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 market, it is important to define 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 draw 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 of 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 who pay the bulk of the construction and equipment, and end up paying rent for the establishment, but the royalties from the franchise.
Everything is owned by McDonald’s, the point here is the local income and sales 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 enter. Time and money aside for this purpose should be in the same proportion to the magnitude. The better you know the market behavior will be more shielded from problems and failures, and to prevent and resolve 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 for investment are: the building and machinery, raw materials, salaries, marketing and advertising, just to mention the most used. You will always be most importantly a good idea for a big budget, good ideas actually reduce the amount to invest and increase the chances of succeed. In times of recession, many entrepreneurs neglect the business plan driven by despair print them end the economic and commercial digging their own grave. All the time you spend in planning a business, you save time and money, while ensuring better results.