Business plan by Gaspar Pereira

GASPAR COLLÃ&#x2030;T PEREIRA

Business plan and organizational model 1st Edition

Curitiba Author's Edition 2015

GASPAR COLLÃ&#x2030;T PEREIRA

Business plan and organizational model

Curitiba-2016

Pereira Gaspar CollĂŠt, 1961

Business plan and organizational model Curitba,the Edition 1

THANKS The author thanks the people who directly or indirectly contributed to the accomplishment of this book.

CONTENTS

00 Introduction................................6 01 Organizational Model..................9 02-Sales Marketing Management...14 03 Production................................21 04 Human Resources......................23 05 Financial Resources...................28 06 material resources.....................33 07 Administration and control........35 08 generation of well being............39 09 Results......................................42 10 budget planning........................46

00 Introduction This material has the goal of making a link between the business plan and the organizational model. The understanding of this model, allows the entrepreneur to concentrate their effort in an orderly manner, the various parts that make up the company and provides an overview of the operation. This template was created by the author, for your master's thesis and has been tested in several lectures where was challenged participants to identify an area company that worked, that were not included in the model. Even with an incentive of a dinner for the participant to identify this failure, has not been identified. If it's ugly a business plan for each area of the company, at the end and can have a plan for the company as a whole.

Emphasis is given to the financial area, which features summarize the resources used throughout the company. Case study We will analyze the situation of an entrepreneur who works in the area of development of software, and started working on a program aimed at brokers. Contact your own broker found that he has a certain difficulty to manage the relationship with its customers, about 1200. I would be sending monthly Emails in the customer's anniversary day, in special dates, and mostly, a little before the insurance remember the customer and make a simulation of how much it will cost the policy. This is the broker, but finds it very hard to do this alone, today already has this procedure with some preferred

customers, some fleet owners, but to have this relationship with all customers would need to have a team working on what would be very expensive. Front of this framework our entrepreneur sees a business opportunity, the production would get these procedures that are executed by the broker, and turns them into a routine for all customers. Post work out the details, starts the production of soft, which aims to incorporate all the details of the old process and add new items. Reviewing the organizational model we can see that the entrepreneur had the input of human resources in the case himself, material resources through computer equipment and financial resources that is the value of the time he applied. He added value to these resources and has resulted in a good or service.

01 Organizational Model To draw up the business plan is important to understand the Organizational Model, which is a proposal to divide the various functions and resources needed for the operation of a company and study them separately, as is shown below.

The activity of the functions and the use of resources, should give rise to the goods and services produced by the Organization, generating well-being for the client. The profit is the result of the sum of these activities. The company will be as weak as the weakest link of this chain. This reasoning applies to anyone riding a cart on the corner, or skewers to make the planning of a major automaker, or even for those who resolve to make an internal project within the organisation in which you work, what changes in each of these cases is the focus and level of detail. This model has already been tested in several speeches challenging participants to quote one of the areas shown in the organizational diagram wasn't included in the enterprise where they work and if someone identify would win a dinner for

two at a Steakhouse in the municipality where he was being given a lecture, or otherwise, if indentificasse an area of your company that could not be included in the diagram. It was paid for dinner for a participant who said he could name a company that included part of the diagram and how to answer cited a phantom company headquartered in Virginia, quoted by the media, which has the sole purpose of laundering money, and ended up taking the dinner. For example, the hot dog stand on the corner, the production is cut the bread and put the sausage in the Middle, the marketing is pull the cart in place and time them interested, if human resources summarize the stand operator, as material resources include the cart itself, the financial capital invested, as science the

research done with the paint to paint the cart the well is the ability to kill the hunger for who buys a hot dog, the Administration and control is a combination of all these items. The result of all this is the profit or loss of the entrepreneur. The great challenge of the entrepreneur is to bring together all these elements and combines them in the best possible way. Usually he has affinity with one of the areas and difficulties with the other, causing your business to be as weak as the weakest links of the organizational diagram. It may be that the entrepreneur had a great idea, proposed a product that will meet an important need and ends with emphasis on production. Or who worked in a company as seller has access to a large number of potential customers for a product line, or had access to a certain amount for

investment, or bought a equipment with production capacity, or created a Soft able to revolutionize an area. Each of these situations can be transformed into a business since that entrepreneurs can join this strong point, the other links in the diagram, or you can become a great failure despite having a good start. here

02-Sales Marketing Management

Normally an undertaking takes time that body has the first customer, is made the first sale and financial transactions. To understand the form of sale is appropriate to study the marketing compound represented pro 4 P Â´ s.

