not perform as expected . With good planning, you will be able to adapt to changes and foresee what can and cannot happen.

And don't forget to check Taichi Arts for new articles on economics and business or the best financing options for your projects.

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