How to structurally develop and write a successful business plan
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Federal State Budgetary Educational Institution of Higher Professional Education
Russian State University for the Humanities
Test work for the course: Financial Management
on the topic: "Functions and structure of the business plan"
5th year students of the specialty
"Economics and Enterprise Management"
1 Purpose and functions of the business plan
Modern business needs both tactical planning, that is, one step forward and strategic - when the most important indicators of their business are calculated a few steps, days, weeks and years ahead. The structure of a business plan is one of the classic planning patterns, which is how the ship moves to the destination. Yes, there will be storms and storms and calm along the way, no one is insured against this, but if the course is correct, then the goal - making a profit will be achieved in optimal time.
Why do you need a business plan
When creating a business plan, you must first of all decide what kind of product or service will be offered to buyers-consumers. It is necessary to indicate what competing enterprises are on the market, what advantages your business has over them, how profitable and large the future enterprise can become over time. Thus, the business plan describes not only the present, but also the future of the business, analyzes the risks, possible problems and ways to solve them. This not only makes it possible to clearly understand the prospects, but also allows you to use a competently drawn up business plan as a tool to attract investment.
Simplified Business Plan
The structure of a business plan is a skeleton of a business plan, its short, logical and concise description according to a certain scheme, which is usually drawn up at the start of a business operation. The structure of a business plan includes the main points, the foundation on which the business of this or that firm will not only stand, but also develop steadily. The structure of the plan includes not only a description of the business idea, but also the presentation of the amount and timing of its implementation.
When developing a business plan, an entrepreneur and those who are ready to support his idea have a better understanding of what the future business will be like, its profitability and efficiency. Of course, the structure of a business plan primarily depends on the area of human activity in which the business will develop and in what volumes. The types of a business plan, its structure directly depend on what the entrepreneur is going to do, produce or trade, sell a proven product or one that is not yet on the market for goods. If the product is new, experimental, then the structure of the business plan should be more detailed, including a description of the product, the process of its manufacture and its advantages over competitive products.
Meanwhile, any structure of a business plan includes classic sections, such as, for example, the Title Page. In this first section of the firm's business plan, the name of the business project and organization should be indicated. In addition, it should indicate where the company is located, its location, contact information: postal address, email address, telephone number, as well as the date and time of the business plan. A financial plan is also briefly noted if the purpose of drawing up a business plan is to present it to a credit institution or investor.
In the financial part, in this case, they mark the terms that are necessary for the project to pay off and start making a profit to its owner. The second section of the business plan is a Privacy Statement, which is designed to protect the copyright of the developers of the project for the implementation of the business idea and business plan.
Thus, the entrepreneur warns about the conditions of confidentiality, non-disclosure and non-dissemination of information for those who will be familiar with this business plan. The ban on copying the information provided is often indicated in this section of the business plan of the enterprise. The structure of the business plan assumes a section that includes a short description of goods or services, the goals of the project.
The last, but no less important section of the business plan is the Appendices. It contains copies of contracts, price lists, documents that will be referenced in the main sections of the business plan. A well-designed business plan structure is the basis for financial success in project implementation. The structure of the plan allows you to describe all the actions to achieve the main goals of the business - profitability and efficiency.
The section "Production plan" indicates the cost of products or services, production costs. The structure of this section includes: the need for personnel and production facilities; structure and production technology; production capacity and equipment characteristics; the need for raw materials, necessary materials and tools; cost estimate for production and analysis of the cost of products or services.
Business planning is the most important stage in the creation of any company. If you approach it responsibly and describe in detail the main sections of the business plan, you can already at the start adjust the strategy so as to quickly achieve your goals.
For whom the business plan is drawn up
Since the business plan demonstrates the prospects of the project, then it is created for:
- the founders of the company - they can see its strengths and weaknesses in it, so that by analyzing them, they can quickly adapt to market changes and manage the business more efficiently, managers can plan on the basis of a business plan their work;
- future investors, lenders, partners - using the document, they can assess the profitability of the project, liquidity, payback period and decide whether it is advisable to make cash investments.
