Business plan investment plan

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

the investment section in the business plan is the part that describes the investment phase of the project. Should contain information regarding the main stages of the implementation of the described project, starting with the design and building of the project team (if necessary), the acquisition of land and construction of the premises, ending with the purchase of equipment, its commissioning and the full launch of production.

Investment plan structure

It should be emphasized that the following points must be described in the investment section of any business plan:

• All stages of the so-called investment phase (establishment of the legal framework of the project, purchase of land, premises, repair or construction of premises, installation and commissioning of equipment);
• The timing of the necessary work according to the indicated stages - it is described when the first payment is made for the purchase of equipment or premises, the terms of delivery and installation of equipment, the timing of repairs are prescribed. This is usually done in the form of a Gantt chart, which can be built using Microsoft Project;
• A list of the required equipment and its capacity, tools, materials, the planned time of their purchase and delivery to the site;
• Activities, programs, courses on staff organization and staff training;
• Costs for each stage of the investment phase, schedule and amounts of investment costs (payments to suppliers, builders, for real estate, contractors, advances for raw materials and finished products);
• A plan to bring the project to the planned capacity - a schedule of output is built as a percentage of the maximum capacity of the enterprise;
• List of potential investors, creditors and other sources of capital required for the project ...

In general, any investment program implies the calculation of all necessary investments in the project, the mention of key items of expenditure in stages, as well as a description of existing funds and sources of capital and the total amount of necessary investments.

Investment plan on the example of a grocery store

As part of the business plan, it is planned to open a grocery store in the "Near the House" format in the city with a population of over 1 million people. The store is planned to open in a residential area under construction in the city, where at the moment there is still no similar retail outlet. To open a store, a premise is purchased in a building under construction on the ground floor with an area of ​​300 sq. ... The cost of the premises is 30 million rubles.

Before purchasing a retail space, a new legal entity will be created, and a license to trade in alcohol will be obtained. The cost of work on obtaining documentation will be:

• registration of a legal entity - 20 thousand rubles;
• obtaining a license for alcohol - 50 thousand rubles;
• obtaining a permit state supervision - 10 thousand rubles.

Delivery of the premises is planned in a rough finish, therefore, to start the store, it will be necessary to carry out a complete renovation of the premises, which will include the following works:

• repair work - 3,000 thousand rubles;
• electrical work - 500 thousand rubles;
• installation of fire and security alarms - 300 thousand rubles;
• carrying out cooling - 500 thousand rubles.

The production plan is an integral part of any business plan, in which all production or other work processes of the company must be described. Here it is necessary to consider all issues related to production facilities, their location, equipment and personnel, and also pay attention to the planned involvement of subcontractors. It should be briefly explained how the system for issuing goods (providing services) is organized and how control over production processes is carried out. Attention should also be paid to the location of production facilities and the placement of tools, equipment and workplaces. This section should indicate delivery times and list the main suppliers; describes how quickly the firm can increase or decrease the output of goods or the provision of services. An important element of the production plan is also a description of the company's requirements for quality control at all stages of the production process.

The main task of this section of the business plan is to determine and justify the choice of a particular production process and equipment by the company.

It should be noted that industry-specific design companies are involved in the preparation of this section of the business plan, which is understandable, since the choice of technology and method of organizing the production process largely determines the effectiveness of any production project.

Production system

Any organization has a production system, which receives various inputs (personnel, technology, capital, equipment, materials and information) and in which they are converted into goods or services (Fig. 1).

Production Scheduling

Production plans are usually categorized by breadth (strategic and operational), time frame (short and long term); the nature (general and specific) and the method of use (disposable and permanent) (Table 1).

Table 1. Types of production plans

If we talk about long-term strategic planning, then at this level decisions are made in four main areas: capacity utilization (in what quantity will a product be produced or a service will be provided), location of production facilities (where goods will be produced or provided service), the production process (what production methods and technologies will be used to release a product or provide a service) and the placement of tools and equipment (how work centers and equipment will be located in enterprises). Having solved these strategic issues for himself, the developer must also draw up and include in the production plan of his business plan the following three documents: a general (aggregate) plan (what is the general production plan for all types of goods or services offered by the company), the main work schedule (how much units of each type of goods or services will have to be produced or provided by the company for a certain period of time) and the plan of the firm's need for material resources (what materials and in what quantity the company will need to fulfill the main work schedule). These plans are called tactical plans.

Capacity planning

Suppose that ABC decided to make lawn mowers. Through comprehensive market research and market analysis, she determines that middle-class tools are in greatest demand among consumers. So the firm knows what it should be making. Next, she needs to determine in what quantity to produce the goods, i.e. how many lawnmowers of the selected model should be produced in a given period of time. It is on this decision that other issues related to planning the utilization of production capacities will depend.