Product The product can be a good or service and is the raison d ' ĂŞtre of an organization. If the sum of inputs is less than recognition of well-being on the part of the customer the organization tends to go ahead, otherwise it may derail the deal. Let's imagine a manufacturer of jeans that receive requests and customer measures for internet and promise delivery of a custom product in ten days in a client's House, covers around 70 reais for each piece and have the expectation to produce and sell about 100 pieces per month. If the sum of its costs and expenses including your compensation is less than 7000 business tends to grow otherwise it is necessary to change some variables in order to make it possible. Price

Can be done through the sum of the costs and expenses used for the preparation of a good or service and will serve as a reference for the most important part which is the price the consumer is willing to pay. Must be set if the company wants to make in bulk even if I have to keep a low margin, or have a high margin, in a smaller volume. Must be decided by the alternative that bring the best results. In addition, you should consider other variables as term of payment, discounts and ticket for delays. Point Is the way in which it is possible the good or service. Can be for distribution, in which the good or service goes to the client or by a point system, where the client comes to a good or service. A

college tends to provide its services in the form of point in the classroom, where students go to school and becomes distribution in distance learning because students receive services in their homes or workplace through computerized resources. Promotion Tends to be the most complex of the four P Â´ s and at the same time requiring greater attention, because it is through him that the organization communicates with the public showing that you have a good or service available, the advantages that meet needs and seeks to convince people to do business with him. There are three classical forms to achieve this goal. the) Advertising

Is the form where the sponsor has control of how much to spend, and which the public message will be conveyed. What does not have control is the volume of business that will generate and if the return of this turnover is greater than the capital invested. b) Advertising Different from advertising, does not have a fixed amount to be invested, it may not cost you anything. The big risk is that it may be negative and have a greater impact than advertising. Let's review the history of an educational institution that had two cats that appeared in time, made some jokes and received in Exchange a few leftover snacks. In one of the health visits, one of those cats, see tax and made an infraction requiring the College to avoid the cats stay on the

premises. It didn't matter to be argued that the animals were out. Given that the Director of the campus has requested that an employee retained the animals to see what would be done. This employee threw some goodies in a room and then the cats entered he closed the door, trapping the animals, who started meowing and tries to leave. Some students listened to these arrobaram the door and meows made an eight-second video, posted on youtube with the title of educational institution mistreats animals. This video has had over 3000 hits on first day coming to over 9000 in the first week, setting up a case of negative publicity. Front of this picture the institution had a Cattery of the most complete, got an owner for the cats, asked for a technical assistance to an NGO for the protection of animals and posted a video "excess of

pampering for animals in an educational institution" that did not have the same number of hits in the first but generated a positive publicity. c) sales force Hiring a group of vendors, typically with a fixed low and with a possibility of high commissions. As an example a school that offers courses to brokers, and propaganda and advertising, I've tried to improve the point but nonetheless notes that the number of students is decreasing and it decided to hire a team of salespeople. It was proposed a fixed salary and 50% Commission in the first three installments that students pay. The sales staff was to fight, discovered new stakeholders, new approaches, partnerships with other unions and the

number of significantly.

students

has

increased

03 Production

Is how is aggregated input value giving rise to those goods or services. Can be best understood through the model of production. Production model

Entry Features: -Financial -Humans -Materials

Process Output ď&#x192;¨ Adding valueď&#x192;¨ Goods or to resources services

This production can be applied both for the area of industry, commerce or services.

04 Human Resources

The HR function is at the heart of the entire process, starting by the entrepreneur and expanding to other persons who are necessary for the development of the business.

