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).
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.
