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Successful business development directly depends on drawing up a business plan.
It’s not enough to just make a plan; you need to constantly adjust it in accordance with market changes.
This will allow your business to “stay afloat”, receiving income and conducting clear planning of budget expenditures.
Every successful individual entrepreneur (IP) knows that a well-drafted business plan is the “foundation” of any activity. Using a business plan, an individual entrepreneur can attract investors or apply for a loan from a bank.
A business plan is a full-fledged program for launching and developing a business, containing detailed information about a product, its production and distribution. The business plan reflects the planned profitability of the company, and also demonstrates the financial return on investment.
Preparing a business plan for lenders should focus on specific financial indicators. The basic rule for drawing up a successful business plan is to present the material dynamically and be concise (no more than 15-20 sheets). Let's consider how to write a business plan yourself?
How to write a business plan? This requires a model, especially for a beginner. Any work, first of all, consists of a title page.
This is the “face” of your business. The title page “introduces” a potential investor to a business idea, so it is very important to learn how to format it correctly.
The title page should be attractive and succinctly inform the investor about the essence of the business. The required items on the title page are:
Want to know more about writing business plans? Then the next topic is for you. : purpose and structure, algorithm and examples.
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A summary is brief and general information about the project. The volume of the resume should not exceed 1 printed page. The resume contains information about the company's field of activity and expected financial results. The summary also substantiates the goals of creating the project, its uniqueness and benefits for investors.
When writing a description of a product, it is necessary to focus on the usefulness of the product.
You can also make a brief comparison of this product with analogues, focusing on the main differences.
The “Product Description” section should provide an opportunity to analyze further business development.
The business model is a simplified version of the functioning of all systems and business processes of an individual entrepreneur. Creating a business model is one of the most important steps at the strategic planning stage of a company's activities.
A business model succinctly describes how a company creates and sells its product. The development of a business model is entrusted to the management team of the individual entrepreneur.
At the stage of market analysis, it is necessary to familiarize yourself with the situation in detail and analyze the total volumes of potential sales for the products produced. You can also make a trial batch of goods in order to study the behavior and reaction to it on the part of customers. When analyzing the market, it is necessary to evaluate competitors.
General scheme for competently drawing up a business plan
How to write the right business plan? A competent business plan contains detailed information about the main competitors to understand the prospects for the development of the individual entrepreneur.
At the SWOT analysis stage, the strengths and weaknesses of the company are studied, risk factors and market opportunities are assessed.
SWOT analysis helps IP management evaluate the following points:
An integral part of the business plan is the risk management concept.
This section is intended to prevent the occurrence of unfavorable events in the company’s activities in order to avoid significant financial losses.
Active risk management implies their prevention at the decision-making stage. In this case, risk management is associated with marketing market research, which shows the likelihood of losses based on an assessment of demand and pricing policies of competitors.
Any investor who makes a decision to invest funds pays attention to the risk of loss of invested capital.
A sales strategy is a comprehensive planning consisting of answers to the following questions:
In this section, it is necessary to analyze the market and create a clear description of the conditions under which potential buyers will become clients of the individual entrepreneur.
The “Organizational plan” section, as a rule, indicates the general structure of the individual entrepreneur and the role of each of its links in the process of production and sale of goods. In addition to the general structure of the enterprise, investors are interested in information about each member of management (if the company plans to raise capital).
At this point, a general table of the company’s income and expenses is demonstrated, a forecast balance is drawn up, and calculations are made for the calculation (cost) of goods.
When drawing up a financial plan, it is necessary to calculate the payback period of the project with a breakdown of cash flows by month.
When working on a business plan, you should not overdo it. Consider only basic information. It is important that the investor, after reading the first two pages, already understands what is at stake. The data used in drawing up the business plan must be 100% reliable.
“Plans are the dreams of knowledgeable people” Ernst von Feuchtersleben (English scientist, philosopher, literary critic).
Having chosen your business, you need to decide how you will organize it, which means you need to plan for the near future. Everyone needs a business plan:
Business plan is a document that:
A well-written business plan- this is a clear answer to the questions: “is it worth investing in the planned business and will it bring income that will pay for all the costs of effort and money?”
