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................................Index General Introduction .............................................................................................................................................................................................................................. 13 Economic-financial study ....................................................................................................................................................................................................................................................... Commercial description.....................................................................................................................................................................L................................................................................................................... Organizational aspects............................... 3 4 4 4 6 6 6 6 6 7 7 9 9 Technical description...... Introduction .................................................................................... 10 Purchasing Plan ........................................................................................... Executive Summary. 11 Organisation and Human Resources ..................................................................................................................................................... 12 4.......................................................... 2............................................................................................................................................... ............................................................................. 3.............................................................. 15 2 ..... Who are the promoters of the project? .................................... 14 Annexes.......................................................................................................................................................................... Market study ..................... 11 Legal structure ..... Summary ............................ 13 Evaluation of the risk ............................................... Business description.............................................................................................................................................................................................................................................................................................................................................................................................................. Viability.. Contents.................................. PESCA NORTE S........................... What is the principle activity of the business?................................................................................................................................................................................................................................................................................................................................................................................................................................................................................... General Description ............... 1..................................................

generally in a reduced version or executive summary. economic and financial viability and develops all the procedures and strategies necessary to convert the business opportunity into a definite business project. The elaboration of a Business Plan covers two specific objectives: • On the one hand. suppliers. examines its technical. Formal aspects when writing a Business Plan Making a Business Plan involves the following of a series of rules and standards: • Beginning with the language used. the Business Plan is a fundamental instrument in the corporate analysis of a new business opportunity. • Entering in the structure of the document. As a second use. covers the objective of being the presentation card of the entrepreneurs and their project to third parties when asking for any type of collaboration. In short. in annex 2 we suggest a plan for the content of a Business Plan. what in this document we are going to call “corporate use”. it allows the promoter of a business opportunity to carry out an exhaustive market study which gives him the information for carrying out the correct positioning of his project and for determining the viability of his project with reasonable certainty. a Business Plan is usually directed at more than one reader. the Business Plan. the acquisition of a business or a unit of an external business or even in the launching of a new product or service. for which reason it is important to use language that is intelligible to more than one group: investors. 3 . an internationalisation project. both in the development and launching of a start-up and for the analysis of new corporate investments.General Introduction The Business Plan: what it is and what it serves for A Business Plan is a document that identifies describes and analyses a business opportunity. a scheme that we will develop later in a more detailed way. • Furthermore. a diversification plan. help or financial support. bankers. technologists etc. the Business Plan has become an indispensable tool.

is a family business resulting from the more than 30 years experience in the salted cod sector of its founder and present General Manager Mr Ramon Sánchez. Samuel Larralde: Degree in Business Studies from the Universidad de Navarra and MBA from the Instituto de Empresa de Madrid. barbels. Who are the promoters of the project? The project has been made by the following team: María García: Degree in Business Management from the Universidad Autónoma de Madrid and MBA from the Instituto de Empresas de Madrid. elaboration and wholesale of salted cod. from the reception of the raw material from the North Sea (Norway and Iceland preferably) until the shipment of the finished product for its later distribution.L. most of whom are operatives for the . What is the principle activity of the business? The principle activity of the business and that which forms its business objective is the import. PESCA NORTE S. fillets etc. Its headquarters is in the Industrial Polygon La Pesquera in Laredo (Cantabria) where the new plant was inaugurates in 1998 with some of he best installations in the sector.1. 4 . with experience as management assistant in PESCA NORTE and knowledgeable of the cod sector. The commercialised products are centred on salted cod and its presentations: backs. pieces.L. manipulation of the product. The average number of employees is 30. PESCA NORTE S.

