A business plan for the main sections of the organization’s development in a competitive market, taking into account its own and borrowed financial sources, material and personnel capabilities and expected risks arising in the process of implementing entrepreneurial projects.
A business plan is necessary for both existing and reorganized, as well as newly created enterprises, since the complexity and rapidly changing environment often puts even experienced managers in a difficult position.
Stages of preparing and developing a business plan.
The first stage is preparatory, including collecting information about the requirements for a business plan in the chosen industry and the scale of the proposed activity.
The second stage is determining the internal and external goals of developing a business plan, i.e., a list of problems that need to be solved with its help. Therefore, the plan must contain an attractive commercial offer for the target market of goods (services) and investors.
The third stage is the identification of investors, who will be
may act:
1) various state and non-state investment institutions;
2) domestic credit organizations;
3) international investment institutions: World Bank, International Bank reconstruction and development, World Bank International Finance Corporation, European Bank for Reconstruction and Development;
4) international financial organizations involved in development financing;
5) future partners or shareholders - large enterprises and entrepreneurs operating in an industry or region. Enterprises also have internal sources of investment resources, including a sinking fund; profit; savings of enterprise personnel.
The fourth stage is determining the structure of the business plan. A business plan may include the following sections:
1) introduction (summary of the business plan);
2) description of the enterprise;
3) description of products - goods and services;
4) analysis and assessment of the product market;
5) competition;
6) marketing plan;
7) production plan;
8) organizational plan;
9) financial plan and risk assessment;
10) applications.
The fifth stage is collecting the information necessary to develop each section of the plan. At this stage, it is advisable to involve enterprise specialists, as well as experts and consultants from specialized organizations.
The sixth stage is the development of a business plan, carried out under the guidance of either the head of the enterprise or the person responsible for the implementation of the plan.
The seventh stage is conducting a preliminary examination of the rshan, after which it can be presented to investors or creditors.
1. The title page contains the following information: the title of the plan, the date of its preparation, the full name and address of the company, the name of the head of the company, the names of the owners or co-owners of the company.
3. The description of the enterprise contains general information about the enterprise, including the history of its creation and development, capital structure, characteristics of fixed assets, organizational and technological structure, external conditions and internal features of the company’s activities.
4. General summary. This section explains the purpose of the production being opened, the novelty of the product proposed for production and its difference from competitors’ products, its attractiveness to potential buyers; information is reflected on estimated sales volumes, revenue, production costs, profits, production profitability, and loan repayment terms.
5. Characteristics of products (services). This section describes the product (transportation, services), indicates its consumer properties, significant differences from competing products, the degree of protection by patents and copyright certificates. The price forecast is also outlined here. In the production of complex technical products, the organization of service is described.
The information in this section is intended for external readers, so it is advisable to use quantitative indicators to highlight the real successes that the company has achieved in the past. The results of the enterprise’s activities must be linked to the goals and guidelines outlined in the business plan.
6. Sales assessment. The main goal is to determine and justify the niche in which the product planned for production will find a buyer, as well as to reflect the completeness of the understanding of market conditions.
7. Analysis of competition in the market. In this section it is necessary to identify the main competitors, their capabilities, and pricing policy. In order to identify key areas of competition (price, quality, service, image, etc.), a table of comparative characteristics of the products (or services) of the enterprise and competitors by market is compiled. If the advantage over a competitor of similar products is 30%, then the products of this enterprise have low competitiveness; at 30-50% a stable position in the sales market is assumed; at 50-70% successful competition is implied; over 70% - control over the sales market for these products.
8. Marketing strategy. The marketing plan includes solving such problems as the product distribution scheme, pricing, advertising, sales promotion methods, organizing after-sales service, and forming public opinion about the company and the product (service).
9. Production plan. The purpose of this section is to confirm through calculations that the enterprise being organized is able to actually produce the required quantity of goods in the required time frame and with the required quality. For this purpose, production capacities, suppliers of raw materials, delivery conditions are determined, and possible production costs are assessed.
10. Legal plan. It reflects the organizational and legal form of the enterprise, in accordance with which the main documents regulating the future activities of the company are subsequently developed.
11. The organizational plan introduces the organizational and legal form of the enterprise, the distribution of powers and responsibilities in its management, the management system and the organizational structure. Organizational structure enterprise is presented here in the form of a detailed diagram.
12. Risk assessment and insurance. The purpose of this section is to anticipate all types of risks that an enterprise may face and provide measures to reduce these risks and minimize losses that may arise.
13. Financial plan (budget). Includes a forecast of sales volumes, a balance of cash expenses and revenues, and a schedule for achieving break-even.
The financial plan consists of three parts:
1) a consolidated forecast of income and expenses, characterizing the prospects for financial results by year and by quarter;
2) a plan for cash receipts and payments, reflecting the prospects for receipts from sales, payments by type, and cash growth;
3) a consolidated balance sheet of assets and liabilities of the enterprise, developed on
The financial plan summarizes the materials of the previous sections and characterizes the commercial results of the proposed project. A forecast of financial results is given in the following areas: the need for additional investments and sources of financing (obtaining a bank loan, issue and sale of shares, own funds); structure of financing by sources and types of currencies; profitability of the project, including total income from sales of products (or services); terms of repayment of borrowed funds.
