BUSINESS PLAN: GUIDING DECISION-MAKING

The rapid technological changes, as well as the fierce competition and different economic scenarios mean that companies need to make decisions in an assertive and increasingly rapid manner. One of the main tools to support decision-making is Strategic Planning. Strategic Planning is a process that consists of mapping the current scenario of a company and the definition of long-term ambitions and objectives, determining a set of tasks, goals, and guidelines for creating short, medium and long-term growth and business development projections. The growth of companies can occur in two ways: organically, gradually and planned, or inorganically, through mergers and acquisitions. In both cases, it is mandatory to carry out market studies and design the resources that will be needed, such as people, investments, working capital, etc. These studies or thoughts are organized through a Business Plan, or Business Plan.Always linked to Strategic Planning, the Business Plan has several uses, from structuring a new initiative to planning the expansion of a new production line or place of operation. The preparation of the Business Plan involves several steps, but an effective plan can be simplified into two main steps:

• Market Research: The stage should be initiated, preferably, through an analysis Top Down. Initially, every macroeconomic environment must be mapped, identifying trends on the world stage and in the local market. The mapping of drivers of the sector is an extremely relevant stage, given that based on it, it will be possible to identify the main opportunities and threats of the market in which it intends to operate.

After the macro analysis, the next step is to analyze the competition. The purpose of this mapping is to identify not only who are the main Players as well as what actions they are taking to grow and become relevant in this market. There are several methodologies to understand the dynamics of the market and to map the environment and the competition. One of the most used is the SWOT Matrix, which was explained in the article CORPORATE GOVERNANCE: STRATEGIC PLANNING. The objective is to determine market opportunities and threats and the company's weaknesses and strengths.

With this information, in line with the Strategic Planning guidelines, it will be possible to identify the best position of the new initiative to guarantee growth in this market. Understanding the market dynamics and how the company should position itself in the face of these characteristics are the expected results of Market Research. This understanding is mandatory for any expansion project or companies in an early stage of development. With the clarity of the Strategic Planning objectives and all market mapping carried out, it is necessary to quantify the resources that will be needed to achieve the expected results.

• Economic Feasibility Analysis: The purpose of the stage is to estimate the main financial indicators of the project, such as the need for cash, deadline, and the rate of return on investment.

The information obtained from the Market Research will be used to support the quantification of all relevant assumptions. The conversion rate of new customers, prices of the products offered, commercial and administrative structure, number of people needed to manufacture the products are examples of assumptions that market research information will be used as support. After the quantification and estimation of the resources used, the cash flow of the new initiative will be projected and the need for cash will be evident. With this defined flow, entrepreneurs will be able to verify that the estimated return is in line with the expectations designed by the Strategic Planning and determine what will be the sources of funding for the project.

Aligning the Business Plan with Strategic Planning is the best way to guide the best investment decisions and create relevance in the market. For companies at an early stage of development, the preparation of a Business Plan gathers the main information for business success. ARTICLE WRITTEN BY LEO PEREIRA — ASSOCIATE OF FC PARTNERSGo to our site: http://www.fcpartners.com.br