The content of the business plan of the enterprise and the procedure for its development

Today, perhaps, everyone is familiar with the phrase "business plan". Many entrepreneurs are puzzled by the question of its creation and use. Not so long ago in my article I talked about a business plan in franchising. Today in this article we will consider the structure of a business plan: what is it for, what blocks it consists of.

Business Plan Objectives

The content of a business plan often answers most questions about how a business operates. In each specific case, a business plan is designed to solve certain problems, but the goals are always similar: to attract the attention of potential partners, investors and employees of banking structures.

In this regard, the business plan should look professional, and its structure should contain all the necessary sections and blocks.

Business plan structure

The structure and content of the business plan may differ depending on the nature and nuances of the project. But there are certain blocks that are present in most cases.

Investment Memorandum

This section is required in the structure of the organization's business plan. It can include the goal of the project, the product of the project, the time frame of the project, a brief financial description of the project.

Privacy Memorandum

In the structure of the business plan, one of the sections should contain a confidentiality memorandum. It states that this project is presented solely for making a decision on the financing of this project. It is prohibited to transfer information about the project to third parties without written consent.

Company Description

One of the main sections of the business plan structure is the description of the company. This section includes general information about the company, stages of project development, key points in the development of the company. It is important at this stage to demonstrate the intensity of the project development.

Project Product

I'm talking about the structure of a business plan

Planning is a very important process in the daily life of modern society. It all starts with setting tasks for the current day and continues in the future for a month, a year, a five-year period and longer periods. Planning also plays a key role in building a business. If you want to successfully implement a conceived idea, you need to draw up for yourself a clear instruction for action. In addition, it is necessary not only for the businessman himself, but also for his partners, investors, and banks. In this article, we will analyze what is, why it exists, the content of the business plan, the main provisions, the order and stages of development.

The essence of the business plan

So, what is and what should be the content of a business plan? Are you thinking about starting your own business, but don't know where to start? Any undertaking should not be based on a rash impulse. You should develop a strategy of behavior, learn everything about the industries in which you are going to work, arrange monitoring of the market and competitors, calculate the possible risks and profits. All these points represent the content of the business plan in a short version. At its core, this is a document from which any deliberate business begins, on its basis large companies and successful entrepreneurship are born. This document has its own standards, although, of course, it does not have a mandatory regulatory form. But the recommendations on its structure should be heeded, since it will be useful repeatedly in the life of an economic entity.

Why do you need a business plan

First of all, the content of the business plan will allow the entrepreneur himself to act clearly and consistently. Without instructions at hand, making operations and transactions in a chaotic manner and without preliminary calculations, you can make a lot of mistakes than soon destroy all your works. Planning should be based on the most complete information available. This approach to business will allow you to calculate the possible consequences several steps ahead, avoid negative incidents and find additional ways to resolve emerging issues. The content of the business plan will allow you to push yourself to action, since all people are afraid of the unknown awaiting the next step, and then everything seems to become open and clear.

The second reason to draw up this document is to attract additional partner programs, invest in a project from external sources, and gain access to large amounts of credit. Any self-respecting partner, especially large organizations, does not want to get involved with projects of dubious profitability and viability. But the structure and content of a business plan may well convince prestigious and wealthy organizations to invest in the development of a new project. The investment should pay off, and therefore it is necessary to provide analytical information on the upcoming business, which will clearly state the benefits of this kind of financial investment in a newcomer to the market. A properly designed structure and content of a business plan will open the door for an entrepreneur to large bank loans on favorable terms, government support and subsidies, and commercial investments from well-known companies. Such support during the start-up period will ensure a successful and fast start-up, and will further strengthen the position in the chosen industry.

Who are investment intermediaries

At the stage of thinking about a business plan, it is very important not to overestimate your own opportunities for foresight and the ability to foresee the turns of events. The ability to analyze situations and identify, based on the data obtained, the short-term and long-term prospects of market behavior comes with experience. Neither education nor natural ingenuity will help here. Some things can only be done by going through the visualization many times. Therefore, many aspiring entrepreneurs do not risk tackling even the main provisions of a business plan on their own, let alone delving into analytical activities.

Young entrepreneurs prefer to contact so-called investment intermediaries. These are companies that undertake the obligation to complete this document. Their tasks include many items and processes, but they also charge a significant fee for their efforts, often in the form of an advance payment. Usually the size is determined by the interest rate on the size of the desired investment in the project from third-party organizations. Such companies employ experienced financial analysts, specialists in various economic sectors, theorists and practitioners of building a successful project, who make up the approximate content of a business plan. The sample is provided to you for review, decision making, correction of inaccuracies. All the details are repeatedly discussed and specified, a lot of meetings and re-registration of the first version of the plan are held before it takes on its final form.

Choosing an investment intermediary is a very responsible matter. A big name may be the result of just the skillful work of a PR company. And you can end up with a standardized and tailored, far-fetched business plan. There can be no clichés and clichés in the development of this document, each project is developed strictly individually with full understanding of the essence of the business under construction. Therefore, at the stage of signing the contract, discuss all the details with your investment intermediary, so as not to get into an undesirable situation with prospective investors.

Telling about the structure of the business plan

What is a business plan and what is it for?

Business plan - a document substantiating the feasibility of creating a new business or product. When drawing up a business plan, all aspects of the company's activities must be considered, a large number of indicators must be calculated.

A business plan is drawn up in order to understand whether it is advisable to open a new business, what profitability to expect, what risks you can face, what market strategy to build.

