How to put together a well-structured business plan?

The task is not simple. You will have to analyze several variables to check whether your idea is currently viable or not. To do this, we need an appropriate market analysis tool and the requirements needed to start the venture — the famous business plan.

To guide you in this endeavor, we have prepared a complete post on the subject. Check it out!

How important is it to analyze the market?

A market analysis error can mean a huge loss. You need to know whether the gap you noticed really exists, whether your region has this demand, whether the profitability of this sector is adequate , etc. In addition, you should analyze the competition, the quality of the products and services available, and the growth prospects.

This will help you determine whether your competitors have the ability to stifle your business, whether your customers are already satisfied, and whether there is a tendency for the supply and demand curve to balance. Finally, a macroeconomic analysis is essential to identify whether the national market is at risk in the future.

How to put together a business plan?

Define the target audience

The target audience is the most precise definition of who will buy your product. The more specific it is, the greater the chances of success in your subsequent analyses. Therefore, include factors such as gender, social class, age group, education level, location, etc.

A good example is “young women, between 21 and 35 years old, from classes A, B and C. Incomplete or complete higher education, living in the Lourdes neighborhood of Belo Horizonte”. Avoid generic definitions, such as “young women between 18 and 24” only.

Carry out operational planning

This stage involves the entire description of how the company will be implemented and structured in terms of physical facilities, commercial location, equipment and machinery, human resources, etc. It defines the step-by-step process for the organization to get off the ground. To do this, it is necessary to include a realistic estimate of the following points in the plan itself.

Production capacity

What is the initial and long-term production capacity? What will be the initial idle capacity for safe business scalability? After all, to maintain a stable start, it is not recommended to start using 100% of the production capacity. It is necessary to leave some reserve idle capacity to maintain the quality of service in times of greater demand.

Service capacity

How many customers will it be possible to serve per month? What is the expected number for the business to thrive? Starting a business depends a lot on word of mouth. So, it is better to have many customers consuming little than a few consuming a lot.

One of the biggest mistakes is to focus solely on profit at the beginning, accepting large orders. Over time, you become very dependent on a certain audience and may suffer losses if they abandon you.

Staff

How many employees are needed? What are the tasks of each employee? This question is important so that you can start with the smallest possible number of employees, while still maintaining smooth operations. Payroll costs are among the highest costs for a company and hinder growth, especially at the beginning of a business, when more capital is needed to grow.

See which functions you can personally perform with quality and which should be delegated.

Need for equipment and machinery

What equipment and machinery are needed initially? Nowadays, we know that successful businesses usually start out small and invest in constant growth. Therefore, it is risky to buy equipment that would only be used in cases of high demand. Leave it for when the work is actually going to happen, which can take some time.

Knowledge needed to open a business

A business is not just an idea; it is a set of knowledge mobilized for success. So, list everything you need to know in terms of finances, market, production chain and the industry itself. Many entrepreneurs see a niche growing and want to invest without knowing anything about it.

Therefore, before executing the plan, make sure you have the necessary knowledge. In specific areas such as accounting and health surveillance, you need to understand at least a little about the business — it is worth having consultants.

Processes involved

In this case, the key is to know which processes are really necessary for your business to flow. Having too many processes is negative, as it makes the company bureaucratic and inefficient. For example, in the restaurant and snack bar industry, processes can be simplified into:

• food production: selection, manufacturing and quality control of products, etc.;
• counter service: stocking greenhouses and refrigerators, customer service, receiving payments, etc.;
• delivery: receiving and delivering orders;
• administration and finance: cash balance, inventory control, bill payment, supply chain management, etc.

Formalization steps

It is necessary to know the specificities of each area. In the case above, it will be necessary to research the requirements of the health surveillance, the documents required by the city hall (such as a report from the Fire Department), the documents for formalizing the company with the Federal Revenue Service and the Chamber of Commerce, etc.

Make a realistic financial plan

The most important thing in this step is to be extremely realistic when making estimates. In this case, it is better to be a little pessimistic than optimistic. Only then will you know if your business is viable. This part should contain:

• initial investment capacity, counting on loans and financing;
• initial cost estimates for opening;
• expected fixed and variable income and expenses in maintaining the business;
• payroll value;
• working capital available after opening;
• expected gross revenue;
• forecast of taxes and social charges;
• equilibrium point between supply and demand;
• list of potential investors and partners.

Having a detailed financial plan is an essential step to obtaining investment and loans. Some banks and financial institutions even require a business plan with financial projections for 5 years. With this, they verify your administrative capacity (if the objectives and means to achieve them are realistic, of course) and the prospects of your company.

Develop a marketing plan

It is also essential to have a marketing plan. Once your company is open, it will need to attract the attention of its target audience. Therefore, advertising actions cannot be random and based on intuition.

It is necessary to follow a step-by-step process, as each stage of the company requires a different type of strategy . Knowing what to do to attract customers to your store, make them buy your products, distinguish your brand from the competition and then build customer loyalty are steps that should not be overlooked.

In addition, there are numerous strategies to be defined, such as:

• social media presence with corporate profiles, with or without paid advertising;
• niche marketing to stand out from the competition;
• traditional advertising with pamphlets and entertainment activities;
• promotions to attract new customers, etc.

Therefore, given the importance of marketing, unless you are a professional in the field, you need to hire a specialized consultancy.

By taking these steps in depth and with dedication, you will be able to put together a well-structured business plan. It will be crucial to ensuring your future success and, without it, your company will probably be on the bankruptcy statistics within 5 years.

If you find all of this too much work and want to avoid these steps, the ideal model for you may be to buy a franchise. After all, franchisors already provide a business plan that is practically ready for your needs.