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Regardless of the methodology for developing a business plan, the business planning process itself goes through several stages:
The emergence of an economic idea;
Analysis of the resources available to the enterprise;
The business planning process itself;
Search for an investor;
Implementation of a business project;
Making a profit;
Distribution of total profit between participants Kuznetsova N.V. Economic analysis: Tutorial. Part 1-2. - Vladivostok: DVGU Publishing House, 2004. - P. 97..
The business planning process from the emergence of an economic plan to the receipt and distribution of profits between its participants is shown in Figure 3.
Any kind entrepreneurial activity and the subsequent development of a business plan for the intended project usually begins with a new idea. Without a good idea, business is impossible. Entrepreneurial abilities, as the most important factor of production, are expressed, first of all, in the ability to generate, accumulate and develop new ideas.
In the most general form the idea is:
This is a form of reflection in thoughts of phenomena of objective reality, which includes a generalization of the experience of previous development and awareness of the chain of business transformation;
It is a product of human mental activity, which is determined by a combination of external stimuli and internal awakening forces - desires, needs, interests, attitudes, value orientations, motives, ideals and emotions.
New business ideas arise in the process of identifying shortcomings or opportunities for improving the satisfaction of existing and not yet recognized needs of various segments of the population and areas of activity.
Figure 3 - Business planning process
They appear as a result of the entrepreneur’s subjective analysis of the objective current state market, level of development of technology, technology and organization of production, sales, consumer behavior and other elements of society, as shown in Figure 4.
Finally, the entire set of factors turns into a plan and action plan. Next comes the expression of will - the practical implementation of the business plan and the ideas contained in it.
The activity of an entrepreneur in the selection and implementation of business ideas technologically goes through generally 4 enlarged phases Volkov I.M., Gracheva M.V. Design analysis. Advanced course: Study guide. - M.: 2004. - P. 15. (Table 2).
The formation of a business plan, the idea of creating a new or significant change to an existing company goes through several stages, which can be enlarged or detailed to varying degrees.
Figure 4 - External sources new ideas and their reflection in the business plan
Table 2 - Phases of selection, evaluation and implementation of entrepreneurial ideas in a business plan
|
Phase name |
|
|
Search for a new idea and factors of its occurrence |
Motives, market conditions, science and technology, unconscious and unsatisfied demand, etc. |
|
Analysis of the potential and real value of an idea |
Identification of the necessary conditions and the availability of technical and social opportunities for the implementation of the idea (need for initial capital, rate of profit, payback period, main production indicators, goal) |
|
Risk assessment |
Types of risks, sources of their occurrence and measures to minimize the risk of bankruptcy and financial losses |
|
Business plan development |
Action plan for achieving the goal: selection of technology, provision of resources, process management, etc. |
At the first stage of preparing a business plan, the mission (philosophy, vision of the enterprise) is determined - a brief description of the business unit, its main goals, purpose, scope of activity, norms of behavior and role in solving social problems of the region and society, shown in Figure 5.
Figure 5 - Purpose and content of the enterprise’s mission in a market environment
The enterprise in this case acts as a system and is understood as:
Manufacturer of goods (services, works) to supply the market;
A social organization in which employees can express and develop their abilities and satisfy their needs;
Competitor to other commodity producers;
A social unit that takes into account the interests of the entire society;
Part of a market mixed economy.
Mission commercial organizations in Russia it is usually simple and very straightforward - maximum profit. Profit is a purely internal problem of an enterprise, which is not very decent to show off, much less write it down. constituent documents. Any enterprise is open system and it can develop successfully only if it satisfies a certain demand of consumers located outside of it in the external environment. If an enterprise is able to fulfill such a mission, then it will simultaneously receive the necessary profit. Therefore, only in the environment can the purpose and mission of a commercial organization be found.
The fundamental origins of a company's mission are its principles and ethics. They act as fundamental rules of action, reflecting a set of universal social demands to the behavior of company employees.
Enterprise ethics or the morality of business relationships, with the help of a businessman’s conscience, ideally allows one to comply with universal, unconditional highest requirements for the behavior of company employees in the process of business activity. The ethical values of the enterprise in relation to partners in the market are refusal to deceive, honest behavior, trust in teamwork, respect for the entrepreneurial interests of the owners of innovative ideas.
The mission of the company is also largely determined by its value orientations, which significantly influence the strategic behavior of managers and all employees Volkov I.M., Gracheva M.V. Project analysis: Advanced course: Textbook - M., 2004. - P. 15.. In theory and in practice, six types of value orientations are distinguished, in accordance with Table 3. The mission of an enterprise is closely related to its culture - the set of values typical for an enterprise , norms and ideas that form the reputation (brand, image) of an enterprise.
IN real life the mission is expressed in:
Conduct of the enterprise - uniform principles for all employees;
Company communications - style of information transfer;
Means of visual representation of the enterprise - brand names, product design, rituals, appearance, etc.
