How to create a business plan: step by step Tips

The technical study

The technical study (or operational plan) describes technical aspects related to the business, such as the physical requirements necessary for its operation, and its production process.

technical study

The objective of the technical study is to have a guide for the operation of the business; but also show the reader what the daily operations of the business will be like, and that whoever has drawn up the business plan understands and has planned such operations well. Lean more business plan

This is why the technical study must provide enough information, but without being too technical or exhaustive to the point of making the reader lose interest in reading it, or that he cannot understand it due to its complexity.

The technical study part or section should include the following elements:

Physical requirements

At this point, a list of the physical requirements necessary for the operation of the business is made; For example, a list is made of the buildings, land, machinery, equipment, tools, vehicles, furniture, and inputs or raw materials that the business will need for its operation, along with their respective estimated costs.

The business process

At this point, the stages that will comprise the daily operations of the business are described; For example, it describes where inputs will be purchased, how they will be transformed into products, where products will be stored, and how these will be distributed to points of sale.

The degree of detail in the description of the business process (or production process) will depend on the type of business and the objectives of the business plan.

For example, if you consider it convenient, you could include related technical aspects at this point, such as purchasing policy, inventory size, and the indices or standards that will be used to perform quality control; as well as a flow chart or flow chart, or other graphic that allows you to make a better description of this process.

The business premises

At this point, the place where the business will operate is described; For example, its infrastructure, its size, its location and the reasons why it has been chosen, the distribution of its elements, etc. are described.

As in the previous case, the degree of detail in the description of the business premises will depend on the type of business and the objectives to be achieved with the plan.

For example, if you consider it necessary, you could include related technical aspects at this point, such as the production capacity that the premises will have, the capacity that will be used, and the location or arrangement of the machinery, equipment and furniture. (layout of the plant); as well as plans of its location and the distribution of its elements, and photographs of the premises that will help you to make a better description of it.

Business organization

The business organization describes how the business will be organized and how the different areas, departments or organic units that will comprise it will be related to each other.

business organization

The objective of business organization is to show the reader how the business areas will be divided or arranged, and that this will be a well-organized business that will have good coordination between its areas.

The business organization part or section should include the following elements:

The structure or legal form

At this point, it is indicated if the business will be constituted under the form of natural personnel or legal person , if it will be an individual company or a partnership, and the type of company under which it will be legally incorporated (EIRL, SC, SA, etc. ).

The organic structure

At this point, the type of organization that the business will have (functional, by product, matrix, etc.), the areas, departments or organic units that will comprise it, and the hierarchical relationships that will exist between them are indicated.

For a better description of the organic structure of the business, it is advisable to represent this through an organization chart.

The positions and functions

At this point, the positions or positions that each area, department or organic business unit will have, the general functions that each one will have and, if possible, their specific functions or tasks, as well as their obligations and responsibilities, are indicated.

The staff requirement

At this point, the personnel that will be required for each position or position is indicated.

For a better description of the personnel requirement, it is advisable to prepare a personnel assignment chart where the positions or positions in each area, the number of vacancies, and the profile required for each position or position (experience, knowledge, skills and skills a person must have in order to apply).

Personnel expenses

At this point, the salaries, salaries and benefits that will be assigned to each position or position are indicated.

For a better description of personnel expenses, it is also advisable to prepare a table with all the expenses that are going to be incurred in personnel for the period of time in which the business plan is projected.

Information systems

At this point, the information input, storage, processing and output processes that the business will have are described.

For example, it indicates how the information will be recorded (purchases, customer data, etc.), who will be in charge of recording such information, where it will be stored, processed and organized, and how it will be provided when required (through of reports, reports, etc.).

The work team

At this point, the work team (or management team) that is available to start up and subsequently direct the business is described (this, especially, if the main objective of the business plan is to present it to potential investors) .

For example, the professional trajectory of each of the team members is indicated, the experience they have in the type of business, their businesses or projects carried out, their achievements, the knowledge, abilities and skills that they will contribute to the business, etc.

To complement this information, you could also include their CVs in the documents attached to the business plan.

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Nowadays, when reading a business plan, special attention is usually paid to the work team (there are even those who give it more importance than the financial evaluation), so if you have a good work team, and you are going to present your plan to third parties make sure you develop this part well.

The study of investment and financing

The investment and financing study describes the investment structure, as well as aspects related to the financing of the business.

investment and financing study

The objective of the investment and financing study is to show the reader what will be the capital required to start up and run the business, how that capital will be used, and how it will be obtained or intended to be obtained.

The investment and financing study part or section should include the following elements:

Fixed assets

Fixed assets are the tangible elements necessary for the operation of the business that will not be for sale.

At this point, a list is made of all the fixed assets that will be required along with their respective estimated costs.

Fixed assets are usually divided into:

Furniture and fixtures : includes furniture and various equipment such as, for example, tables, chairs, desks, shelves, computers, printers, telephones, registers, calculators, fire extinguishers, etc.
Machinery and equipment : includes what is necessary for the manufacture of the product or for the provision of the service, such as, for example, production machines, drills, lathes, welders, tools, etc.
Vehicles : includes the necessary vehicles for the transport of personnel or business merchandise.

Land and buildings : includes land, buildings, constructions and infrastructure, as well as the investment required for the conditioning of the premises (remodeling, installations, painting, finishes, decoration, etc.).