The importance and purpose of the organizational plan in the structure of the business plan
Before starting any business, it is necessary to draw up a project implementation plan. For this purpose, a business plan template is usually used, the structure of which you can supplement and modify to suit your requirements.
Approximate development order
First, you need to try to plan the entire business system in an already working state. Then it can already be decomposed into components and for each of them, give comments. After understanding the business and its goals is achieved, you need to lay out each item according to the frequency. The main thing is to see what is behind what and what result will be achieved in this way. Consider the stages of developing a business plan in terms of frequency.
- A rough idea.
- Development of the main points of the idea.
- Understanding how it should work and make money.
- Decomposition of an idea into its components.
- According to the received data, compiling a list of the project's programs.
Business Plan Objectives
You can write such a document for many reasons. Most importantly, the company is unlikely to work smoothly and successfully without it. In addition, not seeing what steps to take and in what order can lead to chaos in the company.
Examples of the need for a description:
- obtaining a loan from a bank;
- search for an investor;
- personally for an entrepreneur;
- search for a partner; <
- demonstration at events.
Structure and approximate content of each section
Despite the fact that every time everything is written for different types of business, the structure of the business plan almost always remains the same. There are unchanging clauses that are used in any case. These sections are required and make development much easier.
Each point has a purpose: to convey the whole point in a concise and clear way. It is advisable to carefully calculate all the data and indicate correctly.
All of these elements are subject to change as needed, depending on the requirements of the business for the actual business purpose.
When drawing up a business plan as a formal document aimed at providing it to third parties for commercial purposes, such as obtaining a loan or finding an investor, as a rule, it includes the following sections listed below:
As the saying goes, you never get a chance to make a second first impression, which means that a well-executed resume is literally a business card of your business. It should be concise and highlight the key points of the business plan. Many potential investors will never read a business plan beyond the “Summary” section, which is why this section should be intriguing and attractive.
The resume should provide the most informative, but at the same time short, overview of the problems of your business, ways to solve these problems, a description of the target market, key financial indicators and a team that will implement all the plans presented.
Although it is quite difficult to concisely and easily convey everything that you want to say in the "Summary" section, it is imperative to remember that this part of the business plan should be as short as possible. If you intrigue your reader of the business plan, then all the details that they want to consider, they can find in the following sections of the plan. By the way, the CV section can be used as your one-page business plan.
For business plans intended for external use, the Company Description is essentially a quick overview of your business's legal structure, ownership, history and location. It is also customary to include the formulation of the company's mission in this section, but this is not at all a mandatory component of all business plans.
The "Company Description" section is often missing from internal business plans.
Products and services
The Products and Services section of the business plan details what you are trying to achieve, i.e. in this section you should describe in detail the problem that needs to be solved and ways to solve it, as well as analyze the competitive environment and describe your competitive advantage.
Depending on the type of company you intend to build, this section may describe in detail the technologies that you plan to use in the process of work, the intellectual property that you own, and other key factors about the products or services that You are planning to manufacture in the future.
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.
The business plan organizational plan presents the future company as a hierarchy of employees. Section displays:
Organizational levels in the example of a software company might look like this.
The structure of an enterprise can be described in solid text. But it's better to make a graph or organogram. You can use the capabilities of Microsoft Office Word or the free Gliffy web application.
Legal regulation of business
To determine all the legal subtleties associated with the design and further implementation of the project, ideally, you need to hire a qualified lawyer, or even, if necessary, create an entire legal department. If you decide to completely take the "reins of government" into your own hands and solve all the issues that arise on your own (which is advisable when organizing a small business), you first need to collect all the legal documentation you have in a single package:
- When registering an individual entrepreneur - a certificate of registration, extracts from USRIP
- When registering an LLC - a charter of the company and a memorandum of association
- Documents confirming ownership of the used working areas (sale and purchase agreement, lease, sublease, leasing, donation)
- Architectural plan of all production and other premises, permits for connected engineering communications, etc.
- License or permits for the declared type of entrepreneurial activity
- Patents and certificates for products manufactured by your company or for services rendered
- Documents related to the selected taxation regime
- And other business-related papers