What is a business plan for?
To avoid confusion and problems, the construction business will mean exclusively the construction of real estate. Repair services will be ignored. Construction, as well as everything connected with it, is a lot of money, as well as numerous competitors. It's stupid to try yourself in this business without a well-developed business plan. We will now deal with its calculation.
Why do they even go into the construction business? First of all, it is necessary to mention the very high profitability. In addition, there is a significant demand for the construction of real estate. New buildings are necessary for both the population and organizations. In addition, do not forget about the high cost of the check and the marginality of the business itself. The plan for an incumbent construction company must also take into account the high level of competition. In addition, you have to spend a lot of money on the purchase of the necessary materials. We must not forget about the need for engineering and management experience in this area, as well as the complexity of internal processes. In order not to consider the topic in snatches and chunks, it is better to start from the very beginning, in order to gradually go through all the important aspects.
The building business plan should start from this point. Anyone who wants to try their hand at entrepreneurship has two options:
- Purchase a ready-made organization. It already has all the necessary documents, staff, capacities, equipment necessary for operation. Often the company also has authority, as well as a pool of regular customers.
- Start building this difficult but profitable business from scratch.
Purchase of a ready-made organization
The first step on the road to activity is the conclusion of an agreement with its current owners. Then a manager must be appointed. But in concluding such a deal, you should be extremely careful. For example, if a ready-made firm is acquired from a law firm, then you need to make sure that its founder is a real person. There are frequent cases when dummy dolls or fictitious persons are used. In this case, registration and proceedings will bring financial losses. In addition, it will be useful to study a certain package of documents. For example, the charter of an organization, a certificate of registration with state bodies, registration, a decision to create a company, a seal, statistics codes. It will be useful to consider the business plan of the construction company. At the same time, the correct cost estimate is relevant. The easiest option is to multiply the organization's net profit by a certain multiplier. The resulting number will express the value of the enterprise. Let's take an example. The construction company's business plan assumes that the transaction should pay off in no more than 20 years. Now the organization receives 10 million rubles a year. In this case, our multiplier is 20. The maximum price that should be paid is 200 million rubles. If they ask for more, then the buyer is not interested in such a deal. In practice, multipliers range from 12 to 30 and are often measured not even in years, but in months.
Build from scratch
This is a more complex option. But in this case, mistakes and problems of an existing organization can be avoided. A business plan for a construction company from scratch should provide the right attitude and approach from the very beginning. This applies to organizational, managerial, accounting and many other points. And where to start? Initially, a building business plan should give a clear answer to what kind of organizational and legal form will be used. The best option is considered to be a limited liability company (LLC). This choice is appealing because of the smaller amount of documentation to work with. Additionally, here you can use the preferential tax regime - STS. True, it is available only if the total gross income for one year does not exceed 60 million rubles, the number of employees of the enterprise does not reach hundreds, and the estimated value of intangible assets is not more than 100 million rubles. It is also important to correctly indicate OKVED. To do this, you should pay attention to class No. 45 and choose the appropriate item. The legislation of the Russian Federation stipulates that each construction company must be in an SRO (self-regulatory organization). Without this, she will be allowed to perform only cosmetic repairs and finishing work.
Highly qualified professional staff is an important element of the company's success. The credibility of the company and its relevance among customers directly depends on how well the staff fulfills orders. Additionally, the process of carrying out activities may provide for the possibility of attracting third-party specialized organizations. This is important when you have to solve specific and / or complex orders. But most of the work can be done by full-time workers. In the structure, at least such groups of personnel are usually distinguished: management, accounting, foremen, estimates, workers. More specifically, you can speak only knowing what goals are being pursued. For example, when renovating a room, it makes sense to recruit a painter, plasterer, electrician and plumber for the brigade. For other construction work, it is necessary to involve other specialists. It should be noted that over time, staff tend to lower the quality of work and begin to steal. Therefore, it is important to create a department for monitoring the quality of work, you can independently monitor the progress of duties. In terms of structure, the most important person is the director. The accountant and the estimator are subordinate to him. Then come the foremen, who form and manage the teams of workers. The business plan of a construction company should provide for a clear delineation of responsibilities and areas of responsibility, so as not to admit only the likelihood of problems.
When planning your own company, it is important to include an organizational plan in the business plan. Beginning businessmen devote a lot of time to calculating costs and expected profits, but they forget about the importance of company structure and staffing. The success of the entire enterprise depends on them as much as on investment. Let's consider how to write an organizational plan and how it will help you in your work.
