Business plans and financial models

Having a clear and competent structure will help to draw up a business plan correctly and, most importantly, speed up its consideration by potential investors. Investors are professional readers of business plans and expect from your documents the structure they are accustomed to, which will help them to understand all the nuances of the project consistently and without wasting expensive time.

There is no one-size-fits-all approach or universal model to cover all investment projects of any type or size. Moreover, from project to project, key components may change, which need to be given special attention when drawing up a business plan. However, for most projects, the standard business plan section structure applies. At the same time, each investor can demand a business plan according to a strictly defined plan (we will talk about this later), but in general, a very specific composition of sections has been established in practice.

UNIDO Methodology

UNIDO - United Nations Industrial Development Organization (UNIDO). The first manual for evaluating the effectiveness of investments was published in 1978. The latest edition of the Manual for the Preparation of Industrial Feasibility Studies was published in 1991 and a scanned version can easily be found on the Internet or bought on the UNIDO website for 25 euros.

But enough lyrical digressions. What sections do the authors of the UNIDO methodology recommend to include in the business plan?

The preparation of the feasibility study should lead to certain conclusions on all major aspects of the project. These conclusions and recommendations must be explained and evidence-based. For ease of perception, the feasibility study should begin with a summary (summary) of the project data (estimates, assumptions), conclusions and recommendations, which are then disclosed in detail in the main part of the study. In a summary, you should concentrate and disclose all the most important aspects of the study. The executive summary should have the same structure as the main content of the business plan. The recommended structure of a business plan (feasibility study or Feasibility Studies in the original) is as follows:

1. General background and history of the project 2. Market analysis and marketing concept 3. Raw materials and supplies 4. Location and site 5. Design and technology 6. Organization and overhead 7. Human resources 8. Project planning and budget 9. Financial analysis and investment appraisal

All supporting materials (statistics, market research results, detailed technical descriptions, equipment lists, plant diagrams, etc.) should be presented in separate annexes to the study.

For more information on what to write in each section, I recommend that you refer to the original source, since it is not a problem to find it, as I already wrote. And the technique is really very sensible.

TACIS Business Planning Guidelines

Business plans and financial models

Business plan according to TACIS standards

One of the programs offered by the European Union to assist the CIS countries is TACIS.

Developed in the early 1990s in Western Europe, it promotes the development of strong economic and political ties both between the countries of the former Soviet Union and between Western and Eastern Europe in general. The main goal of the Tacis program is to create a community based on the economic prosperity and political freedom of the partner countries. The program is specifically designed to provide additional assistance in achieving this goal.

TACIS has special standards developed by the European Union to assist in running and organizing business, as well as in the development of various business projects. About

However, the standards of the European Union, like those of other associations, should only be taken as a guide for drawing up a business plan. It must be remembered that there cannot be uniform universal standards due to differences in the goals and methods of doing business.

TACIS (Technical Assistance for the Commonwealth of Independent States) - technical assistance to the Commonwealth of Independent States.

The main sections of the business plan offered by the TACIS program:

  • Front page
  • A page dedicated to copyright regulation of this document
  • Business plan abstract 3. ... Doing Business 3.. Product brief description 3.. Description of the market environment 3.. Personnel (with a separate separation of the management team) 3.. Cash Allocation
  • Business Strategy Outline
  • Product Marketing and Sales Analysis 5. ... Examining Sales Data 5.. Marketing steps strategy
  • Production strategy 6. ... Production deployment plans 6.. Features of local infrastructure 6.. Production integration tactics 6.. Provision of production resources 6.. Requirements for production areas and possible placement options 6.. Required production equipment, its placement and purchase 6.. Calculation of the production plan 6. Technical control. 6.. Critical variables affecting the production process 6. Calculation of capital investments, accounting for depreciation and calculation of stock value
  • Business management system7. Description of the personnel chain 7. Process of agreement and decision making 7.. Description of the management team with a track record
  • Financial component of the case8. ... Solving various preparatory questions 8.. Timeline for the deployment of the plan 8.. Period frequency for planned development 8.. Business lines and analysis of one of them 8.. Estimation of the error of financial statements 8.. Product cost price 8.. Calculation of the cost of products (or services) 8.. System for calculating losses and profits 8.. Balance sheet 8. 0. Forecast of the planned and possible financial flow 8. 1. Calculation of the total profit and profitability of the enterprise
  • Analysis of risk factors9. ... Risks due to technical factors 9.. Financial risks 9. Investment analysis 9. Analysis of possible results of the proposed business based on a mathematical model 9. Credit and other risks
  • Applications