Important! Planning should be carried out by current or future companies, that is, those people who are not afraid to take responsibility for the implementation of the business plan. But this does not mean, of course, that you do not need to use the services of consultants and experts in this field. True, consulting firms charge decent amounts for its preparation, ranging from somewhere from 2 thousand US dollars to 40 thousand US dollars. But you can create it yourself, incurring minimal costs. By getting involved in this work personally, you will not only model your future activities, but also test the strength of yourself and the plan itself.
So, main purpose of a business plan: it helps entrepreneurs solve the following problems:
— Study the capacity and development prospects of the future sales market.
— Assess the costs of producing products needed by the market. Compare them with prices.
— Determine the indicators by which the state of affairs can be regulated.
Keep in mind! A business plan is usually written for the future, and it should be drawn up approximately 3-5 years in advance. In this case, for the first year, the main indicators should be divided into monthly breakdowns, for the second - quarterly, and only starting from the third year, you should limit yourself to annual indicators. Although, if we take into account our economy and its variability, then planning for a period of more than a year is not entirely effective. Therefore, many now limit themselves to writing a plan for the year.
The business plan has a complex structure. The entire life of a company from the moment of creation to the moment of stability and sustainability must be written in business language, intelligibly and vividly. A business plan should be understandable to any entrepreneur, financier and banker, as well as potential partners. A confidentiality memorandum is drawn up to warn persons reviewing the business plan about the confidentiality of the information contained in it. The memorandum may contain a ban on copying, transfer of the project to third parties and a requirement to return the project to the author.
A business plan should always be short and succinct. True, sometimes, in order to reveal the essence of the problem, it is made quite deep in content. Recommended volume: 30 – 70 pages, no more. It is advisable to include all additional materials in appendices to the business plan.
Remember! It is important to provide measured information.
Here are the main points you will need to consider:
Remember! Any business has its own characteristics, therefore, there cannot be a “standard” plan that is acceptable in all cases. There is, so to speak, only a general principle, a structure for drawing up a business plan.
Your business should always begin with conclusions, you will write them very last, but they should be the very first points of your business plan. A resume is the result of an already written business plan. This is the only part that most potential investors read.
1. Goals and objectives
Here you will need to provide an analysis of the idea (SWOT analysis). Uncover strengths and weaknesses, as well as opportunities and threats.
2. Product (service)
It is important that this part is written in clear, concise language that can be understood by a non-specialist.
3. Market analysis
Market and marketing are a deciding factor for all companies. You need to first collect and process a large amount of “rough” information.
4. Marketing plan
At this stage, the main task is to gain the trust and favor of a potential investor. If you do not have special education, you should read books on marketing and consult a specialist.
5. Production plan
Here you should consider all issues related to the premises you occupy, their location, equipment, and personnel.
6. Management personnel
Investments are made in specific people, and not in a business plan, which is why this section is one of the most important.
7. Sources and volume of required resources
In this section you should present your thoughts regarding:
8. Financial plan and risk analysis
Business people are divided into those who love working with numbers and those who are afraid of them. For those who belong to the first category, this section of the business plan is undoubtedly the most important.
9. Detailed financial plan
You need to include a detailed financial plan in your business plan:
And finally, I would like to give some useful tips on drawing up a business plan:
Wish you luck!
Your future project. How to write a business plan? The step-by-step instructions in this article will help in this matter.
Writing a business plan can be different depending on why it is needed. One of the most common purposes is to present it for investment. This kind of project business plan is the most complex. Often, third parties are involved in writing it - experts in their field, who will create a suitable business plan for approval by the investor.
It happens that a manager instructs you to write a business plan for a company, for example, to open a branch. In this case, they also often turn to third-party specialists to draw up such plans. Ultimately, the contractor may only need to make some adjustments to the needs of the company.
Well, when a business plan is needed to open your own business, it is best to write it from cover to cover yourself. Although this is a difficult process, it is exciting and very interesting. After all, your own business is the real brainchild of an entrepreneur. And therefore, its creation is treated with great care and thoroughness. The article provides instructions on how to draw up a business plan for your business.
Basically, those who decide to open their own enterprise have already chosen and know their field of activity well. But there are entrepreneurs who want to have their own business, but still do not clearly know what exactly they will do. They are looking for a business idea. It is difficult to overestimate its importance. The idea must suit the interests and desires of the entrepreneur himself.