He will come from the principal business unit of traditional salted cod. 5 . an operative who knows the product and the desalting processes.The project will be directed by Maria García. who will act as Product Manager for the production area. will be appointed to take charge of the plant. The director of the project and Product Manager will be directly responsible to the General Manager of PESCA NORTE.

there should appear in this section. authorisation formulas. descriptions of its present use. products or services commercialised. See annex 1 Contents The structure of a Business Plan should be outlined in a table of contents which contains the different sections and the pages where they can be found. The first phase of the market study should be the fixing of objectives and how to reach them. Market study The carrying out of a complete market study is a fundamental part of a good Business Plan.2. brands. economic and financial viability of our business project. a summary of the business’s activity. activities or sectors in which it operates. anagrams. the date of its constitution. Carrying out a complete study allows us to know the following points: • Forecasts and growth potential of the sector in which our product or service is involved. means of protection of and rights over the product or service to be commercialised (patents. See annex 2 Business description Reference should be made to the product or service proposed in the Business Plan. 6 . The information obtained through this study allows us to make a judgement on the technical. etc. the number of employees. General Description Introduction In this section should appear the name and address of the projected or already established business. the steps taken to obtain patents or other protection formula whose groundwork has begun or been completed. etc) and in the case of a new product. its difference from competitors’ products. Similarly. the needs it covers. testimony of present clients of the product. the names and professional records of the business promoters and all those professionals who collaborate in the writing of the Business Plan and in the consequent start-off of the activity.

the timing of the product. their profitability. in the summary and conclusions. as it is the determining element when analysing the viability of a business project. their commercial policy. their prices. Finally. the characteristics of their products or services. In this. It is the opportunity to reinforce our arguments for the still not convinced investor of the worth of the project for which reason we must spare no effort when reflecting the true profitability of this project. the main strengths of the project. its weaknesses its advantages and opportunities and its threats and risks. an undoubted benefit when concentrating our investments on potentially more viable projects. Summary This is the last section of our Business Plan. • The market study should likewise. Executive Summary The executive summary. we need to collect an enormous amount of information which is not always readily available.• Present size. their market quota or estimated sales volume. analyse the present and future barriers to entry in the market. • Analysis of the competition and its products: the location of our competitors. For this reason it is fundamental to plan intelligently the field-work that must be done to collect the necessary information. as a final conclusion. To cover the points mentioned above. their quality. The information that we are going to collect by carrying out the market study will have a great influence on the drawing up of the different parts of the Business Plan and in many cases. and in general all that information that helps our product or service to position itself as well as possible in the market or reference segment. should be shown. the service offered. although it is in second position in the Business Plan scheme described in this technical note. growth or decline percentage of the market and the purchasing behaviour of potential clients. Potential clients should be identified and classified in relatively homogeneous groups with common and identifiable characteristics. it may lead to a change of strategy or even to the abandoning of the business idea. the efficiency of their distribution. we should state in summary form. • In the market study all the possible formulas through which the administration can influence our product. the denial of the viability of the project might happen. is in reality the last document that has to be made and is a summary of all the activity proposed in the 7 .

especially when negotiating with potential investors in our business project or equally it can be a communication tool for people responsible in the corporation. A good executive summary should include at least: • A description of the business model that supports the opportunity. barriers. and his degree of commitment to the project. • A chart summary of the financial aspects and an evaluation of the investment needs and their corresponding calendar. • A final summary outlining the main risks and the corresponding counter-measures. • An analysis of the different management areas of the project with special attention to those that are critical to the later success of the project: production. • An outline of the promoting team and the manager in charge of the project. is a “commercial” requirement. potential. which generally is no more than three pages. clients. competitors etc. his management capacity. size. with special attention to his knowledge of the sector. his record of business and corporate achievements. See annex 3 8 . This brief document. • A summary of the most significant data of the market referred to. to describe our value chain and to leave clear our income model.Business Plan. marketing Human Resources etc. It is useful for this purpose. financial entities etc.

