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General Construction Business Plan
All the business plans have more or less the same sections, but when they arrive at the investor’s table, some stay where they are and others go to the dreaded column of those of “I’ll read later”. If you want yours to be one of those that arouse the interest of the most impassive, read on.
To begin with, some basic notions that should be clarified. A business plan is a methodology that systematizes and integrates the activities that will be necessary for a business idea to become a company and that gives rise to expectations that demonstrate that it is profitable. Or said in other words, it is the hook to capture an investor and tell them that our idea is great and very profitable.
It is a communication tool for selling an original idea and serves to attract and convince people who have the resources to implement it. But in addition to raising funds, the business plan is also the best tool to assess the viability of your business.
Often there is a tendency to confuse business plan, business plan and marketing plan. It should be clarified that the first two, in essence, are the same. The third is a part of the other two.
MATTER OF NUANCES
What difference is there between a business plan and a business plan? The first usually refers to a business that is starting and that must necessarily include information on the procedures for setting up the company and the requirements to start it.
The business plan, by contrast, can be made for a company already underway. Before going into pure and simple matters, some tips to achieve what the expert Sergio Bernúes calls the Stop rule, that is, the signal that alerts the investor that this plan is worth it. For this it must be:
Suggestive. Both in the exterior design (neat cover, quality paper, attractive design …) and in the interior (it must be organized with summary, body and annexes) and structured (with a complete index and an easy-to-read typeface) . The executive summary is key and we will dedicate a specific section to it.
Tempting. Written in a way that encourages the reader to make numbers and assess the possibilities of entering the business. You have to take care of the writing style, be brief, use simple language (main ideas in simple sentences), avoid jargon as much as possible and eliminate the superfluous.
Occurring and dynamic. You have to be creative, but in moderation. If the business you are proposing does not invite great flourishes, save them. It can be counterproductive to distract the reader. Creativity is important as long as you highlight something about the business, but it cannot have the opposite effect. You can also accompany it with slides, a video or any other medium that facilitates reading and sets it apart from the rest.
ADVERTISING – READ ON BELOW
Accurate and explicit. Clarity and conciseness must be essential. It must carry useful information. No important data can be missing. Remember that it is a matter of quality and not quantity, do not waste your reader’s time. The key ideas, from the beginning: that their meaning does not have to be deduced. Although the main economic tables should go in the financial-economic section of the central body, in the annexes you can include secondary data, the results of the market study, the CVs of the professionals and, if you have it, any letter of recommendation or favorable report. .
Ideally, it can be developed in an extension between 50 and 75 pages and can be presented in both Word and Powerpoint.
ACCORDING TO THE RECIPIENT
However, according to experts, the following nuances must be kept in mind:
When you go to venture capital. It is very important to make it clear from the beginning how you can get out of business. There are investors who have scrapped plans for not picking up on this point. We must not forget that a venture capital is managing other people’s money and is interested in investing it as well as in the way of disinvesting it because it is here that it will generate capital. In order not to generate any doubt in this regard, it is best to explain that there is the will of the entrepreneurs to acquire the part of risk capital reached a level of growth, well detailing the characteristics of a market that has a great potential to sell its shares to companies. larger or because it has chances of going public.
When you go to a business angel. What this investor wants is involvement in the business. That is why it is important to highlight in the executive summary the attractiveness of the sector, of the business and that it can be involved in the company in the way that we consider most appropriate. With business angels or private investors, it is important that the channel to reach them is some common acquaintance because it gives our plan further credibility.
When we go to a bank. This interlocutor is looking for guarantees. Make no mistake, rarely does a bank invest in a project, what it does is to lend the necessary money and therefore needs guarantees of that return. These guarantees can come hand in hand with the profitability of the business itself, but financial entities better understand the language of real or physical, not hypothetical guarantees: personal property, company property, and so on.
When we go to a public Administration to apply for a grant. In this case, it is crucial to carefully read the bases of the grant to emphasize the main objective of public financing. Try to emphasize the development of a territory, job creation, the promotion of new technologies … Analyze your business well and adjust to what they ask for in the bases to highlight the part that best fits the bases. Here it must be borne in mind that, unlike the previous