Plan for writing a business plan (example)

2024 Author: Howard Calhoun | [email protected]. Last modified: 2023-12-17 10:16

Every successful entrepreneur can say with confidence that a well-written business plan is one of the most important elements in building your own business. Understanding how to correctly design a future enterprise, you can predict a positive result when contacting a credit institution or an investor. Consider further the basic rules for writing a business plan.

Purpose of document

Writing a business plan (an example project will be discussed below) can be done in various ways. To do this, there are various methodological recommendations and manuals. However, in most of them the information is very specific and understandable only to economists or accountants. Along with this, the need to draw up a business plan arises for all start-up entrepreneurs. The document is necessary for submission to a credit institution, obtaining a loan from an investor to develop the business at the initial stages. In addition, the business plan allows you to seeimmediate and upcoming goals, predict capital investments at one stage or another of the enterprise development, anticipate the moment when the first profit will arrive, calculate the total income from activities.

Speciality of enterprises

To obtain a loan for the construction of a plant or factory, it is more expedient to contact the relevant 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 this case, it should be understood that the 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 the investment climate in detail or calculate industry risks. In this case, it will be quite competent to organize production, determine the sales market, predict the payback period of the enterprise. The program for writing a business plan for such an activity will be understandable to a novice entrepreneur.

Important moment

Entrepreneurs with a fairly extensive 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 the socialistreality. Planning is an essential element of modern business. Analysis of payback periods, determination of periods of investment, development and subsequent returns are the most important aspects even with a relatively small investment. Concepts such as "market" and "plan" are fundamental both in the East and in the West. At the present stage of economic development, it is enough to adopt the experience of successful companies and get positive results.

Sample writing a business plan

The project of the future business is necessary for the investor, credit institution, as well as the entrepreneur himself. The structure of writing a business plan includes a number of mandatory items. These include, in particular:

• introduction;
• brief description of the future enterprise;
• characteristics of services/products;
• assessment of the sales market, competition, investment risks;
• production formation plan;
• sales forecasts for services/goods;
• financial plan;
• management organization;
• staff;
• 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 interpretation. So, taking into account the peculiarities of the Russian business sphere, the plan for writing a business plan should include a section that reveals an adequate understanding of the problems andissues related to the quality of services and goods. Here it is necessary to give possible solutions to them. It is also advisable to add a paragraph to 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 in the ability to bring the matter to the end.

Business Plan Writing Plan: Do it yourself

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 off. The next step is to determine the amount of required capital investment. Experts recommend dividing the investment into several parts, backing up the rationale with appropriate calculations. Given the above points, it should be understood that a self-composed business plan may be fundamentally different from the above structure. 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, the amount of documentation for enterprise planning. However, if outside investment is needed to open a business, the above scheme should still be followed.

Introduction

This section of the business planis a presentation of the future enterprise. It should 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 decides whether to take the project into development or reject it. The study of the remaining parts, which display calculations, 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 provides a general description of the enterprise and industry:

• Financial performance.
• Staff.
• Line of business.
• Structure of the enterprise.
• List and description of services/products.
• Prospects for development and so on.

The section should contain the characteristics of the proposed production, a number of technological aspects. These points should be described in simple and accessible language. There is no point in delving into terminology, using a professional style. In this case, it is enough to indicate the uniqueness of services or products, the demand in the near and foreseeable future. You can also draw the investor's attention to the benefits of the products offered.

Marketing research

This should describe the conditions under which consumersbecome customers of the company. The section outlines methods of sales promotion, formation of a positive image, distribution of services / goods. The marketing plan includes a list of advertising costs. In essence, you should justify how and why consumers will purchase a service or product.

Production

This section should describe the technological processes. It also provides the characteristics of the premises, indicates the established requirements for equipment and personnel. The production plan should also describe suppliers and contractors.

Enterprise organization and finance

The business plan should contain a description of the form of management, the tasks of the administrative staff. For a domestic investor, a resume for each member of the management department is important. 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, functional responsibilities and role in the company. The financial part contains economic calculations. In particular, a table of income and expenses is compiled, a balance sheet is forecast, variable and direct costs are indicated, costing is performed, and so on. Three forecasts are usually developed in this section: realistic, optimistic and pessimistic. They are displayed as graphs.