what’s this? What is it for? How to write it? A new business or business idea can arise in various ways: from an intuition, from the discovery of a new technology, from the growth of the demand for a product / service, from the identification of a need or a lack of a market. From
what’s this? What is it for? How to write it?
A new business or business idea can arise in various ways: from an intuition, from the discovery of a new technology, from the growth of the demand for a product / service, from the identification of a need or a lack of a market. From this intuition must then start an organized process of verification and analysis, which then leads to the drafting of a feasibility plan or business plan, in order to ascertain if the business idea has an outlet market, if the product / service can be purchased by the consumer and what the sale price could be.
The business plan is generally made up of three main parts:
- an introduction describing the business idea, the genesis of the idea and the promoting partners of the initiative;
2. the technical-operative section that analyzes the feasibility of the business idea on the market and the organization of the activity;
3. a quantitative-monetary analysis that develops the economic-financial forecasts of the company.
This “document” is fundamental for all types of activities as a tool that can help in the assessment of the business, in the verification of the feasibility of the project, trying to transform the generic risk into “calculated” risk. The business plan thus becomes, at a later date, also an instrument of management control that allows to find any deviations from the forecasts.
Recent studies conducted on the topic have shown that many successful entrepreneurs have not necessarily started their business with a formal plan written “black and white” but rather with the succession of actions and practices that have embodied their passions, ideas, etc. Here then the Business Plan should be more a mental guide to channel ideas and resources, rather than a perfect image, or almost, of the situation that awaits us.
In order to find a balance between the need to effectively order ideas, attract potential investors and organize the work team, without wasting too much time in developing content and a plan that is “theoretically” perfect, it is worthwhile to dwell on:
- Definition of a clear vision that supports the business idea;
2. Team identification . The people are the first variable to consider, the starting point for the entire project;
3. Focus on a specific segment of the market, or a niche , in order to concentrate efforts and resources on a well-defined target. In this way, the chances of success increase … it is much more difficult to make a name for itself in the mass market, having to clash with big players rather than in a smaller market where there are more chances to emerge;
4. Identify your business model and the levers for generating cash flow.
Having fixed these elements, we need to take action with small steps and great attention to the first feedback coming from the market, from customers, suppliers and especially from team members who are at the same time the heart and “working soul” of the project same. This “sensitivity” to listening is essential in order to make corrective actions with respect to the initial plan of activity and to get closer and closer to the real market conditions.