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Business plan

The company and its position in the market

This section includes a presentation of the company, of the value proposal and of the directors who will carry out the company. The aim is to give confidence to third parties (amongst them, the potential investors) about the financial basis of the proposal and about the firm business capacity and management of the directors. Whoever is planning a project may take into account two non-financial aspects of the company: 

  • The product, invention and its market.
  • Physical and production means.         
First of all, reading the business plan of a startup, the reader evaluates the team of the project. Will they be able to be successful with the sale of a new product and obtain benefits?

The information that we may give is: the most recent summary of the sales report (or...have we a first customer?), what kind of company is (legal form: Public Limited Company, Private Limited Company), organization chart, directors' curriculum vitae (experience may be included) and an account of the company objectives (they may never be opposite to the company aim).

Start-ups can not prove their solvency. Seed capital (the financing according to growth) will increase depending on the promoters' credibility, through its records to give information about its capacity to face the risk of the new company. 

It is also essential to make an account of the company objectives. 

The objectives account defines the essence of the company and it explains its aims (global aspect of the project). Those who support the project hope that promoters will bear these aims. 

For this reason it is important to well design the company sector (e.g. Rolex does not make watches, they make luxury through watches). Therefore, technology used it will not be the most important; we must focus in which customers we are going to address and which need we may satisfy. With the analysis of all this information we will be able to know how this target (customers) are going to understand that technology and products are different to anybody else's products. The objectives account may show how this company will satisfy the customers' needs better than another company. 

Business objectives will be based on the growth of volume of business and market share (in the long and short term). Financial evaluation may also include: 
  • The perceptible net assets (or own funds volume) that determines the company's debt volume. 
  • Capital leverage: relation between own and foreign funds, as an indicator of the company's vulnerability in sales fluctuations.         
Control list  

  • What sector does the company belong to?
  • Which is the fact book of the company? And the board of directors duties?
  • What are the weak spots and how can we solve them? 
  • Which resources has the company for development?             


Updated 9/5/2005

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