This standard for the structure of a business plan, developed within the framework of the TACIS program, takes into account Russian specifics. When writing your business plan, it will not be superfluous to indicate that it was developed on the basis of this standard.

We will be happy to help you with your questions.

Business plan according to TACIS standards

One of the programs offered by the European Union to assist the CIS countries is TACIS.

Developed in the early 1990s in Western Europe, it promotes the development of strong economic and political ties both between the countries of the former Soviet Union and between Western and Eastern Europe in general. The main goal of the Tacis program is to create a community based on the economic prosperity and political freedom of the partner countries. The program is specifically designed to provide additional assistance in achieving this goal.

TACIS has special standards developed by the European Union to assist in running and organizing business, as well as in the development of various business projects. About

However, the standards of the European Union, like those of other associations, should only be taken as a guide for drawing up a business plan. It must be remembered that there cannot be uniform universal standards due to differences in the goals and methods of doing business.

TACIS (Technical Assistance for the Commonwealth of Independent States) - technical assistance to the Commonwealth of Independent States.

The main sections of the business plan offered by the TACIS program:

  • Front page
  • A page dedicated to copyright regulation of this document
  • Business plan abstract 3. ... Doing Business 3.. Product brief description 3.. Description of the market environment 3.. Personnel (with a separate separation of the management team) 3.. Cash Allocation
  • Business Strategy Outline
  • Product Marketing and Sales Analysis 5. ... Examining Sales Data 5.. Marketing steps strategy
  • Production strategy 6. ... Production deployment plans 6.. Features of local infrastructure 6.. Production integration tactics 6.. Provision of production resources 6.. Requirements for production areas and possible placement options 6.. Required production equipment, its placement and purchase 6.. Calculation of the production plan 6. Technical control. 6.. Critical variables affecting the production process 6. Calculation of capital investments, accounting for depreciation and calculation of stock value
  • Business management system7. Description of the personnel chain 7. Process of agreement and decision making 7.. Description of the management team with a track record
  • Financial component of the case8. ... Solving various preparatory questions 8.. Timeline for the deployment of the plan 8.. Period frequency for planned development 8.. Business lines and analysis of one of them 8.. Estimation of the error of financial statements 8.. Product cost price 8.. Calculation of the cost of products (or services) 8.. System for calculating losses and profits 8.. Balance sheet 8. 0. Forecast of the planned and possible financial flow 8. 1. Calculation of the total profit and profitability of the enterprise
  • Analysis of risk factors9. ... Risks due to technical factors 9.. Financial risks 9. Investment analysis 9. Analysis of possible results of the proposed business based on a mathematical model 9. Credit and other risks
  • Applications

This standard for the structure of a business plan, developed within the framework of the TACIS program, takes into account Russian specifics. When writing your business plan, it will not be superfluous to indicate that it was developed on the basis of this standard.

We will be happy to help you with your questions.

Business plan according to TACIS standards

One of the programs offered by the European Union to assist the CIS countries is TACIS.

Developed in the early 1990s in Western Europe, it promotes the development of strong economic and political ties both between the countries of the former Soviet Union and between Western and Eastern Europe in general. The main goal of the Tacis program is to create a community based on the economic prosperity and political freedom of the partner countries. The program is specifically designed to provide additional assistance in achieving this goal.

TACIS has special standards developed by the European Union to assist in running and organizing business, as well as in the development of various business projects. About

However, the standards of the European Union, like those of other associations, should only be taken as a guide for drawing up a business plan. It must be remembered that there cannot be uniform universal standards due to differences in the goals and methods of doing business.

