Brief instructions

You have an idea. You want to create your own business. Great. What's next? Next, you need to “put everything in order,” think through the details (as far as possible) in order to first of all understand: is it worth developing this project? Perhaps after researching the market, you will realize that the service or product is not in demand, or you do not have sufficient funds to develop the business. Maybe the project should be improved a little, unnecessary elements should be abandoned, or, on the contrary, something should be introduced?

A business plan will help you consider the prospects of your idea.

End justifies the means?

When starting to write a business plan, keep its goals and functions in mind. First of all, you carry out preparatory work to understand how realistic it is to achieve the planned results, how much time and money is needed to implement your plan.

In addition, a business plan is necessary to attract investors, obtain a grant or a bank loan. That is, it must include information about the potential profit of the project, the necessary costs and the payback period. Think about what is important and interesting for your recipients to hear.

Use a small cheat sheet for yourself:

• Analyze the market you are going to enter. What leading companies exist in this direction. Research their experience and work.
• Identify your project's strengths and weaknesses, future opportunities and risks. In short, conduct a SWOT analysis*.

SWOT analysis - (English)Strengths,Weaknesses,Opportunities,Threats - strengths and weaknesses, opportunities and threats. A method of planning and strategy development that allows you to identify the main factors influencing business development.

• Decide clearly what you expect from the project. Set a specific goal.

The main purpose of a business plan is to help you, first of all, develop a company strategy and plan its development, as well as help in attracting investments.

So, any plan has a structure. Regardless of the specifics of the project and the requirements of investors, a business plan, as a rule, contains the following elements:

1. Company summary(short business plan)

• Product Description
• Description of the market situation
• Competitive advantages and disadvantages
• Brief description of the organizational structure
• Distribution of funds (investment and own)

2. Marketing plan

• Defining the “problem” and your solution
• Determining the target audience
• Market and competition analysis
• Free niche, unique selling proposition
• Methods and costs of attracting customers
• Sales channels
• Stages and timing of market penetration

3. Plan for the production of goods or services

• Organization of production
• Infrastructure Features
• Production resources and space
• Production equipment
• Production process
• Quality control
• Calculation of investments and depreciation

4.Organization of the work process

• Organizational structure of the enterprise
• Distribution of powers and responsibilities
• Control system

5. Financial plan and risk forecast

• Cost Estimation
• Calculation of the cost of a product or service
• Calculation of profit and loss
• Investment period
• Break-even point and payback point
• Cash flow forecast
• Risk forecast
• Ways to minimize risks

It is clear that a business plan is one whole and its parts are inextricably linked with each other. However, a well-designed structure will help you not to forget important things, as well as to take a deeper look at each aspect.

Company summary. Briefly about the main thing

Marketing plan. There are empty seats?

When creating a marketing plan, you will have to analyze the market you are going to enter. In this way, you will identify trends for yourself, collect information about competitors and get to know your consumer, your target audience, better.

Having assessed the potential client, his interests and preferences, you must determine the optimal location of the office, retail outlet, etc. It should be comfortable. Calculate the required number of clients for your business to pay off and compare it with the audience living or working around the intended location of the business. For example, for a business in the field of public services, the size of this audience should not be less than 2% of the number of people living within a short walk or five-minute car ride.

It is quite possible that the market you were planning to conquer is oversaturated at the moment. Analyze the actions of your competitors, create your own strategy, focus on your uniqueness, bring in something new to fill an empty niche in a certain area.

Of course, creating something that is not yet on the market is quite difficult. However, you can carefully analyze the situation and open, for example, a point where the consumer really needs it or play on the difference in prices and level of services provided relative to nearby competitors.

You also definitely have to decide on sales channels. After reviewing the existing methods on the market, find the ones that are best for you. Calculate how much it costs you to attract each client.

Finally, when deciding on pricing, you will need to calculate: what is more profitable? A high price with a small number of sales or a price lower than that of competitors, but a large customer flow. You should also not forget about service, because for many consumers it is crucial. They are willing to pay a price higher than the market average, but receive high quality service.

Production plan. What are we selling?

This is where you finally get into detail about the core of your business: what do you do?

For example, you decide to produce dresses and sell them. In the production plan, indicate suppliers of fabric and equipment, where you will locate the sewing workshop, and what the production volume will be. You will describe the stages of product manufacturing, the necessary qualifications of employees, calculate the necessary deductions to the depreciation fund, as well as logistics. The costs of future business will depend on many factors: from the cost of threads to the cost of labor.

