Business plan organizational plan abstract
Achievements of any entrepreneurial activity, the prospects for the development of the company depend primarily on how successful the organizational plan of the enterprise is. Correctly resolved personnel issues allow you to avoid a lot of problems, while the lack of qualified and experienced employees, as well as the unwillingness of personnel to responsibly perform the assigned tasks, can destroy the business at the root. This article was written in order to help aspiring entrepreneurs properly organize their business with a specially designed action plan.
The optimal structure of a business plan for an enterprise consists of about 12 parts. One of them must be an organizational plan. The main function of this section is to combine all the components that have already been developed into one whole, in order to present to a potential investor a calendar plan for opening and developing a business project.
Organizational Plan Elements
The organizational plan should include the following points:
The importance of having an organizational plan
The main goal of drawing up an organizational plan is to show a potential investor that the company has the necessary labor and resource potential to achieve the goals and objectives of the business project.
The main task of the plan (should be described in detail) is a plan for the implementation of the work that is provided for by the project. At the same time, it is necessary to pay special attention to the issue of justifying the structure of the company, including the structure of the staff, and the choice of the method of progressive management of the company at all stages of activity.
Developing a plan requires the entrepreneur to take full responsibility when making important decisions, which will further affect the development of the enterprise as a whole. For example, it is very important to gather a staff of employees who will fully support the business idea, be imbued with it, understand its goals and will work with dedication.
The development of the organizational plan of the enterprise should be carried out using a special structure, this approach will help to avoid omissions of extremely important points.
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.
As a rule, the authors of a business plan depict the organizational system as clearly as possible, using a diagram or organogram. To create the latter, you will need to download a special application, while a diagram can be created in a regular Microsoft Word document. If for some reason you cannot represent the system graphically, you can describe the structure of your enterprise in text.
7. Organizational Planning
An important point from which this section of the business plan must begin and which must be covered in detail is the organizational structure of the enterprise.
The organizational structure is documented in graphic diagrams, staffing tables, regulations on divisions of the company's management apparatus, job descriptions of individual performers.
The main characteristics of the organizational structure are the number of management personnel by management functions, the number of line management personnel, the number of hierarchy levels of the enterprise management system, the number of structural links at each level, and the degree of centralization of management.
When describing the organizational structure, it is necessary to clearly show what is the management structure of the company, who and what will be engaged, how all services will interact with each other and how it is planned to coordinate and control their activities.
At the same time, it is necessary to emphasize the merits of the organizational structure of your organization and its compliance with the criteria of rationality, which can be called:
1) correspondence of the volume of management work performed to the number of their performers;
2) focusing on each stage of management (link) of objectively necessary functions and rights for their implementation;
3) no parallelism and duplication of functions;
4) optimal combination of centralization and decentralization of functions and rights;
5) compliance with controllability standards, i.e. the number of performers who go to one leader or coordinator of their activities;
6) the degree of reliability, efficiency, flexibility, adaptability, economy and efficiency of production and management;
Repeatedly in our articles, we have reflected on the fact that the process of business planning is a priori iterative. It is being implemented along a kind of expanding spiral. I have never seen that all the nuances of planning a new business or direction were worked out by a team of developers in one "sitting". Before the climactic financial section and the performance analysis, it is customary for most conventional methodologies to include an organizational part. This approach to the organizational plan in the business plan of the project is logically justified. I invite you to figure out the purpose and composition of this part of the document together.
The essence of organization in business planning
Managers often perceive the word "organization" as an empirical inspiration. It's not bad. But before considering the organizational plan as one of the sections of the business plan, it would not hurt to remember what we mean by the very concept of an organization. Traditionally, it is perceived as:
- a certain property characterizing the degree of orderliness of the object of study (organization of the event at a high level, the level of organization of the employee is low);
- management process or function (the manager has organized the employees into fulfillment of the task);
- the actual object of activity, an association of individuals, legal entities or an institution (enterprise, foundation, non-profit educational institution, etc.).