the way of contracting and the qualifications of the sales team (the companies own force or representatives) both in the immediate future and in the medium and long term. the reasons for this and future expansion plans. saving in derived costs etc. service. if we have the data. comparing them with those of the competition. In the case where there are great differences between our price policy and that of our competitors. we have to fix our global commercial strategy and define the specific philosophy so that the commercial section stimulates our business project. in spite of reducing volume. It is interesting. The Marketing Plan therefore must detail our global marketing strategy that serves to exploit our business opportunity and the advantages inherent in it. where our prices are lower than those of the competition. etc. delivery service. Finally we must make a sensitivity analysis to study different price policies. features. In this sense. the estimated sales of each representative or member of the sales team should be presented as well as the incentives designed for different volumes and the total cost of 9 . In the opposite case. we must be capable of explaining these differences and in the case where they are favourable to our competitors explain our higher price in terms of novelty. through greater production efficiency. that is. distribution. Moreover. here we should include a study of the primary motivation of the client for the acquisition of our product or service. to study if a higher price. • Next the Marketing Plan must refer to sales policy. Organizational aspects Commercial description The Marketing Plan has as objective the fixing of the strategies that allow us to reach the turnover figure in the economic-financial analysis. Later the Marketing Plan should describe the commercial margins policy and promotion measures offered to distributors. We will go on to quantify the gross margin and calculate if such a margin can support the activity of the business. representatives and retailers and the comparison with what our competitors do. • In the first place. investments and derived costs. we must be capable of explaining how we can position ourselves in the market with lower prices and maintain the profitability of our product or service. guarantees. determining the commercialisation prices of our product or service. • Then.) we will emphasise to generate sales etc.3. • Likewise. for example. increases profitability. indicating its objectives and quantifying them in units and in euros. to compare our commercial margins with those of the competition. what characteristics of our product or service (price. how we identify and contact our potential clients. we must design our sales strategy. guarantee. lower labour costs. it is necessary to describe the composition. we will attend to our price strategy. In this sense. We will indicate if the product or service will be introduced at regional. quality. national or international level in the first phase. quality. lower material costs etc.

as there is no production process as such. the number of shifts in hours and days necessary to cover the production forecasts and the need for personnel. • Going on to the promotion and publicity formulas. prototypes. If we are dealing with a service. which collects the publicity and promotional means which we are thinking of using. we will have to refer to our distribution policy. transport. production and commercialisation of a product. labour conflictivity in the zone. telemarketing websites etc. • Another important aspect of the Marketing Plan is that referring to after-sales service and the guarantee system. Finally reference should be made to clients’ payment periods and other considerations such as the discount policy. in the case that our activity is based on the development. advances. Then. 10 . etc. etc Technical description The technical description section should include. making reference to the distribution channels that we have to use. the Marketing Plan first of all has to describe what it is going to use to attract the attention of potential clients to our product or service. with an economic evaluation of the means and the impact cost of our activity. for which we should give attention to the following aspects: • The operating cycle. the first two phases already mentioned: development and production. that lead us to develop our final product as well as examining whether we are capacitated in technological and know-how terms for such a development or whether we should opt for subcontracting. Similar procedures can be followed in the case of using other promotional means such as mailings. In the case of a product we must begin by considering the duration of the research and development work which leads us to form the product in its totality and the needs for investment in the human team and the laboratory. • Finally. incentives for the placing of manufacturing installations. It is important to draw up a Means Plan. abseilings etc. appearance at fairs. we have to describe the production process. proximity to the sources of raw material. in the case that our product or service is capable of offering either or both. their qualification and cost. the advantages and disadvantages of the selected option in terms of the existence of qualified manpower.the sales activity and its percentage of the estimated global turnover. we will talk about technical description and limit ourselves to giving a detailed description of the procedures and technical needs which we will meet when giving the service. including the number of units to be produced. the discount and margin policy for our channels and the importance of distribution costs with regard to commercialisation price and the possibilities of exporting our products using the system of international distribution. the cost of the manpower. accessibility of the installations. samples. payment by international clients. etc. • The geographic location of the installations. insurance. the environmental normatives.

