Every successful entrepreneur can say with confidence that one of the most important moments in a business organization is a qualitatively drawn up business plan. It is necessary for the entrepreneur to see the nearest goals, understand how much money to invest at each stage of the project development, when the next costs will go and when to expect the first profit.
Having a business plan can help you find partners or investors for business, get a loan for opening and even help in the development of the company. So how to make a business plan yourself?
Types of a business plan:
- Investment – a business plan for investors, which describes the characteristics of the future enterprise and contains detailed data on marketing research.
- The business plan of the enterprise is the most popular kind created by beginning entrepreneurs, the standard form is taken as a basis.
- A loan plan is required to obtain a loan from a bank. It shows the real need for a loan: where funds will go and when a return is planned. To date, very popular lending to small businesses.
- A business plan for a grant (aid or a loan from the state) – the benefits of your business activity for a particular region or the whole country are highlighted.
How to compose yourself
To independently create a business plan, it is sufficient to adhere to several rules. First, weigh all the Pros and Cons, determine the competitiveness of the perspective type of service or product, consider the sales market, payback, the timing of profit. It is also important to allocate the number of capital investments, dividing the investment into several stages. The rationale is supported by the project payback calculations. Adhering to the recommended structure, we need to draw up our own sequence of actions, which often differs from the structure proposed by us.
Note that there is no project structure, regulated by norms and standards. Each entrepreneur, registering a PI or LLC, himself regulates the list of items and the scope of documents regarding his project. But consider, if for the future of business will be attracted from outside, you need to strictly adhere to the recommendations of specialists.
Check This Out: Business ideas Without Attachments: Original And Profitable
Any project consists of several items that a person writes in an arbitrary form. Below is a step-by-step instruction on how to compile, starting with the project summary and ending with organizational issues. Consider, in the case of the opening of the LLC may require a more detailed sequence of actions.
A business plan begins with the title page. It includes:
- The name of the business plan;
- The name of the project developer;
- Date and place of compilation.
Then follows a memorandum of confidentiality, as drafting a business plan is a rather laborious process that can make your business competitive.
Part 1. Summary
This section briefly outlines the content of the future project, the main idea, and conclusions. This is approximately 6-7 small sentences. A person, after reading the resume, should understand what will be discussed further and what this venture will lead to. This is not a complicated section, which should be given a minimum of time.
Divide the information into the following points:
- size of investment and loan funds;
- the attraction of all investors;
- guarantees and risks;
- Planned payback period.
Remember: this is the only part of the document that everyone will read!
Part 2. Description of the project and company
Divide the section into two sub-parts:
Industry and company
- directions of the industry, its prospects;
- directions of the company, its development;
- general information about the company: its policy, advantages, innovations;
- the structure of the company.
- Provided services and manufactured products
- name, designation;
- short description;
- application area;
- Competitiveness: differences, advantages, disadvantages;
- licenses, certificates, permits;
- Conditions for the production of goods, sales or services.
Part 3. Marketing plan
Description of the competitive environment, the place of the product on the market, its advantages and disadvantages, accessibility to customers, the target audience, etc.
The purpose of this part is to convince investors of the relevance of the product/service.
Expand the following topics:
- market and competition;
- analysis of the buyer (wholesale, retail);
- analysis of the end user, his needs (age, sex, place of residence, etc.);
- consumer characteristics of the goods;
- service and sales;
- a plan for attracting customers, advertising;
- the cost of implementing the marketing plan.
You have to conduct marketing research, are mandatory:
- analysis of industry (if you are planning an appropriate business);
- research needs of consumers in this area;
- analysis of competitors;
- consider your weak, strengths, opportunities or threats of business, this part is often called SSNS.
Part 4. Production plan
This section describes the production process, starting with the order of raw materials and ending with the receipt of finished products in stores. Take into account every detail; it will help to avoid many problems. The production plan outlines technologies, equipment, know-how, and other important production points.
