Analysis of the business plan of an innovative project
Question Classification, composition and objectives of business plans
Question Contents of the sections of the business plan
Question Classification, composition and objectives of business plans
Any innovation process, be it the release of a new product or diversification of production; associated with the need to finance it either at the expense of the company's own funds, or by attracting external sources of credit. The business plan, being a form of short-term planning of the company, performs the function of a mandatory document to be presented to credit institutions, and in many respects ensures a positive decision of the lender to finance innovative projects. As the practice of many companies shows, a convincingly and correctly drawn up business plan guarantees 90% of getting the necessary loan.
However, business planning has another critical function. In the course of drawing up a business plan, all managers and managers of a company face the problem of defining not so much the goals and strategies of the company, but rather the need to identify specific ways to implement innovations, calculate quantitative indicators and confirm the economic feasibility of the project itself.
New business statistics in the US show that out of 600,000 new firms, only 50% have been “afloat” for more than 18 months, and only one in five companies has not gone bankrupt within five years. Most executives, economists and analysts agree that the main reasons for failure are inability to clearly prioritize activities, the economic failure of new projects and the lack of reliable financial support from lenders. It is this provision that explains the particularly serious approach to the requirements of credit institutions regarding the forms and content of the business plan.
All future aspects of the new activity are justified in the business plan, possible problems that may arise are analyzed.
The relevance of a business plan depends on the specifics of innovative projects.
Classification of business plans
Business planning of innovative projects provides for the solution of the following tasks:
1. diversification, re-profiling and reorganization of existing production;
2. preparation of applications for existing and newly created enterprises in order to obtain loans for the creation of new, reconstruction and expansion of production;
3. justification of the construction of new enterprises;
Innovation is often associated with fresh inventions and new products. But an old product with new properties or in a different modification is also considered an innovation. New technologies and methods can also be called innovation.
Innovative project Implementation details
The concept of an innovative project
An innovative project means a set of measures for the creation and launch of new goods or services on the market.
Creating an innovation is a process from the moment an idea is conceived to the complete closure of a project. This process represents the life cycle of innovative projects, the features of which are determined by the area of implementation, the level of novelty, the type of innovation, etc. Innovations are created in various areas (production of a new type of yoghurt or improved engines for agricultural machinery) and present very different results in form (new part, technology or control method).
Features of the implementation of innovative projects
An innovative project from an economic point of view is an investment one, since it requires costs, but it has significant differences from the latter. Innovation is associated with high risks. Both the author of the idea and the investor take risks. There is such a pattern: out of ten developments, only one gives good results.
However, the profit from one project is able to cover the losses on the rest of the failed ones. Understanding this law forces entrepreneurs involved in this area to initiate several options for creating a new product at the same time. Taking this principle into account, venture capital funds also function. The funds accumulated in them are used to implement projects with different success rates. This approach allows you to give a chance to even seemingly inconspicuous initiatives.
Since the risk persists until the completion of the project, an integral part of the project should be its assessment at each stage. Before the implementation of the measures, a preliminary assessment is carried out, at subsequent stages - a clarifying one. Evaluation is important for making decisions about the continuation of activities and funding, especially when it comes to borrowed funds.
IMPORTANT! The estimate is not 100% reliable due to the uncertainty of future results until the end of the process. This is another feature of innovative projects.
Stages of implementation
Like any other process, the creation of an innovation goes through a number of successive stages. Professional management of this process presupposes a clear understanding of what are the stages of the implementation of an innovative project and what goals, objectives and activities are important at each of them.
A business plan is an element of any project. The business plan of an innovative project is the main document in which, in a concise form, in the generally accepted sequence of sections, the main characteristics of the project are set out, which make it possible to substantiate and assess the possibilities of the project and convince the investor of the effectiveness of the proposed investments in this innovative project.
The main task of the business plan is to give a holistic systematic assessment of the project's prospects. An investor needs a business plan to determine the feasibility of investing capital; the entrepreneur - to develop a program of action and guidance in the process of project implementation; government bodies - to regulate and control credit relationships. The development of a business plan allows at the early stages of the process of creating, mastering and using technological innovation to plan various options for the development of the company's competitive strategy, i.e. carry out scenario planning. Within the framework of the scenario planning of the enterprise's activities, it is possible to predict various situations that may arise in the process of creating, mastering and using an innovation.
