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Business Plan Objectives

Writing a business plan can be different depending on why you need it. One of the most common goals is to present it for investment. Such a business plan for the project is the most complex. Often, outsiders are invited to write it - specialists in their field who will create a suitable business plan for approval by the investor.

It happens that the head instructs to write a business plan for the company, for example, to open a branch. In this case, too, they often turn to third-party specialists to draw up such plans. In the end, the contractor may need only some adjustment to the needs of the company.

Well, when a business plan is necessary to start your own business, it is best to write it cover to cover yourself. This is a difficult process, but exciting and very interesting. After all, own business is the real brainchild of an entrepreneur. And therefore, its creation is treated very reverently and thoroughly. The article provides instructions for preparing a business plan for your business.

Initial idea

Basically, those who decide to open their own enterprise have already chosen and are well aware of their area of ​​activity. But there are entrepreneurs who want to have their own business, but still do not clearly know what they will be doing. They are in search of a business idea. It is difficult to overestimate its significance. The idea should fit the interests and desires of the entrepreneur himself.

This may be a favorite thing that a person is ready to do even for free, or a business that already brings guaranteed income. In any case, choosing a niche for yourself, it is important not to be distracted by anything else and not dream of unattainable peaks, but to step by step bring your real idea to life. The business plan will really help in this matter.

How to write a business plan? Step-by-step instruction

So, having imagined what the future business will be, you can proceed to writing a business plan. There are special planning standards. Therefore, if it will be submitted for investment, you should choose the appropriate standard and adhere to it when writing.

To understand how to write a business plan, step-by-step instructions and generally accepted standards will do a good job, as they are approved by people who are professionally versed in these matters. The entrepreneur will be able to sort through his, perhaps, not yet fully formed thoughts, and bring his business to life.

A standard business plan consists of the following chapters:

Marketing and strategic plan.

Here, in brief, the essence of the matter, a description of the business idea, information about the objective need for it in the market, implementation periods, project payback and competitiveness should be displayed.

Of course, this part is more intended for potential investors. It is they who, after reading the resume, conclude whether it is worth exploring this plan further or not. Therefore, if it is supposed to be presented to the investor, it is necessary to carefully describe this part, possibly returning to it again and again, introducing corrections after the compilation of the following chapters.

However, for their own needs, this part is also important, since it helps the entrepreneur to better see the whole process of organizing the business as a whole.

What is a Business Plan in simple words and example

A business plan is a document giving a detailed justification for a project and the ability to comprehensively evaluate the effectiveness of decisions made, planned activities, and answer the question of whether to invest money in this project.

The finished business plan includes all the elements of the development and functioning of the business for the planning period. How detailed and competently a business plan will be written for starting a business depends on how much the idea will be evaluated from the outside, as well as the number of nuances that suddenly arise that were not taken into account initially.

We can say that the development of a business plan is half the creation of a business. It details the details of conducting technological processes, accounting, the state of affairs in the industry, as well as documenting.

In this way, business plan in simple words - This is a detailed description of the planned project, containing the calculations and the expected results for the next few years.

Types of Business Plans

When deciding how to write a business plan correctly, you must first determine for whom it will be written. There are two main formats for this document:

  1. Interior. Such a business plan is intended solely for private use among the founders. With its help, expenses, production volumes and necessary reserves and the like are planned. Such a business plan should be as close to reality as possible and reflect all risks, even in the worst case scenario. Some details of such a business plan that are obvious to the founder can be omitted, since there will be no one to evaluate unnecessary details in this case.
  2. For external users. Such business plans are prepared for submission to investors or creditors, as well as to government support bodies, from which funds are expected to be received. This type of plan is not only more detailed, but also a wider evidence base, a large number of calculations. In this case, it is necessary to convince your counterparties of the validity of the calculations and prospects described in the plan. The consistency and consistency of the presentation of information, the quality of its presentation, design and accuracy are important. Often, you can use the maximum and minimum possible real numbers where it directly affects the calculation result and efficiency to increase the attractiveness of the idea for those who can invest in it. It will be good if all the facts and figures contain sources that support their reliability. A business plan that will have visual materials will also win.