Goals and functions of business planning
The main goal of compiling a BP is planning the company's work for the near future and for the future. There are others:
- using BP as a basis for developing a strategy - choosing key areas of development;
- assessing opportunities;
- attracting money, resources for development companies.
Such a document can also be drawn up for special purposes - to enter associations, get the necessary contacts, etc.
- identify key, potentially profitable areas of the company's development, sales markets;
- develop a strategy, steps for its implementation, short-term and long-term goals;
- identify opportunities to detach from competitors;
- think over marketing measures;
- assess the financial position of the business, available resources, predict costs;
- if possible, foresee all risks ...
After the launch of the company, the business plan helps to track the stages of project implementation and promptly adjust activities, moreover, through communicating its goals, which are formulated in the document, you can more effectively manage personnel - increase team morale, motivation, etc.
- planning and forecasting of the company's activities for a particular period;
- substantiation of strategy, tactics of market behavior;
- attraction of investments, loans , especially for large-scale or expensive projects;
- coordinating the efforts of employees, informing about plans, increasing motivation;
- assessing the state of the company, the market situation.
Now we find ourselves in a completely different part of business planning - management and organizational structure of the business.
Don't neglect the organizational plan when writing your business plan
Management is a really important element of any business. As a business goes through different stages of the life cycle, so will the need for business management grow, and this is directly related to the efficiency of the business. If your business is in the process of initiation and planning, and if you plan to work in your business alone, you probably think that there is no need to do the Organizational Plan section of the business plan. But I recommend doing this with the aim of further planning personnel management in your business, because it is difficult to do business alone.
Also, by working on this section as part of the planning process, you will do a good job preparing for financial planning.
What should the “organizational plan in the business plan” section contain?
Again, in the business plan, the section begins with a chapter summary. It will be at the beginning, but you do it, as always, after completing the entire chapter.
An organizational chart is a hierarchy of people in an organization. It will show who is responsible for what, who performs the tasks, who controls the implementation, who regulates communication between employees, etc. It is important to understand that this is a serious section, because you are planning the basis of what should meet the requirements for a long time time. You cannot change the hierarchy and structure of the organization every month, which, for example, is permissible with some other sections of the business plan.
The organizational chart should be presented in the form of an organization chart or graph (so-called "organograms"). There is a free online application for organogram creation - Gliffy. You just need to register and you will be able to use the application. You can also use Microsoft Office Word, which has the ability to enter a chart in an organizational chart that can be customized to suit your needs. The figure shows a diagram of the organizational structure of MS Word 2021.
Greetings, dear friends! Alexander Berezhnov is in touch.
This is part 2 of the instruction "How to write a business plan".
Let me remind you that in Part 1 I told what a business plan is, what it is for, what a SWOT analysis is, and also superficially touched upon the sections of a business plan.
In part 3 of our instructions, we will consider a simplified model of a business plan using the example of opening an anti-cafe.
Before proceeding to the description of the sections, I will say that there is no specific technology for writing a business plan, taken as a standard. In each case, it is individual. The main thing is not to complicate this process too much so that you and your potential investors understand everything.
I will describe the sections from my experience in obtaining investments for commercial projects. This information will be quite enough to open your own small business without large investments or to secure additional funding by attracting an outside investor for your project.
Introductory part (summary)
The purpose of this section is to make a positive impression on investors and to provide an overview of the business plan as a whole. The resume should not be long, its optimal length is from 2 to 4 pages.
Only the most important things should be here:
- Direction of the company;
- Target markets and place of the company in them;
- Profitability and return on investment;
- Personnel and responsible persons;
- Planned quantitative and qualitative indicators as a result of work by periods.
The "Resume" section when writing a business plan should provide answers to 2 main questions:
- What will investors get from the successful implementation of the project?
- What are the chances of losing capital or part of it in case of unfavorable development of events?
The resume should be written at the very end, when the main part of the business plan has already been written. As you can see, the resume contains a summary of the sections of your business plan.