HOW TO MAKE A BUSINESS PLAN: THE COMPLETE GUIDE

Before analyzing how a business plan is made, we can investigate the definition of the term more carefully to probe its multiple meanings. In Italian, with a business plan, we mean the business plan that is:

These pages also indicate the cost and earnings estimates.

Small and medium-sized companies use the business plan. Still, start-ups have a business plan, together with artisans, freelancers, or, more generally, self-employed who know that planning can make a difference. The document is used for two main purposes:

  • Business planning
  • Communication to any lenders

The various sections of the business plan: the descriptive part

Although it is a complex presentation and analysis tool, in this guide, we want to help you simplify it by describing the various sections.

Almost all business plans are divided into two parts:

  • Descriptive part
  • The economic and financial part

Both sections must be written with precision, without neglecting any points. In this paragraph, we will focus on the descriptive part, which includes:

  1. Introduction of economic data
  2. Competitor and product analysis
  3. Positioning strategy
  4. Operational plan

The first point will briefly illustrate the company and which products it offers on the market, indicating the technical characteristics and what are the strong points and criticalities. Especially for start-ups, it is important to underline the project’s innovations and what makes it unique compared to the competition. Price is another key detail. The third and fourth point has the task of presenting the marketing plan. One of the most used tools is the model I call 4P:

  • Product
  • Prezzo
  • Place (distribution strategy)
  • Promotion

For a professional and convincing result, it is necessary to turn to trained professionals with a degree in Economics and Commerce and specialization in this sector. This is only the first chapter of the future business plan. In the next paragraph, we outline the guidelines for the economic and financial part.

You can also contact business plan writers for preparing an exceptional business plan.

The economic section of the business plan

This part is dedicated to the financial feasibility plan, estimating a medium and long-term forecast in which the budget and income that will generate the entrepreneurial challenge are framed. It is very important to give space to this part and to use time and tools suitable for an in-depth analysis. Some companies make forecasting errors discounted during the entrepreneurial life, making the investments wrong and not taking into account factors that can be great obstacles to the project’s sustainability from an economic point of view. An accurate section cannot but contain information on:

  • Financial requirement
  • Sources of financing
  • Any unforeseen events and business risks
  • Hypothesis simulations
  • Activities calendar

If you intend to apply for funding, associate with partners, or promote the project to organizations and institutions, it is essential to have a business plan. No potential investor would ever accept a poke project. Therefore, if you have a clear idea of ​​your business future, immediately contact a professional in drafting business plans.

The marketing strategy

An essential core, the very heart of the business plan, is the so-called marketing strategy. In the economic sphere, we hear a lot about strategy. These are the basic rules that a company must follow to reach the peak of expected success. So, whenever you feel confused about the evolution of your project, you can go back to these pages and find the indication, the right path to follow.

Here we must leave room for the 4Ps we have already talked about:

  1. Thanks to the internet, you can make use of an e-commerce portal, select direct points of sale or contact a network of intermediaries (wholesalers)
  2. Promotion concerns advertising and communication, vital to highlighting a new brand or product. Being visible and recognizable is a must to avoid losing sales and profit opportunities.

No errors are allowed at this stage. It is the chapter that generally frames the first steps to be taken. But how do we translate the intuitions on paper into reality? We dedicate the next paragraph to the more practical aspects.

The implementation of the business plan

To go into more detail, it is necessary to define which actions aim to make the various theoretical intuitions practical. To use terms typical of the sector, we can say that the operational plan is concerned with concretely translating the vision. What are the daily procedures that lead to the realization of the business plan?

  • The work procedures
  • Breakdown of capital in the various production processes
  • The techniques and technologies used
  • The availability and procurement of raw materials
  • Policies and relations with suppliers

Nothing is left to chance. Although your project was probably born from a dream, you have to follow a certain logic to frame the technical and strategic management of the project. You have to provide solid realities. If your business idea is particularly innovative, this is an advantage in terms of attractiveness. This encourages lenders to invest without hesitation, convinced that over time the company will be able to grow exponentially, together with the earnings for all the players involved.

For more information you should contact business plan consultants.

Conclusions on the business plan

Those who make the business plan, generally professionals with great experience, know what the tricks of the trade are, what works, and what to avoid in order not to blow up a project and the time dedicated to its realization. You can undertake to draw up a schedule in which you transform into clear words the points that we have brought to your attention. With this first draft, you can propose the project to the attention of a professional with a specialization in Economics who will guide you in writing, who takes care of the research and analysis phase and translates it into data and logical schemes, all that for the moment is only a ‘ more or less vague idea.

Ideas generate great satisfaction only if carefully made concrete by precise strategies. We hope we have given you good food for thought to believe in the success of your project. And launch it on the market with the right visibility.

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