This could be a hobby that a person is willing to do even for free, or a business that already brings in a guaranteed income. In any case, having chosen a niche for yourself, it is important not to be distracted by anything else and not to dream of unattainable heights, but to step by step bring your real idea to life. A business plan will really help in this matter.
So, having imagined what the future business will be like, you can move on to writing a business plan. There are special planning standards. Therefore, if it is to be submitted for investment, you should choose an appropriate standard and adhere to it when writing.
To understand how to write a business plan, step-by-step instructions and generally accepted standards will serve you well, since they are approved by people who are professionally versed in these issues. An entrepreneur will be able to sort out his, perhaps not yet fully formed, thoughts and bring his business to life.
A standard business plan consists of the following chapters:
General provisions.
Market analysis.
Marketing and strategic plan.
Costs.
Production plan.
Investments.
Financial plan.
Here the essence of the matter, a description of the business idea, information about its objective need in the market, timing of implementation, and competitiveness should be briefly displayed.
Of course, this part is largely intended for potential investors. It is they who, after reading the summary, make a conclusion about whether it is worth getting acquainted with this plan further or not. Therefore, if it is intended to be presented to an investor, it is necessary to describe this part carefully, perhaps returning to it again and again, making adjustments after compiling subsequent chapters.
However, for his own needs, this part is also important, since it helps the entrepreneur to better see the entire process of organizing the business as a whole.
If the resume is written on about one - maximum two pages, then this chapter can be written in more detail. That is, in fact, the “General Provisions” chapter contains the same information as the summary, but in a more detailed form invites the reader to become familiar with the project as a whole.
It describes the characteristics and implementation of the project, its life cycle, the possibility of additional development and the forecast of changes in the product with a possible change in market trends.
The service business plan in this chapter should contain information about what the specific service is and how it will attract customers. For example, a business plan describes all proposed services, their characteristics and distinctive features. An attractive feature here is the legend of how celebrities undergo procedures in the salon or how individual specialists provide them with these services, how specialists were trained directly with the brand of product with which they work.
In parallel with writing a business plan or before drawing it up, it is necessary to conduct a market analysis. This is an extremely important part, because the success of the future project directly depends on it.
Having chosen a market niche and target audience, they conduct a thorough analysis to determine how relevant the project’s business plan, the initial proposal and its idea are. If the analysis reveals an excess supply, then it is worth returning to the idea and trying to adjust it so that it corresponds to the state of affairs on the market. If there is increased demand, then everything is in order, and you can safely proceed to further actions.
Market analysis is carried out in different ways. But if problems arise with its implementation, there are companies where you can outsource market analysis.
Nevertheless, the entrepreneur is recommended to look into this issue himself, since any third-party organizations will give only an objective average result, not fully taking into account the business plans of a small business and all the nuances of the business idea of the project author.
This plan includes introducing the product to the market, its development, pricing, sales and distribution system, as well as advertising. To launch a product, it is advisable to build a Gantt chart, which will display the dates of implementation of various activities. Based on market analysis and competitiveness, a strategy is calculated, how the market will be conquered and what tactical actions will be required for implementation.
Pricing is based on economic calculations and the company's expected income. Sales and marketing can be presented in the form of a diagram, where the entire process will be visible in stages. For example, from receipt of goods at the warehouse to receipt of money for the goods and its sale.
This chapter includes the purchase of necessary equipment, repairs, rental of premises and other costs. The production schedule must reflect how many people are required to implement the project, their work schedule, deductions of wages and related payments.
They will become much more attractive to an investor if there is a ready-made team that will work on the project, as this proves the entrepreneur’s ability to implement his plans. Therefore, it would be appropriate to highlight this fact in the business plan.
If the company is a manufacturing company, then it is necessary to describe the production process, as well as the partners and suppliers who will participate in the business. For example, the farm business plan in this chapter should include equipment for milking, bottling, packaging milk and a mechanism for marketing it through specific suppliers.
The most important part of the entire business plan is, of course, the financial plan. Moreover, if the project is intended to be familiar to the investor, then after reading the summary, a serious investor will most likely look at the financial plan. After all, this is where the real ability of an entrepreneur to implement business ideas will be visible. This is the essence of entrepreneurial activity.
The financial plan provides all the information about the possible costs and income of the project. Based on the marketing, strategic plan and costs, a table is drawn up for several years, which displays the required investments and their repayment schedule, all costs and possible income.
