What is Corporate Planning in Brazil and why it is necessary?

Every business needs to understand how important a corporate planning is, mainly foreign companies which want to invest in Brazil. The corporate planning is a document which involves many factors: initial planning, market strategies, operations planning, accounting and legal actions, and others. 

If you are thinking of investing in Brazil, check this article bellow and discover 4 advantages of corporate planning.  

1 – It helps to setting your strategy

The fundamental purpose of a corporate planning is to set your business strategy. With this document is possible to define your company goals, identifies the resources available, opportunities and helps to drive operations. 

The investor should think of the corporate plan as a tool that will assist him in the planning process. So, there’s only reason to plan if it’s clear where you want to go. It’s important to think about how the company will be in 5, 10, 20 years from now.

The growth objective for the company’s future may be related to different areas: number of customers, revenue, market share, profits, etc. 

2 – To know your market and consumers

Does your idea have competition in the Brazilian market? What are your differentials with them? Knowing other companies is as important as knowing the internal aspects of your own business. Discovering which market you are in, you will also have access to the profile of your consumers: age group, economic power, expectations about products and services offered, etc.

3 – It’s the best way to attract investors and financial institutions

Investors need to know the most about how the business will work and how their investment will be spent. An investor as well as a company operates based on return on investment. With corporate planning you will be able to present real statistics to show how profitable your company is to Brazilian investors, partners or financial institutions.

4 – Improve the monitoring and control of company actions

Corporate planning should include all possible indicators to evaluate the performance of the initial plans. These metrics will include financial, accounting, and legal information that allow for complete verification of all actions that have been taken.

In this way it is possible to verify if the main proposed objectives were initially achieved, and if the customers are satisfied with the company.

Any examples of variation of previously defined plans should be examined to determine if corrective actions can be taken to improve the performance of the whole company.

However, it is important to say that corporate planning is not done only once. It1s recommended that document be redone each year, following the changes and growth of the company.

Therefore, it is essential to set a timeframe for reviewing corporate planning, so that you can respond to new market demands as well as the internal needs of your business.

if you want to know more about invest in Brazil, visit our website and talk to us! https://gesconconsultoria.com.br/