This item is necessary in the case of building a manufacturing business. If you do not plan to produce products, but will be engaged in wholesale purchases for the purpose of further retail sale of the goods, describe all the features: prospective suppliers, storage areas,
The preliminary structure of the production plan:
- basic facts about the enterprise or production: location, facilities, resources, technologies;
- purchase of equipment and other equipment of the enterprise;
- number of personnel, their qualifications, salary costs;
- planned volumes of output, expenses for raw materials and production;
- Calculation of the cost of goods.
Separately select the item on the quality control of goods or services. How will the test be carried out? By what criteria?
Part 5. Organizational plan
Here are the details of the organization. You should look at your company as if it is already working. Consider what departments will be, how they interact, what employees work there. In the future, by this description, you will create a company.
Who will do what in your company to achieve the desired result? Outline the duties of all future workers, internal regulations, bonus system, intangible and material bonuses and other issues. About compiling this type of plan, read the article about the organizational plan.
The first thing that should be in this part is an indication of the organizational and legal form of your business.
The following items:
- Company structure;
- if there are partners, information about them;
- management personnel, business units;
- Personnel development system, training, a creation of a personnel reserve (if such availability is planned).
Part 6. Financial plan
This is the main stage in writing a script for your business. The estimated costs and incomes, unforeseen expenses and receipts, financial movements, forms of receiving money and settlements are considered. This information is mandatory. It is important to specify the taxation system, the bank with which it is best to cooperate, the types of contracts that you plan to conclude with future partners, and consider the moments when contracts are signed.
The main points of the financial plan:
- the budget of the preparatory part;
- the budget for the main part is current;
- preliminary estimates of profits;
- expenses for loan repayment;
- various payments;
- reporting on the flow of funds;
- the forecast of achievement of a recoupment and the future income;
- Business risks, insurance.
- Part 7. Application
This part includes visual aids. Their advantages include an easier-to-understand graphic feed, unloading the text part of the business plan, providing materials that cannot be submitted as text (certificates, licenses, product photos).
The application should also have charts, tables, diagrams, possibly a contract.
The above spelling system is common in our country. To organize a business within one state these sections are sufficient, and when you enter the market of other countries, you will have to take into account other points, taking into account foreign norms and rules.
Examples of various activities
Often they are developed according to the standard structure, but for each type of activity, there are specific features.
For the store
The whole complexity of opening a store is mainly related to the choice of the field of activity. The business plan of the store should contain such items as the analysis of supply and demand, ways of registration, the necessary staff, analysis of the costs of organization and development of activities.
On the site there are many examples of ready-made business plans for opening stores of different directions, here are some of them:
- Auto parts store. Describes the earnings on the sale of auto parts, from the registration of the company and ending with the purchase of an assortment of goods.
- Gift Shop. It tells how to open a gift store, which is better to sell, where to take goods, how many employees need, what costs are expected and what profit can be expected.
- Meat shop. The whole sequence of actions for opening a butcher shop is described. The main focus should be on finding good suppliers and choosing the right place to sell fresh meat.
For online store
The Internet shop has its own peculiarities in comparison with the opening of a regular store. Firstly, it concerns the choice of the direction of activity and expenses. Naturally, the costs are low, except for renting an office, creating and advertising a website. About how to open an online store, how to register a business and what you expect the costs, we wrote in another article on our website.
For the enterprise
Do not think that planning is required only when opening large enterprises that organize their business on a grand scale. World practice shows that a competently designed sequence of actions is necessary for any business, even for a small enterprise. First of all, it is necessary for a thorough analysis of your idea, checking its reasonableness and profitability. The business plan of the enterprise will help you reduce the risk of failure in business.
Keep Reading: Business Idea of Growing and Selling Crayfish
The production business is one of the most difficult areas, especially for the large-scale production. It is important to think and calculate everything since failure can lead to colossal consequences – the disbanding of the enterprise and the loss of large sums. What you need to take into account when drafting this document, read the article Business plan production.