Business plan structure and content - main sections
What should be the correct structure of a business plan: the content of the main sections
A well-formed business plan can be considered the objective basis of any modern business. It acts as an action program that is focused on organizing the stable operation of the firm. This document contains a full description of the future company, its tasks and goals of operation, directions of activities, and most importantly - the expected results.
In this light, it is extremely important for the business plan writer to follow its structure and effectively work out the content of individual sections.
The main functions of the business plan and its structure
The business plan is formed in order to present in an orderly form the creation and functioning of the company over a certain period. It allows you to imagine in advance the volume of future business and assess its economic feasibility even before starting to invest.
There are three main functions that a business plan is designed to fulfill:
Business projects are created in different sectors of the economy, while they can pursue commercial and social goals. However, the most optimal business plan structure looks like this:
- Project summary or business concept;
- Characteristics of the future business and its industry;
- Description of goods, works or services that are collected offer a company;
- Marketing plan;
- Organizational plan;
- Financial plan.
Some documents also highlight the sections "Production plan" and "Personnel", but in general they are included as subsections in the organizational plan.
Contents of the main sections of the business plan
A business plan is a document intended not only for the personal use of an entrepreneur. It is used when registering a business, to obtain a bank loan to open a business or attract investors. Therefore, it must be drawn up in accordance with all the rules of office work. This will make it not only more comprehensible and complete, but also give it solidity.
It all starts with a cover page
The title page should include the following information:
- company name;
- type of activity;
- organizational form;
- taxation form;
- surname, name and patronymic of the entrepreneur;
- the address of the future enterprise (real);
- phone, fax, e-mail;
- the date of the document.
On the title page, you can specify the payback time of the project. You can also indicate the amount that is required for implementation. When drawing up, it should be borne in mind that this is a public document, that is, available to a wide range of people. Therefore, you should not indicate in it information that is or may be in the future a commercial secret.
Despite the fact that the resume is placed immediately after the title page, it is drawn up at the end, after all other sections have been prepared. The resume should contain more than a description and benefits of the project. The records are confirmed by the results obtained during the calculations. If you intend to use a document for obtaining a loan or investment, then it indicates the amount required for opening.
The resume contains brief information about the activities of the enterprise. What will be produced on it. What is the cost and unit price of the product. What will be the production volumes and the approximate calculation of profit. The volume of the resume is 1-2 pages, the goal is to attract attention and spark interest in the business idea from potential investors.
Setting clear goals
The next page is a list of targets. Usually it is drawn up as a bulleted or numbered list. There should be few goals, but they should indicate the essence of the enterprise's work, its advantages. The document specifies such features of the activity as:
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“Business planning. The structure and content of the business plan "
Chapter 1. Theoretical Foundations of Business Planning
1. The role of business planning in the strategic planning of an enterprise
1. Business plan concept. Purpose, tasks and features of compilation
Chapter 2. Structure and content of the business plan
2. Business plan development mechanism
The structure of a business plan is the basis for its competent presentation and subsequent implementation.
All state-owned enterprises and commercial companies, regardless of their form of ownership and type of activity, which seek to develop a competitive strategy for their development, draw up detailed business plans.
The functions of this document are to develop a whole range of strategies, as well as their technical justification and detail.
The structure of the business plan of the investment project, which is being worked on by state organizations and private enterprises, must contain certain sections.
Contents of this article:
What areas of business should the business plan cover?
The general task that is set for each project is to cover and plan the following activities of small, large or medium-sized businesses as accurately as possible:
It is also important to clearly define the sequence for the implementation of the business plan, starting from the moment the company was established and ending with the achievement of great financial results.
The functions of a business project are almost impossible to overestimate, since it is like a visiting card for every business entity.
This concept can be deciphered as follows: a business plan is a document that allows you to prove the profitability of investment, up to the achievement of financial stability of the company.
How is the structure of the business plan determined?
After the business entity has set certain goals, he can start developing a business project.
- Introductory part (summary)
- Description of goods and services
- Market analysis and marketing strategy
- Production plan
- Organizational plan
- Financial plan (budget)
- Expected results and prospects (final part)
Introductory part (summary)
The purpose of this section is to make a positive impression on investors and to provide an overview of the business plan as a whole. The resume should not be long, its optimal length is from 2 to 4 pages.
Only the most important things should be here:
- Direction of the company;
- Target markets and place of the company in them;
- Profitability and return on investment;
- Personnel and responsible persons;
- Planned quantitative and qualitative indicators as a result of work by periods.
The "Resume" section when writing a business plan should provide answers to 2 main questions:
- What will investors get from the successful implementation of the project?
- What are the chances of losing capital or part of it in case of unfavorable development of events?
The resume should be written at the very end, when the main part of the business plan has already been written. As you can see, the resume contains a summary of the sections of your business plan.
Description of goods and services
Describe here the goods and services that your company plans to sell. To do this, carry out preliminary work, which will include:
- Description of the main goods (services) of the company and secondary ones;
- Taking photos of your products;
- Determining the portrait of your ideal consumer; li >
- Conducting a market analysis for the presence of similar goods or services in your target market;
- Planning the organization of the service (if required by the specifics of your company);
- Description of the pricing model. Will you be able to compete with the existing companies in your segment ?;
- Drawing up a single detailed table of your goods (services) according to the above parameters.
Having carried out such an analysis, you will clearly understand what and for whom you are producing, as well as understand the specifics of your products and sales market.
Market analysis and marketing strategy