The final part of the financial plan must necessarily be a calculation of the profitability of the future business.
Now the reader knows how to write a business plan. The step-by-step instructions given in the article are a short guide demonstrating the importance of understanding goals and the need for business planning.
Before you start implementing your own business, you need to carefully analyze the competitive environment, evaluate the strengths and weaknesses of the project, calculate the amount of investment and the payback period. Without preliminary preparation, it is impossible to implement a single business project. In this article we will tell you how to write a business plan, what are the nuances of document preparation, and share 10 tips for effective planning.
A business plan is a step-by-step guide that will allow you to clearly follow your goals without deviating from the main idea.
Before you start drawing up a document, it is important to understand why it is needed. This document briefly outlines on paper the essence of business activities and describes the implementation of the idea step by step.
A business plan reflects all aspects of activity and helps plan the sequence of actions necessary for the successful implementation of the company's goals.
The document is drawn up for:
Moreover, these can be completely two different documents, with different calculations of the payback period, investment, etc.
For external use, a plan is drawn up to show the business idea at its best. This information, as a rule, is intended for investors and business partners, which demonstrates the strengths of the project, shows its quick payback with minimal investment.
For internal use, a more detailed and realistic calculation of risks and possible factors is compiled. All the weaknesses of the process are reflected here in detail, which can reduce profits, increase the payback period, etc.
It is this document that will serve as the main tool for business management and suggest in which direction to move further. The main rule that should be followed when writing an internal business plan is the real picture.
If a document for external use can be slightly embellished in order to advantageously demonstrate the strengths of a business idea, then a document for internal use will serve as a kind of step-by-step guide that will indicate the direction and help calculate all possible risks along the path to implementing the idea.
It is better to start drawing up a business plan immediately with a document for internal use, so that during the creation process you can consider production taking into account its weaknesses, analysis of the competitive market, and identification of risks. Most likely, a lot of information will not end up in a document intended for investors and business partners. But this will be a serious help for you in properly organizing your business.
A business plan describes all the features of the future organization of the business, it reflects an analysis of the strengths and weaknesses of the business idea, describes possible risk factors and problems, and identifies solution options.
A good business plan is the key to success
Competently drawing up a business plan is the key to the successful future of your enterprise.
The development of an internal document will not only help calculate the overall estimate, but will also indicate whether it is necessary to attract investor money. It is important to understand that attracting investors is not always advisable and will have the best impact on the business. Perhaps at the first stage it will be possible to make do with existing capital, and as production develops, think about attracting external investments.
Attracting an investor only at first glance seems to many to be a lifeline that will help launch a project. But sometimes such an investment results in unfavorable terms of cooperation and financial bondage, from which the entrepreneur will not be able to escape for a long time.
On the other hand, significant financial investments from outside in some cases help to take the first step, purchase equipment, rent premises, hire staff, etc. And if, apart from the idea, a novice entrepreneur has no financial resources, then, of course, he cannot do without third-party investments.
How does a business plan help an entrepreneur?
Today, experts work with several classifications of business plans and mainly distinguish them according to the following criteria:
As mentioned above, when starting to write a document, you should immediately determine what type of plan is being developed: internal or external.
There is a distinction between an internal production plan, which is written to modernize or expand production, and a marketing plan, the purpose of which is to improve the company’s position in the market, reach the next level, etc.
The internal manufacturing business plan should take into account the following points:
A standard business plan consists of the following chapters:
When studying the document, investors will pay attention to the following points:
Regardless of the scope of activity of the future enterprise and the direction of the business, the document has its own standards that must be relied upon when drawing up a plan.
Before writing a business plan, prepare a title page.
The following parameters are specified here:
This section contains the most important part of the document about the company being created. The goal, short-term and long-term plans for the company’s development, and the specifics of the product or service being created are indicated here.
This paragraph must necessarily contain information about the amount of required investment and an indicator of efficiency.
Despite the overview information, it is the resume that investors and business partners pay attention to first, so when writing this paragraph, be sure to adhere to the principle of conciseness.
It describes the main activities of the enterprise, mission, purpose, organizational and legal aspects.
In this chapter you need to provide information about the author of the business idea, the company responsible for its implementation (name, legal address, share in the authorized capital), partners.
This chapter reflects the principles of organizational strategic management of the company.
