W. D. Meyer Law

Business Plan The business plan also called business plan is a document that specifies, in written language, a business that intends to start or already started. It sets out the general purpose of a business, and market research, technical, financial and organizational, including topics such as marketing channels, pricing, distribution, business model, engineering, localization, organization chart, capital structure, financial evaluation, funding sources, necessary staff along with their method of selection, the philosophy of the company, legal aspects, and its exit plan. Generally considered a business plan is a living document, meaning that one must be constantly updated to reflect changes not previously foreseen. A reasonable business plan to justify the expectations of the company’s success is key to securing financing and venture capitalists.It is usually made by entrepreneurs, managers, or when an entrepreneur intends to start a business. In this case, is used internally for management and corporate planning. In addition, use it to convince third parties such as banks and potential investors (eg. The business angels or venture capital firms) to provide funding to the business (1). This plan may be a commercial representation of the model to be followed. It brings together verbal and graphic information on what the business is or will be. It is also considered a summary of how the business owner, manager, or entrepreneur, try to organize a business work and implement activities necessary and sufficient for success. The plan is a written explanation of the business model of the company to be put in place. Usually the business plans are obsolete, so a common practice is its constant renewal and updating.A common belief within business circles is about the true value of the plan, dismissing it too, however it is believed that the most important is the planning process, through which the manager acquires a better understanding of the business and of the available options. The Business Plan is a strategic document with two main functions: 1. To determine the economic and financial viability of the business project. 2. Will mean the first image of the company before third parties. The main applications that presents a business plan are: It is a very useful tool for the team of promoters and to detect errors and properly plan the implementation of the business prior to the start of the investment. Facilitates obtaining bank financing, as it contains the forecast of economic and financial statements of the business and properly informed about its feasibility and reliability. You can facilitate negotiation with suppliers. Recruitment of new partners or collaborators.