Business planning: lecture notes
A business plan is an integral part of any business. It allows you to imagine the ratio of expenses and incomes when starting a business, its future prospects and competitiveness, investment value and other points. In other words, this document gives a general answer to the question: is it worth investing money in a business, and is future income capable of recouping the invested finances and efforts?
How to write a business plan
This concept means a brief summary on paper of the main aspects of an existing or planned business: mechanisms for making a profit, assets, liabilities, goals and ways to achieve them, possible risks, problems and ways to eliminate them.
In order to correctly compose a document, you need to follow certain rules. Before writing the text, all components of the future commercial business are carefully weighed and special calculations are made. With the help of detailed planning, problems that can stand in the way of development and expansion are foreseen in order to hedge them in time and develop ways to overcome them.
It is backed-up forecasting that is the key to the success of a business launched into circulation.
Business plan structure and content
There are several international standards regarding construction, namely structure and content. By analyzing these standards, you can identify a typical structure consisting of the following chapters:
- 1. Title page.
- 2. Summary.
- 3. Designed product or service.
- 4. Sales market analysis.
- 5. Competitiveness.
- 6. Marketing strategy.
- 7. Production plan.
- 8. Organizational plan.
- 9. Legal plan.
- 10. Risk analysis and insurance.
- 11. Financial plan.
- 12. Funding strategy.
Each information section consists of several sheets of typed text, which contains the main provisions, calculations, analysis of the current state of affairs and a forecast for the future with supporting arguments and facts. A business plan is drawn up in such a way that people interested in investing can easily find the paragraphs of interest in it.
Learn how to create a business plan presentation here
Lecture Content and organization of business planning at the enterprise
Theory of Business
The word "business" (from the English business) means any occupation, business that generates income. A person doing business is a businessman (from the English businesman), that is, a businessman, a businessman, an entrepreneur. In the new economic reference books, business is the economic activity of an entity in a market economy, aimed at making a profit by creating and selling certain products (goods, works, services). Also, the concept of "business" can be considered as synonymous with the concept of "entrepreneurship". Entrepreneurial activity, entrepreneurship is an initiative independent activity of citizens and their associations, aimed at making a profit, carried out by citizens at their own risk and under property responsibility within the limits determined by the organizational and legal form of the enterprise.
Thus, business is the income-generating activity of citizens who own property. In addition, business is also a set of relations between all its participants, who form a team of like-minded people with the aim of generating income, profit, development of a company, enterprise, organization. The following groups of people are business participants:
1) entrepreneurs themselves, that is, persons who carry out proactive activities at their own risk, under their economic and legal responsibility, as well as groups of entrepreneurs. The business interest of the business participants of the first group - income generation - is realized through the production and sale of products. In the course of their activities, they enter into business relationships, as well as relationships with other business participants, eventually forming the sphere of entrepreneurial business. The latter includes three components: product manufacturing, commerce (trade) and commercial intermediation.
Business cannot be limited to commerce (trade) and commercial intermediation. Business is, first of all, production, which forms the basis of any economy;
2) individual and collective consumers of products offered by entrepreneurs, as well as groups of consumers that form their unions, associations, etc.
The business interest of the business participants in this group is the purchase of goods and services. It is implemented through establishing contacts with manufacturers and sellers of products on the basis of mutual benefit. If for entrepreneurs profit is income, then for consumers - a product or service that satisfies their needs. Realizing their consumer interests, this group of business participants forms the sphere of consumer business;
3) employees engaged in labor activities for hire, on a contractual or other basis, as well as their trade unions. The business interest of business participants in the third group - generating income - is realized through work in a firm, organization, at an enterprise. If for entrepreneurs the profit in transactions is the final income of the firm, then for employees it is the personal income received as a result of the work performed. Realizing their interests, this group of participants forms the sphere of labor business;
4) government bodies, institutions and organizations when they are direct participants in transactions. We are talking about the provision of government orders to entrepreneurs, determination of prices, composition and amount of benefits in their implementation, etc. In such cases, government agencies are equal partners with other business participants. The business interest of the members of this group is the implementation of national programs (scientific and technical, scientific and industrial, social, etc.) in order to meet the needs of both the state as a whole and all its citizens. The principle of mutual benefit in such transactions is as follows. Firms are encouraged by the state to participate in these programs, and the state gets the opportunity to implement them in practice, ultimately forming the sphere of state business.
Business as a system is a phenomenon endowed with four properties - expediency, integrity, contradiction and activity.
Expediency means that business gives any element within it a rational focus on the beginning that unites these elements - getting income, profit. The highest goals of business are usually derived from the requirements of the so-called law of free competition. Higher goals, in turn, are subdivided into more specific goals that act as means of obtaining the former. Integrity means that business permeates all spheres, sectors, territories and elements of the economy to the extent that it is necessary for the full realization of its highest goal - increasing profits. In other words, business should freely penetrate into those areas that are vital for it in the given conditions. Prohibitions and restrictions should be kept to a reasonable level. Business cannot be imagined without its environment and main elements, which include management, marketing, financial system, law, etc.
Contradiction means that a business should be made up of contradictions, since they are the source of any development. There are many contradictions in business: between entrepreneurs and employees, consumers and producers, entrepreneurs and trade unions, or public authorities. Under normal conditions, all these contradictions serve as sources of business development, strengthening and strengthening its integrity. However, in conflict situations that are out of reasonable public control, events full of historical drama are possible and known, not only not strengthening, but, on the contrary, significantly weakening the business system. These are socio-political coups, civil wars, etc. They sometimes lead to the complete loss of the fundamental foundations of business: private property, competition and economic freedom of the citizen.