A business plan is a written document created to analyze a business idea in detail in the career of a self-employed person or the construction of a company. This, in short, allows you to plan the future of the project, make a budget plan, and know how it will work successfully.
This is one of the first documents that a self-employed person or company must prepare since several Public Administrations, banks and organizations will probably ask for it if you are going to request any help or carry out any procedure. How is it done? What should it include? Does it have any cost? In this blog, we solve your doubts, keep reading!
And in case you have any questions, we will solve them for you in a free consultation!
Functions and characteristics of a plan
Ideally, the self-employed person or business group is the one who creates and promotes the project.
Well, the level of development of the business plan and its content may vary from one project to another; so the entire team must be aware. The extension of the plan, the volume of investment to be made, its complexity, and the size of the project, all must be known by the self-employed or the group.
Specifically, the functions that a business plan must fulfill are:
- Describe the business idea in detail.
- Examine how viable it is technically, commercially, and financially.
- Plan the strategies to follow, the steps to take, and the resources to use to turn that business idea into a functional company.
In simple companies, a business plan can be defined in a few pages, while in startups or medium and large companies, the project can extend much longer.
Even so, it is recommended that it does not exceed 50 pages and include a good executive summary in the first 2 or 3 pages, to serve as a synthesis and presentation.
The business plan must be clear and concise so that another person can easily read by. Furthermore, it must be convincing and real, since it will depend on it if financial resources are obtained.
What should a business plan have?
A business or company plan usually contains the following points. However, this is only a guide, you can be inspired by this content to create your own and add or remove the points you want:
1. Executive Summary
2. Project presentation
2.1 Origin and evolution of the project
2.2 The promoter team
2.3 The idea
3. Market study
3.1 Market situation and evolution
3.2 Clients
3.3 Competition
3.4 Distribution channels
4. Commercial strategy
4.1 Product strategy
4.2 Location of the business
4.3 Pricing strategy
4.4 Communication strategy
4.5 Sales and Distribution Strategy
5. Production and human resources
5.1 Applicable legislation
5.2 Production process
5.3 Suppliers
5.4 Human resources
6. Financial economic analysis
6.1 Investment plan
6.2 Financing plan
6.3 Income statement
6.4 Cash flow
6.5 Balance
6.6 Ratio analysis
7. SWOT (Strengths, Weaknesses, Opportunities, Threats) Analysis
Who is interested in the project?
Internal level
First of all, it is of interest to you as a freelancer or member of the business group that promotes the business plan.
It is worth reiterating that this is a tool to analyze and plan the project, you must be interested in it to identify its strengths and weaknesses.
External level
To entities and people from whom you are going to request help or financing: banks, public administrations, individual investors, business angels, suppliers, among others.
The business plan is a “business card” for these entities, of the business project that leads to their acceptance of aid and subsidies. In many places, it is mandatory to show the written project.
Also, it serves to attract private investors, a guarantee from a mutual guarantee company, or the obtaining of a bank loan.
Business Plan Template/Guide
Finally, everything we explain here can be found in a Business Plan Guide that you can download for free so that you can shape your project much more easily.
Do you need more information about creating your company in Spain?
At Entre Trámites we offer various services of management, advice, and support in bureaucratic procedures for self-employed, SMEs, and other types of companies. Contact us! Through our contact form, you can leave your details for us to call you, schedule a free consultation, or simply text our WhatsApp.
