Business Venture News

Do you have a small business and operas every day, without planning beyond your everyday cash flow? Do you know how far you want or you can reach your business? Do you have basic knowledge of management or drive your business so intuitive?

If your answer is yes, perhaps you should begin to devise a business plan. In Mexico, over 60% of new businesses fail before their two years of operation, according to figures from the SME Centre of the Secretariat of Economy.

This is largely because many entrepreneurs embark on the venture without having previously established a business plan is the equivalent of a captain who embarks on a journey without having to hand a map and navigational instruments.

“Many people first rent the space in which to install and then worry about the business plan,” said Jorge Enrique Flared, director of the Center for Business Innovation for Corporate Services, the Technologic de Monterrey, Campus Santa Fe “Without mission and vision, not go anywhere, “says academic.
Businesses located in function of the distance from home owner, small businesses run by many ‘chiefs’, lack of competition and financial calculations “a rule of thumb” are part of the common mistakes of micro, small and medium enterprises (MSMEs) in Mexico.

These and many other errors can be avoided if the entrepreneur uses a consultancy to design a business plan. With the support of Jorge Enrique Flared, professor and consultant to the Technologic de Monterrey, here are five useful steps to outline your business plan:

1. Define and justify the business well. The first step is to define the mission, vision and objectives of your business. The mission establishes the central purpose and rationale of a business: what business you want to do and why? What accomplishments you intend to accomplish in your environment and what benefits you will provide and obtain. The vision defines the goal or the path which runs a business in the long term. It also serves to set the course and as an incentive to guide strategic decisions: Will you be the leader in your segment or sector? Want to be the most innovative? The objectives are defined in terms of mission and vision: where you get settled in five years? What level of sales wants to be?
2. Define the marketing and image. The entrepreneur must rely on a smart market research, where data serve to make clear decisions about the business, such as defining how many products you should manufacture or sell a new company. The market allows for an analysis of your business, hence leave the rest of the elements of marketing, advertising, promotion, image management and launch. It is also necessary to analyze the macro and micro sector. “If you want to sell your product in Mexico City, say, Santa Fe, you have to do a macroeconomic analysis of how is the area and then a specific analysis of the turn that will take the business: there are many companies and suppliers around who could be your customers, etcetera.”Says Technology consultant.