These are the most basic elements for a basic business plan.
1 .- The business concept, rather than the product itself.
What matters is not what you want to sell, what matters is the “business concept” let me explain with an example. Most people think McDonald’s is a hamburger business, others believe that the business is to call the attention of children with the Happy Meal and sell hamburgers to stop, this is only part of the concept.
The true concept of business from McDonald’s “Real Estate” is the company that has more commercial properties in the world, their approach is to buy land with little commercial value, they put a McDonald’s, in a few years the property rises in value and sell the rest of gains ground.
Franchise dealers pay most of the construction and equipment also end up paying rent for the facility over the franchise royalties. Everything is owned by McDonald’s, the point here is the local income and sales of inputs.
The same with Burger King, Estartbook and other franchises, notes as the concept is more important business to market the product.
2 .- The market investigation.
Depending on the size of the business is the research carried out to know the market where it intends to make inroads.
The time and money set aside for that purpose, should be in proportion to the magnitude.
The better you know the market behavior will be more shielded against problems and failures as well as preventing and dealing with any contingency.
3 .- The economic investment.
Each type of business determines the amount to invest, however it is common to fall into the mistake of starting business with the wrong budget, either more or less.
The concepts are to invest, the building and machinery, raw materials, salaries, marketing and advertising, just to mention the most used.
Remember always be more important than a good idea for a big budget, good ideas actually reduce the amount to invest and increase the chances of success.
In times of recession, many employers neglect the business plan motivated by desperation prints their economic problems and end commercial digging its own grave.
All the time you invest in a business plan, will save time and money, and secure better results.