The image of the enterprise in the external environment is supported by its ethical relations with competitors and the trust of market participants, in the internal environment - an integrative effect as a result of complementary behavior of employees, coordination of all divisions of the company, better motivation and self-identification of employees with the value system of the enterprise. It expresses the company's responsibility to consumers, partners, the region and society. In this case, the mission reflects the company's desire to make the desired impression on the outside world.
Table 3 - Value orientations and their connections with target preferences
|
Orientation view |
Types of Purposes for Organizations |
|
|
Theoretical |
Rational thinking |
Long-term research and development |
|
Economic |
Practicality Utility Accumulating Wealth |
Results |
|
Political |
Confession |
Total capital, sales, number of employees |
|
Social |
Good relationship Attachment No conflicts |
Predominance social responsibility above profitability Indirect competition Favorable atmosphere in the organization |
|
Religious |
Agreement with the Universe |
Moral issues |
|
Aesthetic |
Artistic harmony Shape and symmetry |
Product design Quality Attractiveness even with loss of profit |
The second stage is determining the goals of developing a business plan.
A goal is the future desired state of an enterprise, the motive or ruler of the behavior and actions of its employees. Up to 98% of all business failures are due to entrepreneurs lacking clear goals.
In a business system, a goal performs five functions:
Initiatives - a comparison of the existing and desired state of the company, the motive for action;
Decision-making criteria - evaluation of information and selection of alternatives, business priorities;
Management tools - guiding requirements for actions, determining the direction of the business;
Coordination - ensuring conflict-free relations among decision makers, coordinating the work of specialized units;
Control - comparison of the operational status of indicators economic activity with their target level.
Unlike the mission, goals express more specific areas of the enterprise's activities.
Any enterprise, as a complex socio-economic system, has a multi-purpose character. In the process of functioning of an organization, along with strategic goals, a large number of tactical and operational ones are usually simultaneously solved. Social, technical and organizational tasks are closely related to purely economic ones. Biryukova I., Zhavoronkova L., Buzilkin S., Surkova L. Project management tools: aspects, problems, solutions. - M.: “Exam”, 2010. - P. 25..
Goals must be clear, clear, unambiguously understood and formulated in terms that reflect the promising future state of the company. Therefore, when developing goals, it is necessary to take into account the whole set of requirements for their content and form, in accordance with Figure 6.
The process of forming goals goes through several stages: searching for goals, feasibility analysis, selection, event planning, implementation in practice, revision or clarification. Goals are determined by one person - the owner of the company or a group of people, including owners, managers and employees, taking into account the compatibility of their private interests.
Goals, as we know, are always achieved subject to certain restrictions that can be set by the enterprise itself and influenced from the outside. Collection of business plans with comments and recommendations / Ed. V.M. Popova. - M.: Finance and Statistics, 2012. - P. 115..
External restrictions may include legislative norms, inflation, competitors, changes in economic conditions and income levels, financial conditions debtors, etc.
Figure 6 - Requirements for formulating the company's goals
Therefore, in the process of developing the mission of an enterprise, goals and objectives of its development, it is necessary to evaluate the maximum possible number of factors that will influence its activities. From Figure 7 it follows that the effectiveness of an entrepreneurial project depends on the correct assessment of external factors, which the company, as a rule, cannot influence. These factors are numerous and include: the general political and economic conditions of business in the country, legislation, the level of income of the population, established consumption traditions, the culture of the population, its demographic structure and a number of other important parameters. In addition, information about the competitive environment and the current level of demand for these or similar goods and services is important for an entrepreneur.
Domestic and foreign experience indicates that poor market knowledge is one of the main reasons for the failure of many commercial projects.
Market research done for a specific business plan usually includes the following set of works:
Market segmentation by key parameters (products, geography, consumers, needs met, etc.);
Figure 7 - Factors influencing the activities of the enterprise
Assessment of potential and actual market volumes and its segments;
Forecasting market volumes and its segments;
Analysis of near factors - suppliers, substitute goods, complementary goods, consumers, competitors, and distant factors - political, demographic, technological, environmental factors in the project environment;
Description of the distribution channels used, sales and pricing schemes (prevalence, advantages and disadvantages of links);
Assessing the tools used to promote goods or services;
The most favorable situation for a company occurs when favorable opportunities external environment coincide with strengths enterprises. On the contrary, threats from the environment, imposed on the company’s weaknesses, create the preconditions for a crisis situation and the impossibility of doing business. An entrepreneur, taking into account various combinations of external and internal factors, forms the main strategic directions and, accordingly, adjusts in accordance with them the entire content of the business plan and the activities of his company.
At the next stage, after determining the mission, goals, and strategy of the enterprise, the general structure of the business plan itself is established.
The scope and structure of the business plan is influenced by the size of the enterprise and the assigned tasks. For small companies, a simplified structure plan is usually drawn up - in two parts: brief description project and the main part, containing more detailed calculations and justifications. This structure is due to the fact that the resume is often addressed to an external consumer, to whom the entrepreneur approaches with an offer of partnership participation or a request for loans. The volume of a business plan together with settlement documentation usually does not exceed 50 pages of typewritten text, but it can be significantly less. Large projects require larger-scale studies and their volume is significant. Taking into account many factors, a methodology for developing a business plan is selected.
