Business plan structure logic and justification method

Types of business plans and their characteristics

In the practice of planning, a business plan for an investment project and a business plan for an entrepreneurial project are distinguished.

A business plan is a directive planning document that solves the strategic task of creating (expanding) an enterprise (business plan of an investment project) or modernizing an existing enterprise on a qualitatively new basis, including technical, technological, organizational, management, informational changes (business plan of an entrepreneurial project).

The greatest application and distribution of business planning was received when creating new objects for conducting business activities. Therefore, basically in literary sources, this type of planning is reduced only to drawing up business plans for an investment project. At the same time, underestimating the business plans of an entrepreneurial project in entrepreneurial practice reduces the effectiveness of solving intrafirm problems.

It should be noted that business plans do not replace internal planning, which is mainly discussed in this tutorial, they should complement each other, ensuring the effective development of the enterprise at all stages of its life cycle.

In general terms, the business plan solves the tasks of the investment project:

  • - development of the concept of doing business;
  • - determination of the degree of viability and future sustainability of the enterprise, justification of the economic feasibility of directions for the development of the enterprise;
  • - reducing the risk of entrepreneurial activity by predicting it and developing options for reducing risks;
  • - specifying business prospects in the form of a system of quantitative and qualitative indicators, calculating the expected financial results of activities, sales volumes, profit, profitability, financial strength, payback period;
  • - attracting potential investors by clearly presenting the benefits of the project for investment;
  • - developing forward-looking views on the company and its working environment.

Thus, the business plan of the investment project solves the problem of increasing (increasing, forming) the capacity of the enterprise through new construction, reconstruction.

This business plan is open in nature, and the purpose of its development is to attract external investors to carry out its tasks and activities. The business plan of an investment project is the basis for negotiations with potential investors for their possible involvement in project financing, and is also used as an application for a loan when obtaining borrowed funds from creditor organizations (banks, investment funds). This business plan contains all the provisions that allow the investor (lender) to make sure that he will receive the declared profit, that he is guaranteed a return on his investments, the level of production and the products produced will be competitive, the risks are calculated and minimized.

The business plan of an entrepreneurial project is mainly of a local (point) nature, and through it the internal problem of optimizing the company's activities is solved. This type of business plan is widely used abroad in organizations with a divisional organizational structure as a tool for effective management by results. Allocation of centers of financial responsibility and delegation of authority to structural units in these organizations predetermine the need to develop business plans for structural units to select the most important funded areas of development of the organization. In addition, as a result of the organization of economic activity, a number of internal problems arise, which are solved most effectively with the help of a business plan for an entrepreneurial project.

In the classic version, a business plan for an entrepreneurial project solves the following tasks:

  • - increase in net profit and cost optimization;
  • - increase in return on assets (the ratio of gross or net profit to assets);
  • - ensuring an increase in capital productivity due to an increase in sales of products and services;
  • - increasing the efficiency of resource exploitation (material, financial, labor).

How to start a homemade dumplings business

PEOPLE'S UKRAINIAN ACADEMY

BUSINESS PLAN: TECHNOLOGY

DEVELOPMENT AND RATIONALE

for students studying in the specialty

7. 50107, 8. 50107 - Enterprise Economics

PEOPLE'S UKRAINIAN ACADEMY

BUSINESS PLAN: TECHNOLOGY

DEVELOPMENT AND RATIONALE

for students studying in the specialty

7. 50107, 8. 50107 - Enterprise Economics

Approved at a meeting of the Department of Enterprise Economics

People's Ukrainian Academy.

Maybe you will be interested
Download a sample bookstore business plan
Bookstore business plan: how to build a smart business
  • 28-02-2021
  • Reading time 17 minutes
About business
Investment project business plan
  • 28-02-2021
  • Reading time 16 minutes
How to make a cover page for a business plan
Completed business plan cover page
  • 28-02-2021
  • Reading time 21 minutes
Ideas for business projects
Unido business plan structure
  • 28-02-2021
  • Reading time 23 minutes
Financial plan
Financial plan: 6 key elements
  • 28-02-2021
  • Reading time 20 minutes
New
The most demanded services to the population; which business is more profitable to open
TOP 15 business ideas for providing services online
  • 28-02-2021
  • Reading time 19 minutes
How to start a business for a girl in a small town
How to start a business for a girl in a small town
  • 28-02-2021
  • Reading time 10 minutes
Business ideas with small investments in Ukraine at home
News business ideas
  • 28-02-2021
  • Reading time 20 minutes
Business planning
Business plan presentation structure
  • 28-02-2021
  • Reading time 15 minutes
Highly profitable small business
Profitable ideas
  • 28-02-2021
  • Reading time 12 minutes
Business ideas in a garage 2019 in Belarus
Thesis: Business planning in a credit institution
  • 28-02-2021
  • Reading time 20 minutes