The organizational part must necessarily contain the following data:
This chapter not only monitors the competitive environment with a detailed analysis and description of the main players in this market. Here the possible risks are calculated.
This chapter evaluates:
When assessing the degree of financial risks, it is advisable to use an analysis scheme where the following data is filled in: name of the threat, essence, options for minimization and financial costs.
If problems arise with conducting market analysis, there are special companies where you can turn to for this service, but experts recommend that the entrepreneur still figure out this issue on his own, since any third-party companies will provide only an objective average result, not fully taking into account the business plans of small businesses and all the nuances of the project author’s business idea.
When drawing up a business plan, you must clearly remember that it must correspond to the tasks and goals of the enterprise and directly provide answers to specific questions.
When carrying out strategic planning, you should conduct a SWOT analysis, which evaluates the strengths and weaknesses of the project, development opportunities and threats (risks) that may arise on the way to implementing the idea.
Strengths typically include:
The weaknesses of the project include:
When conducting a comprehensive market analysis, it is necessary to take into account all aspects and factors: political, economic, social, etc.
What threats can influence the low efficiency of business development? These may be strong competitors, customs and government clearance, market instability in this industry.
But potential opportunities include the likelihood of obtaining a new product, changes in legislation, and increased professionalism.
Describes in detail the product, its technical features, the possibilities of using the product (service), the degree of relevance and novelty of this proposal.
The level of readiness for a given product (service) to enter the market is determined.
When compiling this section, it becomes clear how to attract customers and expand sales channels. Here you can calculate in great detail the ways to sell products, ways to attract customers, and in the future this part of the business plan will become a step-by-step guide to action.
In this part it is important to reflect the following aspects:
Particular attention should be paid to pricing, which is one of the key factors in the success of a business idea.
Consider the following points:
It is a mistake to believe that a cheap price will stimulate successful business development. It must clearly meet the quality of the product, demand and take into account the market analysis that you will conduct in the previous section.
This section must contain information about production costs.
It is necessary to take into account everything that should be included in the cost of the product:
When calculating potential profit, we take the formula:
Profit = income from sales – costs.
If at this stage of planning you do not take into account any part of the costs, it is difficult to talk about the correct calculation of profit and payback period.
When determining product pricing, marketers use several classic schemes:
Advice! When writing this section, you must understand that, in principle, you cannot release a product or service to the market that your competitors do not already have. But you can offer the product to the desired category of customers. It is on this concept that most successful business plans are built.
When designing sales channels for a product, you must be guided by the principle of the “Four Hows.”
When determining your target audience, you need to consider the following:
Advice! Don't overload this part of the plan. As a rule, SWOT analysis and market analysis takes up a very large part of the entire business plan and it becomes difficult for investors and partners to study it. Use graphs and tables for this part of the document.
Don't confuse a production plan with a production process. This section of the document provides answers to specific questions:
The main task of this section is to confirm with calculations that the company being created is able to actually produce the required quantity of goods (services) in the required time frame and with the required quality.
This part describes the cost pattern in detail. It is better to use graphs and diagrams to clearly see the entire cost part.
Prepare your estimate as follows:
This part of the plan is one of the most important, and investors will look at it first when getting acquainted with the project (after the summary).
This chapter reflects the real picture of the viability of a business idea.
The section provides for planning expenses and investments for business expansion. The owner needs to develop a sales volume plan and different scenarios, each of which must be calculated:
Here it is necessary to reflect information about the possible costs and income of the project, attach a schedule with the required investments, a schedule with the repayment of these investments, etc.
The final stage of the financial plan is the calculation of business profitability.
In some cases, it is advisable to draw up a Memorandum of Confidentiality. This document is necessary to protect the copyright of the idea and business plan. As a rule, such a document is resorted to when the author submits an innovative business idea.
This document reflects the prohibition on the dissemination of information and copyright protection.
There may also be an instruction prohibiting copying, duplicating the document, or transferring it to another person, or a requirement to return the read business plan to the author if the investor does not accept the agreement.
Remember that a business plan is a kind of advertising business card for your business, so pay great attention to its writing and design.
Divide the chapters according to functionality, do not overdo it with tables and graphs, but at the same time give them a lot of attention.
A plan written in continuous text will also not attract attention and will not allow you to quickly find the sections of interest.
