The business plan: a guide for proper drafting

Happen to feel that there are people or young kids who want to pursue a new business and often do not have the financial capacity to start.

Although the idea is a winner, or at least it looks like it, you do not have the money needed to open a new business and then the euphoria fades.

In these cases it is often enough to create a solid business plan, print it, bind it, then going to involve agencies, institutions, banks, lenders concerned.

If the idea is good for you, surely it will be for those people who coinvolgerete.

The business plan is an indispensable method to proceed in the jungle of business and to realize there are several techniques and guides.

The business plan should be a schematic program that allows you to become aware of all aspects of your idea from conception to its development and must be combined with an explosion of textual every point inserted in the diagram to explain why and how to achieve a particular result.

Often you just need a solid business plan to capture the attention of a lender who might find in your idea the right way to invest money.

 

How to Create a Business Plan, cost analysis, and earnings of the sector.

 

Before starting a new business is very important to write up a business plan that will be printed and kept always in plain sight so you do not ever lose the juice of the investment.

 

Create a new task is precisely to be seen as a real investment that will have to be programmed both in terms of time, which in terms of money and marketing.

In any investment scheme is useful to keep clear of the extent of money spent and the time required to recoup the investment going to observe the many variables that may be encountered depending on the chosen field of interest.

Create your own business to be considered as a continuation of his business experience is therefore only right that the choice of the type of company you hook firmly to their personal and cultural baggage, only in this way you can start off on the right foot, then we strongly advise to see the creation of a task only for the purpose of gain.

A company is first of all a passion grown over time and only a deep passion can create successful businesses, successful company also brings money and in many cases many.

Before leaving, so you have to be quite clear what a person wants to carry on for a lifetime, why a company that works usually works for a lifetime.

As soon as you have chosen the field, the second thing to do is just create a very detailed business plan that can be summed up in this simple guide easy to read.

 

STUDY AREA OF INTEREST:

as we have said, choose a field on which it feeds a deep passion is to be considered a good sign for the success of a company.

Once you have chosen the industry is very important to spend some 'time to the study and analysis of the same trade which consists in the analysis of industry market and its evolution over time with an eye to a possible and probable evolution as going also to interview the professional analysts.

In this first analysis we must not underestimate anything, it is important to analyze the past and future competition in the sense that it is of considerable interest to understand why other companies in the sector have failed before, and why others have been successful.

To take a small example, if you plan to open a clothing store, try to understand how important the position of a business, the possibility of parking nearby, the colors used in furniture, the package of brands and types of products sold that also implies the type of customer, see if nearby destination are present exercises with which it might be possible to create partnerships or whatever, whether the property where is the commercial operation company is owned or if it is rented, this can make it clear what would be the profit margins. Try to develop all of these points so that they are well understood.

 

ANALYSIS OF THE MARKET:

Important point is that the market analysis is to look at how varied the sales market in the sector of your interest and for some sectors might be helpful to look at the trend of enterprises producers of the product to be marketed also analyzing the curve sales in Italy and abroad with possible projections for the years to come.

Also try to create surveys to propose to prospective clients in the area of interest by proposing queries that can make people understand what customers look for and how the customer may be loyal to the company for future creation.

E 'is also proper to evaluate the average lifespan of a product sold, if it's a coffee (2 minutes), ice cream (10 minutes), a cocktail (30 minutes), a vacation (10 days), a mobile phone (2 years) , a software (5 years), a sofa (15 years), a mattress (25 years), a house (undefined although statistically a person changes the house on average 3 times in a lifetime).

 

Do not forget to also evaluate the level of perishability of a product that leads to assess how long a product MUST be sold before being put off or below cost or even throw it away.

 

COST ANALYSIS:

once outlined the sector and identified the points of the market, we pass to analyze the costs of the company and its related depreciation that can be divided into two parts namely fixed costs and variable costs. Fixed costs include the expenses for the payment of the property or for the purchase of the same (in this case the fixed cost depends on the bank installment of the loan), the cost of electricity, gas, garbage, inps, inail, income tax, any costs for travel to the headquarters costs, accountant and any costs of employees.

In the variable costs (even those that are applied only once) insert the costs for the opening of the business which includes the registration in the commercial register and notary fees, costs (which may be included in fixed costs if there is a mortgage or financing) to buy the products the company (which may be the decor but also products to sell), costs for promoting the company in which they can re-enter the creation of a website and promotion on major search engines costs, advertising, events and initiatives to present the company created for all possible customers.

 

Regarding the depreciation in your business plan must indicate the number of years required to pay off a loan or bank financing is in addition to the time required to return the costs of a possible promotion and purchase of products.

To do this you need to analyze the mark-up on products for sale to be made considering all the variables described above, for example, if a product you pay 10 euro, it is helpful to go to add the fixed and variable costs (going to evaluate the timing of the variability of  a cost or weighing each term variable cost with the time to run it), add a percentage of income that allows you to live and at that point you will have the selling price of the product.

Once you get the sale price according to your needs cost is only right to go to see the price maintained by your competitor for the same or similar product in the eyes of the buyer.

 

The buyer often is unable to properly assess whether a product is of high quality or not, but even if the level of quality in some way explains the price offered to him.

If a beer in a local average with average customer, think of selling it to 20 € the customer could negatively evaluate the product even if it is the best on the market without equals. The customer might say "ok good, but it's worth it?".

 

It's up to you to assess the quality / price according to customer requirements.

So try to better evaluate the monthly cash flows but especially those who are annual ones you can continue to do your project.

Many often create a very detailed business plan, full costs be amortized but sometimes they forget to evaluate the annual cash flows necessary to return from the expenditure disbursed. ASSESSING THE COSTS BUT ALSO GAINS.

 

STRUCTURE OF THE COMPANY:

to develop this point it is useful to consider the legal form which must be the company to be created by studying the various levels and types of companies in person and capital as well as operating costs.

Not to be underestimated are the cooperatives that we will see in the next article.

The structure also includes the number of employees to be hired also considering costs and professionalism knowing that a committed costs far less than a lawyer, and it all depends on the type and area of interest to be developed.

 

FUTURE INCREASES:

in your business plan may include also future developments such as going to increase the turnover of your business in the city or neighboring countries but also in other states.

Consider well the possible wedding or strategic purchases that allows you to break down any running costs, purchase or that allows you to leave the country with your product on-line.

If you have for example an internet site that offers travel solutions, you should not underestimate the increase of Chinese tourists and in this case it would be useful to translate your site even in the Chinese language and enter into contracts with agencies that can make native conquer a good chunk market.

 

FRANCHISING:

There are also many good solutions from the world of the franchise and for this I invite you to read this important article.

 

CONCLUSIONS:

write and print the finished project and evaluated each point.

 

 

10/07/2008

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Translated via software

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Source:

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