An important step at the stage of developing a business plan is to collect the information necessary to develop each section of the plan. This is an important and very labor-intensive part of the planned work. Sources of information can be special industry directories, standards design organizations, specialized firms, materials from statistical bodies, special studies and observations, knowledge of highly qualified economists, consultants, as well as enterprise employees who know the internal environment of the company and their business well.
After collection necessary information the immediate development of individual sections and the execution of the entire business plan in the form of a single document begins. The structure of the business plan consists of the following points:
1. Title page - must contain the name of the enterprise (or the surname and name of the potential entrepreneur, if the enterprise is in the process of registration), address, telephone number;
2. Abstract. Here, in addition to the developed business plan, the idea of the proposed project is outlined, the full cost, the amount of necessary financing, payback periods, level of profitability, and terms of cooperation with the investor are indicated. The abstract is intended for executives, written appeals, advertising;
3. Memorandum of Confidentiality. Drawed up to warn all persons about the non-disclosure of information contained in the plan and its use solely in the interests of the company that presented the project, this memorandum may contain a prohibition on copying the entire business plan or its individual parts for any purposes, as well as a prohibition on transferring the business -plan to third parties Lipsits I.V., Kosov V.V. Investment project: methods of preparation and analysis. Educational and reference manual. - M.: BEK Publishing House, 2010. - P. 213.;
5. Summary - the conclusions of the developed business plan give brief description, shows what is included in the business idea, what the prospects are and whether it is worth delving into its study;
6. Types of goods (services). This section of the business plan being developed outlines the main idea of the project, provides characteristics and descriptions of future products;
7. Markets for goods (services). This section includes an analysis of the market environment, competitors and your strategy for promoting a product (service) in current conditions to the end consumer;
8. Marketing plan. According to established practice, the development of a business plan for this section should include:
Pricing;
Product sales scheme;
Creation of service;
Formation of public opinion;
9. Production plan- this is an integral part of any business plan, which must describe all the production and work processes of the company. This section describes in detail the way in which the enterprise plans to produce products in the required quantity, of the required quality, within a certain time frame;
10. Organizational plan. This section provides information characterizing the organizational structure of the enterprise, information about personnel and personnel policy firms;
11. Financial plan. This section of the business plan summarizes all previous section materials and presents them in cost terms. This section is the result for the entire production part of the project, it allows you to: link all activities for the implementation of the project with each other; optimally distribute all available resources; determine the calendar terms of financing; distribute work among performers.
To summarize, we can say that writing successful business plan starts with a good idea. Before you start writing a business plan, you need to determine the mission of the future company and set the goals of your business. Goals must be realistic and achievable, not contrary to the laws, and understandable to the performers. Market research is also important in business planning. An entrepreneur needs to collect the necessary information about competitors, consumers, and the state of the industry in which he plans to operate, because poor knowledge of the market is one of the main reasons for the failure of most commercial projects. The conclusion of the collection of information is the preparation of the business plan into a single document.
Existing approaches to business planning are aimed at implementing nine main functions.
1). Standard representation of an enterprise, project. A standard presentation reduces the cost of describing the enterprise and provides more opportunity to represent the unique capabilities of the project.
2). A business plan is one of the forms of communication and presentation of information in a civilized market. Many years of experience in drawing up business plans have led to the fact that it has acquired a convenient form of presenting information. In addition, a special terminology has developed, supported by research in a particular area.
3). Reasoned application for raising capital. Even if the business plan did not aim to attract capital, its content allows you to draw up such an application without searching for new information.
4). Demonstrating a solid approach to own business. By spending effort on drawing up a business plan, the manager thereby confirms his own respectful attitude towards his business and expects the same attitude from his partners. In addition, a business plan can become an integral part of an image-building program.
5). Weighted assessment of decisions made. By answering questions when drawing up a business plan, the manager has the opportunity to comprehensively assess the entire situation and make a decision with sufficient information.
6). Ability to identify problems, threats and untapped opportunities for growing businesses. Business planning technology contains a number of techniques that are of independent value; one of these techniques is the analysis of problems and opportunities.
7). Ensuring business focus. The very fact of having a business plan indicates the existence of a goal that the entrepreneur strives to achieve, which significantly increases the efficiency of the business.
8). Tool for management and control. The business plan is the basis for managing the project, first of all, resources, costs, deadlines, personnel, etc. Having a plan allows you to monitor implementation and make effective decisions.
9). Self-learning tool. The last function in the list is actually one of the most significant, since preparing a business plan will force the entrepreneur to expand his knowledge in certain sections, teach him to draw conclusions from financial information and understand the results of the analysis.
Any of the nine functions would be sufficient for choosing a business plan as a tool for organizing and developing a business.
There are several approaches to defining development stages. Some approaches are based on a very detailed scheme for drawing up a business plan, and in this case there are a lot of stages - from 10 to 20 or more. Others are based on identifying large blocks in drawing up a business plan, and in this case there are very few stages - five.
