What is a business plan and what is it for
Among all sections of the business plan:
- Cover Page
- Confidentiality Memorandum
- Executive Summary
- Investment Plan
- Marketing plan
- Production plan
- Organizational plan
- Financial plan
- Risk analysis
it is the organizational plan that describes the project staff, initiators, their shares in project management, qualifications and remuneration of project managers, as well as staff motivation.
If you are writing a business plan to receive investments for the development of an already operating enterprise, you will need to prove to potential partners that its organizational structure is as effective as possible. If you are just planning to open a company, production or retail outlet, you will need to describe in detail how you are going to ensure the operation of the new business.
All information related to the management of the enterprise should be presented in a section called "Organizational plan". Moreover, it is this point of the business plan that will prepare the ground for writing the financial section of the project.
Business Plan Organizational Plan Structure
First of all, in this section it is necessary to justify the choice of the form of activity. Indicate whether you are an individual - individual entrepreneur, or the founder of an organization - LLC or JSC. In the latter case, it is imperative to list the governing bodies and their powers, the composition of the founders and their rights and obligations. After that, it is necessary to describe the organizational structure of the enterprise.
Organizational structure is the composition, system of relationships and functions between the various departments of the enterprise, each of which is responsible for its own area of activity and is part of the hierarchical system of the organization.
There are several types of organizational structures, namely linear, functional, linear-functional, etc. However, whatever the type of structure, your task is to emphasize that it is as efficient as possible, namely:
- Allows to establish interaction between all departments and employees;
- Creates favorable conditions for the manufacture of high-quality products or services;
- Promotes the development of the enterprise , its goods and services.
What does the organizational structure of a business mean? The correct structure of the company, thanks to this system, the entire state is divided into departments and sections, each of which is responsible for its own area of work, such a thing was created to simplify and facilitate all possible work.
It also helps to establish clear responsibilities for each person in the campaign who occupies a particular position.
This structure is being created only for one thing - this is development at a high speed, because each part of the company knows what it needs to do in a given situation. As a result, it hinders and speeds up the decision-making process, that is, in a critical situation, the company can quickly move or correct the moment to retain its valuable parameters or information.
The form of a firm's distribution is often structured in this way.
Matrix structures The main part of the business, on which the creation or implementation of a specific task is focused, few people use the lease of resources in this matter, basically a group is created, which are divided into main subgroups and give the necessary division, they are added workers.
Each employee and manager signs a contract that they agree to complete the work on time and with the necessary filling forms. This type is called matrix, the huge advantages are a clear and understandable task for everyone, each employee does not deal with everything in a row, but only does what he signed a contract for, in this way the speed and efficiency of each employee in the state increases several times.
Classification of enterprise strategies
Three types of strategy that all businessmen distinguish:
- Corporate ;
- Functional ;
To achieve victory in any endeavor, you need to carefully weigh each decision you make. This is the case in the field of entrepreneurship. A thoroughly worked out document - a business plan - will help to get the desired result with minimal risks of losing your investment.
A business plan is a comprehensive rationale for the project and the environment in which it is implemented, as well as an assessment of the effectiveness of management methods that contribute to the achievement of the goals.
A business plan is an economic program for the step-by-step execution of business operations at the stage of implementing a new project. The document contains the main points of the future commercial enterprise: its field of activity, the list of products or services, market strategy of management, marketing policy, the expected level of profitability of production.
The main goal of a business plan is short-term or long-term planning of the economic and financial activities of the company in accordance with market demand and the ability to use the necessary resources.
A perfectly written and structured business plan is needed to solve specific problems:
- to formulate the main goal of the project, its strategic direction, to predict the development of events in the short and long term;
- to determine the market segments acceptable for the company's products and the target audience consumers;
- evaluate the competitiveness of the enterprise based on the indicators of the share of the target market or its segment;
- develop an assortment policy and characterize the indicators of the proposed products and services;
- calculate the acceptable the amount of potential costs of production and non-production orientation;
- determine the tactics of marketing policy in the field of pricing, the effectiveness of sales promotion, analysis of the developed market segments and potential target audience;
- assess the optimal ratio of the real capabilities of the enterprise and goals set for implementation.
A business plan is a document that is a good support not only at the initial stage of planning a new project, but also during the further implementation of business ideas.
Business plan functions
In addition to solving problems at the stage of pre-investment planning, specific functions are assigned to the business plan:
Hello dear readers of the KtoNaNovenkogo blog. u. Planning is the basis for the success of any endeavor, regardless of the scope of its implementation.
So, the Olympic champion plans his ascent to the sports Olympus not five minutes before the competition, but goes to this all his life, setting intermediate goals and achieving them.
The situation is similar in business: without a development plan, it is impossible to achieve serious success. Therefore, today we will consider what such a plan is, what is its structure and how to draw up it yourself.
What is a business plan and what is it for
Let's start with a schematic example. Let's say gr. Ivanov go into business, but he does not know where to start, which field to choose, how much money is needed, etc. What should Ivanov do?
Of course, sit down, calm down and think over to the smallest details (if possible) the prospect of your further actions, i.e. draw up a business plan. Then, after analyzing everything that "naval", make a final decision. He has 2 options: abandon his intentions, or roll up his sleeves and rush into the waves of business.
Someone will say that there are examples when a person built a successful business even without a development program. Yes, there are such examples, but they are few. “You cannot expect favors from nature,” you need to take the initiative into your own hands. So, this is a lyrical digression, but what is a business plan in a formal sense?
A business plan is a document that reflects the essence of a commercial project and the details of its implementation, including possible problems and ways to resolve them.
- an entrepreneur (company) who has decided to implement his commercial idea;
- an investor who decides whether a particular project is worth financing. The role of an investor can be either a private person or a legal entity, including a banking organization.
Business plan structure
There is no single unified business plan structure. Each of the entrepreneurs specifies the plan depending on the specifics of the project. Here is a typical structure of a business plan:
Objectives achieved by drawing up a business plan:
The structure of a business plan depends on the nature of the business, the goals of the plan, and the requirements of a potential investor.
The most popular in Russia is the structure of the business plan proposed by UNIDO (United Nations Industrial Development Organization). According to the standards developed by this organization, a business plan should have the following content:
- Executive summary;
- General description of the company;
- Products and services;
- Marketing; li >
- Production plan;
- Management and organization;
- Financial plan;
- Risk assessment;
The business plan should start from the end, i.e. with a summary.
It is naturally prepared at the end of the work, when all the main sections are completed.
A resume is very important in cases where you are going to present your business plan to an investor or bank. It is clear that it should make a favorable impression, otherwise the chances of a detailed study of your business plan become small, but the chance of getting funding tends to zero.
The executive summary is an extremely abbreviated version of the business plan.
A business plan should start with conclusions. They need to be written last, but they will be the very first paragraph of your business plan. The resume should be no more than 1-2 pages.
A resume is an independent advertising document, it contains the main provisions of the entire business plan. This will be the only part that most potential investors will read. The investor, first of all, will want to know: the size of the loan, for what purpose, the estimated maturity, who else is going to invest in the project, what own funds are available. This means that the conclusions should be written as if you were trying to explain the advantages of the project to the first passer-by that comes across.
Hence - the utmost simplicity and brevity of presentation, a minimum of special terms. The last page of your resume should be about the financial results you expect to get from your project:
- forecasted sales for the coming years;
- sales revenue;
- production costs;
- gross profit;
- level of profitability from investments in your business;
- payback period of the project.
In general, when developing a business plan, you need to keep in mind two questions: