Showing posts with label basics of starting a business. Show all posts
Showing posts with label basics of starting a business. Show all posts

Thursday, April 28, 2011

The Business Plan Part. II

Starting a business is of three main stages, each having a dimension iterative

• The first step is, according to the objectives and motivations that have led to a project to refine its knowledge of the environment in which the company operates, with an approach also known as SWOT EMOFF (Environment / Strengths / Weaknesses / Threats / Opportunities) and requires gathering information about clients, competitors, suppliers, regulators, and the key skills and resources available to the company or must have.

• The second step is to refine the project in terms of Key Success Factors (CSF) and variables or fields of Strategic Actions (VAS).

• The third focuses on the means (technical, human and financial) necessary and action plans from which the Business Plan is the subject of a valuation, and financial economic quantification.

The document that materializes this research, this reflection, the choices that result, the main actions and associated resources is called Business Plan. It has 2 parts:

• The first part, called pitch, is devoted to the arguments needed to validate and sell his project. This part of nature "literary", must be rigorously prepared to highlight the economic consistency of the project.

• The second part corresponds to a financial overview of the measures and Covering the project's economic viability.

The business plan

Starting a business is not only starting a business alone,  it involves raising  funds, developing  an business activity, diversifying it, transmitting , merging, adjusting, developing, negotiating and  communicating your dream business. There are many reasons for embarking on the adventure of developing a business plan.

Creating a project is not only the record of business plan alone but it also includes a financial component and a pitch.

As for investment, in financial terms, it can be defined as "sacrifice resources in hopes to draw more in the future," which indicates three key concepts: duration, cost and risk. Aspects profitability and financial flexibility are at the heart of the case. They underlie substantive issues such as: How to appreciate and take into account the reversibility of a project? Is there a business model in the business plan?

The financial calculations do not remain a simple decision support, and that beyond the virtues and pitfalls, advice and methodology presented in the Business Plan has many facets.
And above all the business is a script of a wonderful story and which should be directed by the creator himself. It is the expression of a chosen strategy to be shared more or less detail, among its shareholders, bankers, employees and other stakeholders of the company if necessary.