How to achieve a solid and realistic Business Plan

In order to create a solid and realistic business plan, it is essential to follow some key tips that will help you create a consistent and effective document:

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1.- Define the purpose of the business plan:

It is essential to clearly state the objectives of the plan, analyse the viability of the business and eliminate uncertainties.

A) Market research:

Thoroughly research the market, competitors and customers to identify strengths and weaknesses.

To identify your competitors in the market and find that information, you can follow these steps:

• • Define the Types of Competitors:

Identify both current and potential competitors. Current competitors are those that already rival your business, while potential competitors could become competitors in the future.

• • Conduct a Competitive Analysis:

    • Create an overview of competitors.
    • Conduct market research.
    • Compare the functions of the products.

1. 1. 1. Identify the Competition: Distinguish between direct competitors, who market the same product to the same audience, and indirect competitors, who target a different audience.
      2. Compare Product Features: Analyse in detail the key features of competing products, such as price, service offered, target audience, number of features, design, ease of use, warranties, among others.
      3. Benchmark Marketing Strategies: Evaluate your competitors’ marketing approach to understand how they position themselves in the market and how they attract customers.
      4. Study Potential Competitors: Look not only at current competitors but also at potential competitors, those who might enter the market in the future, to anticipate possible threats and opportunities.
      5. Use Analysis Tools: Use tools such as Porter’s five forces analysis to assess competition, bargaining power of customers and suppliers, threats from new entrants and substitute products.
      6. Focus on Direct Competitors: When comparing your brand, focus on your direct competitors that offer similar products or identical services to yours for a more accurate assessment

• • • Compare the marketing of the products

  • Research in Depth:

    • Search for your product or service in search engines to identify direct competitors.
    • Analyse their sales tactics, prices and benefits.
    • Use tools such as SEO and SEM analysis to gain insight into your online positioning.

• • Create a Competence Map:

    • Use a market map to identify opportunities where your company can differentiate itself from the competition.
    • Analyse the strengths and weaknesses of your competitors to plan strategically.

B) Realism in projections:

Base financial projections on hard data and avoid exaggerations that could damage credibility.

Develop clear strategies: Create a detailed action plan including marketing, sales and distribution strategies.

2.- Reflect coherence between all areas:

A good business plan should show coherence between its different sections, from the business description to the financial projections.

• Define a Consistent Brand Identity: Maintaining a consistent brand identity throughout all sections of the plan, from the company description to the financial projections, ensures that the company is perceived consistently by investors and customers.
• Align Objectives and Strategies: It is crucial that the objectives set out in the business description are aligned with the strategies and financial projections. This ensures consistency in the direction and focus of the business.
• Integrate Financial Data with Business Strategy: Financial projections should support the business strategy outlined in the plan. It is essential that the numbers realistically and consistently reflect the proposed goals and actions.

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3.- Be realistic in all projections:

Avoid exaggerating the potential of your business and base your assumptions on concrete data and real market trends.

4.- Always seek third party advice:

In an increasingly competitive and complex business environment, having the right legal advice is critical to ensure the success and protection of your business. At ILP Abogados, our team of business law experts is committed to providing you with the advice you need to face legal challenges with confidence and security.

Don’t risk the future of your company! Trust ILP Abogados to get the legal support you need. Our team is ready to provide you with effective and customised legal solutions that are tailored to your specific business needs. Contact us today and take your business to the next level with the peace of mind of having solid and reliable legal support!

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