Internal plans should be more meaningful and practical, and the values ​​in the calculations should be closer to the average or even worse option. Plans for external users should be logical and neatly designed, and the values ​​in them are usually close to the ideal scenario.

What is a Business Plan - Structure

Depending on the specifics of the business and the purpose of the document, the number and content of the items in the business plan may vary. A typical business plan usually consists of the following elements:

  1. Title page.
  2. Memorandum of confidentiality.
  3. Summary.
  4. Objective of the project.
  5. Analysis of the position of the enterprise in the industry.
  6. Description of the product of labor.
  7. Marketing plan.
  8. Production plan.
  9. Organizational plan.
  10. Financial plan.
  11. Risk analysis.
  12. Applications

Some elements required for writing a business plan for an employment center or lenders are not required for writing documents for internal use. For example, it makes little sense to write a memorandum of confidentiality or a cover page for yourself.

At the same time, the business plan for the store may not contain a paragraph describing the product of labor, since in this case all the goods are purchased for resale, and the list of services is standard.

Where to start making your Business Plan - Instruction

First you need to clearly define the scope and product that will be produced by the newly created enterprise. For this, it is necessary to conduct a preliminary analysis of the market situation in real time and identify niches that are not adequately represented on the market. Choosing one of these niches will make it more likely to successfully occupy your market share in a short time.

Next, you need to collect all available information on this field of activity. The most attention should be paid to real stories and reviews of people who come to this area. Only they are able to give an idea of ​​the nuances that at first glance are implicit.

For popular industries, such as cafes or beauty salons, you can find a sample business plan or even special services to help you shape it. In the case of more specific industries, the amount of information in the public domain may be limited.

In the case of a clear lack of data for analysis, it is best to turn to specialists for a paid consultation - they will help fill in the knowledge gaps.

SWOT analysis

This type of analysis is used to assess the strengths and weaknesses of an idea when there is information about the latter. Carrying out a SWOT analysis helps to visually correlate the pros, cons and dangers of a future project in order to carry out their holistic assessment.

The essence of the method is encrypted in the name as an abbreviation: strengths, weaknesses, opportunities and threats. It is these four columns that carry the data during the SWOT analysis.

  • To strengths include the benefits that the selected niche has.
  • Weaknesses should be described in as much detail as possible in order to eliminate them in the future. This column fits all the flaws in the theoretical implementation of the plan, from low profitability to the lack of own premises.

Strengths and weaknesses, for the most part, are internal factors that are directly influenced by the founder.

Opportunities and threats, on the contrary, are considered external factors that must either be used or adjusted and kept in mind. An example of compiling a table for conducting a SWOT analysis of a production project for a business plan is presented below:

Resume writing

One element of writing a business plan from scratch is resume writing.

This element is always located at the beginning of the business plan and contains some brief information about it, forcing people who decide to familiarize themselves with the contents of the document to become interested in them and continue familiarizing themselves.

This is most important when looking for potential investors and lenders.

Despite the location of this element in the document, the founder does not start working on it before writing a business plan for small businesses, since the resume is a section that presents consolidated information from the rest of the business plan.

Accordingly, the work on the resume begins by the founder last of all - this is, for the most part, the project’s business card for external users of information.

The main points that counterparties want to see in the resume are usually the possible level of profitability from investments in the development of the project, as well as the risks assumed for such investments.

Often in a separate section the goal of the project is taken out.

In this subclause, it is necessary to indicate the goals and objectives set for the business, as well as to argue the success of the future enterprise. Often, in this paragraph, the results obtained by the SWOT analysis are used.

For those who like to watch videos rather than read, we want to share a video about making business plans:

Analysis of the place of the company in the market

This section usually contains an overview of competition in the selected industry, represented by the number of competing firms and their market shares, product specifics and sales volume, if any.

Also, this section usually includes data on the planned sizes of the created organization and competing organizations: the number of employees, production capacities, and so on.

Based on this analysis, a promising place in the industry is usually determined, that is, the market share that is planned to be taken in the future and in what terms this should happen. If a business plan is prepared for external users, then this item is one of the fundamental and should be disclosed in detail.