with the profiles required or a description of the persons if they have already been determined. to mention the seasonal nature of the storage of raw materials as a consequence of production. This type of list increases the confidence of possible investors in the management team and at the same time indicates possible weaknesses or strengths of the directing team. detailing the specific remunerative concepts. maintenance expenses. a detailed description of key management posts. structure and design and the construction of the plant and estimated cost of the installations. models. control of inventories and inspection procedures. which guarantee minimum costs and avoid problems of dissatisfaction among our clients. Finally. from a strategic point of view. qualification and cost. it is necessary to describe in detail his professional experience. characteristics. cost. • Equipment necessary for the manufacture of the product (or sale of service). Organisation and Human Resources This section of the Business Plan includes a description of management functions and line positions. we will be able to evaluate. it is important to describe in detail the responsibilities and specific tasks that each member of the organisation will perform in the Business Plan project and the remuneration which corresponds to the position. acquisition regime. Description of the quality control processes. who they are. the option of subcontracting the production if our added value is not found here. description of the Production Plan in terms of volume. subcontracted components. acquisition formulas. stock management. definition of subcontractors. manpower. 11 . and a list of suppliers and other sources of provisioning and their location. Later. with a list of their responsibilities. production capacity. stock options if applicable. For each person who occupies a position of responsibility.• Buildings and land necessary in square metres. etc. fidelity policy. possibilities of expansion. his specialisation in a determined functional area or in a determined sector and a list of his achievements during his professional career. Purchasing Plan The Purchasing Plan should cover the relationship of the raw materials and materials necessary for producing and commercialising our product or service. financial formulas for acquiring them. To conclude this section we must refer to our need for space to store raw materials and finished products and to the cost of this storage and assuming it is relevant. • Production process strategy. of the needs of existing stocks in storage and their rotation. raw material. decisions on and motives for subcontracting components. estimated cost and timing of the acquisitions and finally the duration of the production equipment and annual depreciation. It is necessary to carry out an estimation of cost. etc.

with an indication of the time required for carrying them out and their cost. the tasks that are carried out in each of these categories. establishing work shifts that guarantee the correct functioning of the business and finally the remuneration corresponding to each group of workers and the total cost of the payroll. especially if the size of the business advises the creation of a specific personnel division and likewise it is necessary to formulate an organisation chart of the business by areas and with the specific persons. the constitution of the company. choice of partners. The legal structure should also contain the names and legal status of other partners or investors.Regarding line personnel. in the positions of managerial responsibility. All the administrative and legal proceedings for constituting a business. 12 . fiscal licence. for example. it is necessary to accept the labour categories that exist in the business. to the previously mentioned. To finalise. would be added all those circumstances that have modified the legal nature of the business. Legal structure We should explain here the legal form that the business has and the reason for its choice instead of other legal formulas given in our legislation. Moreover. the contract formula and the number of workers per category and position. this section should contain everything related to exterior advising services with specification of the legal status of the advisors. with their corresponding share percentage and their different categories. licences for activity or works etc. Copies of the constitution deeds and business statutes should be attached. and the filiation of the founding partners of the business. If the business were already constituted. the labour agreement which the workers accepted with their specialities if there were any. should be detailed step by step. the fiscal regime of the business. with their obligations and restrictions. their speciality and the estimated cost of their services. the section referring to organisation and human resources must make reference to the global policy of the business in the area of human resources. The need for qualified personnel in a certain area and at an appropriate cost can mean in some sectors and at precise moments a true entry barrier that makes the viability of the project extremely difficult. if they exist. registry.

