Writing a business plan.

A business plan is an important tool for enterprises to establish joint initiatives. This plan is a summary or the sum of the consideration. And the decision to change the minds of entrepreneurs into business opportunities business plan is like a map of the journey will help guide you step by step procedure in the Company. The plan will provide details in the competitive market strategy. Financial forecast. To guide entrepreneurs to success. Or point out the weaknesses and precautions.

What should a business plan.
A good business plan will help to gauge the feasibility of a business to invest. The plan should include a thorough analysis of the following factors.

A. Goods or services to sell.
Two. The prospective client.
Three. The strengths and weaknesses of the business to be done.
Four. Marketing policy.
Five. Method, or process of manufacture. The equipment to be used.
6. Financial figures. Since revenue is expected to cost the amount of income to investors. And cash flows expected to be acquired or used.

The business plan is important.

As a business plan.

A. To provide details of starting a business. Business plan, enabling operators to have clear goals. The way of thinking and allows the firm to use its resources and capacity to and To the goal.
Two. Is to seek funding from venture capitalists. Of venture funding. And financial institutions.
Three. To serve as a blueprint that details the activities. Activities in financing activities in product development. Marketing activities and others in the new administration. The business plan is also used to determine the future of the business continuity with

Why care about writing a business plan.

The initiative to establish a new business. Is the time to write a business plan. To get a good map because.
A. Map is the point that the author had in his car. It's not just a dream. A good map to make sure that investors or lenders. New entrepreneurs can make it. The dream became a reality.
Two. Map well to point out that the author is a professional. The complete plan will be reflected. Entrepreneurial talent and passion does. If you plan to borrow to quality. I did not expect the quality of future performance.
Three. Map well to point out that the operator has to prepare well. Plan indicates the level of preparedness to invest in the business. Pointed out that the trick is in how it is that the level of debt and prepare them very much. Give the investors or lenders feel less vulnerable.
Four. Good map reveals that entrepreneurs with a vision. Is a point forward. And how to deal with future challenges.


A good business plan. When I have to answer these questions.
A. To establish a much clearer shape. Completed or still.
Two. Business to invest or not.
Three. Business opportunities are likely to be successful from the first set very much.
Four. This has the advantage or the ability to compete in the long run much.
Five. Order to produce an efficient way to produce one.
6. Products can only be marketed effectively.
Seven. How to produce and market the product. The other choice than to save it.
Eight. Functions such as production, distribution, management, financial management and people management.
Appropriate one.
Nine. Number and quality of service requirements are adequate or not.
The business plan is important that the SMEs will be considered first. This plan will benefit the future performance of management and organization workers. As well as financial institutions and investors access to the resources of the business in the future. Usually, business plans, let us know where we went to where the future is. That way, however. The elements of the business plan consists of 10 main topics.

A. Executive Summary.
The main idea is that all of the business plan. It is a complete document in itself (Stand.
alone document) is to point out issues that are important to point out that there is real opportunity in the market for businesses who are thinking to do. And pointed out that And to do that. Is the market opportunity that is how. So the conclusion is the need to write an incredibly rich with possibilities.
The executive summary of a "conclusion" is to write short and concise (not more than 2-3 pages) and is the last part of the plan listed below. Content in the executive summary should be mentioned.
- What to do business. Have ideas about how business is. This explains the importance of products and services.
- Opportunities and Strategies. It is of interest. And business trends. To show that the market opportunities open to them.
- Target groups. Describe the market. The main customers. Planning to reach customers.
- The competitive advantage of the business. To the product. The advantage to the competitors.
- The executive summary of the knowledge, experience and skills should be limited to no more than 3-5 people, and who have an impact on future business success.
- Financial plan / investment by identifying the investment return of an investment will do anything to it.

Two. Business history / overview of the business.
This section provides basic information about the history of the Establishment / registration as well as the visibility and marketing opportunities. Innovation in product development. To offer to potential customers. And should provide information on long-term goals for the future.

Three. To analyze the situation.
Analysis of the so-called "SWOT ANALYSIS" is divided into two parts.

3.1 Analysis of internal factors. The monitoring capabilities. Availability of operations in various fields, focusing on the strengths (Strengths) and weaknesses (Weaknesses) of the Company.

3.2 Analysis of external factors. Evaluate the environment where entrepreneurs can not be controlled or changed. In a manner that is likely. (Opportunities) or threats (Threats) in the current situation, the operator should have begun to analyze the situation with an analysis of external factors, as operators can not control. The external factors that are important to operators should be required to pay attention to the seven factors referred to simply as "MC-STEPS" has the meaning as well.

Summarized as follows.
M = Market is the main target.
C = Competition is a competitive situation.
S = Social and cultural values ​​of the society, such as the use of products with the brand.
T = Technology is a breakthrough in technology.
E = Economic situation.
P = Political & Legal is a situation of change in the regulations.
S = Suppliers Group is a raw material suppliers / manufacturers and networks.