The advantages can be taken into account the experience of the hired employees and managers, possible prospects for the development of the organization, various know-how and so on.

Marketing plan

When it becomes necessary to write a business plan yourself, you need to pay special attention to some of the mandatory elements in its content. In the case of a marketing plan, such elements are tools for product promotion, demand analysis, as well as preliminary sales directions, especially when it comes to production.

The tools for product promotion are usually advertising, direct sales, and other options, depending on the field of activity.

In some cases, competent merchandising can be used as a promotion tool. It is also necessary to indicate by what means the promotion will be carried out: whether it will be a special department, a separate employee, or outsourced company services and invitation of third-party specialists.

Marketing research of demand is an extremely difficult and serious work, therefore, if there is no confidence in their own skills, it is better to provide it to professionals. In this case, the likelihood that such a study will be positively evaluated by lenders will become higher.

However, if it is important exactly how to draw up a business plan from the very beginning to that, it is necessary to take into account not only the volume of demand at a particular moment, but also its seasonal fluctuations, elasticity under the influence of the price factor, average prices for goods, and the possibilities of stimulating demand.

In the event that preliminary sales options for products already exist, it will be good to indicate them and draw up for each their own sales program, which will include sales volumes for the period, revenue, tax administration (for example, payment of VAT if the counterparty is not its payer etc.), methods and terms of delivery and payment. Here you can specify the rules and content of future promotions and discounts, if there are any developments on them.

It will be good to draw up a forecast sales table with calculations of the total revenue for each counterparty or for each product. Tables can have a simple but informative look:

If possible, it is better to give accompanying documentation for the amounts so that prices and volumes are not taken from the air. Also, do not intentionally overestimate promising indicators, if there is no such documentation, this section should not cause doubts among investors.

Production plan

One of the most important elements of any business plan. You must understand that this part of the plan applies not only to production enterprises - the production plan includes the entire process of functioning of the organization.

An exception may be a business in which there is no action taken by the personnel at all — for example, a wholesale store that simply purchases products, stores it in a warehouse, and then sells it.

If we consider the business plan of a restaurant or coffee shop, then the production plan includes everything from the purchase of products for cooking and the time of making a dish or drink, to the equipment used, the cost and shelf life of the finished dish, as well as the maintenance process of existing equipment and mechanisms .

This paragraph, depending on the field of activity, should include:

  • Raw materials and other manufacturing costs.
  • The cost of acquiring equipment and facilities.
  • Labor costs.
  • General production and general business expenses - rent, utilities, etc.
  • Overhead.

In addition to costs, this paragraph describes in detail the work processes, the duration of each production cycle and storage of products, the useful lives of equipment, the mechanisms of interaction between different departments, requirements for employees, planned wages, the schedule of their accrual, and so on.

As a result, we can present a production plan, drawn up under subparagraphs, starting with the purchase of raw materials and ending with the payment of wages and the sale of final products.

Organizational plan

In this section, it is necessary to describe the structure of the company and its management system. This includes the organizational structure, staffing, information on the leadership of the enterprise, founders, legal form, planned management mechanisms, and responsibility distribution.

Also in this section, we consider the process of documenting activities in the process of organizing it, with references to the primary regulatory acts, according to which the registration and activities of the enterprise will take place. As a rule, this item is signed in order, starting with the rental of the premises and ending with the launch of production.

Financial plan

This section of the plan, regardless of the purpose of the document, must be disclosed as detailed as possible, since how much the planned costs and revenues in the future will coincide with the real depends on it.

This item is a compilation of accounting documentation for the planned costs, as well as approximate revenue. The best option for presenting this information is tabular, with separate explanations, since the amount of information in the financial plan of even a small enterprise is quite large.

Be sure to remember that the company has fixed costs that are independent of the volume of production, such as rent, and variables determined by the volume of output. It is also necessary to take into account the cost of maintenance and repair of units, and all this must be taken into account when calculating the unit cost of production. Fixed assets transfer their value to finished products gradually, therefore their value is taken into account as part of cost depending on useful lives in the form of depreciation.

After the unit cost of production is calculated, as well as the volume of fixed costs over a period of time, the break-even volume of production is calculated - that is, the amount of products that must be produced and sold at a given price in order to fully cover the cost and fixed costs. A further increase in the volume of production and sales will mean an increase in profits.

Also in this section it is necessary to present the payback period of the project, which in a simplified form is calculated as the ratio of initial costs to monthly net profit. The result will be in months.

Also in this section you can include other indicators necessary, depending on the scope of the enterprise. In general, the more detailed information is presented in this section, the better. For example, in the case of opening an online store, you can create a similar table:

Risk identification

In this paragraph, it is necessary to consider the various risks that are inherent in the industry, region or type of activity, evaluate the theoretically possible impact on the organization's activities and possible damage, and also describe in detail the ways to counter them with the identification of those that will be used in certain situations.

If a business plan is compiled for internal use, this section should be made as detailed as possible - in the future this can be very helpful.

When drafting a document for investors, it is possible to omit some implicit risks, but in no case should not omit the obvious ones - this will be noticed and perceived as a shortcoming or short-sightedness of the founder. When developing this item, the founder will also be helped by the SWOT analysis conducted at the beginning.

We set ourselves the ultimate goal

Before writing a business plan, it is very important at the very beginning of the development of the project to understand for yourself what specific goal the organization will pursue. For a successful implementation, it is necessary to take into account the significance of three significant factors:

  1. Awareness of the initial location (that from which we will repulse, the so-called point "A").
  2. Determining the ultimate goal, the achievement of which will be the most important result (let it be point “B”).
  3. Drawing up a clear sequence of how to get from point “A” to point “B”, as well as understanding the mechanism and its elaboration.

Application Formation

Applications are an essential element of a business plan, especially for external use. To the plan, as annexes, all possible documents are attached, confirming the theses expressed by the founder earlier.

It is highly advisable to confirm all the figures, for example, with official statistics, reporting documents of similar companies, letters of guarantee and certificates, and so on.

It is important to attach also various agreements concluded with contractors or other founders, the existing company documentation, documents certifying the qualifications and information of the founders and the planned management staff, and generally all possible documents confirming the information and judgments presented in the business plan itself.

Such documents must be referenced in the text of the plan. It is also possible to make too voluminous calculations or schemes.

We determine for whom we draw up a business plan

Next, you need to understand for whom this plan is being drawn up. The detail of the presentation, the evidence base will depend on your final choice. Any project is being prepared for one of the following "consumers":

  • For potential investors. These may be lenders, government support bodies that provide subsidies and other incentives, various grantors to developing businesses.

When writing in this case, special attention should be paid to the evidence base of the viability of the developed project, as well as to the conviction of the efficient use of the funds provided. This information will be relevant for those who give money in debt, and for those who give it free of charge (subsidies, grants).

It is very important to make all your actions logical and consistent. Some of the information may be presented a little embellished to receive financial support. However, zealous is not necessary.

The main parameters of such a project will be such qualities as cleanliness, accuracy and consistency. All facts must contain specifics, explanations. Details in this case are also welcome.

Presentability will depend on the presentation to potential investors, you will need to use slides, visibility (samples, research results and more).

  • For myself. Such a plan is drawn up for actions that will be used in implementation to achieve maximum efficiency.

In this case, it is important to reflect information on the necessary and available resources. A business plan should be as close as possible to what actually exists.

It should be understood that these are completely two different cases that require an individual approach. You cannot draw up the same business plan for yourself and for potential investors. And of course, it is worth noting that the project for those who may provide financial resources will be more complete and detailed.

Making a preliminary analysis

Work on any project begins with an analysis of the situation in the present. To systematize all available information, description and content of all sections, you need to study the data, analyze them together. If the source information is not enough, you need to fill it out by contacting specialists or additionally study all aspects of the situation.

Very often, for a preliminary assessment of the situation, as well as its analysis, a globally recognized technique called SWOT-analysis. Its popularity is due to its simplicity, clarity and accuracy.

Recommendations

An individual approach is required for the preparation of each business plan, however, there are some general recommendations applicable to most of these documents, according to which you can either draw up a business plan for individual entrepreneurs for internal use, or develop a plan for creditors of an existing large enterprise.

  • Reflect the real situation. If you take into account the plans are very high indicators of profitability or too low prices for raw materials, in the end you can get a completely different financial result, which was calculated in the marketing plan.
  • Write in a competent, understandable language. If the business plan is written confused and with an abundance of errors, not a single investor or creditor will consider such a document seriously.
  • Take into account the nuances. You need to pay attention to such things as seasonal changes in prices for certain goods and services, climatic conditions that affect production. For example, in different regions, the costs of heating workshop premises, especially large ones, can vary greatly.
  • To draw up a business plan is capacious, but without extra volume. The usual volume of this document is 20-25 pages, excluding applications. If it turns out much more, then all documents, volumetric calculations and schemes should be put into applications.
  • Calculate costs as accurately as possible. If the price of a particular product or raw material fluctuates strongly, it is better to take the maximum values ​​so that in the event of another price fluctuation, an unpleasant surprise in the form of loss of profitability does not happen.
  • See similar documents. Working on a plan is much easier when you have an example of writing a business plan at hand. To do this, the following are examples of business plans in various fields that can be taken as a basis.

We compose a title page, resume, set goals for a business project

The design of any project begins with writing a title, title page, which must indicate:

  • Kind of activity,
  • legal form
  • Name of the organization,
  • her legal address
  • as well as information about the founder and location of the company itself.

Next, go on to write a resume. It is important to understand what constitutes this section after working through the rest. It contains consolidated information about what will be considered in the project. Conditionally, the resume can be called a kind of “squeeze” from the remaining sections of the project. It is important that in this section the reader receives an answer to two of the most important questions:

  1. What benefits will potential investors have if they invest money in the project and it is successfully implemented?
  2. What are the possible risks of losses, and what are their scales (partial or total loss)?

In the “Goal Setting” section, it is very important to indicate the goal itself, objectives, possible problems, actions, deadlines, as well as arguments that will allow the investor to be confident in the success of the proposed project. Here just the results of the SWOT analysis can be displayed in a tabular form of the form:

Intrinsic factorsExternal factors
«+»StrengthsOpportunities·
«-»Weaknesses·Threats ·

Conclusion

Drawing up a business plan is a rather complicated and time-consuming task. However, a well-composed business plan can be considered half the opening of your own business. Each industry has its own specifics for compiling this document, but there are some general points that must be taken into account when preparing a high-quality business plan.

If you find an error, please select a piece of text and press Ctrl + Enter.

Analyze the market

In this section, it is very important to reflect the current situation, collecting the latest information, and not to use outdated. You can consider competitors, as well as their strengths and weaknesses in tabular form:

BenefitsdisadvantagesHow to increase your chances of winning a competition
Our organization
Competitor No. 1
Competitor No. 2

It is necessary to draw a portrait of a potential buyer (objectively assessing the situation), consider the possibility of attracting other segments of the population.

We evaluate the capabilities of the organization in this industry

This section contains information about the organization itself. Pay attention to the mode of work and seasonality, as these factors directly affect the size of the possible income, their constancy. If a business plan is drawn up by an existing organization that plans, for example, to start production of a new product, then the description of the section boils down to listing already known data (legal form, taxation methods, products, information about the company and others).

For those companies that are just planning to open, it is necessary to take very seriously the choice of a tax system. It will also be necessary to study the legislation: various legal acts and other documents.

We describe a product or service

In this section, special attention should be paid to goods and services, which will be profitable. Preliminary need:

  • Make a detailed description of the main and secondary goods. It is advisable to provide the project with photographs of finished products (samples) or with the samples themselves.
  • Compare the product with a description of the portrait of a potential consumer.
  • It is worth highlighting the advantages and disadvantages of each product, comparing it with competitive products in the industry. Based on the information received, competitiveness is assessed. These data can be presented in tabular form as follows:
    Product (service)Benefitsdisadvantages
    Product No. 1
    Product No. 2
  • Describe the process of supplying goods or providing services (wholesale, retail, end-user).

Such a detailed review will help to understand what are the features of your products and the market as a whole.

Attention should be paid to what additional documents will have to be issued (various patents, certificates, copyrights, etc.).

We make a marketing plan

Based on the previously obtained results, we can proceed to the development of a marketing plan. Particular attention should be paid to the promotion tools. They can be: advertising, merchandising, direct sales, sales promotion and others.

It is necessary to study in detail demand in that segment of the market in which it is planned to work. In this case, it is worth determining average prices, elasticity (variability) of demand, methods of stimulation. It is also important to study target segments and groups of customers.

It is worth thinking about the methods of marketing, as well as consumers, whether they are legal entities, individuals or end users. For each of them, you can develop a separate sales program.

We need to think about possible ways to attract buyers. In addition, you can think through promotions, exhibitions, compiling your site.

It will be useful to predict the volume of future sales for the year ahead. This can be done visually using a table of the following form:

Period (month)112
amount
Unit Price (RUB)
Total sales (rubles)

It’s important not to overestimate predicted sales so that the data looks realistic. It is necessary to justify the quantity, while giving confidence to creditors.

If you wish, you can make realistic, pessimistic and optimistic scenarios, justifying each of them.

In general, any marketing program can be represented as:

Required product quality(It is important to specify the characteristics)
Cost(It is necessary to justify the selected optimal prices, taking into account the costs, prices in the industry, the image of the company)
Sales methodsImplementation methods (independently, with the help of intermediaries, work on pre-orders)
Ways of promotion, promotions(How will the product information reach the consumer)

We make a production plan

Drawing up a production plan is not necessary for those organizations that are not going to produce something on their own. So, if a company is only going to trade in goods or services, this section may not be compiled in principle. But for those organizations that are directly related to production, drawing up a production plan is almost a paramount task.

In this case, it is initially necessary to consider the available and necessary production facilities, including facilities and equipment. Information can also be presented in tabular form:

Production capacityCondition, ways to increaseSuppliers, pricesAcquisition dates
Premises: 1. ____________

3. and so on.

Equipment: 1. ____________

3. and so on.

It is also very important to draw up schemes for the supply of raw materials and their storage. Кроме того, нужно наглядно изобразить сам производственный процесс (эту информацию можно поместить в приложения).

Data on the required employees are immediately indicated, a staffing table is drawn up, indicating qualifications, the method of payroll, work schedules and other information.

We draw up an organizational plan

This section displays all the activities related to organizing a business. It is important to break them down into separate steps, while indicating the implementation dates for each item. You can use the table view:

No. p / pNameThe timingResponsible personExpectations, notes
1.
2.

You must arrange all the steps in the correct sequence. You can also provide information in the form of a graph of implementation.

In addition, legal aspects should be included here.

We make a financial plan

This section is devoted to the preparation of detailed estimates. In other words, there is a planning of all the costs that will be needed. This is best done in tabular form, providing visibility and ease of study.

It should be understood that any organization has a one-time cost and recurring. One-time costs include fixed assets, but periodic in turn are divided into fixed and variable. Fixed costs do not depend on the volume of production. Of course, it makes sense to talk about fixed costs only in the short term, since in the long term, any costs become variable.

After all the costs are taken into account, provided that the cost is known, you can find the breakeven point, which shows the volume of sales at which revenues will be equal to expenses.

Everyone needs to find a breakeven point in order to roughly represent the scale of production or sales that will ensure not only breakeven, but also the profitability of the enterprise. For clarity, it is worth making a graph showing the dependence of profit on the volume of goods sold (services). It can look like this:

It is also worth including depreciation costs in the calculations. Indeed, as a result of complete wear and tear, most fixed assets require replacement. In addition, tax and pension contributions (recurring costs) should be taken into account. The most complete display of all expenses will help to assess the real size of profit.

To calculate the payback period, you can use the simplified formula:

Payback period = Lump sum costs / Net monthly profit.

You can also include profitability calculations here (it is worth considering that there are a lot of formulas, you need to choose the right one for the type of business and what profitability is calculated exactly).

We consider the risks

In this section, for clarity, you can create a table in which it will be displayed:

  • Possible risks.
  • The probability of their occurrence.
  • Ways to avoid.
  • Possible losses.

If you plan to insure any risks, this also needs to be reflected in the business plan. Do not forget to include insurance costs in the financial plan.