Many aspiring entrepreneurs who are just starting out on their own business path begin to panic before developing a business plan.
Considering the key role of this document and the importance of its information, many entrepreneurs order such a document from third-party organizations that provide this service at a professional level.
Is this correct from a business point of view?
On the one hand, a well-drafted business plan is the key to successful business and an effective tool for attracting investors. But on the other hand, having ordered a document from a third-party organization, the entrepreneur does not understand the essence.
As a rule, companies that provide services for writing a business plan work according to a template, and no one will analyze the market and competitive environment as scrupulously and thoroughly, identify the strengths and weaknesses of the company, assess possible risks and ways to solve problems, as the owner himself companies.
Often, when turning to an agency for writing such documents, the owner of a business idea receives a Talmud of 100 pages, which reflects the essence of the business in very vague and general phrases, without going into its specifics.
What to do in this situation? You can order purely mathematical and investment calculations from a specialized company that reflect the projected profit, payback, etc.
But it is better for the business owner to carry out a comprehensive analysis of the business idea, a description of possible risks and prospects himself. Only he will be able to do this specifically with reference to the specifics of the company and assess its real potential.
To make it easier for you to develop and write a competent, clear and understandable plan, let's look at the main mistakes that novice entrepreneurs make when drawing up such documents:
Mistake #1. Illiterate syllable. Sometimes even the most promising business idea can die at the inception stage just because of mistakes in the business plan. No investor or partner will accept a document written with grammatical or punctuation errors.
Mistake #2. Careless design. The document should be clear, contain structure, and numbered chapters and pages.
Mistake #3. Incomplete information. We have analyzed a detailed list of all chapters that must necessarily be contained in the document. Incomplete information can distort the meaning of a business idea.
Mistake #4. Too much unnecessary information. Try to concisely and clearly answer the questions posed in the document and do not go into the smallest details, stretching the plan over 100 pages.
Mistake #5. Distorted data. Wanting to attract investors and demonstrate a business idea in a favorable light, many authors provide unrealistic data that is immediately visible. Stick to clear data and calculations.
Mistake #6. No risks. Silence about weaknesses and risks only indicates weak analysis. In fact, there is not a single industry in business where no risk exists.
To make it easier to draw up a plan and clearly reflect all the necessary data in it, we suggest that you familiarize yourself with the video instructions.
It is a document that highlights all the characteristics of the future organization, analyzes possible problems and risks, predicts them and methods by which they can be avoided.
Simply put, a business plan for an investor is the answer to the question “Should I finance the project or throw it in the trash?”
Important! A business plan is drawn up on paper, taking into account some procedures and rules. This presentation of the project to some extent materializes your idea and shows your desire and willingness to work. Also, putting it on paper makes it easier for investors to perceive the idea.
Making a business plan yourself is not that difficult, you just need to think about the idea carefully. Before you grab a calculator and calculate your income, there are several steps you need to take.
If after such a superficial analysis you don’t want to abandon your brainchild, then it’s time to take a clean slate and start creating a business plan.
It is important to know! There is no single structure and step-by-step instructions on how to calculate a business plan. Therefore, the presence and order of items included in the plan are determined independently. However, experts have established the most optimal plan structure option. If you have no experience in drafting such documents, you need to use these recommendations to correctly compose your work.
The structure of a good business plan, according to economists, should include 12 points. Each of them is described below.
The following parameters are specified here:
This document is necessary to protect the copyright of the idea and business plan. This reflects the reader's awareness that he does not have the right to distribute the information contained in the document without the permission of the author. There may also be an instruction prohibiting copying, duplicating the document, or transferring it to another person, or a requirement to return the read business plan to the author if the investor does not accept the agreement.
An example of a confidentiality memorandum can be seen below.
The next 2 sections of the plan – “Brief Summary” and “Main Idea of the Project” – are introductory. They can be used as a preliminary proposal (for review) to partners and investors until negotiations are scheduled.
Although a brief summary of such a document is at the beginning, it is written at the final stage, as a summary. A summary is a short description of the project idea and a list of the most significant characteristics of the financial component.
The following questions will help, answering which can lead to an excellent resume:
It is important to know! The summary is read by the investor first. Therefore, the future fate of the project depends on this section: the investor will either become interested or bored. This part should not exceed 1 page.