Is usually divided into three major areas. The first is recruitment, where the entrepreneur sets the staff that is necessary for one or more roles and disseminates this need. This disclosure can be made through formal means using paper, internet and job agencies or informally through personal contacts, the entrepreneur. The goal is to arrive at the knowledge of potential candidates. This disclosure is expected to generate a series of candidates interested in the selection phase. The staff of psychology and of technology in HR has a series of tests and mechanisms to check which gives a formal character to the process and generates a sense of achievement for the selected, but the most important is the selection of the candidate that can perform the function including the critical

situations of the Office and into the needs of your organization. Finally we have the phase of training, which is a summary of the above and seeks to prepare the person to carry out the tasks and challenges and crises that may arise. Let's say our entrepreneur who had developed a soft relationship to insurance brokers, have expanded your business, be given several brokers and have received an offer from a major insurance company to develop a program for all its associated brokers. The offer is tempting, can generate significant revenue, but is aware that couldn't meet all the requirements of the insurer alone, on the other hand if you do not accept the challenge in addition to losing a great opportunity can see the soft that developed being used by third parties

without any personal gain. Decided to accept the challenge. The first step was the size requirements and this started to gather the information. Are you aware that you can serve up to 3600 brokers based in several States of the country, which should be trained to use your soft, which will have a staff of helpdesk, to ask questions, his own soft should be customized to the demands of the broker. Must be announced a system of storage of information for datastorage. To meet these needs has assembled the following table: Office

Function

Wages andSalary charges-per and Total unit charges General The performed8,300, 8,300, Manager by entrepreneur A computer Development 4,500, 4,500, analyst programs An -Management 4.300, 4.300, Administrative Accounting

And Financial -preparation Analyst sheet -contract management Two Contact with2.800 5.600, attendants brokers Commercial Commission Manager TOTAL

18,700,

Noting that the General Manager roles will be performed by the entrepreneur, the business manager will be remunerated by the accession of the brokers on the show, that this structure will grow according to demand, it is possible to set it with a starting point.

05 Financial Resources

Financial planning has the ability to do a summary of other resources, create a work plan and serve as a reference for all activities of the Organization, because it is possible to compare the planned and carried out. By having these characteristics it is important that entrepreneurs have an

overview of your business, the way will work and the development of activities. The financial moves are typically divided into three groups. Recipes that summarize the contributions of money and must be separated from taxes through the Organization but are owned by the State. The costs, which are outputs of money, necessary for the preparation of the good or service and the expenses that are essential to the business are not linked to the good or service directly, usually are linked to administrative and commercial area. Let's imagine that our entrepreneurs solve make a financial planning. The first step is to define how long the plan will take effect, is usually done for five years with weather forecast revisions each year. Then make the revenue projection, with emphasis on operational entries in sight

without taxes. Having on hand this prediction, must be answered what will be the costs and expenses necessary for this recipe. If the costs and expenses are greater than the revenue the result is negative and the business becomes unviable. Otherwise generates profit and enables the business. Let's imagine, that a typical period approximately 22% of the 3600 brokers will join the program, and each pay some R $40, for use of the soft and there is a 3.5% tax on revenues.

As already mentioned the next step is raising costs and expenses necessary for this recipe. Had already been calculated payroll with charges in R $18,700 and added to this was found:

Expenditure on rent R $3,500 Expenditure on water, electricity, phone R$ 1,800 Travel and training expenses R $6,400 Provision for 13th salary and 1,600 R$ vacation Other expenses R $2,000

The result is negative, which requires a careful look. As alternatives would be possible to work for more than 22% of brokers to support the use of the program, increase tuition fees, distribute the costs for other softs which also generate revenue, reduce costs and expenses or do a little of each of these measures. It was chosen to work with a reduced team looking to do the same job without compromising the quality and as a result there arose the following worksheet:

Description Net Revenues Sheet and charges

Expenditure on rent Expenditure on water, electricity, phone Travel and training expenses Provision for 13th salary and vacation Other expenses TOTAL

Value 30,571 -14,600 -3,500 -1800 -6400 -1,600 -2,000 -29,900

Result

671

Is a result close to zero, but the recipe is able to pay all costs and expenses. This worksheet is a work plan and should be monitored in detail, being released the revenues, costs and expenses, and at the end of the month to evaluate each of the rows, looking to increase revenues and reduce costs and expenses. At the end of the month should be made a meeting to evaluate the differences between planned and carried out and make the adjustments for the next month.

06 material resources

Are the resources necessary for performance of the function. Emphasis is given to trade stocks, in the raw materials industry and facilities services. Tends to be one of the areas that require greater initial investment and then it is necessary to do the maintenance.

Our entrepreneur decided to do a budget to determine the expenses with the area of materials. How will work in a rented place, don't need the investment in property, but will reform and acquire the equipment to work. Basically will buy computers, furniture and material. Despite not having an exact value, based on some budgets came on the following worksheet.

