6 things that indicate that your company needs a new business plan

Prepare a business plan is essential for the proper functioning of the company. If you do it following these tips you could place your business at the top of the market.

The business plan is a document that reflects the business objectives, as well as the planning necessary to achieve them.

Although it is generally thought that only new companies require it, the truth is that there are many situations in which a certain activity needs to change course. And also there it is important to have previously developed this summary.

Today we want to talk about how to create it correctly, as well as teach you to detect the indicators that it is time to re-structure it in your case.

A BUSINESS PLAN NOT ONLY FOR NEW COMPANIES! 

All companies must create a strategic plan, a business plan in which to plan the operation and possible strategies to develop .

This document is not only for new companies or future projects, it must also be carried out in entities that are already in operation.

In this way they can set goals that must be met and mark time, as well as define the key indicators that will help them measure those business goals.

WHEN TO MAKE A BUSINESS PLAN IN YOUR SME

It is advisable to carry out a business plan at the beginning of any activity and when it is detected that the changes in the market have been such that the company needs an important restructuring.

In addition, at least once a year in all companies should review this document establishing new objectives, guidelines or changing those that have not evolved as expected.

HOW TO APPROACH A BUSINESS PLAN

The first step is to analyze all the ideas that arise and the problems that the company is or has gone through. At this point, the most important thing to explain clearly the needs of the project.

This part is fundamental, but it should not be postponed. It must be done as soon as possible in order to move forward and implement the plan to improve the company.

PROBLEMS WHEN IMPLEMENTING A BUSINESS PLAN 

When implementing the plan, certain aspects must be taken into account and all the details must be clearly defined so that the proposed objectives are met.

• Time of the year. Businesses vary and suffer a lot with seasonality.
• Communication and promotion plan. To reach your potential customers effectively.
• Location. Situation of the company, where is the headquarters and the subsidiaries if it has one.
• Analysis of macro variables. They will tell you what is the best time to launch and implement the plan.
• Analysis of micro variables. Study and analyze the competition, customers and suppliers.

THE 7 SIGNS OF COMPANIES IN WHICH SOMETHING GOES WRONG

It is not easy for an entrepreneur to realize that his business is not working as it should. And this in the long run can produce certain problems and consequences such as the closure of the company. If you observe these 7 signs in your company, be attentive and resolve possible conflicts.

1. Stagnation of employees. This was common a few years ago, employees could spend 20 or 30 years in the same position. But now companies want to move forward and be up to date, so they must motivate their employees with possible promotions. Only in this way will they give 100% of their talent.
2. Rotation . If a company changes a lot in a company over a year, something does not work. If your employees do not stay with you, it is because something is failing and must be resolved as soon as possible.
3. Innovation . The lack of this is a sign that employees are unmotivated, therefore they will not have initiative or good ideas to improve the functioning of the company. It can also be due to a management problem that is not able to understand market demand and the importance of applying technological advances.
4. Always on . Problem that is occurring nowadays and more and more often. Being connected 24 hours a day is not healthy. Neither for the employee, nor for the middle managers, nor for the managers. Establish fixed schedules, set weekly goals and meet them increasing productivity without increasing the time needed is the key to improve in this regard.
5. Competition . Be attentive to market movements. Observe new trends and the entry of new competitors. You can not forget these two factors and you must implement new techniques and technology to always be ahead of the competition and lead the market.
6. Income . This is the symptom that everyone looks at. When a company’s income starts to go down, something is not working well. It can be caused by the increase in costs or the decrease in sales. If this happens you must act quickly and solve the problem before having to close.
7. Inventory . If you see that the stock of product or raw material accumulates on the shelves of your warehouse is that something serious is happening and sales are sure to have gone down. The best thing you can do is talk with your clients to find out the reasons that led you to that situation. In this way you will be able to correct the errors.

STEP BY STEP OF A BUSINESS PLAN 

Although each company is a world and there are no magic rules, it is true that there are certain guidelines to take into account when developing a business plan. In the case of SMEs, we could summarize them in these 8 steps:

1. Introduction . Talk about your company, its history, type of business and structure. This part is essential if you are thinking about possible investors, so that you will give a general and summarized overview of what your company is.
2. Business . Describe your business, your proposal, the mission of the company. Make a brief description of the objectives and markets you want to target.
3. At this point you should discuss four basic aspects: competition, customers, market and sales estimate. Analyze and describe these points to be able to present the objectives in a realistic way and that actions can be implemented in order to fulfill them.
4. Product . Talk about your product or service, how to produce it and the facilities you have. Also of how it could be valued in the market according to the competition and the target it is aimed at.
5. Strategy . Once the product is analyzed and its strengths and weaknesses are seen, the next step is to consider the sales strategy based on the market and the competition.
6. Address . Describe the directors of your company. He talks about his experience and training, in this way the possible investor will see that you have a human team prepared and capable of making the business succeed.
7. Finance . Study the money you need or need and very important, where will you get it from. To know this, it is necessary to analyze the cash flow, the results of the company and the annual balance.
8. Funding . It has a lot to do with the previous point. Describe the sources of financing for the company and potential investors.