Important! It is necessary to provide clear, real and explicit arguments that will confirm confidence in the profitability and success of the project. The volume of this part is optimal within 1-2 pages.
In this section, it is customary to use the conducted SWOT analysis – assessment of the strengths and weaknesses of the enterprise, opportunities (prospects), as well as possible threats. It is unlikely that you will be able to make a business plan correctly and as completely as possible without such an analysis.
A SWOT analysis reflects 2 aspects that influence the life of an organization: internal, relating to the enterprise itself, and external (everything outside the company that it cannot change).
Do not forget: You are describing a company, not a product! A common mistake authors make is that they start writing product characteristics in the “strength” column.
Here are some parameters you can use to describe strengths or weaknesses:
External factors (“opportunities” and “threats”) include:
Example
This section reveals the idea, the subject of the business plan. It also reflects the level of preparedness of the enterprise to go “into the world”, the availability of all the funds required for this.
The most important provisions in this section:
The objectives, goals of marketing policy and methods for solving and achieving them are indicated here. It is important to indicate which task is intended for which personnel, in what time frame it is required to be completed and with the help of which tools. The funds required for the latter also need to be indicated.
Marketing plan is a strategy, a set of sequential and/or simultaneous steps created to attract consumers and provide effective returns on their part.
The investor will be attentive to such points as:
Everything that directly concerns the creation of products is reflected in this part. Therefore, it is advisable to compile this section only for those companies that plan not only distribution, but also production of products.
Points that must be specified:
It is important to indicate the cost of everything that requires expenses.
At this stage, the principles of organizational strategic management of the company are developed. If the enterprise already exists, then this point is still mandatory: the compliance of the existing structure with the intended goals is determined here. The organizational part must certainly contain the following data:
This chapter of the business plan provides a comprehensive economic assessment of the written project, accompanied by calculations of the level of profitability, payback period, and financial stability of the enterprise.
A financial plan is very important for an investor; here it determines whether a given project is attractive to him.
Here you need to make some calculations and summarize them:
In a risk analysis, the author must examine the project and identify potential threats that could lead to decreased revenue. It is necessary to take into account financial, industry, natural, social and other risks. At the same time, it is necessary to develop a detailed and effective plan to prevent them or minimize the impact on the company. Therefore, the business plan must indicate:
This is the last link in the structure of a business plan. It includes documents, quotes, sources, copies of contracts, agreements, certificates, letters from consumers, partners, statistical data, calculation tables used in the preparation of this document. It is required to insert links and footnotes to the appendices in the text of the business plan.
Making a business plan from scratch without the help of a specialist is not easy, but it is possible. It is important to adhere to the above rules, construction structure and avoid mistakes.
The rules of language cannot be ignored. It often happens that the most incredible and promising idea goes into the trash bin along with a bunch of plans of mediocre IP specialists. And all because errors in spelling, vocabulary, punctuation and poor presentation of the text completely discourage any investor.
The design should be the same throughout the document: bullets, headings, lists, font, size, numbering, spacing, etc. Contents, headings, numbering, names of figures and tables, designation of data in graphs are required!
To properly draw up a business plan, you need a comprehensive amount of information. The sections of the document listed above are the minimum that should be unconditionally included in the project.
The work should be “like in a pharmacy on a scale.” Clear, defined, specific statements of goals and (important!) ideas.
An abundance of technical, financial, and marketing terms will only help in exams. For a business plan, you need to select only the most significant details. If there is a great need for a thorough description of a process, then you can add it to the appendix.
Business proposals like these are based on assumptions. Therefore, the author needs to approach the idea rationally and have a reasonable background, a real reason, supported by calculations.
For each assumption there is its own justification - real, valid. Facts give work meaning and confidence. You shouldn’t create a fountain of facts either, but if you get carried away, then look at the rule about details.
The main rule: there is no business without risk. There is no such business in which it is “quiet and calm.” The investor knows this, and the author should know this. Therefore, it’s time to come down from the clouds to the ground and study, explore, analyze.
There is always a competitor, as well as a risk. It can be direct or indirect. Study this topic carefully and meticulously, and a rival will definitely appear on the horizon, waving his hand at you.
Creating a business plan yourself does not mean doing absolutely everything yourself. Moreover, obtaining a high-quality result is possible through the joint efforts of several specialists. Don't be afraid of helpers!