It is not necessary to make immediate purchases, especially as the plan is to have the closest possible materials of the need, but an idea of disbursement necessary.

07 Administration and control

Despite the fact that this item is the first organizational diagram he was approached for last, because it is the item that summarizes what's too much. Although the Manager using the information from all areas, is in administration and control that are set guidelines that will guide the

project. Appropriate to do a survey of opportunities and threats. Internal analysis Forces Must be analyzed the points that the Organization has differential and how she can use it as a way to design the business. Weaknesses Identify the weaknesses, and neutralize them and even transform into strength. External analysis Opportunities Looking out of the company, identify point that can be used in favor of the organization. Threats

Identify factors that may compromise the progress of the organization. By applying for our case study we may have: Internal analysis Forces Field of technology on the part of the entrepreneur Originality of the software External analysis Opportunities Possibility of creating new software

Weaknesses Dependence on a single client Lack of tradition in the market Need for support of brokers

Threats Possibility of breach of contract with main client

It became apparent that a key point is the fact of having a single client.

08 generation of well being

The profit or loss depend on the level of well being I the Organization has capacity to generate for the entrepreneur, for employees and especially for customers. For the entrepreneur, in addition to the financial result has great importance the

sense of accomplishment to contribute to the improvement of the sector. For employees, in addition to the wages and benefits matter the work environment, the sense of security, the possibility of professional growth and affinity with the function For customers the most important is a cost benefit. How much are they paying for goods and services and the benefits that these goods and services can bring. Doing an analysis to the enterprise in question can have: Entrepreneur The entrepreneur finds opportunity in business that is being organized for recognition of your ability to turn ideas into programs and programs and a service that resolves the need of customers. Also the possibility of becoming a successful

entrepreneur, generate jobs and get your brand recognized in the industry. Employees Working in a company that is innovating, that is growing, that is linked to other companies there is a tendency that's built an identity between the employee and the function performed. Customers In this case, brokers will adhere to the use of soft as they find that the relationship between the cost, the monthly fee of R $40, and the benefit of the information will have access to be rewarding. The company should concentrate their efforts to show the advantages of this relationship, send newsletters, make contacts and testimonials from satisfied

brokers showing the advantages of the system.

09 Results The financial and operational result this connected to your well being, which in turn depends on the application of resources depends on the performance of the functions, i.e. the system is interconnected, and the result is the reflection of how the management of the system. The result can be measured in financial form, that is, the recipe is reduced costs and expenses and assessed if the difference is profit or loss, or evaluated in other ways as the tendency of growth, achievement of goals, the social balance sheet or other forms that may be appropriate. In relation to the financial results, should be made a comparison between the planned and carried out.

After the calculation of the figures must be done a survey of each account to determine why the difference. Net revenues: membership of the brokers being slower than expected, we have designed 1,200 1,080. Sheet and charges: it was verified that it is possible to work with a leaner team, in place of two attendants a proved enough. Expenditure on water, electricity and telephone: was made awareness campaign and reduction. Travel expenses and training: although it was lower than anticipated in the coming months will be made a significant campaign which should elevate this

account, and increase the number of brokers who use the soft. Provision for 13: proportional to leaf. Other expenses: expenses that arose were not provided for. Total: was better than expected. This relationship between the planned and carried out allows the Manager to have an overview of the situation and evaluation of the successes and errors in forecasting and execution. With the expansion of business can be created where business units are established the results for each unit. Must be assessed if the tax accounting in the Accounting Office, outsourced and enough to provide this information or if it will be necessary the creation of a

management accounting done inside the company. In the case of management accounting, will commonly be used cash flow plus some information.

10 budget planning The company's opportunity to make a projection of revenues, costs and expenses and a work plan. Is usually done for five years, the first year is more detailed. In the first half you can see that the costs and expenses remains however the recipe isn't enough to cover them. In a situation like this it is important to determine the equilibrium point which is obtained by dividing the fixed values by contribution margin.

Possible to conclude that while there are 881 membership brokers the company comes to your balance. As provided for in point of balance from 881 brokers who joined the system passes the profit and this was achieved between August and September. Also, it is possible to identify the investment required to maintain the business is 139,000 i.e. equivalent to the largest cumulative loss.