Two approaches can be considered: more detailed and less detailed.
With a more detailed approach, the algorithm for drawing up a business plan contains the most general stages of the process of planning a new business. This algorithm is also called an action plan for developing a business plan. Once you have achieved a certain level of experience, you can draw up your own action plan based on this algorithm (taking into account the specifics of the area of activity of the enterprise or project). However, when developing a business plan in any new field of activity, it is better to adhere to this (or similar) detailed option, since it will allow the most comprehensive study of the new object of application.
With a detailed approach, the following stages are identified in the process of developing a business plan:
Stage 1. The decision to start a new business or start a new project or develop a new business plan.
Stage 2. Formation of the goal of a new business or a new project.
Stage 3. Formation of ideas about the business plan and its structure.
Stage 4. Search for sources of necessary information.
Stage 5. Analysis and assessment of one’s own potential (opportunities and abilities) to start a new activity.
Stage 6. Selecting an object that is the basis of a new activity (enterprise profile).
Stage 7. Research of potential sales market.
Stage 8. Development of a preliminary sales forecast.
Stage 9. Territorial location business.
Stage 10. Development of a marketing plan.
Stage 11. Development of a calendar plan.
Stage 12. Development of a production plan.
Stage 13. Selection of organizational and legal form and legal status.
Stage 14. Development of an organizational plan.
Stage 15. Making decisions about personnel.
Stage 16. Development of a financial plan.
Stage 17. Development of an insurance plan for business risks.
Step 18. Preparing a business summary of the business plan.
Stage 19. Preparation of a business plan.
Stage 20. Presentation of the business plan.
Stage 21. Deciding to start activities.
In the second approach, as mentioned above, larger blocks are isolated. But these blocks essentially contain the same steps as in the previous approach. This option is more suitable for an experienced user.
There are five stages:
At the first stage of preparing a business plan, the mission (philosophy, vision of the enterprise) is determined - a brief description of the business unit, its main goals, purpose, scope of activity, norms of behavior and role in solving social problems of the region and society.
The second stage is determining the goals of developing a business plan. A goal is the future desired state of an enterprise, the motive or ruler of the behavior and actions of its employees.
In a business system, a goal performs five functions:
Initiatives - comparisons of the existing and desired state of the company, the motive for action;
Decision-making criteria - evaluation of information and selection of alternatives, business priorities;
Management tool - guiding requirements for actions, determining business directions;
Coordination - ensuring conflict-free relations between decision makers, coordinating the work of specialized units;
Control - comparison of the operational status of economic activity indicators with their target level.
At the third stage, after defining the mission, goals, and strategy of the enterprise, the general structure of the business plan itself is established. The scope and structure of the business plan is influenced by the size of the enterprise and the assigned tasks. For small firms, they usually draw up a plan with a simplified structure - two parts: a brief description of the project and the main part containing more detailed calculations and justifications. This structure is due to the fact that the resume is often addressed to an external consumer, to whom the entrepreneur approaches with an offer of partnership participation or a request for loans. The business plan can be divided into the following sections:
Front page.
1. Memorandum of Confidentiality.
2. Summary.
3. Description of the industry.
4. Characteristics of the enterprise (firm).
5. Choice of activity (product, service, work).
6. Marketing plan.
7. Production plan.
8. Organizational structure of the enterprise.
9. Financial plan and budget of the enterprise.
10. Risk analysis.
11. Organizational plan.
12. Applications.
The fourth stage of business planning is to collect the information necessary to develop each section of the plan. This is an important and very labor-intensive part of the planned work. Sources of information can be specialized industry directories, standards of design organizations, specialized firms, materials from statistical bodies, special studies and observations, knowledge of highly qualified economists, consultants, as well as enterprise employees who know the internal environment of the company and their business well.
The fifth stage of planning is the direct development of individual sections and registration of the entire business plan in the form of a single document.
Forming ideas about a business plan is the next step after determining the scope of activity, the purpose of activity, the purpose of drawing up a business plan, and determining the name of the enterprise or project. The business plan must be presented in a form that allows the interested party to have a clear understanding of the nature of the business and the extent of his participation in it. A business plan should be written simply and clearly and have a clear structure. The volume and degree of detail of the sections are determined by the specifics and area of activity of the company. The first idea about a business plan can be given by its structure, which needs to be formed.
There is one tried and tested principle for writing any business plan: it should always be concise but competent.
A business plan may have the following approximate structure.
1. Cover
3. Business resume
4. General situation in the business area chosen by the entrepreneur
5. Description of the enterprise
6. Market analysis
8. Marketing plan
9. Financial forecasts
10. Schedule
11. Calculation of the need for financial resources and project effectiveness
12. Application
Based on knowledge of the approximate structure of a business plan, you can form your own business plan structure, taking into account the special requirements of potential investors, the characteristics of production or products, a unique selling advantage, the characteristics of the financial situation, and the characteristics of the market.