All three of these positions are important from a business plan perspective. But no less important is the organizational aspect of the business environment. The modern approach here tends to consider business, including the newly opened one, as an open system connected with the outside world. At the same time, when developing a business plan, its authors should strive for proactive modeling of the external environment and internal conditions of the organization. Fortunately, the possibilities for this are constantly expanding. The external environment is usually divided into two levels:
- direct influence;
- indirect influence.
The first level includes those subjects of relations who are able to influence the organization directly from the outside and receive feedback from it. Among such representatives of the external environment: buyers, suppliers, competitors, labor resources, government bodies. The last two groups for business organization have one of the key values. This is due to the fact that the labor market inevitably becomes more mobile, more and more adjusting to the project paradigm. The state is beginning to understand that new businesses, especially small ones, need to be supported. Corresponding programs are emerging at the federal and regional levels.
Factors of indirect influence on the organization will interest us to a lesser extent, since they basically relate to the strategic aspect of management and practically do not get into the organizational plan. Let us note only some of the factors of indirect impact: the political situation, the state of the economy, demography, the level of development of technology and production culture.
Organizational section composition
We should remember that the organizational plan of the "business plan" document and the organizational part of the project itself, to which it belongs, differ in essence and content. This question has already been raised in an article on the place of business planning in business activity. I proceed from the position that the business plan, first of all, allows the customer to make an informed decision about the fate of the project. Is it worth investing your own funds, attracting investors, lenders for its implementation or not. The idea may not be valid in itself, or it may be good, but working it out is worthless. Moreover, the elaboration hierarchy should be as follows.
The guarantee of successful activity is its correct organization and competent business management. Without these components, even if there are sufficient funds for investment in the project, they may not pay off due to the admission of mistakes by a business representative in the process of functioning of a business entity. At the stage of business planning, a rational solution would be to develop a business plan. One of its sections deals with organizational issues. When implementing a project, they are just as important as the financial aspects.
Organizational section in the business plan
Business performance is determined by the quality of its life cycles. The implementation of each of them is carried out under the coordination of the leadership. It will be easier for its representatives to manage personnel, develop production plans and monitor their implementation, if an organizational plan of the enterprise has been developed earlier. It is necessary to display the organization's management scheme, its staff, number and mode of operation. You should also indicate the plans for the stages of the project in terms of orientation on the timetable.
Many entrepreneurs, when developing a business plan, neglect the section of organizing their activities. They may not address these aspects, or they may scatter the topics covered in this part of the document throughout the plan. This approach is irrational and can cause confusion in terms of action and misunderstanding of what needs to be done, in what time frame, and with what requirements.
The structure of a business entity means its divisions that form the hierarchy of employees in the company. In a business plan, it is necessary to display the number of employees in each department, their subordination and functional responsibilities. You should also indicate who is assigned control over employees of departments and over their leadership, as well as the procedure for interaction between departments.
The content of the section should ensure the solution of cooperation issues between all project participants. An entrepreneur needs to think about the conditions under which the company will function optimally, ensuring minimum costs in the production of products that meet regulatory quality requirements. The business representative also needs to foresee the parameters of the activity at which it is possible to improve production and expand the range of labor results.
When disclosing the topic of structuring an enterprise, it becomes clear that each employee is responsible for performing the tasks assigned to them, as well as for monitoring and ensuring communication between employees and structural units. If adjustments are allowed in other sections of the business plan, then changing the structure of a business entity is often unacceptable, since the change of this information is due to adjustments to the local acts of the enterprise, some of which require approval from the authorized bodies.
For personal convenience, some entrepreneurs display the organizational structure of an enterprise in a document in the form of a diagram or graph, which is possible in office documents, using specialized software or an online application. The scheme should clearly understand what positions are provided for in the staffing table. Each of them must correspond to a specific function of the business.
The organizational plan in the business plan should disclose all the nuances of personnel issues.