What main sections should be included in a business plan
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Sections of the business plan
A business plan is a detailed document that contains the main areas of activity, describes the necessary resources, working conditions, as well as the expected results of entrepreneurship.
A business plan is necessary for any enterprise, but its sections and their content will differ significantly for a large company and for a small business. Development of a business plan, first of all, will help to adequately assess the company's capabilities, use its strengths and find how to cover up weaknesses.
When building a new business or expanding and improving an existing one, it is necessary to develop an activity strategy. Constant verification with the sections of the business plan will always help to correct events in a timely manner and direct the work of the enterprise according to the planned scheme.
A list of the main sections of a business plan might look like this:
- summary ;
- goals and objectives of the company;
- analysis of the market situation;
- production plan; <
- marketing plan;
- management organization plan;
- financial plan.
Each of the items can be divided into other sub-items, have different names, but the essence remains the same as in the presented list. Also, the specified main sections of the business plan of the enterprise can be supplemented with other necessary branches.
Description and description of the main sections of the business plan
A resume is drawn up last, when the entire business plan is ready. The purpose of the section is to attract an investor, to interest him, to outline in a nutshell the prospects of the project.
A business plan is a comprehensive document that contains all the main aspects of planning an enterprise's activities and is developed both to justify specific investment projects and to manage current and strategic financial activities. A business plan can and should be developed both for enterprises that manufacture products and for those who specialize in providing services, trading activities, etc. This will determine both its structure and the forecast of the main parameters of its activity.
Within the framework of the business plan, goals, ways and means of achieving them are determined. As a result, the developed document will be read by potential creditors and investors, which will ensure the flow of funds to the enterprise. It is this circumstance that should be taken into account when developing the financial section of a business plan.
A business plan is a voluminous document that comprehensively reflects the company's development strategy, its sections are interrelated and are basic for financial projections.
In foreign and domestic literature, you can find various options for the structure of a business plan, as well as the names of its sections. To a large extent, this depends on what area of activity a particular enterprise belongs to.
We will consider the structure and proposed titles of the sections of the business plan using the example of an enterprise that produces and sells food products. This example is related to the development of a business plan in connection with the desire of the enterprise to release a new type of product.
In fact, the resume is an extremely abbreviated version of the business plan (3-4 pages of text). This section is at the beginning, although it is written at the end of the entire work. The purpose of the summary is to present the main provisions of the developed business plan in order to give a concise idea of the content of this document.
At the beginning of the resume, goals and strategies are formulated by which they will be achieved. Further, the characteristics of the products are given, including those planned for release; its features in comparison with the one on the market, the main financial indicators in the future, the need for financing and the direction of using the funds received.
The final page of the summary should contain the financial results expected from the project (financial summary). It provides information about the projected sales volumes for the coming years, production costs, gross profit, the level of profitability (profitability) of investments, an indication of the possible period of return on capital investments or funds provided on credit.
This section gives the full and abbreviated name of the enterprise, the date of registration, a description of the main activities of the enterprise (OKONKh code), its organizational and legal form, form of ownership (SKFS code), the share of the state (subject of the Federation) in capital, the subordination of the enterprise - the superior body.
The intentions for the production and sale of products are stated, the geographical limits of business development are indicated, information about what stage of development the company has reached, whether it has a fully developed product range, etc.
It is important to clearly formulate the purpose of the business (reaching a certain volume of sales or in certain geographic areas, releasing a new type of product, etc.). The main thing is that the goals are clear and unambiguous, look realistic and be achievable. That is why, when formulating them, it is worth adhering to the SMART rule, which stipulates that they should also be:
Obviously, it is better to calculate in advance all possible profits, losses and the estimated payback period of the project than to regret the lost investments later. It does not matter whether it is a small hairdresser or a large cement plant. That is why every aspiring entrepreneur should know how to write a business plan.
The main sections of the business plan and their content
Business plans of enterprises in different industries may differ from each other, but at the same time, their internal structure remains practically unchanged. All of them contain such main sections as a brief description of the business, a general description of the industry and the market, the specifics of the goods and services produced by the company, ways of promoting them, the assessment of the company's revenue, costs and profits.
In recent years, all business plans have given a separate section for assessing perceived risks. Thus, before starting to develop a business plan, you should have a clear idea of what the future firm will look like. It is advisable to dwell in more detail on how to draw up the main sections of a business plan.
Business Concept or Resume
This section is rightfully considered the most important, since it should succinctly and succinctly argue the rationality of creating a business. In fact, it summarizes the essence of the business plan in a concise form, which is then disclosed in detail in the rest of its sections.
In order not to make a mistake in writing a resume, it makes sense to adhere to the following scheme:
- the introduction covers the firm's goals and the nature of the project;
- the main body briefly covers all the key elements of the business plan, including the line of business, demand forecast, funding sources and etc .;
- conclusion: summarizes all aspects of future business success.
It is important to remember that even when creating a very large company, the business concept should take no more than 2-3 pages, so no extra words are needed here, only theses, arguments, numbers.
Description of goods and services
Hello dear readers! To open or develop a business, it is often required to develop a business plan. It may be needed not only to obtain investment support from outside, but also to understand the business development strategy.
Business plans are not developed randomly, but according to certain standards. There are several popular standards in the world, the most widespread of which is UNIDO. It implies the presence of certain chapters that reveal the essence of the project, and also allow you to make an overall assessment of its prospects.
In this article, we will look at the main sections of the business plan that are included in the UNIDO standard. None of them can be excluded, otherwise the document will be incomplete.
But before continuing, a little introduction.
The essence of the business plan
This is a complex document required:
- to search for investors at the initial stage of creating an enterprise, when expanding production, launching a new investment project;
- to apply for loans to banking structures; li >
- to receive government support in the form of a subsidy or grant (for example, for peasant farms);
- to provide new founders when expanding an existing enterprise;
- when going international, creating branches or subsidiaries.
Based on the business plan, investors, banks or company founders decide to invest and join the project.
Let's move on to a brief overview of the parts of the business plan. Let me remind you that none of them can be ignored, as this will lose the integrity of the document.
Cover page and content
The presentation of the project begins with the title. It contains:
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in the subject: Business planning
on the topic: Sections of the business plan
1. ... Business planning problems
2. The main sections of the business plan
2. Description of the enterprise (company)
2. Description of the activity (product, service, work