The business plan is prepared for three main categories of users:

  • Business Owners
  • Investors
  • Lenders

Business owners are interested in an objective assessment of the feasibility of starting a business. Interested parties can be both directly initiators of a business or a new product, and various co-owners, shareholders, partners. If a business plan is being developed for in-house use, it is best to turn to a third party, an independent consulting company, for the development of a business plan. You can do this by going to the "Contacts" section of the plan-pro website. u, and in the sections dedicated to ready-made business plans, you can familiarize yourself with current articles and samples of ready-made business plans.

But it is especially important to have such a document as a business plan when attracting investment resources. At the same time, investment resources can be obtained from various sources - banks, private and corporate investors, government programs to support entrepreneurship.

Information that discloses the essence of your business should be clearly structured into sections. Further, in each section, the indicators are disclosed and specified.

The business plan should include:

  • Cover Page
  • Table of Contents
  • Project Summary
  • Business Development Strategy
  • Analysis market and marketing strategy
  • Production plan
  • Investment plan
  • Financial plan
  • Sensitivity analysis and risk analysis
  • Financial Analysis
  • Investment Analysis
  • Final Conclusions on Business Feasibility
  • Applications

Next, let's take a closer look at the content of all sections of the business plan.

Resume

In the resume, you must briefly describe the essence of your project, indicate the amount of funding, approximate payback periods, project efficiency.

Production plan is a special section of business documentation containing a detailed description of technological processes. It is presented to investors for consideration. This paragraph should be given special attention as it reflects the skills of an entrepreneur and assesses the prospects of a business. Therefore, if a sufficiently serious event is planned with the involvement of third-party assets, the production plan in the business plan must be executed professionally.

The calculations that accompany the production plan should be based on the projected sales and supply of raw materials. The most obvious will be the confirmation of the information by the generated calendar (production table) of supply of production stocks, storage and shipment of finished products to retail or the end consumer.

The content of the production plan is based on the chain of transformations of the input resources into the result of the technological process. Personnel, investments, equipment and raw materials will be used as the capacity used at the enterprise. At the exit, the organization, according to the production project, must provide goods or services that will be in demand in the market and the interest of the consumer.

Features of drawing up a production plan

After the leading sections of the production plan are outlined, it is necessary to determine and forecast the indicators used to justify professional calculations. Using a standard business example, the following parameters are specified:

  • The cost of utilities. Almost any production in business requires the use of electricity, gas, water consumption and sanitation. When determining the production plan, the costs for the services of specialized companies are taken into account in the context of a month, quarter, year;
  • Before drawing up a production plan for a business plan, it is important to determine the level of costs for paying staff salaries. It is possible that in the first year of operation this will be the largest item of expenditure;
  • In the technological plan of the business, it is important to lay down the supply. For certain categories of industries, various formulas for the cost price and the output of the ratio to sales can be used. The classic proportion of production in business is to calculate profitability 1: 2. That is, with the cost of executing a unit of goods of 1 ruble, it should cost in the end at least 2.

Production planning diagram

In addition to the costs included in business planning, the company's revenue is also taken into account. This includes profit margins, efficiency in attracting skilled people, and return on investment. Here, it will be important to reflect the impact of production costs on business.

Classification of production plans

Before starting to work out the paragraph, you need to decide on the type of the final result. This can be an aggregate section of a production business plan, leading a work schedule and a supply plan. According to the frequency of development, they can be short-term (up to 2 years), medium-term (up to 5 years) and long-term (from 10 years and longer). When planning the creation or expansion of a large firm, it is recommended to work out all types of production process plans. This will best reflect the ROI picture.

Beginning entrepreneurs do not always have an idea of ​​where any business is born and based. Wanting to open their own business as soon as possible, they often overlook important things that can subsequently cause colossal losses. For a business to be profitable, it must have a competent structured plan, which will spell out the stages of development, planned costs, prospective income and profitability. Thoughtful business planning is half the success of an enterprise.

What is a business plan

This is the program in accordance with which the enterprise operates. It is designed so that the entrepreneur has something to be guided by in the course of business development. It prescribes:

  • goals and objectives of the company;
  • product sales market;
  • prospective income of the enterprise;
  • possible risks;
  • advertising strategy;
  • calculating the cost of purchasing equipment and raw materials.

And this is just a basic list of items. The procedure for developing a business plan and the sections that will be included in it may differ depending on the type of enterprise.

If the development program of the enterprise is drawn up correctly, it will generate income

Business plan and business planning: what's the difference

The second concept is the process, and the first is the product resulting from it. Planning includes gathering information about competitors, analyzing market conditions, finding investors (if necessary), etc. The plan is something that you can touch. It is drawn up in writing and is a kind of instruction for a businessman. For example, six months after opening his own store, an entrepreneur can compare the current revenue received on a monthly basis with the one that was planned. If these indicators are equal or the first exceeds the second, it means that the plan was drawn up correctly and everything is going as it should. In the case when the store's net profit is seriously lagging behind the target figure, you need to revise all the points of the plan and find errors, or turn to a fallback option (ideally, it should also be registered in advance in case of force majeure).

What are business plans: types and requirements

A business plan is not always drawn up at the stage of enterprise development from scratch. Sometimes it is developed at a turning point when it is necessary to expand production, attract new investors or completely change the course of business. Typically, these projects are broken down by year.

Business plans may vary depending on categories. By object, they are divided into:

  • Enterprise plan;
  • Investment project plan.

The first one implies either the creation of a new one, or the development or revitalization of the financial affairs of an existing business. The second is divided into projects along the lines and also into the creation of a new enterprise. Both have their own characteristics:

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