The main sections of the business plan, structure and content
Topic: Business planning methods and business plan structure.
Lesson Objectives: Planning the stages of project implementation.
- Formation of students' practical skills in developing a business plan.
Formation of the ability to work in pairs and groups
Lesson structure and course:
Stage 1: Organizational moment: 10 min.
Stage 2: Motivational and indicative stage: 10 min.
Stage 3: Operational and cognitive stage: 60 minutes, of which
3. ... Perception of new material: 20 min.
3. ... Reflection on new material: 40 min.
Stage 4: Fixing a new one: 5 min.
Business plan structure - a written description of a project, the amount and timing of its implementation. Such a plan characterizes the expediency of its existence. The composition of a business plan largely depends on the area in which the project is located, as well as on what size it has.
So, if it is supposed to manufacture a new type of product, then you need to develop the most detailed business plan that will describe all the advantages of the new product, as well as the process of its manufacture. If we are talking about opening a trading facility, then the business plan can be simple and include only sections with a brief description and with the calculation of the payback period.
The structure and content of a business plan plays an important role in the beginning of the activities of an organization.
So, you can consider such a thing as a detailed structure of sections of a business plan. It includes a number of elements, each of which has its own importance.
Section Title Page
It reflects the name of the project, the name of the organization that will implement it, the location of the organization, phone number, date and time of the business plan. If a business plan is going to be presented to an investor or a credit institution, then it is necessary to indicate the need for the financial part and note how long the project will pay off.
Section of the Memorandum of Understanding
This section provides copyright protection for the project developer, and if this memorandum is short enough, then it should be placed on the title page.
The main purpose of the memorandum is to warn the persons who will get acquainted with it that the information is confidential and that the new person guarantees the non-dissemination of information without the consent of the author.
A ban on copying all the information contained may also be noted, or it may be a requirement to return the plan to the author if he is not of interest.
This section has an advertising character, and it also helps to identify the interest of the person to whom the business plan will be addressed. This section should be properly formatted, as it gives the first impression of investors about the business plan.
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Business plan structure
1. title page and summary
The title page must contain the name of the company, its legal address, fax and telephone numbers, and a strictly confidential note. On the title page indicate the address, the name of the enterprise (individual) to which the business plan is sent, the full and short (up to 20-30 characters) name of the project, the head of this enterprise, his phone number, indicate the person who prepared the project and his contact phone number, date the start of the project and its duration. At the end, indicate the period of time from the date on which the initial data and the date of this business plan were compiled.
In terms of content, the title page should be short, but precise and understandable, constructed concisely and attractively, and should not contain unnecessary information and details. The project should have a short and convenient name that can be easily remembered by those familiar with the business plan, this name can be used on representative documents of the organization, placed on the signs of the enterprise, on its products, etc. on packaging and trademarks and in promotional materials.
The purpose of a resume is to arouse the reader's interest, show the basics of the plan, and make them read to the end if the business plan is not for internal users. This section should summarize the purpose of any funds, show the type and conditions of possible financing, including the conditions for the return of payments or investments. It may be easier to write a resume after the business plan is complete. The provisions that will be highlighted in this section will help to focus attention on the main issues of the entire plan.
This section should describe the business (firm, company), give information on it, the nature and purpose of this project. Show the effectiveness and rationality of this project, describe the management team, their professional training, personal qualities, information about their previous work (if any). In detail and concisely present an action plan of this organization for the present and future periods. Describe the financial needs of the enterprise and their source, from which the organization plans to receive funds. List in the table or on the example of a graph, on which the attracted funds will be spent mainly. If financial investments are received in the form of a loan, show how, in what parts and in what time frame the borrowed funds will be returned. If there is external financing, then it must be reasoned why money needs to be invested in this business. The size of the expected profit from investments in this company, as well as the period and procedure for their (investment) return, must be determined.
This is a summary of the content of the entire project. Here you need to indicate the name of the company, its legal address, telephone and fax number, the head of the company, the essence of the proposed project and the place of its implementation, the final results, the total cost and the payback period of the project. Indicate the solution to financial problems, namely: the necessary attracted financial resources, the expected average annual profit, the expected form and conditions of the investor's participation, possible guarantees for the return of investments.
The section should clearly, structured and concisely reflect information about the company. The first part of the section can be referred to the description of the history of creation, field of activity, dynamics of the organization (project) development.
The structure of a specific business plan may differ from project to project. This will depend on the complexity of the project and its direction. But at the same time, there is a certain set of mandatory sections that must be present in any properly drawn up business plan. In order not to be mistaken in choosing the necessary sections, let's understand such concepts as: the essence of a business plan and its purpose.
Business plan assignment
The business plan of a future organization is a document that must contain comprehensive data on products / services, consumers, competitive environment and financial flows at all stages of development. As well as possible risks and ways to mitigate them.
Based on these data, a short summary of the feasibility of investments and the approximate payback period (exit from the project) should be drawn. A well-developed and high-quality business plan, as a rule, is used as a presentation of the project to a potential investor.