Business plan development process includes three enlarged stages. At the first stage, economic problems are solved analysis and assessment of the level of production activity enterprises, characteristics of production potential and business areas. The second stage is solving problems to study market, developing a production forecast and forming an effective management system. At the third stage, we develop event financing strategy on developing production and selling competitive products, increasing production efficiency.
The development of a business plan includes interconnected stages, arranged in a certain logical sequence.
On first stage When developing a business plan, the goals of its preparation are determined based on the list of problems that the business plan of a particular enterprise is designed to solve. Currently, such goals may be: achieving break-even of its activities; commissioning of a new store, workshop; release of a new type of product; implementation of measures to improve marketing and management, etc.
Rice. Sequence (stages) of drawing up a business plan
Second stage developing a business plan includes analysis, assessment and forecasting of the enterprise’s own capabilities, i.e. analysis of current and forecast results of the enterprise itself; analysis and forecasting of the provision of its activities with material, labor and financial resources; analysis and forecasting of current performance results of main competitors; analysis and forecasting of sales markets; analysis and forecasting of possible types of risk.
Thus, the first and second stages determine the content of the preparatory economic work for drawing up a business plan.
The next stages of developing a business plan for an enterprise are its direct preparation (formation).
Third stage includes characteristics of the enterprise’s planned products, works, and services produced by it. The purpose of this stage is to assess the strengths and weaknesses activities in the areas of management, production, marketing, finance, personnel policy of both the enterprise itself and its main competitors.
Fourth stage consists of researching sales markets. The purpose of this stage is to assess sales markets, the level of competition, and the competitiveness of the goods, works, and services produced. As a result of the research conducted at this stage, a generalized understanding of markets and competitors should be formulated.
Fifth stage involves the development of a production plan, which includes a forecast of production (sales) volumes of products (goods), works, services, taking into account the tasks of the social and economic development program of the enterprise and the results of analysis and forecasting of its own capabilities, determining the need for fixed assets, raw materials, equipment, personnel by categories of workers, labor costs, determination of the full cost of manufactured products.
Sixth stage includes development pricing policy enterprises, as well as demand generation and sales promotion systems. The purpose of this stage is to develop a marketing strategy for the enterprise.
Seventh stage involves choosing the type of organizational structure and assessing its effectiveness.
Eighth stage provides a description of possible types of risks, calculation of risk levels and development of measures to reduce and prevent them.
Ninth stage consists of developing a financial plan for an enterprise, the purpose of which is to assess the effectiveness of the planned activities of the enterprise. This stage includes: forecast of income and expenses; fund estimates; forecast balance cash; forecast balance of assets and liabilities; forecast of key financial indicators.
Tenth, The final stage of developing a business plan is drawing up a summary, which is, in fact, a summary of the business plan of the enterprise.
The implementation of these stages of developing a business plan involves:
Determining the goals of developing a business plan, which may include achieving break-even, commissioning a new facility, releasing a new type of product, etc.;
Analysis, assessment and forecasting of one’s own capabilities for the effective functioning of the enterprise itself, the provision of its activities with material, labor and financial resources, the results of the activities of main competitors, sales markets, possible types of risk;
Determining the characteristics of the products (works, services) planned for release, assessing the strengths and weaknesses of both the enterprise itself and its main competitors in the areas of management, production, marketing, finance and personnel policy;
Research of sales markets, level of competition, competitiveness of manufactured products (works, services);
Development of a plan for the production and sale of products (works, services) taking into account the tasks of the social and economic development program of the enterprise and the results of analysis and forecasting of its own capabilities. At the same time, the needs for fixed assets, raw materials, materials and personnel, labor costs are determined;
Development of a marketing strategy for the enterprise, pricing policy of the enterprise, a system for promoting goods to markets, including measures to create demand and stimulate sales;
Choosing the type of organizational structure of the enterprise and assessing its effectiveness;
Identification of possible risks and development of measures to reduce and prevent them;
Forecasting the financial performance of an enterprise, including developing a forecast of income and expenses, cash balance, balance of assets and liabilities, key financial indicators;
Drawing up a resume - a brief statement of the main provisions of the business plan of the enterprise.
The business plan of an enterprise is developed within the financial year. It reflects the costs and results of all types of activities, including innovation and investment projects. The content of an enterprise’s business plan is of interest to owners (since it evaluates return on capital), administration (assessment of its professional activities and efficiency), personnel (preservation of jobs and determination of wages), suppliers (assessment of solvency), for state and local authorities (stability of the workforce and tax payments).
The content of the business plan, the list of sections of the descriptive part and its volume are formed at each enterprise on your own. The text of the planning document, the quality of development and the degree of reliability depend primarily on the professionalism of the management team (for private enterprises), as well as on industry guidelines (for business entities with state ownership).
A distinctive feature of an enterprise’s business plan is that it is developed based on the laws of the market, from here the enterprise independently looks for sales markets, forms a production program and product prices; carries out marketing planning; recognizes the alternatives and risks that are directly related to the thinking of enterprise employees about costs, income, profits, and the value of the enterprise; uses return on equity as a criterion for assessing the economic efficiency of an enterprise's business plan.
