The business plan is the entrepreneur’s guiding document. It defines the objectives, strategy and resources needed to start up the company.

It is a document that must be kept up to date since it allows to present the business to investors and to analyze the market situation. Let’s take a look at the step by step:

Definition and objectives

Clearly defining your product or service is the first step. What do you offer? Is your idea viable? Your answer to this question must be yes to get started. It goes hand in hand with the objectives. A common mistake is not to have written down your business objectives. What do you hope to achieve? You must set viable goals. This is where your vision of what you want to achieve is focused.

Market research

Market research is fundamental. At this point you must define the niche, or target audience for your product or service. You must consider the industry trends regarding what you offer, as well as a detailed investigation of the market in which you are going to work, taking into account the growth potential and expected benefits.

The market study allows you to share the research you have done to gain a thorough understanding of the market and industry you are targeting.  Investors to whom you present your business plan should see that you have a solid understanding of your industry, the competition, and your niche market.

For good market research, it is advisable to go to your local government or official entrepreneur helpdesk. For example, the Chamber of Commerce where you live can provide you with information, resources, and tools to plan, manage and launch your business.  Don’t rule out the help you can get from banks that offer financing to emerging businesses.

Strategy

At this point you define how you are going to achieve the goals you have set for yourself. With the commercial objectives of your business clearly defined, you will be able to design the appropriate strategy to carry out the actions that will lead you to obtain the proposed results for the short, medium and long term.

Administration and organization

Do you have a team? Tell investors who they are. Include their training and experience, highlighting the strengths of each profile. Here you should also define the legal structure and organizational chart of your company.

A classic that never fails: the SWOT analysis.

Surely you know it. Strengths, Weaknesses, Opportunities and Threats. Keep in mind that strengths and weaknesses are internal, while opportunities and threats are external. If you have this clear, future investor (and your own team) will have a clearer path to follow.

Marketing plan

How do you plan to reach your target audience or customer? Depending on the budget foreseen for this section, you will be able to establish how to sell your product or service. If you are clear about this, when you present your business plan to investors, they will know that you know where you want to go. If you don’t have much experience in this area, you can always look at the competition. Look for success stories and get inspired to create an original marketing plan.

The business plan focuses on what you have just read. However, keep in mind that it is a living document, which can vary depending on different factors.

If you are thinking of forming a company in Spain and you do not know what legal procedures and paperwork you must do, in Duguech&Dip we can help you with your business plan and with the previous study of feasibility, financial forecast and profitability.

In Duguech&Dip we are here to help you. Call us.

Since legal advice must be tailored to the specific circumstances of each case, and laws are constantly changing, nothing on this article should be used as a substitute for the advice of competent legal counsel. The content on this article is offered only as information. And does not constitute solicitation or provision of legal advice. You should always consult a suitably qualified lawyer regarding any specific legal problem or matter. 

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