Starting your own business is a dream for most American. Today we are a reference in the area of entrepreneurship, including, among the countries where business is most open worldwide. At least that is what the results of rankings of renowned institutions, such as the GEM (Global Entrepreneurship Monitor) and the Approved Index, point. It turns out that although the American has the vein of the entrepreneur, unfortunately, the scenario for the companies of the country is not the best.
The data is of concern. According to the American Institute of Geography and Statistics (IBGE), approximately 50% of companies close their doors before even completing 4 years in operation. Largely, the cause of the early mortality of these businesses is the lack of planning, especially when it comes to financing. There is still a maturity, on the part of the American manager, to face the business with professionalism.
To not be part of the statistics and keep the business on the track of growth, you must, therefore, make a good business plan . Basically, this is a planning that defines all the characteristics of the business. In addition to evaluating sales-related issues, it also studies the target audience, delineates monitoring procedures and tools, outlines long-term goals and objectives, and many other things.
The subject is so important, that we decided to make a special post on the subject. Check out, right away, what the business plan is and how it can help your business sell more!
After all, what is the business plan?
Of course, you may have wondered if a certain idea could turn into a business. In some cases, the willingness to take all these ideas off the paper and put your hand in the dough is so great that the future manager takes the risks of uncertainty to the realization of his dream, but is that necessary? Certainly not. Of course, any business has risks, but the fact is that you can mitigate them if you plan well each of your steps.
The main purpose of this planning is to validate an idea. In other words, it is a tool for you to set goals and plan all your steps. It is necessary to evaluate the financial, the product, the customer, the strategies that will be used, the objectives, the marketing, among many other issues. Let’s check how to make a good business plan? This is the point that we will address later, so keep reading.
How to make a good business plan?
There are many ways to establish a business plan for a company. However, in all of them, it is necessary to contemplate some items considered as priorities for good planning. All these basic points are present in a basic planning tool called Business Model Canvas or simply Canvas, which is highly recommended – Sebrae itself uses it as a reference for companies.
Basically, the idea is to separate the planning into blocks, preferably in a visual scheme, where each one is represented with its priorities. Let’s check it out?
In this first block, the objective is to discover, through market research, which is the target audience that will be reached. In this way, it is much easier to define what the action plans, strategies, value propositions, and marketing will be to conquer them.
Want to open a law firm? Or, who knows, a clothing store? No matter the type of business, the competition is getting wider. So you need to think about your differential and learn how to sell it very well. This is what we call a value proposition.
As important as knowing your customer well and discovering his differential is to define how the company will offer this differential to the public, right? How will you respond at this stage? The key activity helps you see how you are going to explore your company’s services or products.
How will this customer purchase your product? Where will you complain or interact with the company? Customer service has never been so important, so it is crucial to define the channels through which this relationship will be strengthened.
Now is the time to clearly define what it takes to get all the old ideas out of the paper. What will be the starting capital? How many employees will be needed? What technology will be implemented? This is the feature checklist.
Sources of revenue
Is the business really sustainable, that is, can you walk with your own legs? Now is the time to define the sources of revenue. Basically, the idea is to figure out ways to earn revenue through value propositions.
Finally, of course, it is imperative that you know exactly what the costs will be for the company to function ideally. By comparing the cost structure with the revenue source, you can find out, a priori, whether the business is feasible or not.
What are the advantages of the business plan?
In defining what the business plan is, you may have realized some of the clear benefits of this practice, such as reducing risk, for example. However, the advantages go much further. Firstly, we have the sales question. By defining the channels, key activity, value proposition and customer segment, it is much easier to improve the results; after all, the entire sales team from marketing to sales will have more accurate information on how best to perform Their tasks.
In addition, the business plan is indispensable for acquiring external resources. Both investors and banks in some cases check the business plan of the company before giving out resources, after all, expect to see if the business really is profitable or at least has the potential for such. In other words, in addition to carefully planning each step of your business, you will assemble a script ready to sell your business to outside audiences.