Four. Objectives and business goals.
The resulting business entity earned during the period of the plan. In general, the business is divided into. The overall goal of the business. The specific goals of each department / nature of the business goal is to be divided. Short-term goals. During the first years of the medium-term period of 3-5 years and long-term goal for over five years with the goal of good business.

4.1 it is possible to have the opportunity to achieve business goals.

4.2 is the ability to realize clearly that can be evaluated to achieve business goals.
Meaning or not.

4.3 is in the same sub-goals in each department should have a consistent look.

Five. Plans and market research.

Marketing plan.

To do business. The most important thing is the view of the market. The operator will need to have a look.
Out that consumers want. The production of goods or services to meet those needs. Gain is the result of the consumers have been satisfied.
Business plan as a starting point as any to me. In general, it is analyzed to determine the marketing plan.

5.1 The business scope or extent of the market (Market Definition).
5.2 Analysis of Industry (Industry Analysis) are composed as follows.
- Customer analysis.
- Analysis of the competition.
- Cost-benefit analysis.
- Analyze the most likely.
5.3 Market Segmentation (Market Segmentation).
Basically, it looks like all four market segments.

Geography
- Region.
- Urban or rural.
Demography
- Age.
- Gender.
- Revenue.
Psychology
- Form of life.
- High, medium, low caste.
Behavior
- How often do I have to buy.
- Loyalty programs.

Marketing strategies. In general, the marketing plan. Usually a simple process called the STP & 4P's.
1. S Segmentation is a segmentation of the market. As noted in section 5.3.
2. T of Targeting, is targeted to customers that we will not generally have.
3. P of Positioning is the image in the minds of customers.
4. 4 P's of marketing mix to fit in as the fourth plan.
(Action Plan) the market.
4.1 Product is a product / service.
4.2 Price is the price.
4.3 Place the channel.
4.4 Promotion is to promote marketing.

The Marketing Mix 4 P's of the foregoing, the 4 C's, which is regarded as a mix.
Marketing to the modern needs of consumers and should be used in the action plan.
With the market.
Five. 4 C's.
5.1 Consumer Need a production / sales of products based on customer needs.
5.2 Customer Benefits The benefits that customers receive.
5.3 Convenience is a convenient product.
5.4 Communication is perceived News Agency.

Research

The research is a starting point for the market. If you do not do their research before they enter the market, like the blind.

Research the company realized that. Typically, the buyer in a market that demands understanding and preferences differ from men like women like shoes. People would like a pair of skinny people. The fashion footwear market. I would like to expand further. As a result of differences in income. Education and taste.

6. Plans and management plans.
Defines the organizational structure. And executives at the other side of the business plan, business plans, human resources as well. This section contains the following topics.
6.1 Location.
6.2 Organization. And the management team.
6.3 Number of working hours, compensation plan, the knowledge, skills.
6.4 Equipment - equipment leasing, hire purchase.


Seven. Plan / action.
Production and operating plans that reflect the needs of the organization. "To manage the production process.
And operating efficiently and effectively "to enhance the competitiveness of business. Our focus is on issues.
Management processes to convert raw materials and production resources.
In operational planning. The operator must also decide on matters related to the production.
The main issue here is.
7.1 Quality.
7.2 The design of products and services.
7.3 Design Process. And decisions are made.
7.4 The design plan of the establishment.
7.5 Work Systems Design. And plans are in the process.

By considering the details of the system as a priority in the process. The use of machinery, equipment and manpower at the right rate. Responsible for different properties.
Employees and the knowledge, skills.

Eight. Financial plan.
When the marketing plan. Management plan. The plan has been produced. The most important need.
A financial plan to support. As in all good things require money. In the end of the business plan must include plans for the money.
The components are generally as follows.
8.1 The financial assumptions. Is the main factor. Of operations for financial efficiency. Generally as follows.
1) is the most important sales coming from the market place.
2) Cost of production plans should be placed.
3) Cost of sales and administrative personnel of the plan. And the development and promotion.
Different.
4) Interest Expense. Assessment of interest rates. The same loan with a loan that will add a new
5) Assets and Depreciation. Estimates of the investment in the future. And how to grow up.
Degeneration.
6) the appropriate inventory levels, inventory estimates.
7) Trade. Estimated length of time between sales. , And collect money from the sale.
8) Trade accounts payable. Estimated time of purchase. And payment to creditors.


8.2 Financial. The projected financial statements and ratio analysis based on the assumption that the place contains.

Statements are statements that reflect the performance of the company throughout the accounting period is generally long.
Set to be around a year or six months, the income statement consists of three main items.
A) sales or revenue.
2) expenses or costs.
3) the difference of those numbers, that is, net income or net loss.

The balance sheet represents the financial statements. Obligated to pay the debt. And the amount of capital on any one day only. Most of these are at the end of the period. The balance sheet consists of three main items on the list of assets, liabilities and capital or equity.

Cash Flow Statement (Cash Flow) is a statement of cash movements. It displays the results obtained and
Uses of cash or cash equivalents in the three main areas.
- Cash flow from operations.
- From procurement funding.
- On investment.

