A business plan is one of the most important documents. Without it, it will be incredibly difficult for a serious organization to work; it is impossible to get a loan or attract investors.
The content of the business plan is aimed at helping the entrepreneur. If it is well written, then the entrepreneur will immediately be able to see all the main expenses and incomes, and many other important aspects. In fact, it reflects all ongoing, planned for implementation activities, compiling it for two years or more, the first year is signed on a monthly basis, and the next year on a quarterly basis. A business plan plays several important roles. It helps the entrepreneur to see the shortcomings of his company, eliminate them at the planning stage, it is also a business card to provide to investors and credit organizations.
The art of making high-quality business plans comes with experience; the first attempts may not give a big result. Compilation requires tremendous effort, a large amount of special information that needs to be analyzed, structured, synthesized and submitted material that is beneficial to you.
There are many books, manuals, but most of them are foreign. The authors of the manuals suggest (indirectly) to take their numbers, names, and substitute them in the general table. The adaptation of such templates to the realities of our market is very doubtful, sometimes completely absent. Try to make a business plan yourself, without using templates, compare the result with the templates, make the necessary adjustments.
The structure and content may vary depending on the wishes of the entrepreneur himself, the requirements of investors. A business plan of approximately forty pages would be the best solution. Most investors read only the initial pages, if they, after reading 3-5 pages, do not understand anything about your business, then you can forget about financing. Conciseness plays a crucial role. The structure proposed by me is not stereotyped, but, relying on it, it will be easier for you to draw up a business plan or even imagine what it is.
Business plan structure
Title page. You need to start with the main one: name, company logo, address at which the company is registered, phone numbers of all founders, a list of sections that are part of the structure.
Introduction This item you need to write the latest. When you are finished creating your business plan, return to the introduction. Briefly describe your business. It will be appropriate to write: what the company is doing, state an idea for a business; what is its profitability; mechanisms for the sale of goods; what profit is expected; when the company starts to pay off; when the investments start to return. It is very important to show that investments will go to development, and they will return.
Market analysis section. Describe the group of customers who are most interested in marketing products. Tell us more about the market, size and growth rate, possible changes depending on the political situation, economic factors of the market, competition. Make a list of competitors, provide a list of their strengths, weaknesses. Due to what you will bypass them in the market. What are the significant risks and threats that may arise along the way, provide mechanisms for resolving them and out of the situation. Information can be found on the Internet, official statistics.
Organizational section. Describe your team, write a resume for each founder, leader with their characteristics and biography. It is known that money is invested in people (professionals) who will raise any business to their feet. Do not exaggerate the achievements of team members, write the truth.You cannot know how wide your investor has connections; he can check your words.
Financial section. Profit, expenses, costs, fines, production costs, market price, all fit into this section. You do not need abstruse words, all cash transactions are simply and clearly described. Each penny signs and argues its need. Be sure to mention the earnings forecast for a year or more. Discover the mechanisms of return on invested funds and the rate of return on investment.
Production section. General information about the production of its characteristics and volumes. The dimensions of the premises, the characteristics of the equipment, the requirements for personnel, contractors and equipment.
Marketing section. Everything related to advertising and product promotion is brought here. How? when? Where? advertising will be placed, the expected result from advertising. Plans for the promotion of goods in the market.
Errors in writing a business plan
Large size enemy business plan. The main task of a business plan is to briefly outline the main ideas for a business, first, to further describe the mechanism of its work.
Often they throw themselves with loud phrases, professional terminology, which complicates the understanding of some points. Write simply and clearly.
Not realistic implementation of ideas for business. Described in excess of profit in the first quarter or fabulous contracts. The amounts that are only planned to be received from the alleged partners who do not even know about the existence of this company are entered.
Reporting for the year as a whole, not monthly. At the beginning of the start, ideas for business need to be painted on the first year on a monthly basis, and subsequent years on a quarterly basis.
Try to be more realistic or even fit in with a pessimistic view. Get ready for the worst turn of events, and hope for the best.