Why include an organizational plan in a business plan
An organizational plan is a part of a business plan that discloses the legal form of an organization and the reasons for its choice, structure, work schedule and staffing table. This is a regulation for starting a business, a template for starting an enterprise. An organizational plan helps you to approach starting a business in a more balanced way, for example, to compare several options for an operating mode and choose the optimal one for maximum profit.
Its success depends on the quality organization of a business even more than on the volume of investments. Moreover, a competent organization helps to compensate for the lack of funds or qualified personnel. Therefore, you should not neglect the organizational plan, it is imperative to include it in the business plan.
What the organizational plan consists of
Let's look at an example of an organizational plan. The compiler has the right to write it in free form, but based on a certain structure. It is also initially important to understand that such a plan cannot be drawn up in 1 time or even in 1 day. It is necessary to prepare several options, evaluate them, if possible - discuss them with specialists or at least colleagues, close people. A side view sometimes helps to find weak points.
The ultimate goal of drawing up an organizational plan is to find the best option for organizing a business.
That is, the operating mode, structure and number of personnel that will allow you to reach the maximum level of profit, without equipment wear and tear and personnel overstrain. You can edit this document along the way when important new information becomes available.
Legal form of organization
Most Russian businessmen work according to one of two common legal forms of organization: individual entrepreneur or LLC. Moreover, the choice is often based solely on the scale of the activity. If the business is planned to be small with a minimum number of hired employees, the status of an individual entrepreneur will be the best solution. At the same time, some types of activities, for example, alcohol trade, are closed for individual entrepreneurs.
Therefore, the logical decision would be to choose a legal form based on answers to the following questions:
- What kind of activity will be? Through what forms does the law allow it to be administered?
- How many people plan to lead the work? For one, an individual entrepreneur is enough, with two founders - only a legal entity.
- How many employees will there be?
- Is there a desire to reduce the amount of reporting and control by government bodies?
- If the business starts to expand, will such a form work or will it have to change?
- If the business fails, is the businessman ready to answer to creditors with his personal property?
Financial model of a credit institution
Brief Investment Memorandum
The modern credit market, both in the world and in Russia, has become extremely difficult for the credit institutions themselves, banks, and their clients. This is due to the presence on the market of many loan products, sometimes difficult for specialists to understand. Moreover, there are already microcredits for buying ice cream or obtaining mortgage loans using cryptocurrencies through blockchain systems.
In addition, the credit market is under strong government regulation and there is an innumerable number of laws, instructions and techniques that often simply pose insurmountable bureaucratic barriers to obtaining a loan for quite creditworthy citizens, small and medium-sized businesses.
The services of companies offering intermediation between a potential client and a bank are aimed at eliminating the factors that hinder the development of the credit market. Two main factors can be used as the basic concept of creating a credit broker company:
- financial infrastructure, including credit brokerage in Russia lags far behind world standards, which is primarily due to the fact that the credit market itself in the country is in the initial phase of its development ... Given the criterion of the provision of the Russian population with the services of credit brokers (only 2 credit brokers per 1 million population), there is a huge potential of the credit brokerage market - at least our market lags behind the world average by more than 450 times;
- The lending market in Russia, despite all the difficulties with the solvency of a large part of customers (in Russia, out of the total amount of consumer loans of 72 trillion rubles, more than 30% are hopelessly bad) is growing on average by 3-4% per year. Strong demand for loans and increased competition are creating a growing need in financial markets for specialists - intermediaries who could speed up the decision-making process by banks on loan approval, reduce the risk of insolvency of borrowers and loan defaults.
In addition, in favor of creating a profitable business of credit brokerage, the fact that now there is a large selection of special computer programs, database systems on the market, which allow to determine with a sufficient degree of accuracy the solvency of almost any borrower, be it an individual, small company, or corporation.
The payback period is 5 months.
Initial investments will be equal to 1,520,000 rubles.
The break-even point is reached for 2 months of the company's operation.
Average monthly profit 620,000 rubles per month.
Description of business, product or service
The main service of the company - a credit broker, considered within the framework of this business plan, is to provide comprehensive consulting assistance to clients in obtaining a loan, preparation of the necessary documents, as well as support in interaction with banks. In particular, the credit broker service includes:
Do you want to do without a business plan by organizing and developing your business? Are you not a fan of finding easy roads? You are welcome! Just keep in mind (unless, of course, you are an unrecognized business genius) that the path to goals will not be as simple and short as if you were using a step-by-step guide to your actions. In general, you will not have specific, clearly defined goals without a business plan either. Or do you not yet know that the first stage in the materialization of your desires is to write them down on paper? Now you know.