Therefore, the ability to manage its cash. And liquidity. Further flows.
Cash flow statement, cash and cash should be flowing into the second investment from the operation.
And most of the financing. Cash flow statement should be made monthly, quarterly, annually and may be offensive.
The next several years, depending upon the suitability of the property in order to know the current status and future prospects of
The business.

Financial ratio analysis. Divided into four main sections.
A. Liquidity.

1.1 Current Ratio (Current Ratio) = current assets / current liabilities.
Asset liquidity ratio of 1.2 (Quick Ratio) = (Current Assets - Inventories) / Current liabilities.

Two. Efficient utilization of assets.

2.1 Turnover of accounts (Receivable Turnover) = the net sales / average accounts receivable.


2.2 Turnover of goods (Inventory Turnover) = cost of goods sold / average inventory.


2.3 times the debt (Receivable Turnover Period) = (365 x debt) / sales.


2.4 Duration of inventory (Inventory Turnover Period) = (365 x inventories) / sales.


Three. The ability to manage.

3.1 Return on assets (Return On Assets: ROA) = (Net profit x 100) / total assets.

3.2 Return on shareholders' equity (Return On Equity: ROE) = (Net profit x 100) / Equity Shares.

3.3 Operating Margin (Operating Income Margin) = (Operating profit x 100) / sales.

3.4 Gross Profit Margin (Gross Profit Margin) = (Profit Margin x 100) / sales.


Four. The ability to pay.

4.1 The debt ratio (Debt Ratio) = total liabilities / total assets.

4.2 capital ratio (Debt to Equity Ratio) = Total debt / equity shareholders.

4.3 The interest rate (Interest Coverage Ratio) = earnings before interest and taxes / interest expense.

8.3 assess the situation model.
On budgeting and finance. Order to perform simulation analysis is sensitive to the situation when there is a change in the future. Let me illustrate the assessment of the situation is as follows: 3.

If, as sales rose 20% to 20% cost reduction.
Cases, such as sales rose 10% to 10% cost reduction.
The bad sales expenses increased 20% to 20%.

Which shows the impact of the changes that will affect the project, however, what happens if sales decreased 20% and expenses increased 20%.

8.4 Analysis of the payback period.
That the liquid phase of the project means the total time it takes to change in order to invest the assets back into cash again. The shorter the payback period is that the liquidity is better. And lower risk. However, the payback period for this. The weakness is that, regardless of the time value of money or cash flows of the different times. This criterion can be combined with an immediate payback period. And no cash flow in a number of projects to consider the feasibility of the project. Only cash will be required to pay only The criterion will not be justified for long-term project that is profitable for many years. The weight is especially important with a short-term projects.

Payback period is defined as the total duration of the project will provide a net total investment for the initial fit.

8.5 Analysis of the cost.
Starting a new business will have to analyze the possibilities for investment. In order to calculate the cost of a business before. The analysis of the cost margin is mainly used in the analysis by considering the amount of product sold. It would have been equal to the cost.

Units sold at breakeven point = fixed costs / (selling price per unit - variable cost per unit).

Note

Variable costs to total costs that vary according to the number of units produced or sold.

The costs include fixed costs that do not change the number of units produced. During the manufacturing or selling one.


8.6 Analysis of the net present value (NPV).
The rating of the importance of the value of money by the time I was with. This is the present value of cash flows for each period of the project together. Then compare the present value of the investments by the discount rate or required return. The net present value equal to zero. The average project cost. If the present value of cash flows as well. There are more than worth the investment. The project will provide higher returns than we want or expect. Should be invested in the project.
If not, then they should refuse to invest in the project.
Net present value = present value of cash inflows - present value of cash payments.

8.7 Analysis of the rate of return on investment (Internal Rate of Return - IRR).
The discount rate and / or interest rate that makes the present value of expected cash to be paid out of the present value of cash is expected to be received over the life of the project. Or is finding a discount or interest rate.
The net present value NPV (Net Present Value) is 0.

Return to project a return to the project's net present value = 0.

Nine. Plan.
It tells the story of the crash was not as planned. Yet another plan for what to do next with this business, such as changing business or service to other businesses to other sources. Or converted into other formats, etc. Examples of the risks and prepare contingency plans to be outlined in the example.
- Sales / collection of receivables is as expected. The cash and bank liquidity.
A loan or a loan circle.
- Competitive price cuts or promotional activities continued long term.
- There are new competitors that are larger than any more modern than the cheaper products into the industry.
Or located in the vicinity.
- Counterfeit goods are sold and the price is right.
- Behind the production order due to a shortage of raw materials.
- The production too. In order to have a good rest.
- Cost of production / management higher than expected.
- Arresting the growth of the industry.
- A partnership that is working well.


10. Appendix.
Might be a market analysis of competitors in the market. Of the original. I have a lot less. And demonstrates the opportunity to share. Clearly identify the target groups. The product. The strengths of the product. Compared with the original product. Available in the market. Demonstrate the opportunities. Advantage in various fields.