Business relevance example

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federal state budgetary educational

institution of higher professional education

Moscow State Industrial University

Department of Organization Management

Specializing in Organization Management

On the topic "Economic justification for the development of a business plan (for example, LLC" Raduga ")"

In modern conditions, the business is gaining new momentum. First, the ability to do business from anywhere in the world thanks to the Internet is already a powerful tool for any type of business. Secondly, the constant correlation of the currency and the accompanying crises completely discourage the desire to work for someone. Business is not exactly freedom, but rather a personal responsibility, a personal bar of goals and a personal perspective. Simply put, a great opportunity for those who want to live the way they want.

In any business, after the idea comes planning, and business is no exception. The overwhelming majority of business plans are not even worth the paper they are printed on. Errors in their compilation are most often similar. Let's consider them in more detail: in more detail:

Meet by dress: business plan execution

Checking spelling, punctuation, grammar and writing style are equally relevant when it comes to putting a business plan on paper. When potential investors get acquainted with the plan and see mistakes, they immediately ask themselves, "Where else could they be wrong?" In the modern world, there are a lot of people who are looking for capital, so thinking will not be long. The sponsors will simply choose a different plan.

Before presenting your plan to a lender or investor, you need to carefully check it for spelling and punctuation errors, correct all grammatical problems.

There is nothing worse than unequal fields, unsigned pagination, unsigned charts, tables with no topic, technical terms with no definitions, or missing tables of contents. Before presenting your plan, the investor should give it to someone for proofreading. Although the plan has been written for several months, the investor will devote ten minutes to it. The first thing that catches your eye is your disorganization. After that, he will leave this project and move on to another.

Details need to be detailed: business plan in detail

Any business is focused on a specific range of customers, services, products, operations, marketing, sales, management team and competitors. All these points must be taken into account in a business plan. A complete and detailed business plan usually contains a specific industry review, detailed financial projections and an annual balance sheet.

The business plan is not fiction. If an educated person with higher education cannot understand his topic, then the plan must be redone. If you are trying to provide incomplete information, on the basis that your business includes confidential data, processes or technologies, you should show a plan that will not contain anything superfluous. Then, if investors are interested in additional information, offer to sign them a nondisclosure agreement and only then provide the entire plan. But in modern conditions, not all investors will agree to sign anything.

The main thing is not to dive into unnecessary details. This mistake is most often made in technology planning based on startups. In the basic plan, all technical details should be kept to a minimum. As a last resort, they can be brought into the application. One way to do this is to break the plan into three parts. On the first two or three pages there will be a resume, then the main part on 10-20 pages and an appendix, which consists of the required number of pages. Anyone who reads the business plan will be able to familiarize themselves with as many details as they see fit.

From dream to goal: realistic plan

It is believed that a feasibility study is a reduced copy of a business plan, containing all its main points and characteristics. In reality, this is not the case. Despite the similarity of the two concepts, there are significant differences between them. The article will discuss what constitutes a feasibility study, the procedure and rules for its preparation, as well as the differences between a feasibility study and a business plan.

What is a feasibility study?

Feasibility study (FS) - printed confirmation of the technical viability of the project and the feasibility of its implementation from an economic point of view. In other words, a feasibility study is an idea implemented on paper, the purpose of which is, for example, the creation of a new facility or the modernization of an existing structure.

The main task in developing a feasibility study is to assess the costs of implementing an investment project, forecasting results, and determining the payback period of investments.

Differences between Feasibility Study and Business Plan

In some ways, both concepts are identical to each other. The main difference is that the task of the feasibility study is to justify the project already implemented at the enterprise, and the business plan is to justify the existence of the company as a whole. Therefore, when drawing up a feasibility study, the document does not take into account the research of the marketing department, market competition, production technology from beginning to end, the process of selling finished products. That is, a feasibility study is a shorter, but capacious, meaningful document.

When preparing the feasibility study, the following points are taken into account:

  • features of the production process;
  • basic requirements for equipment, technical equipment of the enterprise, the state of communications;
  • personnel, costs associated with the organization of the workflow;
  • free price for manufactured products;
  • terms of project implementation;
  • economic result;
  • environmental component.

The business plan includes four main information blocks:

  • marketing research, which most fully reflects all the components that are supposed to influence the market during the implementation of the project;
  • production and technological planning, which reflects all the points, starting with production technology, raw material base, ending with the range of products, cost, timing, quality of goods;
  • the management section, which describes the procedure for managing the enterprise, draws up an investment development plan, other parameters with which it is planned to attract labor resources, manage them;
  • the financial and economic block contains the basic calculations, efficiency ratios, the final decision on the feasibility of the project.

There is no marketing block in the feasibility study, but the production and technological section pays more attention to justifying the technology and methods of organizing production.

In other words, if it is not required to provide the investor with a description of why the produced goods will be well bought at the prices declared by the manufacturer, then a feasibility study can be drawn up.

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