In addition, a business plan is a tool that can be used to assess the actual results of an enterprise's innovation activities and compare these results with projected values. Constant refinement of the business plan in accordance with the changing conditions of the external and internal environment allows using the business plan as a tool for financial monitoring of the process of creating, mastering and using innovation.
Preparing an innovative project is a complex multi-stage procedure.
- 1. Identification (formulation) of the project. At this stage, the management of the enterprise, having analyzed its current financial condition and position in the market, identifies the priority tasks and the most promising direction of development. If there are several such directions, the parallel development of several projects is carried out, and at the final stage of development, the most acceptable of them are selected, i.e. such projects that provide the maximum financial result, assessed by the criteria of financial efficiency.
- 2. Collection of initial information for the development of the project. It is necessary to realize that the success of the project depends on the degree of reliability of the initial information and the ability to correctly interpret the data that appears in the process of project analysis.
Below is a list of data required for project development in general:
- o company data;
- o financial information;
- o personnel data;
- o legal documents;
- o information on intangible assets;
- o economic data: macroeconomic data, regional and local economic indicators and conditions, industry information, market information;
- o technical data.
It is clear that each project may require additional information that reflects its specifics.
3. Development of the technical part of the project. The technical part of the project should include the organizational structure and physical plan for the release of specific products (works, services), the definition of the corresponding investment costs, as well as costs arising during the operation phase.
The main tasks solved in the development of the technical part of the project are:
- o determining the technology that is suitable from the point of view of the project objectives;
- o analysis of external and internal factors of production;
- o verification of compliance with the necessary resources and resources available or potentially available;
- o determination of the cost of manufactured products (works, services).
- 4. Marketing analysis. The main elements of marketing analysis in the development of an investment project: market analysis, analysis of the competitive environment; development of a marketing plan for the product; ensuring the accuracy of the information used for the previous sections.
- 5. Commercial analysis.
- 6. The financial analysis.
- 7. Budget, regional and industry analysis.
- 8. Institutional analysis.
- 9. Environmental analysis.
- 10. Risk analysis.
- 11. Elaboration of legal issues related to the implementation of the project.
- 12. Expertise of the project.
The final innovation project is drawn up in the form of a business plan. The business plan usually covers all of the above issues. At the same time, the structure of the business plan does not imply the repetition of the listed sections. Moreover, it should be understood that there are no strict business planning standards to be followed "in all cases of life." The business plan of the project, first of all, must meet the requirements of the subject of investment activity, on whose decision the further fate of the project depends.
The business plan of an innovative project, as a rule, includes the following items.
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Topic: Development of an innovative project
Chapter 1. Theoretical prerequisites for innovation in the development of a business project
1. The main criteria for evaluating innovative projects at the enterprise
1. Management of the implementation of innovative projects at the enterprise
1. Indications for the development of an innovative project
Chapter 2 Features of the selection and implementation of the project
2. Brief description of the innovative project
2. Assessment of competition and sales market
2. Analysis of potential consumers
Chapter 3. Organizational, managerial and economic mechanism for the implementation of an innovative project
Federal Agency for Education of the Russian Federation
Novosibirsk State University of Economics and Management
in the discipline "Economics of the organization (enterprise)"
Topic: "Business plan of an innovative project"
What is a business plan
A business plan is a document related to project materials, containing a description of the project, including commercial proposals to potential project participants. The business plan usually contains all the information on the basis of which it can be concluded that it is advisable to participate in the project.
Whether the business project gets approval and its viability depends on the correctness of this document.
The business plan should be presented in a form that allows the stakeholder to get a clear idea of the nature of the case and the extent of their possible participation in it.
Figuratively speaking, a business plan is a look into the future of an organization. A good business plan can provide answers to the following questions: what the industry will look like in the future, what products and services the company can offer, what the long-term benefits are, how profitable the firm can become.
In the crisis economic conditions of the transition period, the business plan of the enterprise must, first of all, solve the problems of improving its financial condition. In this regard, consideration of the financial aspect of a business plan is most relevant.
Depending on the goals, the need for the development of business plans is identified when solving financial and managerial problems in various areas of economic activity. Generalization of the still small experience of drawing up a business plan by domestic enterprises and organizations allows us to highlight the following areas of their application: