Every successful entrepreneur can confidently say that a well-written business plan is one of the most important elements in forming your own business. Understanding how to correctly design a future enterprise, you can predict a positive result when contacting a credit institution or investor. Let us next consider the basic rules for writing a business plan.
Purpose of the document
Writing a business plan (an example project will be discussed below) can be done in various ways. There are various benefits for this. However, in most of them the information is very specific and understandable only to economists or accountants. At the same time, the need to draw up a business plan arises for all beginning entrepreneurs. The document is necessary to submit to a credit institution, to obtain a loan from an investor to develop a business initial stages. In addition, a business plan allows you to see immediate and upcoming goals, predict capital investments at one time or another, anticipate the moment when the first profit will arrive, and calculate the total income from activities.
Specifics of enterprises
To obtain a loan for the construction of a plant or factory, it is more advisable to contact the appropriate organizations that can provide qualified assistance in writing a business plan. In this case, the document will contain economic calculations and be supported by financial documents drawn up in accordance with all the rules for their execution. A business plan drawn up in this way can, without hesitation, be sent to both foreign investors and domestic credit companies. However, in in this case It should be understood that services for designing a project for a future enterprise will not be cheap. To open a mobile retail outlet or a clothing or shoe repair shop, for example, there is no need to study or calculate industry risks in detail. In this case, it will be sufficient to competently organize production, determine the sales market, and predict enterprises. A program for writing a business plan for such an activity will be understandable to a novice entrepreneur.
Important point
Entrepreneurs who have quite a lot of experience in doing business do not recommend unconditionally relying on the experience of acquaintances or friends and only on their intuition. Forecasting activity does not appear as an obsolete component of socialist reality. Planning is the most important element modern business. Analysis of payback periods, determination of periods of investment, development and subsequent return - the most important aspects even with a relatively small investment. Concepts such as “market” and “plan” are fundamental in both the East and the West. On modern stage economic development is enough to adopt experience successful companies and get positive results.
Sample of writing a business plan
A project for a future business is necessary for the investor, as well as the entrepreneur himself. The structure of writing a business plan includes a number of mandatory points. These include, in particular:
- introduction;
- a brief description of the future enterprise;
- assessment of the sales market, competition, investment risks;
- production formation plan;
- forecasts for sales of services/products;
- financial plan;
- management organization;
- application.
Adaptation to the Russian market
The above plan for writing a business plan is recommended by Western analysts. However, in the practice of domestic entrepreneurship, some of its points require clarification and additional decoding. So, taking into account the peculiarities of the Russian business sphere, the plan for writing a business plan should include a section that reveals adequate understanding problems and issues related to the quality of services and goods. Here it is necessary to bring possible options their decisions. It is also advisable to include a clause in the plan for writing a business plan that describes the ability to competently manage and regulate the cost of services/products. In the same section it is worth revealing ways to ensure its competitiveness. Another additional point will be a clear vision of the prospects for the development of the enterprise, guarantees of the ability to bring the matter to completion.
Plan for writing a business plan: independent work
First of all, you should clearly assess the competitiveness of the proposed services or goods, analyze the sales market, the timing of the first profit, the time during which the investment will pay for itself. The next step will be to determine the amount of capital investment required. Experts recommend dividing the investment into several parts, supporting the justification with appropriate calculations. Taking into account the above points, it should be understood that a business plan drawn up independently may be fundamentally different from the structure given above. It should also be noted that there is no project form regulated by norms and standards. Each entrepreneur has the right to independently establish a list of items and the scope of documentation for enterprise planning. However, if external investment is needed to open a business, you should still adhere to the above scheme.
Introduction
This section of the business plan is a presentation of the future enterprise. It must describe the type of activity in an understandable form in the most optimistic light. It often happens that the introduction is the only section that the investor reads on his own and immediately makes a decision - to take the project into development or reject it. Examination of the remaining parts in which calculations are displayed, marketing research, financial justification, he will entrust to his specialists. However, as practice shows, it is the introduction that decides the fate of the project. This section should be short and concise at the same time.
Characteristics of the industry and enterprise
This is the next important part of the business plan. This section gives general description enterprises and industries:
- Financial indicators.
- Personnel composition.
- Direction of activity.
- Enterprise structure.
- List and description of services/products.
- Development prospects and so on.
The section should contain characteristics of the proposed production and a number of technological aspects. These points should be described in simple and accessible language. There is no point in delving into terminology or using a professional style. In this case, it is enough to indicate the uniqueness of the services or products and their demand in the near and foreseeable future. You can also draw the investor’s attention to the advantages of the products offered.
Marketing research
Here you should describe the conditions under which consumers become clients of the enterprise. The section outlines methods of sales promotion, creating a positive image, and distributing services/products. The marketing plan includes a list of advertising costs. Essentially, you need to justify how and why consumers will purchase a service or product.
Production
This section should describe the characteristics of the premises, indicate established requirements to equipment and personnel. The production plan should also describe suppliers and contractors.
Organization of the enterprise and financial component
The business plan must contain characteristics of the form of management and the tasks of administrative specialists. For a domestic investor, it is important to have a resume for each member of the management team. In this regard, in this section it is worth listing the partners, noting as truthfully and objectively the contribution of each of them to the development of the enterprise as possible, functional responsibilities and role in the company. The financial part contains economic calculations. In particular, a table of income and expenses is compiled, the balance sheet is forecasted, variable and direct costs are indicated, carried out, and so on. Typically, three forecasts are developed in this section: realistic, optimistic and pessimistic. They are displayed in the form of graphs.
Your future project. How to write a business plan? Step by step instructions This article will help in this matter.
Business plan goals
Writing a business plan can be different depending on why it is needed. One of the most common purposes is to present it for investment. This kind of project business plan is the most complex. Often, third parties are involved in writing it - experts in their field, who will create a suitable business plan for approval by the investor.
It happens that a manager instructs you to write a business plan for a company, for example, to open a branch. In this case, they also often turn to third-party specialists to draw up such plans. Ultimately, the contractor may only need to make some adjustments to the needs of the company.
Well, when a business plan is needed to open your own business, it is best to write it from cover to cover yourself. Although this is a difficult process, it is exciting and very interesting. After all, your own business is the real brainchild of an entrepreneur. And therefore, its creation is treated with great care and thoroughness. The article provides instructions on how to draw up a business plan for your business.
Initial idea
Basically, those who decide to open their own enterprise have already chosen and know their field of activity well. But there are entrepreneurs who want to have their own business, but still do not clearly know what exactly they will do. They are looking for a business idea. It is difficult to overestimate its importance. The idea must suit the interests and desires of the entrepreneur himself.
This could be a hobby that a person is willing to do even for free, or a business that already brings in a guaranteed income. In any case, having chosen a niche for yourself, it is important not to be distracted by anything else and not to dream of unattainable heights, but to realize your goal step by step. real idea into life. A business plan will really help in this matter.
How to write a business plan? Step by step instructions
So, having imagined what the future business will be like, you can move on to writing a business plan. There are special planning standards. Therefore, if it is to be submitted for investment, you should choose an 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 serve you well, since they are approved by people who are professionally versed in these issues. An entrepreneur will be able to sort out his, perhaps not yet fully formed, thoughts and bring his business to life.
A standard business plan consists of the following chapters:
Market analysis.
Marketing and strategic plan.
Costs.
Production plan.
Investments.
Financial plan.
Resume
Here the essence of the matter, a description of the business idea, information about its objective need in the market, timing of implementation, and competitiveness should be briefly displayed.
Certainly, this part V to a greater extent intended for potential investors. It is they who, after reading the summary, make a conclusion about whether it is worth getting acquainted with this plan further or not. Therefore, if it is intended to be presented to an investor, it is necessary to describe this part carefully, perhaps returning to it again and again, making adjustments after compiling subsequent chapters.
However, for his own needs, this part is also important, since it helps the entrepreneur to better see the entire process of organizing the business as a whole.
General provisions
If the resume is written on approximately one - maximum two pages, then this chapter can be written in more detail. That is, in fact, the “General Provisions” chapter contains the same information as the summary, but in a more detailed form invites the reader to become familiar with the project as a whole.
This describes the characteristics and implementation of the project, its life cycle, the possibility of additional development and forecast of product changes with possible changes in market trends.
The service business plan in this chapter should contain information about what the specific service is and how it will attract customers. For example, a business plan describes all proposed services, their characteristics and distinctive features. An attractive feature here is the legend of how celebrities undergo procedures in the salon or how individual specialists provide them with these services, how specialists were trained directly with the brand of product with which they work.
Market analysis
In parallel with writing a business plan or before drawing it up, it is necessary to conduct a market analysis. This is an extremely important part, because the success of the future project directly depends on it.
Having chosen a market niche and target audience, they conduct a thorough analysis to determine how relevant the project’s business plan, the initial proposal and its idea are. If the analysis reveals an excess supply, then it is worth returning to the idea and trying to adjust it so that it corresponds to the state of affairs on the market. If there is increased demand, then everything is in order, and you can safely proceed to further actions.
Market analysis is carried out in different ways. But if problems arise with its implementation, there are companies where you can outsource market analysis.
Nevertheless, the entrepreneur is recommended to understand this issue himself, since any third parties will give only an objective average result, not fully taking into account the business plans of small businesses and all the nuances of the business idea of the project author.
Marketing and strategic planning
This plan includes introducing the product to the market, its development, pricing, sales and distribution system, as well as advertising. To launch a product, it is advisable to build a Gantt chart where sales dates will be displayed various events. Based on market analysis 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 company's expected income. Sales and marketing can be presented in the form of a diagram, where the entire process will be visible in stages. For example, from receipt of goods at the warehouse to receipt of money for the goods and its sale.
Costs and production schedule
This chapter includes the purchase necessary equipment, repairs, rental premises and other costs. The production schedule must reflect how many people are required to implement the project, their work schedule, and deductions wages and related payments.
They will become much more attractive to an investor if there is a ready-made team that will work on the project, as this proves the entrepreneur’s ability to implement his plans. Therefore, it would be appropriate to highlight this fact in the business plan.
Production plan
If the company is a manufacturing company, then it is necessary to describe the production process, as well as the partners and suppliers who will participate in the business. For example, the farm business plan in this chapter should include equipment for milking, bottling, packaging milk and a mechanism for marketing it through specific suppliers.
Financial plan and investments
The most important part of the entire business plan is, of course, the financial plan. Moreover, if the project is intended to be familiar to the investor, then after reading the summary, a serious investor will most likely look at the financial plan. After all, this is where it will be visible real ability entrepreneur to implement business ideas. This is the essence of entrepreneurial activity.
The financial plan provides all the information about the possible costs and income of the project. Based on the marketing, strategic plan and costs, a table is drawn up for several years, which displays the required investments and their repayment schedule, all costs and possible income.
The final part of the financial plan must necessarily be a calculation of the profitability of the future business.
Now the reader knows how to write a business plan. The step-by-step instructions given in the article are a short guide demonstrating the importance of understanding goals and the need for business planning.
Opening and maintaining any profitable and successful business impossible without first drawing up a clear, well-thought-out business plan. This will be the first step towards realizing your business idea. A business plan that is properly calculated and takes into account the various nuances of the activity will give you an idea of the approximate profitability of the plan, possible risks and ways to solve various problems. The words of Robert McNamara very accurately characterize the drawing up of a business plan: “Put your great idea on paper. If you don’t succeed, then you haven’t thought it through yet.”
Drawing up a business plan requires you to be thorough, take into account even the smallest details, it certainly won’t be superfluous, but various omissions can lead to surprises, a delay in opening or a decrease in profits. As a result, he must answer the following questions: why is this particular business viable, how profitable can it be? You need to know exactly how you plan to meet the needs of potential clients and customers. And to do this, you will first need to decide on the target audience for which your business will be designed. You need to take into account age, interests, social status, financial capabilities of people. This will help you decide on the range of products or services, the business schedule, and the level of pricing policy.You can download here.
Be sure to study the market for the planned services or goods and objectively evaluate your strengths. The higher the popularity and demand of the chosen field, the higher, as a rule, the competition. Find out why a particular establishment or company is in demand, and try to adopt their business tactics. And vice versa: if an enterprise similar to yours has recently closed, do not be too lazy to find out or assume what was the reason for this, and do not repeat the mistakes. Think about what new things you can offer your customers that will interest them. If the business is seasonal, take into account their fluctuations. Will the influx of visitors cover the months of calm? Equally important is the choice of location for your organization. It is desirable that there are no competitors nearby and that it is convenient for clients to get there. For restaurants, cafes, shops, for example, traffic is very important. The format of the same clothing store plays a big role here. A location in residential area, in the city center. You can choose a different location for the stock center.You can download it here.
Decide on the organizational and legal form of your business. Individual entrepreneurs have tax advantages and simple registration; LLCs have more opportunities, for example, conducting non-cash payments with corporate clients. Find out in advance whether the activity is subject to licensing, whether permits are needed, what contracts need to be concluded and with whom (SES, Municipal Unitary Enterprise Improvement, RAO, etc.). If yes, then consider the time required to collect and prepare all the required documentation. Equally important is the correct selection of premises for a new business. Calculate the area optimally so as not to overpay for renting unused space. To do this, you must first decide what and how much equipment you will need, what furniture you need (at least approximately). But leave a small margin in the calculated area in case of subsequent additions. At the same time, it is necessary to determine the planned number of employees. Start with real numbers, later the staff can be expanded.Download here.
Calculate the one-time costs of starting a business. This will include: purchase of furniture, equipment, goods, materials (including consumables), possible renovation of the premises, registration, execution of all contracts, purchase and registration cash register, ordering advertising signs and display windows, etc. Calculate the approximate monthly expenses, which include, for example, rent, utility bills, employee salaries, purchases of goods, various deductions, advertising costs, equipment repairs, etc. Keep some reserve in case of unexpected expenses. To calculate income, you need to find out the approximate amount of the average check, the number of potential clients per day (taking into account the influx, say, on weekends and the lull on weekdays, and vice versa), and estimate the demand for certain types of services. By comparing the amounts of expected income and expenses, you will understand whether the enterprise will be profitable. Don't forget to deduct taxes from the profit received. Their amount will depend on which tax system you choose. The result will be net profit. 
Hello, dear readers.
The moneymaker's blog continues its educational mission in the field of earnings and business. Hot topic for today – how to write a business plan.
In all my publications, I try to convince entrepreneurs (especially beginners) that the creation of this document is mandatory. A plan is needed not only for the investor, who will judge by its content whether this business is worth the money requested, but also for the businessman himself. Otherwise, how to analyze and predict possible risks and how to avoid them?
A plan is needed, that's obvious. But what should be based on when compiling it? What is the structure of a business plan? Is it so difficult to write it without having any experience or a sample? And what, in general, is this document? I will try to answer all these questions in as much detail as possible.
1. What is a business plan. Design rules
A document that displays all the characteristics of a future enterprise, predicts and analyzes all problems, risks and successes, indicates the source of financing, and determines future income is called a business plan.
Drawing up a business plan is undertaken by an entrepreneur who wants to implement a specific idea. Often a project description is prepared for an investor for the sake of financing. The quality of the business plan determines whether an investor will consider the idea as worthy of attention and money, or immediately throw the project into the trash.
But, as I already said, it’s worth writing a business plan not only for the sake of investment. Once opened, the document has every chance of becoming " reference book» for the entrepreneur himself - the businessman will use it to check his every step in a new business and make certain corrections.
4. Common mistakes when writing a business plan
Ignoring the rules for drawing up a document or the presence of gross grammatical and punctuation errors, heavy incomprehensible syllables, or ordinary typos can cause the investor to refuse.
Therefore, be very picky about the business plan in the process of drawing up and proofreading it.
I will name a few mistakes that must be avoided in order to write a business plan correctly:
- illiterately composed text;
- carelessly executed document ( different size or font type, lack of paragraphs, page numbers or headings, etc.);
- incomplete plan;
- vagueness of wording, lack of clarity of judgment;
- too many details;
- unsubstantiated assumptions;
- lack of a “Risks” section;
- lack of analysis of competing enterprises;
- ignoring the help of specialists.
5. Conclusion
Drawing up a business plan is a team effort. No one will analyze the market better than a marketer, no one will make calculations better than an economist or accountant. Disperse your tasks and you'll soon have a detailed, well-written, compelling document.
All I can do is wish you creative ideas supported by an excellent business plan. As experienced entrepreneurs say: like planning, like business.
Brief instructions
You have an idea. You want to create your own business. Great. What's next? Next, you need to “put everything into perspective”, think through the details (as far as possible) in order to first of all understand: is it worth developing this project? Perhaps after researching the market, you will realize that the service or product is not in demand, or you do not have sufficient funds to develop the business. Maybe the project should be improved a little, unnecessary elements should be abandoned, or, on the contrary, something should be introduced?
A business plan will help you consider the prospects of your idea.
End justifies the means?
When starting to write a business plan, keep its goals and functions in mind. First of all, you spend preparatory work in order to understand how realistic it is to achieve the planned results, how much time and money is needed to implement the plan.
In addition, a business plan is necessary to attract investors, obtain a grant or a bank loan. That is, it must include information about the potential profit of the project, necessary costs and its payback period. Think about what is important and interesting for your recipients to hear.
Use a small cheat sheet for yourself:
- Analyze the market you are going to enter. What leading companies exist in this direction. Research their experience and work.