it is necessary to think about our business project creatively and to consider alternative ways to finance or launch the project. hypotheses that which are contained generally in the different sections of what we have been covering when making our Business Plan. For a business already working.4. • Analysis of the manoeuvring fund. • Origin and application of the funds. it is interesting to make a comment on the principal conclusions that they reflect. • Forecast balances for five years. Now. Obviously. • Financing needs and plans. data such as the maximum amount of capital required and when it will be required. • Calculation of the break-even point and an explanation of its possible reduction if the projected sales volume is not reached. When preparing our Business Plan. When beginning to make out Financial Plan. the amount of debt required. Once the financial states described have been made. including information regarding the options considered and the one chosen as more profitable for the project. before arriving at this point and after making the market study in our Business Plan. Its purpose is to evaluate the economic potential of a business project and to present viable alternatives for financing it. we have to refer to the hypotheses which are going to support our plan. when it must be repaid etc. “some sums” will have had to be done previously. this should include the current year and the two years previous. As a central part of our Financial Plan we have to provide a series of financial state forecasts that are listed below: • Treasury quota for the first year broken up into months to reflect the effects of possible seasonal variation. 13 . Viability Economic-financial study The Financial Plan is another of the basic elements included in the Business Plan. • Forecasted results accounts for 5 years. we have to describe the capital structure and the contributions of the promoters to it. which indicate the possible economic and financial viability of the business.

Before completing the section on the Financial Plan. and their influence on the development of our project and on the possible correcting measures on the risk factors that we may apply. Apart from “falling in love with” we would be leading potential financiers into error and they have enough knowledge to detect these anomalies and bury our credibility. it is worth referring again to the double function that this plan covers. our company.. we run the risk of “inflating” the hypotheses in our financial states and so we would be committing a double error. Evaluation of the risk The starting of a business project or the launching of a new product is an activity that undoubtedly carries multiple risks. as well as the more appropriate financial ratios of the specific Financial Plan. The Business Plan must include a description of the risks and of the possible consequences of adverse circumstances which affect the industry. changes in demand. competitor reaction. or delays in launching the product or service or obtaining the necessary financial resources. as global development of the business project’s strategy and as a marketing tool when obtaining financing for the project. the acceptance of our product or service by the market. The identification and discussion of the risk factor in our business project and the contingency plans proposed show the writer’s management capacity and increase the credibility of the project in the eyes of the investors. our human team. the periods for the recuperation of the investment. new technologies. In the same way. 14 . the internal rate of the profitability of the expected investment must be determined and explained fully.Regarding profitability. etc. the risk evaluation must make references to external factors such as recession. and the Business Plan should contain implicit references to them. premature obsolescence. If we give priority to this second function.

with great potential due to the fact that it has not been introduced massively. The turnover expected of this new UEN would be 2. a product recently introduced on the market. The average number of employees is 30. deepfrozen cod ready for cooking and situated in its central processing plant in Laredo (Cantabria). Our project is based on the creation of a new line of frozen salted cod. preparation and wholesale of salted cod. which would mean 15% of the total combined sales of PESCA NORTE in this period.453 in the first year. we have opted for a strategy of related diversification.650. The principal activity of the business and its main objective is the import. barbels. which is much superior to the products found on the market at present. “pieces”. The product has a great advantage over traditional salted cod because it avoids the tedious work of desalting for the user. The commercialised products are salted cod and its different presentations: backs. is a family business resulting from the more than 30 years experience in the salted cod sector of its founder and current Managing Director Mr Ramon Sánchez. most of whom are operatives working in the preparation of the product from the reception of the raw material from the North Sea (preferably Norway and Iceland) to the shipment of the finished product prior to distribution. The headquarters are situated in the Polígono Industrial La Pesquera in Laredo (Cantabria).L. fillets etc. The objective is to enter in new market segments so that PESCA NORTE will be adapting to new tendencies and will depend less on its traditional business.Annexes Annex 1 PESCA NORTE S. salted cod. Given the level of maturity reached in the salted cod market and our experience in it. 15 . The distinguishing advantage of our product lies in the quality of the raw material. In the present study PESCA NORTE proposes the creation of a new production line to produce desalted. where in 1998 a new production plant with some of the best installations in the sector was inaugurated. There is a growing tendency among consumers for rapidly prepared food and with our new product we are trying to adapt traditional cod to the new needs of the consumer.

