Innovative business models increasingly require entrepreneurs to make quick decisions throughout the course and structure of their projects, but there is no point in being agile in execution without having a plan to follow for the business.
Anticipating opportunities and threats, defining strategies and planning the business model is the first step towards success, finding coherence between market expectations and plans to achieve goals. With planning, risks are mitigated and the company has a direction of which paths to follow. Therefore, good planning becomes essential for the maturation and permanence of business in the market.
The Business Plan is a fundamental management tool for all entrepreneurs who want to put their ideas into practice and turn them into a promising business. It can and should be applied in the most different formats and moments of the business, since its beginning and after reaching maturity, following the constant, inevitable changes in a dynamic and constantly evolving market.
The preparation of a Business Plan starts from a thorough reflection on all the stages in the conception of a new venture – or renovation of an existing company – and on the variables that may interfere with the success of the business, going through the analysis of probable future scenarios. the market in which one wishes to operate, the product or service that will be made available to users in face of other alternatives, the problems and pains of the target audience, the production process and available technologies, among many other elements. For this planning process, various techniques and tools can be used and combined, including market research, brainstorming meetings, BSC, Canvas, BPM, BCG and SWOT matrix building, and many others.
The outcome of a business planning cycle must be recorded for execution and control, which may occur through a descriptive report or even using other nontraditional models. The Business Plan document serves as both the basis for knowledge dissemination, implementation guide and performance monitoring, as well as for presentation to business investors and funders, for example, who will use this information to analyze the business and make their value judgment. For this, it is suggested the detailed structuring of the document, containing the most important points taken into consideration in the planning process and the logic built on them to support the business model; including breakdown of Market Analysis, Marketing, Operational and Financial Plan; Strategic Analysis and plan quantification, translating it into a projected budget and results. With these steps properly constructed, it is possible, given all the information gathered, to make safer decisions about the business, the expectations of economic results, and the potential valuation of the business.
There are several advantages to the planning and construction process, but it requires the patience and dedication of the entrepreneur, and having the support of professional managers and experts in business critical areas makes the process easier and results even safer. Knowing this, a prevention tool is better than going through the whole process of opening or renewing a business, investing time and financial resources, and then only after discovering in practice that there is no scope for the business model in the business in chosen format.