- The importance of a business plan in building a successful business
The business plan is necessary for the initiator of the project, as well as for the investor / lender who wants to finance it. The better the business plan, the higher the probability of obtaining resources for its implementation, the closer the owner of the business idea to its successful implementation.
- How to write a business plan?
Since, as we have already understood, a business plan is of great importance for the success of the intended enterprise, it is necessary to approach its writing as carefully as possible. It is best to entrust this matter to professionals: they will be able to make a new project or adapt a ready-made business plan to your needs, but, as a last resort, you can try to understand yourself. To make a business plan, you must first know – what are the main sections it consists of.
- The structure of the business plan
Before you sit down and make a business plan, you need to clearly understand that there are no major and minor parts in this document. All sections are important and it is necessary to approach their creation with an equal and highest degree of responsibility.
3.1. Title page
The title page of the business plan must contain:
complete data of the initiating organization;
information about the project manager;
information about the developer of the business plan;
date of writing the business plan;
basic financial data.
The last part of the title page of the business plan serves to immediately attract the attention and interest of the investor or lender.
You may be interested in material on the development of a business plan according to international standards (UNIDO)
3.2. Business plan summary
Reading the business plan, the investor, as a rule, already at the stage of the resume determines – whether he is interested in this project, whether it is expedient to allocate financial resources for it. The performance of the task of attracting third-party funds largely depends on how competently the resume will be written.
The summary of the business plan shows:
the purpose and objectives of the project;
the required amount of investment;
justification of the achievement of the stated goals;
methods of performing the set tasks;
loan repayment guarantees;
payback period taking into account the discount;
profit for a certain period.
All information presented in the resume should be based on data and calculations of the following sections of the business plan.
3.3. Analysis of the market in which you have to work
For business success, it is necessary to better study the market environment in which the future company will operate. In this section of the business plan it is advisable to specify:
current state of the market: which products sell well and which do not;
internal and external factors affecting the market;
competitors, their products, market share, promotion techniques;
a portrait of your typical buyer and why he is yours;
SWOT-analysis of your project: its strengths and weaknesses, prospects and threats.
The more data that is taken into account in this section when drawing up a business plan, the more credible your project as a whole will be. This requires objectivity, honesty and maximum detail.
3.4. Description of the product or service
This section of the business plan should answer as fully as possible the question – what is going to sell your company. To do this, you must place the following information about the product or service:
field of application;
product characteristics: the most important characteristics must be described in detail, secondary can be simply listed;
advantages of your product or service over the products of competitors;
the need for patents, copyrights, certificates, licenses, etc .;
appearance, packaging and terms of delivery;
product warranties and service options;
operating conditions and its term;
possibilities of product utilization after completion of operation.
When drawing up a business plan, in this section it is also necessary to write at what stage of readiness the product is, ie its development, documentation, and whether it is ready for implementation.
3.5. Marketing plan
To do business successfully, you need to have a product for sale, it is also important to be able to sell it with the greatest profit. The business plan of any company should contain a strategy to promote products to consumers. To disclose this strategy in this section of the business plan you must specify:
for whom the offered goods or services are intended (portrait of the consumer);
how the price of the product will be set and what it depends on;
what methods of attracting consumer attention will be used;
promotions, discounts, etc .;
specify the required advertising budget;
what are the opportunities to increase sales, increase the reputation of the brand and the company;
whether it is planned to create a service, and how much money is needed for this.