Modern enterprises with Russia's transition to market relations switched to planning their business instead of using uncivilized forms.
Business planning is the development of an economic plan for running a business, where success plays an important role. To achieve this success, it is necessary to analyze the state of the market, analyze competitors and their products, and analyze your position in the market and your potential.
Thus, a business plan is a document developed by a new or existing company or company, which systematizes the main aspects of the planned commercial event.
A business plan serves three main purposes:
A business plan helps an entrepreneur answer the following questions:
When developing a business plan, knowledge in different areas is required: management, marketing, finance, management, planning.
Having developed a business plan, this does not mean that success is already in your “pocket”; you must be able to effectively manage resources, finances, and workers. The drawn up plan will allow you to objectively evaluate the project and create the basis for attracting investments for the implementation of the project.
A business plan is the future of the enterprise, it describes all its aspects, gives characteristics and reasons for the problems that may arise, risks. In other words, the business plan answers the question: is it profitable to invest in this project, will there be a return on it, when will it pay off, and what will be the costs and expenses of introducing innovation to the enterprise? All these questions will be answered by a business plan, which should be developed with the participation of the direct head of the enterprise, and not by some specialized agency. The manager must pass this plan through himself; it must be his idea and development.
After completing work on the plan, developers need to look at it critically, whether the main provisions are clear, whether it is realistic, model possible changes in the business, assess the best and worst case scenarios for the development of the situation, create a contingency plan, formulate an action plan, distribute responsibilities, clarify dates.
The peculiarity of a business plan as a strategic document is its balance in setting objectives, taking into account the real financial capabilities of the enterprise, its accuracy and reliability of quantitative indicators, and its content in the qualitative substantiation of project ideas. The structure of a business plan considers each economically important section, both for a newly designed enterprise and for an existing one. This is how it differs from other existing plans.
A business plan, like a feasibility study, is a clearly structured document that requires careful study, describing the goals of the enterprise and how to achieve them.
There is no single universal business plan structure. However, the main sections of the business plan are still identified, which contain information aimed at realizing the goals of business planning.
Typically, a business plan includes the following components:
Before you begin creating a business plan, you need to obtain the full range of necessary information.
The sequence of drawing up and principles of detailing a business plan for different enterprises and projects do not coincide. At the same time, there is an internal logic to the structure of a business plan and generally accepted principles for its development.
The first step in preparing a business plan is to determine the goals for its preparation. The goals are determined by the list of problems that the business plan is designed to solve.
The second step in working on a business plan involves identifying the sources of the necessary information.
The third step in working on a business plan is to determine the specific target audience of users of the business plan - will these be only internal users of the enterprise or also external users whom the enterprise would like to attract as investors - future shareholders, commercial banks, venture capital companies.
The choice of the circle of users determines the specific content of the business plan, the need to highlight certain aspects of the enterprise’s activities, economic indicators (an enterprise counting on receiving a bank loan must indicate the amount of interest in the business plan, bearing in mind their typical sizes in the market in general and in in the bank loan market in particular, an enterprise counting on attracting investment companies, in the business plan provides a mandatory calculation of project performance indicators).
The fourth step in developing a business plan is to approve the general structure of the document being created.
The fifth step of business planning involves collecting information to prepare each of the intended sections of the business plan. At this stage, it is possible to enlist the support of those people who have the necessary experience and knowledge to draw up a business plan. These can be internal participants - employees of the enterprise with experience and good knowledge internal environment, these may also be external consultants, especially for their use in the field of financial forecasting and market research.
The sixth step in business planning is the actual writing of a business plan. This is a very responsible and labor-intensive stage.
The title page of a business plan is a visual appeal from the enterprise to a potential investor or partner. It creates the reader's first impression, so the title page should be concise and attractive.
The table of contents is the most readable part of a business plan, after the title page and executive summary. It should give a clear idea of the entire content of the business plan. The table of contents should not be oversaturated with details, but it is necessary to highlight the subheadings of the most significant sections of the plan and do not forget to number the pages. In addition, the indicated pages in the table of contents must correspond to the actual location of a particular section in the text.
A business plan should start with conclusions. Conclusions should be brief. A resume is an independent advertising document, since it contains the main provisions of the entire business plan.
This section should provide a clear definition and description of the types of products or services that will be offered to the market.
Some aspects of the technology required to produce the product or service should be specified here. It is important that this part is written in clear, concise language that can be understood by a non-specialist.
Description of the enterprise.
This section provides a thorough description of the enterprise. There are two main points that need to be explained clearly and concisely in this section:
What is an enterprise as a means of making a profit;
What will his successful activity be based on?
Section Description Checklist
The marketing plan is designed to create an effective market for the proposed product. It is necessary as part of a business plan not only for the organization internal activities enterprises, but also establishing business contacts with external partners and investors. Ultimately, the entrepreneur enters the market:
Marketing strategy should address at least these four points. The specific combination of components such as product, promotion, place (channels of delivery to the consumer) and price varies depending on the type of business.