- Identify your project's strengths and weaknesses, future opportunities and risks. In short, conduct a SWOT analysis*.
SWOT analysis - (English)Strengths,Weaknesses,Opportunities,Threats - strong and weaknesses, opportunities and threats. A method of planning and strategy development that allows you to identify the main factors influencing business development.
- Decide clearly what you expect from the project. Set a specific goal.
The main purpose of a business plan is to help you, first of all, develop a company strategy and plan its development, as well as help in attracting investments.
So, any plan has a structure. Regardless of the specifics of the project and the requirements of investors, a business plan, as a rule, contains the following elements:
1. Company summary(short business plan)
- Product Description
- Description of the market situation
- Competitive advantages and disadvantages
- Brief description of the organizational structure
- Distribution cash(investment and own)
2. Marketing plan
- Defining the “problem” and your solution
- Determining the target audience
- Market and competition analysis
- Free niche, unique selling proposition
- Methods and costs of attracting customers
- Sales channels
- Stages and timing of market conquest
3. Plan for the production of goods or services
- Organization of production
- Infrastructure Features
- Production resources and space
- Production equipment
- Production process
- Quality control
- Calculation of investments and depreciation
4.Organization of the work process
- Organizational structure of the enterprise
- Distribution of powers and responsibilities
- Control system
5. Financial plan and risk forecast
- Cost Estimation
- Calculation of the cost of a product or service
- Calculation of profit and loss
- Investment period
- Break-even point and payback point
- Cash flow forecast
- Risk forecast
- Ways to minimize risks
It is clear that a business plan is one whole and its parts are inextricably linked with each other. However, a well-designed structure will help you not to forget important things, as well as to take a deeper look at each aspect.
Company summary. Briefly about the main thing
Marketing plan. Are there any free places?
When compiling marketing plan you will have to analyze the market you are about to enter. In this way, you will identify trends for yourself, collect information about competitors and get to know your consumer, your target audience, better.
Having assessed the potential client, his interests and preferences, you must determine the optimal location of the office, retail outlet, etc. It should be comfortable. Calculate required quantity customers for the return on investment of your business and compare with the audience living or working around the proposed location of the business. For example, for a business in the field of public services, the size of this audience should not be less than 2% of the number of people living within a short walk or five-minute car ride.
It is quite possible that the market you were planning to conquer is oversaturated at the moment. Analyze the actions of your competitors, create your own strategy, focus on your uniqueness, bring in something new to fill an empty niche in a certain area.
Of course, creating something that is not yet on the market is quite difficult. However, you can carefully analyze the situation and open, for example, a point where the consumer really needs it or play on the difference in prices and level of services provided relative to nearby competitors.
You also definitely have to decide on sales channels. After reviewing the existing methods on the market, find the ones that are best for you. Calculate how much it costs you to attract each client.
Finally, when deciding on pricing, you will need to calculate: what is more profitable? A high price with a small number of sales or a price lower than that of competitors, but a large customer flow. You should also not forget about service, because for many consumers it is crucial. They are willing to pay a price higher than the market average, but get high quality service.
Production plan. What are we selling?
This is where you finally get into detail about the core of your business: what do you do?
For example, you decide to produce dresses and sell them. In the production plan, indicate suppliers of fabric and equipment, where you will locate the sewing workshop, and what the production volume will be. You will describe the stages of product manufacturing, the necessary qualifications of employees, calculate the necessary deductions to the depreciation fund, as well as logistics. The costs of future business will depend on many factors: from the cost of threads to the cost of labor.
When prescribing the technology for creating your final product, you will pay attention to many little things that you had not thought about before. There may be issues with storing goods or difficulties with imported raw materials, problems with finding employees with the necessary qualifications, etc.
When you have finally written down the entire path to creating a product or service, it’s time to calculate how much your project will cost you. It may well be that later, when making financial calculations, you will realize that you need to make adjustments to the production plan: cut some costs or radically change the technology itself.
Organization of the work process. How will it work?
Will you manage the business alone or with partners? How will decisions be made? You need to answer these and many more questions in the “Workflow Organization” section.
Here you can describe the entire structure of the enterprise and identify duplication of powers, mutual exclusions, etc. Having seen the entire organization diagram, it will be easier for you to optimally distribute rights and responsibilities between departments and employees.
Having understood, first of all, for yourself how your company functions, it will be possible to more effectively develop a system of interaction between structures, a system for monitoring employees and the entire personnel policy.
The importance of this section is that it describes who and how will implement the project in reality.