How to make a business plan in 5 mins

An easy way to make a business plan in a fast way to watch if it will works, it is with the business model canvas. In only one sheet we can see all structure of a business. Let’s see how to make a business plan in a summary way.

Business model canvas has 9 modules and it was developed by Alexander Osterwalder. The canvas can be divided into two parts. The part on the left is related to technical aspects, on the other hand, the right part is related to feelings.

The first block is value proposition: Write the solution that you have so as to solve a problem. Make sure that this solution is unique and differentiates you from other. The value proposition is the reason of the business, in other words is the core business. You can have only one value propose or several ones.

Customer segments: you should find your clients. Be specific, don’t make the mistake of trying to sell to everyone. There are several ways to segment the market, like group by age, studies, preferences, so on.

Customer relationships: In this part write the relationship between you and your costumers, it is very important the kind of service that you offers, because it should differentiate you from the competition. A good relationship with customer generates more sales and maintains them.

Channels: It is the way of how to delivery your product until the costumer, a tip here is use the 4 p’s analysis and 4c’s

The blocks mentioned above make up the right side of the canvas. On the other, the section on the left of business model canvas, some people say that it is the technical part due to we have to consider some technical aspects like; how to produce and tools which we need. We also need strategy partners and the balance of costs and revenue streams. Let’s see briefly what these aspects consist of.

At this point you should clearly know what your value proposition is and the product that represents it, because this is necessary to produce it. Create a simple product which has the value proposition that has been developed, with the feedback from your costumers you can improve your product for that reason it is not recommended to spend so much time in create a spectacular product in the beginning if it will constantly improve once it is launched on the market.

Key resources: Here you should write the key resources that you need to make your product. Only choose the most important

Key activities are the steps so as to produce the product with the value proposition, using the key resources.

Key partners: It is good to have someone who could help you in the project that you want to undertake. Key partners are people who you can work with and they don’t form part of your team. They are like business coaches who can guide you to grow faster in your project.

Cost Structure: In few words it is the money you have to spend in order to get all your resource to begin to work since tools, until wages, don’t forget pay you

Revenue Steams: Here you write all the revenue streams from selling

Finally an easy way to know if a business idea is good, it is using the formula profit is equal revenue minus cost. It is a good business if the result of the profit divide by cost is bigger than 33%. Why 33%? Well there’s a math explication to answer that but in a practical way 33% is a good number. If you have a result less than 33% I recommend you invest in other alternative