Many see this as its main purpose, and therefore they often make only one version of a business plan - an optimistic one. And this is already a mistake. The purpose of a business plan is not to "sell" your project to an investor, but to find out, first of all for yourself, the formula for success for the planned organization.
Where will the income come from, what expenses are needed and in what period of time? Who is your main consumer, how will you reach him? What risks can await you on the path of development? Etc. The main purpose of this document is a roadmap of the company's development, calculated to the smallest detail. A well-written business plan is a tool on the road to success.
The essence of business planning
The essence of business planning comes down to working out all aspects of the future business on paper. Just as an engineer who invents a new part or device makes a drawing first, so an entrepreneur, before investing money, tries to calculate everything to the smallest detail on paper.
Currently, no new business opening is complete without planning. And this moment is worth giving the necessary time and effort. Qualitatively conducted research will not only show the investor your competence, but will also become an important tool in the further management of the company.
Business plan structure ????
Let's take a look at what sections should be included in the business plan. The standard structure of a business plan is as follows:
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The composition of the business plan and the degree of its detailing depend on the size of the future project and the area to which it belongs, as well as on the size of the intended sales market, the presence of competitors and the growth prospects of the enterprise being created. And, of course, the business plan should have a title page and table of contents. The title page contains the name of the company (or the name and surname of the potential entrepreneur, if there is no company yet), address, telephone (fax) number. It is desirable to place the table of contents on one page. This is a very important part of a business plan. Each of the readers has his own, the most interesting moments that he wants to know immediately, for example, the amount of required investments, the timing of their return. The table of contents will immediately tell the reader where to find this information. The pages of the business plan must be numbered and put down next to the names of the sections in the table of contents. Formation and style are as important to the success of a business plan as its content. A carelessly designed, illiterately drawn up, overly inflated or, on the contrary, unreasonably compressed business plan will not find understanding and support from stakeholders. What should be a business plan by volume? Many entrepreneurs, not being able to state the main thing, write too large (up to 200 pages) business plans, full of unnecessary details. As a result, such business plans are less effective than they could be. Firstly, the excessive volume of the business plan makes it difficult to understand the essence of the ideas presented in it, and secondly, this business plan is unlikely to be read carefully. The optimal size of a business plan is no more than 35-40 pages. It is important to adhere to the following requirements: Clarity. The developer of a business plan is called upon to use, as much as possible, simpler expressions, to avoid characterizing several ideas in one sentence, to achieve a logical connection between the previous and subsequent specific provisions. Brevity. When drawing up a business plan, it is important to leave in it only the most necessary, but sufficient information that it is advisable to convey to the reader. Objectivity. An entrepreneur must soberly assess his capabilities, not exaggerate the significance and prospects of his project, and really approach the assessment of the capabilities of potential competitors. Separability. The material should be divided into short, clearly marked paragraphs. Well-structured, carefully designed material is easy to read and comes into view faster. Your business plan should be short and concise, easy to read. If it is written in an energetic, lively language, then there are more chances to attract and interest an investor. The text can be illustrated with graphics and diagrams. The business plan can be roughly divided into three main parts. It should contain an executive summary, body text (including most of the standard sections) and a financial plan with financial tables.
Business plan structure and content of main sections
The typical structure of a business plan contains the following sections: 1. Title page - contains the name of the company, its legal and actual addresses, telephones, e-mail and website address (if any), the name and full details of the owners of the company, the name and very briefly (in one sentence) - the essence of the project, information about the project executors and date of its compilation.
2. Project summary - represents the main provisions, essence, "extracts" from the project, its main conclusions. The purpose of the resume is to interest the investor and make him familiarize himself with the content of the business plan in more detail. The volume of a resume is usually 2-3 pages of text, which should be composed in simple words without the use of terminology and simple sentences. It should show the investor the profitability and prospects of investments in the investment project presented.
3. Description of the company - contains information about the company that offers this investment project, its full details, information about the founders and their details, company goals, management information, company history, achievements, organizational structure, main products, and the company's place in the market.
4. Description of a product or service - includes information about a product or service, its main characteristics, main consumers, consumer properties of a product, differences from existing analogues, information on patents and licenses.
5. Marketing analysis - contains information about the products available on the market, competitors' products, comparison of the characteristics and consumer qualities of competitors' products and the proposed product, information about the names of competitors and their details, competitors' prices and their strategy for promoting goods.
Marketing analysis is the very first step in writing a business plan. The most important section in marketing analysis is to determine the volume of the sales market for products, the market share of competitors, and determine the motivation of buyers to make a purchase decision.
The main task of this section is to answer the questions - how much and what kind of goods the market requires, at what price and why consumers are ready to buy it. This section should also provide an analysis of the state and development trends of the industry, the average profitability and production volumes of enterprises in the industry, the degree of development of competition and barriers to entry into it.
6. Product promotion strategy - here the main thing is to define a market niche, i.e. what exactly and for what categories of consumers the product is intended, quantitative and qualitative analysis of consumers, where they are located, what methods and channels of distribution are proposed to sell the product or service. Provides information on the strategy of advertising a product or service, marketing costs, pricing and credit policy when working with customers. This section of a business plan is often its weakest point.