Whatever product or service is offered, as a rule, there is always an alternative to the offer on the market. Therefore, it is very important to look at the product not through the eyes of the person selling it, but through the eyes of the person who may or may not buy it. In other words, it is necessary to evaluate the benefits that the buyer will receive. It is also recommended to include in the product composition a so-called additional product, i.e. what the consumer receives without paying anything extra, in addition to the product itself.
Next, it is necessary to solve the problems of promoting the product and its price. As a rule, young businesses should underestimate the price of goods or services more often than overestimate it. Unfortunately, many companies go bankrupt without realizing this need. It should be remembered that the product will be supplied to a narrow market segment. A small enterprise does not compete with “monsters” - mass producers who are able to keep prices at a relatively low level. For example, these are small grocers that sell their goods in an area that is easily served by a large supermarket. However, some managed to survive by offering services that many competitors could not offer. For example, late night trading or home delivery.
There are several different ways to get goods and services into the hands of the buyer: these are the so-called “distribution channels”. As a rule, they mean the following options:
Which channel will be chosen largely depends on a set of factors, including the nature of the product, sales volume, geographical area in which the goods are distributed, and business connections. The thing to remember here is that maintaining a distribution channel will also cost money. A good wholesaler will help you avoid a lot of hassle and expense and simplify the paperwork (for example, one invoice instead of dozens), but you will have to pay for this work. Suffice it to say that distribution costs can sometimes be much higher than acceptable, but they will have to be accepted.
Before deciding which media to use, when to advertise, and how much to pay, it is important to know exactly what the goal of the advertising campaign is. It is also very important to be able to respond to the results of advertising. Insufficient quantities of goods and services to meet demand are not such a rare case, even in large businesses where, it is believed, they are better able to organize such things.
For a business that operates primarily on local market, an advertisement in a local newsletter, or even a simple sign in some store windows may be sufficient. There is no need for extra costs. Another local business will use local newspapers, either regularly or occasionally (other things being equal, regular advertising is more effective than occasional advertising). Newspapers publish simple advertisements and thematically organized advertisements.
Some products provide immediate response and are therefore particularly suitable for certain types of businesses. Advertisements placed in letterboxes and handed out on the street are also acceptable for businesses targeting local customers and have the advantage of being inexpensive.
For businesses focused on a broader geographical location buyers, regional or national publications may be used.
Whatever method seems most appropriate, it is very important to publish the advertisement on time. Here you should take into account the need to plan advertising costs. Since before advertising provides revenue in the form of revenue, and, consequently, profit, it will require significant expenses. It is very important to consider one point now.
The result decisions made within the framework of this section is information that will become the basis for:
The information in this section is designed to convince the investor of the existence of a market for your product (service) and of your ability to sell it.
Within the production section, it is necessary to solve the following tasks.
In the production section of a business project, it is necessary to answer the following questions:
When developing a production plan over time, it is recommended to adhere to the following scheme:
first year - monthly planning;
the second year - quarterly planning;
the third and subsequent years - planning based on annual indicators.
In this section it is also necessary to provide a calculation of production costs for the planned sales volume, direct (variable) and total (fixed) costs of production.
The sales plan section should reflect all the factors affecting the sale of products. It is necessary to describe the basic principles of pricing depending on the level of demand, costs of production and sales of the product, prices for the corresponding products of competitors, and the image of your enterprise. The sales plan should reflect the company's sales strategy in various time periods.
To generate indicators for the sales plan, you will need information worked out in the previous sections (market analysis, marketing policy, as well as the production program).
The main outcome of this section should be two documents:
The financial section of the business plan will help assess the ability of the enterprise to ensure sufficient cash flow to break-evenly service its enterprise. This section carefully examines and describes the needs for financial resources, as well as the necessary sources and schemes of financing, the enterprise's responsibility to creditors and the guarantee system.
This section of the business plan involves familiarization with the main financial indicators: costs of the preparatory and main periods of the project, calculations of financial revenues from the project, calculations of tax payments, financial forecasts. Thus, the financial plan is based on drawing up a budget of income and expenses, a cash flow budget.
In this section you can also provide a scheme for the return of loan funds for direct lending or for a possible leasing transaction. Calculations are made for planned profits and cash flows, and sources of project financing are indicated.
To attract investments, the following information must be displayed in detail: net present value, internal rate of return, profitability index, payback periods, and questions about the level of responsibility of borrowers, systems of guarantees for timely payments, a schedule for these payments, and others can also be disclosed.
A clear breakdown of project costs and use of funds is required. The terms of all other loans related to the project or already on the balance sheet must be described. The conditions, estimates and assumptions on the basis of which the financial results of the project were calculated should be described.
In this section you must provide the following information:
The budget of income and expenses reflects the formation of the economic results of the enterprise.
Thus, business planning is an object for study, there are recommendations scientific works on this topic, companies specializing in the development of business plans. Naturally, it is quite difficult for the entrepreneur himself to take into account all aspects when drawing up a business plan.
The main reasons for business planning errors in enterprises are the following: insufficient knowledge and experience to independently develop a business plan; lack of time to carefully study sections of the plan.
Typical mistakes business planning are as follows:
