How to plan a small business and draw up a business plan
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Business Report
Small Business Business Plan
One of the elements of organizing entrepreneurial activity in a market economy is a business plan. It serves as a basis for assessing the prospects for the development of a firm. A business plan covers all aspects of a firm's business, from market research to human resource management. It explains in detail the directions of work of a future commercial enterprise that it may face, and also identifies ways to solve these problems.
The business plan is designed for the future, it is recommended to draw it up for three to five years. At the same time, for the first year of the forecast period, the main indicators are developed by months, for the second - quarterly, and for other years, you can limit yourself to annual indicators.
The business plan contains information about the projected sales volumes for the next three to five years, revenues, costs, profits, and the level of profitability of economic activities.
First, on the basis of these forecast indicators, the need for material, labor and financial resources for the future period is determined, and then the need for borrowed working capital is identified.
Resource support of the business plan can be worked out in several ways to determine the potential profitability of the business at various amounts of costs incurred.
Russia has not yet established the mandatory preparation of a business plan to substantiate the need for borrowed funds. Banks, while providing loans, do not always require enterprises to substantiate their credit needs.
An entrepreneur who neglects to develop a business plan can be in a very difficult situation. For instance. According to American statistics, 600 thousand new entrepreneurs start their business in the USA every year, of which only half have been functioning for a year and a half, and only one in five has managed not to go broke for 10 years.
The experience of foreign business shows that the main reasons for bankruptcy of entrepreneurs are most often:
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Work 59 p., 7 tables, 40 sources, 1 app.
SMALL BUSINESSES, BUSINESS PLANNING, STATE SUPPORT, PROJECT, BUSINESS, EFFICIENCY.
The object of the study is a specific organization operating in the construction market - CJSC Sigma.
The purpose of the work is to study the activities of a small enterprise and develop a business plan for it.
In the course of work, a business plan was developed for the construction company ZAO Sigma in order to attract additional funds to expand its production activities.
As a result of the development of a business plan, a marketing, production, investment and financial plan for the organization was drawn up, as well as the main indicators of the effectiveness of the project being developed, such as net income, net present value, payback period, and the necessary one-time investments etc.
- Introduction 3
- 1 The role and importance of small business in the economy of the Russian Federation 5
- 1. Essence and features of small business 5
- 1. The role of small business in the economy 9
- 1. Small business development in the Russian Federation 14
- 1. State support for small business 21
- 1. Business planning is the basis of small business organization 27
- 2Business plan of ZAO Sigma …… 32
- 2. Summary 32
- 2. Marketing Plan 34
- 2. Production plan 41
- 2. Investment plan 45
- 2. Financial plan 47
- Conclusion 53
- List of sources used 55
- Appendix 1 58
The experience of developed countries shows that small business plays a very, very large role in the economy, its development affects economic growth, saturating the market with goods of the required quality, creating new additional jobs, that is, it solves many economic , social and other problems. In all economically developed countries, the state provides great support to small business, capable population is increasingly starting to engage in small business.
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Development of a business plan for creating a small business
Purpose of business planning, its distinctive features in comparison with other types of planning. The value of an entrepreneurial idea in drawing up a business plan.
Structure and main sections of the business plan. Features of business planning for various types of economic activities.
Organization of business plan development. The use of information technology in the development of a business plan.
Business plan for creating a specific small business.
Illustrative and calculated materials:
Samples of constituent documents, organizational structure of the enterprise, graph of goals / objectives of the enterprise, organizational documents, analytical tables and graphs.
Chapter 1 Business plan: definition, place and role in the system of enterprise plans
In modern economic theory, there are several functions of business planning.
Small business planning is a prerequisite for their development. Here are the main functions of small business planning, the content and structure of a business plan.
The place of small business in the economy
Small business is the basis for the stable development of the country's economy. It ensures competitiveness and constant GDP revenue. In developed countries, small business is the main structural element of the economy. It creates and is in motion the bulk of national resources. For example, in Western Europe, more than 50% of the population is employed in small business, and in Japan, even about 80%.
In Russia, no more than 25% of the working-age population takes part in small business. We have where to move.
Feasibility of Small Business Planning
Some businessmen still consider drawing up business plans a prerogative of large enterprises. In their business, they prefer to intuitively solve problems as they arise. However, the time of small business implementation on the principle of “where to take it out” basically ended in the nineties of the last millennium. Now, those of the small entrepreneurs who started their own business without any business plan went bankrupt or switched to planning. Small business organization and planning is now considered the norm.
Strategic planning in small business is especially important when mastering new types of entrepreneurial activity, for example, offering new goods or services.
And it is also very important to draw up a business plan for the development of their business for aspiring businessmen. Determining development opportunities, calculating the necessary resources, fixing the payback time of initial costs, all this will help both a beginner and a long-term businessman to succeed faster, saving their efforts and money costs.
The concept of a business plan and its function
The term "business plan" means a brief description of the step-by-step procedure for carrying out business operations in order to determine the possible and most promising ways of developing the enterprise. Strategic planning of small business, therefore, is a tool for calculating the most expedient and cost-effective ways to make a profit.
Schematically, there are five main tasks in planning the activities of a small business:
- Development of a general strategy for organizing a business. The allocation of a strategic direction in planning the activities of a small business is necessary at the beginning of the work of a newly created enterprise, as well as when developing new directions.
- The actual planning. This includes developing an internal business development plan.
- Development of credit policy.
- Involvement of third parties.
- Creation of a legal basis in order to obtain investments from the state, bank and other organizations. A business plan is a legal document that helps to obtain a loan from a bank or assistance from government agencies. Having a business plan makes it much easier to get investments from various funds and organizations.
Content of the business plan
Small Business Planning
For both large and small businesses, making operational plans helps make the right decision in a specific market environment. And since small businesses do not have such ample room for maneuvers, a lot depends on the quality of planning.
Planning in a small business, of course, should be based on the data of accounting reports, since only from these documents it is possible to obtain reliable data on the effectiveness of commercial activities.
This is where many small businesses have problems. Some people are probably familiar with the situation that financial statements are prepared at the last moment in a hurry and only for submission to the tax authorities. And reporting and planning shouldn't be neglected.
If you have reliable and fresh data for analysis, then you can proceed directly to drawing up plans. For small businesses, the most relevant are: sales plan, financial plan and production plan.
It is necessary to determine the strengths and weaknesses, to study the features of the enterprise (sales, costs, personnel management and financial flows). Indicators must be determined as accurately and in detail as possible, since they will then form the basis of your business plan.
It is important to study the indicators of the past and current turnover for individual products, in terms of sales and sales prices. Costs are calculated by type of cost (raw materials, operating costs, production costs, fixed overheads, etc.).
It is also important to analyze existing assets and liabilities when planning. For this, a list of long-term assets is compiled according to their relevance and importance to the company. It is imperative to calculate the level of your available working capital.
After all the necessary calculations have been made, the advantages and disadvantages of the company have been identified, you can start drawing up plans.
Sales Plan
Based on data on turnover, sales of available goods, level of demand, it is possible to determine through which groups of goods can increase profits and sales. Also, in this plan, it is necessary to provide for ways to attract new buyers.
The existing and potential sales channels must also be analyzed here. Identify the strengths and weaknesses of each of the sales channels available to you, the more distribution channels, the greater the potential sales volume.