Actually, there are many advantages of having a business plan over its absence. Let's try to identify some of them:
- Determination of the ultimate goals of business organization
- A clear formulation of the functions and purpose of future products or services
- Determination of the target category for which the proposed products are intended
- Analysis of the situation in the market where you are going to work
- Study of competitors and how to deal with them
- Ways to promote a specific product on the market
- Calculation of financial costs
- Opportunity to receive investments to organize your business
What are business plans?
Business plans are different. If you have asked yourself why you need a business plan, and are reading this article, then you have probably already looked (or will be looking at) other materials on this topic, and saw that in many sources business plans differ from each other not only in structure (although , in principle, it just should be the same!), but also the quality of writing, the level of detail, and some other nuances.
In total, there are 4 main types of business plans that differ among themselves and the price and goals of their creation:
- Typical project. It is intended for general acquaintance with the future business (it is these that are mostly presented on various Internet resources). Such documents are characterized by a relatively low price, tight preparation time, and a minimum level of detail.
- Presentation. Actually, the name itself speaks for itself. Such a business plan is designed to visually demonstrate the prospects of the project, to obtain preliminary approval before creating the next type of business plan.
- Expanded (investment). Created to present a project to investors in order to obtain investment funds. The purpose of such a document is to justify the receipt of a loan or loan and show that the investment will be justified. Such business plans undergo obligatory credit examination in banks or private investors - no one will give money just for a good, convincing document. The cost of creating a deployed project is quite high, and often beyond the "budget" of many beginning entrepreneurs.
- Internal. The most expensive type of business plan with the highest level of detail - even higher than the investment type. Designed for own use, created with a step-by-step plan describing the full implementation of the project and its live management.
Own definition of a business plan: this is a mathematical and economic model of the future business that solves many problems facing entrepreneurs and simplifies project implementation.
The final “consumers” of the business plan are presented in a small diagram:
Order or write yourself?
Of course, after the main one - why do we need a business plan, this issue is also of concern to most representatives of small and medium-sized businesses. At first glance, really, everything seems simple, because hundreds and thousands of predecessors have walked the road of creating almost any business before you. But there is a small detail. To achieve success (after all, out of these thousands, dozens, or even a few, came to their goals at most), you need to thoroughly delve into the smallest details of the business.
And that means studying it, making an appropriate analysis of many aspects, calculating costs, etc. That is, in essence. Draw up the same business plan. But for a person who first embarks on the path of a businessman, this is unlikely to be within the power, or it will take a very long time. Just enough for the number of competitors (those who chose to order a business plan from specialists) on the market to increase significantly. It's time to think. back to contents ↑
Order the creation of a business plan: pros and cons
Let's try to figure out what is more profitable: ordering the creation of a business plan for professionals, or trying to solve this problem yourself? Let's start by contacting specialists. Some good advice can be given right away:
Do not buy a ready-made business plan if it does not have “links” specifically to your business, does not have an analysis of the state of the market in your city, and is not adapted specifically to your specific conditions. Otherwise, you just throw your money away. As a last resort, you can download a business plan template on the Internet or order the creation of a standard document, and then try to adapt it “for yourself”.
Business Plan Objectives
The purpose of a business plan is to develop actions that, if performed, will make a profit. These goals can be conditionally divided into internal and external.
Internal goals include the need to assess existing knowledge, understand the market situation and systematize all available information. For the successful implementation of the project, one should obtain as much information as possible, perform calculations and draw conclusions regarding the feasibility of investing.
The internal goals of the business plan also include:
- control of all processes;
- research of the competitive environment, consumer preferences and market characteristics;
- an objective assessment of the personnel and production capabilities of the company; <
- forecasting the payback period of the enterprise;
- analysis of investment efficiency;
- calculation of the necessary costs;
- determination of the personnel compliance with the required level of professionalism.
The external objectives of the business plan are to advantageously present the company's ideas to outsiders and explain the rationale for investing in the business. In other words, a business plan is a kind of "visiting card" of the company, which allows you to compare the possible profitability and investment risks. Based on these goals, a business plan is created for obtaining a bank loan, attracting investment from private investors and subsidies from the state, searching for partners, and merging with third-party organizations.
Business plan objectives
If we talk about the tasks of a business plan, then it is necessary for:
- summarizing the available initial information;
- conducting technical and economic calculations;
- analyzing the current market situation; <
- conducting marketing research;
- evaluating the financial prospects of the project.
Business plan structure
The business plan should have a section with an estimate of the sales area. This section describes the consumers of the product, as well as evaluates the competitors and the strengths and weaknesses of the company. A business plan must include a marketing, production, organizational and financial plan. In conclusion, it is necessary to prepare a summary, on the basis of which investors, banks or government agencies could draw conclusions regarding the prospects of this project.