What is a business plan and how to draw it up
Submit your good work to the knowledge base just Use the form below
Students, graduate students, young scientists who use the knowledge base in their studies and work will be very grateful to you.
GOU VPO “Russian Economic University named after G. Plekhanov "
"Methodologies and research methods in management"
“Business plan as a method of business development management. Business plan functions. "
1st year graduate student
Chapter 1. Concept and functions of a business plan
1. Concept, goals and objectives of the business plan
1. Features of drawing up a business plan
Chapter 2. Business plan as a method of business management
2. The concept of business planning and its place in strategic management
2. The role, practice and unused opportunities of business planning in the Russian Federation
And, of course, a business organizer must have a good understanding of what a business plan is, what functions it performs and why this document is needed. The presented article will help the reader find answers to the listed questions, and a detailed analysis of the functions that a business plan performs in a modern economy will make it possible to understand how important planning is for the efficient operation of both a small company and a huge company. This information is not only theoretical in nature, with its help you will learn how to develop a business plan, without missing a single important moment. To begin with, we recommend that you familiarize yourself with the material - "usually create a business" "structure for a business plan".
Business plan functions - planning and its meaning
At a time when our country was slowly but surely heading towards communism (which remained an unfulfilled dream), it was believed that planning was a monopoly of the socialist model of the economy, but the development of market relations after the collapse of the Union destroyed this stereotype ... The owner of a small cafe, the owner of a service station or the founders of a huge concern, in order for their business to develop normally and make a profit, must plan every step that is related to commercial activity.
For this, the entrepreneur draws up a business plan, which is the basis for the implementation of the strategic and tactical tasks facing the company. We can say that the main functions of a business plan are that it makes it possible to assess the potential of an enterprise to achieve its main goals (first of all, to make a profit), and also, if necessary, allows you to find the missing resources and provides recommendations for their effective use. There are complex relationships in economics that affect the performance of even the smallest firm. To eliminate the negative aspects and use the positive ones to the maximum, you need to carefully plan your activities.
This process should be ongoing, and not limited to the stages of organizing and establishing a business. A common mistake of many business entities is that they plan only when they start working, and after a year or two they completely forget about the existence of a business plan and go into business according to the established scheme. For example, an entrepreneur decided to open a store. He drew up a detailed business plan, got a loan from a bank, organized the work of a retail outlet, and then decided that he did not need to plan anything, he could work according to an established scheme. But he did not take into account that during this time the situation has changed.
Planning in business makes it possible to show that a product or service will definitely find its buyer, and in the near future (the period for which the business plan was created) the target audience is ready to purchase a certain amount of products. The business plan allows you to calculate the costs that are needed to organize production and the subsequent sale of your products. Based on these data, you can determine the profitability of the enterprise / project and its effectiveness. For investors and representatives of financial and credit institutions, the last parameter is the main guideline for answering the question: whether to provide you with financial resources for this project or is it better to abandon it.
Analysis of business plan functions
In the theory of enterprise economics, internal and external functions of a business plan are distinguished. All of them are aimed at helping business entities so that they can adequately assess their capabilities, allocate resources and get the desired result.
The external functions of the main financial document of any enterprise can be qualified as follows:
The study of macroeconomic indicators in your industry allows you to determine the main stages of the strategic development of the company.
Attraction of investments or borrowed funds. In the first case, direct investment or placement of securities on the stock market is carried out (when a joint-stock company is created and its shares are issued), and in the second, a financial and credit institution provides the necessary loan.
Establishing the necessary business relationships, as well as studying the goals of all project participants. Contracts are concluded, contracts are signed, conditions of cooperation are discussed.
Justification of methods and methods of economic activity when creating joint ventures or new firms for a common project, as well as in the case of attracting foreign capital.
What is a business plan: 10 functions, what it performs + 7 main components of this document + 8 most common mistakes of those who are trying to draw up a financial plan on their own.
When you open any normal article on the topic of business, you will find there advice that every startup, even the smallest one, cannot be launched without first drawing up a business plan - a carefully thought out commercial document with real calculations.
But not all aspiring entrepreneurs know what a business plan is and how to write it competently?
In principle, it is not difficult if you have a clear vision of what your startup should be, what scenario it should develop, and there is enough money to realize your ideas.
What is a business plan and what are its functions?
A business plan is the main document of every entrepreneur, in which the company and the target market are characterized, what it is going to occupy, the startup of a startup is signed in stages, specific calculations are made.
All this helps to facilitate the process of starting a new company and avoid many unpleasant surprises.
And, of course, you cannot do without it when you are going to attract a partner or sponsor to your project.
If you begin to explain on your fingers what exactly you want to do, not a single business person will listen to you, considering you an absolutely frivolous businessman who should not be dealt with.
You will face a completely different situation when you come up with a well-thought-out document that contains specific calculations.
A business plan can be drawn up not only when a new startup is launched, but also when it is necessary to expand production, bring the company out of the crisis, reorient its business, etc.