............................................................ 10 ANALYSIS OF THE CLIENTS .............................................. The project will be directed by María García................................. Samuel Larralde: Degree in Business Studies from the Universidad de Navarra and MBA from the Instituto de Empresa de Madrid........ 22 MARKETING PLAN ................. 25 DESCRIPTION OF THE WORK TEAM ..................................................... 2 BUSINESS ANALYSIS.................................................................................... 1 EXECUTIVE SUMMARY ............. The project director and the Product Manager will be directly answerable to the managing director of PESCA NORTE.......Promoters This project has been developed by the following team: María García: Degree in Business Management from the Universidad Autónoma de Madrid and MBA from the Instituto de Empresa de Madrid with experience as management assistant in PESCA NORTE and expert in the cod sector...................................................... In the production area an operative who knows the product and the desalting processes will be incorporated from the main business unit of traditional salted cod.......... 38 16 .. who will act as Product Manager...... 15 DESCRIPTION OF THE MARKET AND THE COMPETITORS ........................ Annex 2 GENERAL TABLE OF CONTENTS OF A BUSINESS PLAN 1 2 3 4 5 6 7 8 9 10 11 INTRODUCTION ................................................. 33 GROWTH EXPECTATIONS ................................................................................ 30 ECONOMIC AND FINANCIAL STUDY................... 35 ANNEXES ................................................... 4 ANALYSIS OF THE INDUSTRY ........

who is our supplier of raw material (salted cod. On the one hand. which include both machinery and preparation of the halls (moving earth. The principal advantage of the product is that presents traditional cod of the highest quality. Potential clients Within the portfolio of potential clients. only subcontracting transport. From this point. These investments. suitable working clothes. a computer. Technical description The production process will be carried out in a special section within the installations of PESCA NORTE. electric.000 euros and the investment in the manoeuvring fund which is 500.) come to 21. for which reason no investment is needed for premises. 17 . Even so. as there is more than enough space since the industrial premises are of recent construction. already cut up).Annex 3 EXECUTIVE SUMMARY Description of the business PESCA NORTE is a business dedicated to the preservation and wholesale of salted imported cod. for a little more than 6.000 euros for the first year. ready for cooking. there are the superstores and on the other the wholesale distributors. Investment needed The process will take place in PESCA NORTE´s own installations in Laredo. etc.633. the halls we will use have to be prepared so that they are in the state necessary for carrying out the desalting and freezing processes. and sanitary installations. To the investment only has to be added something for furniture. we will carry out all the phases of production.883·18 euros. refrigerating. The aim of the project is to launch a line of “frozen desalted cod” to enter in a new segment through new distribution channels (especially super-stores). there are two very different groups. who in turn are divided into two groups: distributors of frozen food and present distributors of PESCA NORTE Competition Frozen salted cod is a product that is still not well established in the market and at present there is no business that produces frozen salted cod of quality and with the capacity to supply it regularly on a large scale.

000 kilos or less.000 euros.Sales forecasts The sales forecasts considered start from contacts made both with present clients of PESCA NORTE and with possible new clients. which is very profitable. sales growth. Even discounting only the cashflows in the 5 years analysed. 18 . the VAN is also positive.000 kilos. Economic analysis The real net value discounting cashflow in the first five years and the residual value (considering infinite cashflows with growth of 2%) is a little more than 6. Taking into account that in the market study the forecast was 300. The start off figure is 300.600. Regarding the distribution channels in the first year we think 20% of sales will be in super-stores rising to 40% in the fifth year.781 euros). of which 40% will be for Portugal and 60% for Spain. it does not seem very probable such a thing would happen. (1.057. discount rate. and growth of infinite cashflow) we have determined that the project would not be profitable only if sales were 50.000 kilos. first year sales. In the different sensitivity analyses done (price.

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