Business plan: what it is and how to prepare it

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Surely you've already had a great idea and immediately thought you could do it. Most of the time, this is how many businesses come about.

But, often the new entrepreneur did not do a good anal Chinese Overseas Asia Number Data ysis of the market, competitors and customers for his company. Therefore, the business may be closed in a short time, due to a lack of planning .

According to Sebrae, the reason for the mortality rate of companies is a lack of management and planning. Therefore, in less than five years on the market, many of them close their doors.

It can be said that Brazilians are not people who plan much, but they are very persistent and creative. But, when it comes to investing, perhaps, your only capital in a business, it is important to draw up a business plan.

Proper business planning can guarantee the success of the company.

Therefore, for those of you who are thinking about opening a business or even expanding yours, we created this article to help you understand what a business plan is and how to do it. Follow along!

What is a business plan?
The business plan is where you will document the objectives, viability and risks of your business. It can be structured either for new companies or for those with an expansion project.

It is from the business plan that you obtain detailed information about the sector, what your products and services will be and who they will be sold to. Furthermore, it contains your potential suppliers, as well as the company's strengths and weaknesses. This makes it much easier to identify the viability of the business.



Why is the business plan important?
As we have seen, the business plan is a tool to validate the company's market potential. It does not eliminate errors, but it helps the entrepreneur to avoid them, reducing business risks.

Check out the benefits of a business plan , as it is also called:

helps entrepreneurs organize their ideas;
if the company is already active, the strategy can help with its expansion;
it is an analysis of the viability of the business ;
provides guidance to partners, managers and employees on the company's objectives;
help with fundraising ;
brings more credibility to the business.
These are some of the numerous benefits of the business plan. It is from there that you will study the market and understand how you can be successful, stand out from the competition and offer differentiators to your customers.