What is this section for? Everything is very simple. Any investor wants to be sure of the success of the project, or at least compensation for losses. Knowing the possible dangers, you can always try to avoid them or reduce losses. The main thing in this case is the knowledge of vulnerabilities and their exclusion.

Sometimes various applications are added, which include diagrams, charts, tables, certificates, contracts, licenses. We can say that this is a kind of visual material, which is presented in a separate section so as not to clutter up the project itself.

The most common mistakes made in the preparation of a business plan

  1. Ignoring the seasonality of work. Such a flaw negates all the calculations made. If the business is seasonal, then this must be taken into account when calculating sales volumes, while trying to compensate for the deficiency in other months.
  2. Overstatement of planned sales (production) volumes. Such an indicator will also affect the efficiency of fixed assets, production capacity utilization.
  3. Incorrect calculation of working capital. It is important not only to decide on the profit, but also on the part that will have to be used for the further functioning of the business.
  4. Mixing cash flows. This refers to the situation when the company finances the project.
  5. Understatement of the discount rate. Also applies to own resources. The mistake is connected with the fact that the possibilities of using money are not evaluated to the extent that they could be involved.
  6. Too much business plan. No need to clutter up the project with unnecessary information.
  7. Not realistic data. All information should be supported by weighty arguments.
  8. You can’t talk about additional financing uncertainly. It is either there or it is not.
  9. Incomplete information about financial forecasts. It is imperative that all financial data must be provided for each month separately until the project returns.
  10. Surface market analysis. You need to thoroughly study the segment in which you are going to work, because the success of the business depends on it.
  11. The "approximate" cost. All of them must be taken into account and be accurate, because the profit of your enterprise will depend on this.

General Provisions

If the resume is written approximately on one - at most two pages, then this chapter can be written in more detail. That is, in fact, the chapter "General Provisions" contains the same information as the summary, but in a more detailed form invites the reader to familiarize themselves with the project as a whole.

It describes the characteristics and implementation of the project, its life cycle, the possibility of additional development and forecast changes in the product with a possible change in market trends.

The business plan of the service in this chapter should contain information about what the specific service is and how it will attract customers. For example, the business plan of a beauty salon describes all the proposed services, their characteristics and distinguishing features. An attractive feature here is the legend of how celebrities go through the procedures in the salon or how individual specialists provide these services to them, how the specialists passed training directly with the brand of the product with which they work.

Market analysis

In parallel with writing a business plan or before drafting it is necessary to conduct a market analysis. This is an extremely important part, because the success of a future project directly depends on it.

Having chosen a market niche and target audience, a thorough analysis is carried out in order to identify how relevant the project’s business plan, initial proposal and its idea are. If the analysis reveals an excess of supply, then it is worth returning to the idea and trying to adjust it in such a way that it matches the state of affairs in the market. If there is increased demand, then everything is in order, and you can safely proceed with further actions.

Market analysis is carried out in various ways. But if there are problems with its implementation, there are companies where you can outsource market analysis.

Nevertheless, the entrepreneur is advised to sort out this issue himself, since any third-party organizations will give only an objective average result, not fully taking into account the small business plans and all the nuances of the project’s business idea.

Marketing and strategic planning

This plan includes launching the product on the market, its development, pricing, sales and distribution system, as well as advertising. To display the product, it is advisable to build a Gantt chart where the dates of the implementation of various events will be displayed. Based on the analysis of the market and competitiveness, a strategy is calculated, how the market will be conquered and what tactical actions will be required for implementation.

Pricing is based on economic calculations and the expected revenues of the company. Sales and sales can be represented in the form of a diagram where the entire process will be visible in stages. For example, from the receipt of goods to a warehouse to the receipt of money for the goods and its sale.

Costs and production schedule

This chapter includes the purchase of necessary equipment, repairs, rental premises and other costs. In the production schedule, it is necessary to reflect how many people are required to implement the project, the schedule of their work, deductions of wages and related payments.

Small business business plans will become much more attractive for the investor if there is a ready-made team to work on the project, as this proves the entrepreneur’s ability to realize his plan. Therefore, it will be appropriate to emphasize this fact in the business plan.

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