TACIS (Technical Assistance for the Commonwealth of Independent States) - technical assistance to the Commonwealth of Independent States.

The main sections of the business plan offered by the TACIS program:

  • Front page
  • A page dedicated to copyright regulation of this document
  • Business plan abstract 3. ... Doing Business 3.. Product brief description 3.. Description of the market environment 3.. Personnel (with a separate separation of the management team) 3.. Cash Allocation
  • Business Strategy Outline
  • Product Marketing and Sales Analysis 5. ... Examining Sales Data 5.. Marketing steps strategy
  • Production strategy 6. ... Production deployment plans 6.. Features of local infrastructure 6.. Production integration tactics 6.. Provision of production resources 6.. Requirements for production areas and possible placement options 6.. Required production equipment, its placement and purchase 6.. Calculation of the production plan 6. Technical control. 6.. Critical variables affecting the production process 6. Calculation of capital investments, accounting for depreciation and calculation of stock value
  • Business management system7. Description of the personnel chain 7. Process of agreement and decision making 7.. Description of the management team with a track record
  • Financial component of the case8. ... Solving various preparatory questions 8.. Timeline for the deployment of the plan 8.. Period frequency for planned development 8.. Business lines and analysis of one of them 8.. Estimation of the error of financial statements 8.. Product cost price 8.. Calculation of the cost of products (or services) 8.. System for calculating losses and profits 8.. Balance sheet 8. 0. Forecast of the planned and possible financial flow 8. 1. Calculation of the total profit and profitability of the enterprise
  • Analysis of risk factors9. ... Risks due to technical factors 9.. Financial risks 9. Investment analysis 9. Analysis of possible results of the proposed business based on a mathematical model 9. Credit and other risks
  • Applications

This standard for the structure of a business plan, developed within the framework of the TACIS program, takes into account Russian specifics. When writing your business plan, it will not be superfluous to indicate that it was developed on the basis of this standard.

We will be happy to help you with your questions.

TACIS (Technical Assistance for the Commonwealth of Independent States) is a form, a standard for a business plan, developed by the European Union for the CIS countries. It looks like this:

We can say that the structure of a business plan according to the TACIS methodology is similar, for example, to the UNIDO methodology.

Resume

This section is intended to captivate the investor, so that he is imbued with the idea of ​​the project and understands its profitability for himself. The introduction should contain a list of business goals, the resources required for its implementation, the specifics and nature of control, a list of strengths and weaknesses.

General description of the business

Here you can find information about the existing business, on the basis of which it is supposed to implement the business plan. In particular, the history, mission and the resulting strategies, prerequisites for the creation of a new project, which is offered to the investor, are briefly stated. It also touches upon such issues as the characteristics of products (works or services), the general characteristics of the market for its sale, human resources (personnel), as well as the financial part. It is advisable to give the data for 3 ... 5 years. Highlights answers to questions such as

  • Management, form of doing business, benefits from project implementation
  • The nature of the stage of development of the current business (start, development, mature, etc.)
  • The most important types of goods, works, services produced by the current business, their cost, features
  • The nature of the market (will there be plans to penetrate new market niches)
  • Competitors
  • Consumers (in general)

Marketing Analysis

This section provides a more detailed analysis of customers, competitors, market conditions and production conditions than before. A SWOT analysis is performed (strengths, weaknesses, threats and opportunities).

So, when analyzing the market, the volume of sales, profits from the proposed project, segments, the degree of danger from competitors are investigated. The analysis of consumers provides for their segmentation (by age, income level, preferences, employment harat, etc.). How can they react to the cost of products (works, services), do they care about quality, do they need additional (service) maintenance, are they satisfied with the products?

For the purpose of analyzing competitors, first of all, it is necessary to indicate their scale, the segments occupied, the degree of confidence in them on the part of consumers, financial stability, distribution channels of their products, the quality of their goods, works or services.

The factors of success of the project justified by the business plan (from three to five ... seven) are also investigated.

Resources are analyzed, i.e. what the organization that offers the business project possesses. These are, in particular, money or other finances, technologies (including those for which there are patents), trademarks, materials and other raw materials, opportunities to promote products.

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