What is the Business plan?
Business planning, feasibility study of investment efficiency is the document, which does not make sense to start a new venture or a new event in the company. It is a powerful management tool, the key to successful implementation of the project.
The objectives of the business plan may be different. A business plan is needed for:
External use, to attract investment. In this case we are talking about a document to a potential investor of the loan.
Internal use: to assess the efficiency of investment to owners and shareholders of the company.
Business plan — a document that systematizes the main aspects of the planned commercial activities. Procedure B.-p. allows you to anticipate potential problems, avoid mistakes in the administration, to recognize and evaluate the two main types of risks that are present in any business: internal, over which the entrepreneur has control (personnel, inventory, location of business), and external (economic conditions, the behavior of partners, competitors, new legislation, weather), ie that the entrepreneur is unable to change.
Goals and objectives business planning:
Description of the initial and desired state of the enterprise and the most effective ways of achieving the goal.
Description of risks of the enterprise, allowing you to avoid mistakes in the planning process.
Assessment of the physical and financial resources of the company and their objectives.
Raising funds for business development.
The structure of the business plan and the degree of detail depend on the magnitude of the proposed changes and their scope of application, size of prospective markets for products and services, competitors, sources of investment financing.
Despite the differences, in any business plan, it is possible to allocate the following main sections:
Summary of the project.
The project model.
The investment plan.
The operational plan.
Marketing plan.
Organizational plan.
Financial plan.
Analysis of the project.
App.
1. Summary of the project.
It is an overview of the business, giving the opportunity to understand what he wants to achieve the enterprise, what potential does it have, how much money is required to project and how much profit it will bring. This section is made after the development of the entire plan. Summary summarizes the forecasts and plans, informed and calculated in the following sections. It’s safe to say that the business plan will not be read in full, if not a summary will be of interest to potential investors or partners. Need an extremely to clearly state the mission (formulated global objective of the enterprise, proceeding from the need to meet the needs of customers) and the company’s goals (projected results of its activity).
2. The project model.
Development of the structural scheme of the project in the form of integrated business processes. Implemented as a visual flowchart of commodity, financial and information flows that describe the conditions of supply, production and sales.
In the end, the project proponent should as closely as possible to imagine the project in a visual form and to understand how the project will be organized in a business environment and in geographical terms (especially important for the calculation of the logistics of supplies of raw materials, equipment, products).
For the effective representation of the model plan requires mapping the location of production – location, communications, highways, resource base, etc.
3. The investment plan.
The development of investment plans, is one of the most important parts of the project. In the end, the project proponent should clearly imagine what it must do, in what terms, with what cost. Planning is done by constructing a Gantt chart (schedule of works with dates start-end responsible for the stages, the cost of the stages, resources. depreciation of equipment, interconnection of stages). Investment plan designed to create a model project in time (from start of work to start the project in operating activities) and the optimal allocation of investment resources.
For a thorough elaboration of the plan should cover the following activities of a real project:
Development of project documentation:
The definition of the organization for the development of project documentation.
Determining the cost, volume and timing of work.
The structure of the business processes of an enterprise.
Production workflow.
Selection and implementation of software for service business processes (accounting, document management, budgeting, CRM * integrated enterprise management system (ERP), and others.).
Construction work (for new facilities) or repair (reconstruction):
The definition of the organization (s) contractor (s).
Cost, volume, timing of works.
Purchase of equipment:
Vendor (s) equipment.
Terms of delivery of main and auxiliary equipment.
The volume of equipment purchased, the cost per unit, delivery time.
The specific supply on imports (import VAT, customs duties, transportation, INCOTERMS conditions)
Installation of equipment, connection to utilities:commissioning (see paragraph 4.).
The definition of erection and commissioning of the organization.
The timing, costs and conditions.
Obtaining approvals:Certification (conditions of certification, who, cost, time):
The approximate dates of approvals, cost.