When to Make the Business Plan of A Company?
Sometimes it is difficult to make the business plan and knows what the first step to take is. If you have in mind to become an entrepreneur do not allow doubts to stop you. At Emprender-Fácil we are here to promote your ideas, that is why we will show you where to start developing your business plan for a company.
This article has a “trick” because I am not going to indicate steps but reasons, and you already decide if at the moment you are, you have to make a business plan for a company. And is that …:
How are you going to make a business plan for a company if you have never developed something like it?
Well, nothing, we walk through life sometimes thinking about the mantras that they tell us and having to follow the patterns that they indicate.
For a moment … do you think Steve Jobs had a business plan? Do you think Richard Branson started his first “Student” venture (a magazine, with a business plan for a company?
What to do at each stage?
Companies go through 6 stages that we will list below. At each stage, you have to know what to do.
You are not going to make a business plan for a company when there is no company, nor are you going to think about hiring when you are in the idea phase.
You have to develop and grow your business with market segmentation but you have to know when to apply it to detect your target market. In the same way, you have to know how to finance your company, how to capture the talent necessary to carry it out and how to manage a management team in addition to managing competition, sales, income and a long etcetera.
That is, many things, then before saturating you with a lot of information both offline and from the Internet, let’s go to see how to approach it in parts.
Breakdown of the stages of the companies
Let’s break down each stage. You have 3 options:
- See these training videos of the stages of the companies:
Management by stages 1 [The definitive guide to knowing what to do at all times]
- See this article that summarizes these points and indicates when and why to make a business plan for a company
- See both 🙂 ask us, train with us and grow with us.
In any case, let’s get started!
Phase 1: The idea
Be it an idea that occurred to you in a bar, a product or service idea that has been around for a while, or an idea that you already know and want to develop.
It may be the best idea in the world and it may already be working. You know how to do it and you think you can develop it. To ensure this, you want to make a business plan for a newly created company. In the end, this plan will bring you to the client to sell the fruit of your work, right?
You do it, you waste time, you jump into the pool and after a few months or years of burning your budget and capital, you find … cat crook!
So … what can I do in the idea phase?
We present to you … The Star matrix!
This matrix helps us determine if the idea, our team, our capacity and OUR PASSION, are going to help us to make our business and objectives go ahead and be super profitable.
If this is not the case, we are missing something, from the exercise with this matrix and with our help (if you want) we can tell you what to reinforce to get ahead. Profitability is just around the corner if we meet the characteristics indicated by the star matrix.
And the business plan of a company?
Well, it still does not apply …, it applies to see if the idea makes sense and we can develop it.
In parallel if you want, you can do two actions:
- Define the business model with the canvas model.
- Make a brief feasibility plan to get an idea of costs.
Phase 1: The desert journey
This is the moment where you put the knife between your teeth! and you start looking for clients, financing and move your company forward.
Now is the time to make a business plan for a company? Not.
It’s time to test your idea, start rolling, start making it work. I highly recommend you to watch this video of
The keys to the video are simple:
- Get into the wheel.
- Do what you love.
- It improves day by day.
- Corrects on the fly.
Phase 3: Irregular growth. It is not yet time to make the business plan
When we start having our first clients, everything is a mess!
Although you have already crossed the desert, you have already reached the oasis, that is, you have already survived with your money, adding value to your consumers.
The business works, but it works somewhat chaotic, which is normal because you are beginning to face new situations.
The most normal thing is that you do not have things organized correctly both at the executive, commercial and financial level and you “get the bull”.
Do you have to make a business plan for a company now? The answer is no. Forget about each one, of resources, assets, expenses, supplier management and their offer. But forget in general, focus on the particular that makes you grow in this moment.
Now it’s time to learn the business, stabilize, see how the business works above and fit the pieces into the organization.
In this phase, we recommend using the Eisenhower matrix to prioritize. This is:
So what we will do is the following:
- Urgent and important tasks must be done NOW.
- The tasks that correspond to improvement projects, which are not urgent and we usually leave it in the pipeline, must be done daily. In other words, you have to move forward a little day by day on what is important.
- Not important but urgent tasks (send a document, respond to a possible person interested in our product or service), we can delegate them and create jobs for it. You can also leverage management tools like Platzilla to manage and automate many tasks in your company.
- Finally, the tasks that make noise, those tasks that take time and do not give any kind of benefit, either present or future, better eliminate them.
Phase 4: Regular growth. The moment of a company’s business plan
It is in this phase when YOU CAN DO THE BUSINESS PLAN OF A COMPANY. At last!
And, in this phase, you have organized and your company is already a company and not a beach bar. This is because:
- You have already delegated some routine tasks and focus on a strategy and your plans. You may want to receive consulting or embark on a new activity development or marketing project.
- You know the market from previous experience and you can make some forecast based on a business plan that should help you move to the next optimized phase at a predictable cost.
Having said that … How many companies do you think to waste time on a company’s business plan when it is not necessary to do so? How many failed strategies are there in companies?
I leave it there for you to think about …, not everything is location, financing, branding or using one software or another. Focus on the business and the rest will come “rolled”. There will be time to do another type of analysis. Now it’s time for the sale!
Meanwhile, tell you that in the regular growth phase the company prepares to plan to grow quickly and develop the business to the maximum.
Phase 5: Optimal growth
In the optimal growth phase, the company operates like a well-oiled machine, with predictable management and administration. Of course, we have been learning along the way, we have optimized the processes and we are much more fit.
Our machinery is viable, creates great results, has a clear focus and is capable of achieving the results that we have previously defined and wanted to calculate.
and why all this?
Because we know the clientele, costs and benefits, consumers and even the investors or investors that we want to include if we deem necessary.
Now it is time to do not only the business plan of the company annually as part of a strategic company projection. If you want to know more about the projection of the company you can see the following video:
Last stage: expansion or transfer
Finally, the last stage, if you have reached it, is a stage of a dynamic oriented to scale.
In this stage the processes are improved, the optimization of operations is sought and the aim is to grow with the help of experts, hiring workers, increasing our portfolio of products and services and investing in facilities.
In this phase, a company’s business plan is one more tool …
- A company’s business plan has been made when we can plan.
- Within the idea phase, you have to develop the idea, not the company.
- In the desert crossing phase, you have to survive,
- Going into the irregular growth phase you have to learn.
- Finally, in the regular growth phase and the following phases of optimal growth and expansion or transfer, a company’s business plan is a very useful tool.
Before you leave read out these interesting articles:
- Why an Entrepreneur Needs Management Software
- 20 Skills and Qualities of a Good Leadership
- What is Excellent Customer Service? How to Provide
- How to Become a Good Leader: 8 Ways to Become a Wise Leader
Thanks for reading this article on When to Make the Business Plan of A Company.