When prescribing the technology for creating your final product, you will pay attention to many little things that you had not thought about before. There may be issues with storing goods or difficulties with imported raw materials, problems with finding employees with the necessary qualifications, etc.

When you have finally written down the entire path to creating a product or service, it’s time to calculate how much your project will cost you. It may well be that later, when making financial calculations, you will understand that you need to make adjustments to the production plan: cut some costs or radically change the technology itself.

Organization of the work process. How will it work?

Will you manage the business alone or with partners? How will decisions be made? You need to answer these and many more questions in the “Workflow Organization” section.

Here you can describe the entire structure of the enterprise and identify duplication of powers, mutual exclusions, etc. Having seen the entire organization diagram, it will be easier for you to optimally distribute rights and responsibilities between departments and employees.

Having understood, first of all, for yourself how your company functions, it will be possible to more effectively develop a system of interaction between structures, a system for monitoring employees and the entire personnel policy.

The importance of this section is that it describes who and how will implement the project in reality.

A business plan is a document that provides a detailed justification for the project and the ability to comprehensively evaluate the effectiveness of decisions made, planned activities, and answer the question of whether it is worth investing in a given project.

The business plan should:

• show that the product or service will find its consumer, establish the capacity of the sales market and prospects for its development;
• estimate the costs required for the manufacture and sale of products, provision of works or services on the market;
• determine the profitability of future production and show its effectiveness for the enterprise (investor), for the local, regional and state budget.

Main functions of a business plan:

• is a tool with which an entrepreneur can evaluate the actual results of activities for a certain period;
• can be used to develop a business concept in the future;
• acts as a tool for attracting new investments;
• is a tool for implementing the enterprise strategy.

One of the most important stages of the planning process is the preparation of a business plan, which is necessary both for internal planning and for justifying the receipt of funds from an external source, i.e., receiving money for a specific project in the form of bank loans, budgetary allocations, and equity participation of other enterprises in the implementation of the project.

1. Business plan summary (brief summary)
2. Project goals and objectives
3. Company Description
4. Analysis of the industry and its development trends
5. Target market
6. Competition
7. Strategic position and risk assessment
8. Marketing plan and sales strategy
9. Operating activities
10. Technological plan
11. Organizational plan
12. Personnel plan
13. Financial plan
14. Social and environmental responsibility
15. Conditions for going out of business

How to write a business plan correctly

Any form or sample business plan offered on the Internet provides only a general idea. Any business has its own characteristics, therefore, there cannot be a “standard” writing algorithm that is suitable in all cases. There is only one proven principle for drawing up any business plan: IT SHOULD ALWAYS BE SHORT.

Start from the right premises. As paradoxical as it may sound, for most entrepreneurs a business plan as a document is one of the least important factors in obtaining capital.

• If the investor is inclined towards a positive decision, then a good business plan will be an additional argument in favor; but it is not the plan itself that is the reason for such a decision.
• If an investor is inclined to make a negative decision, it is unlikely that a business plan will be able to convince him. In this case, the investor most likely will not even read this plan to the end.

Unfortunately, naive entrepreneurs believe that a business plan is capable of causing delight and awe in the investor with an immediate request: “ Please tell me where to transfer the money».

Well, there's no harm in dreaming. The correct and realistic motivation for writing a plan should be the following: which was downplayed in the first euphoria - for example, customer service policy.

Finally, the plan exposes holes in the founding team. If, looking around the office, you realize that there is no one who could implement some key element of the plan, then someone is missing from the team.

All midnight, romantic, abstract dreams of changing the world become completely material and controversial, as soon as you transfer them to paper. Thus, the document is not as important as the process leading to its creation. Even if you do not pursue the goal of raising capital, it is still worth writing a business plan.

COMPLETION INSTRUCTIONS

Title page and contents. Start with the basics: company name, address, phone number and contact information for all founders, as well as a table of contents throughout the document.

Introduction. List all the most important things in no more than two pages. First, talk about the value of the project: what your company will do, how much profit it will generate, and why people will want to pay for your product or service. If you are sending a plan to investors, communicate the capital you will need and how you plan to use it. To highlight the essence, you need to imagine the whole picture, so it is better to start this part after completing the entire plan.

Market opportunities. Explain to whom you will sell your product or service and why this group of consumers is attractive to you. Several key questions need to be answered. How big is the market? How fast does it grow? What are the growth opportunities and potential threats? How will you deal with them? Much of this information can be found through industry websites and media, official statistics, analyst reports, and even from other businessmen. Be sure to indicate the source of information.

Market Review. Make no mistake, your business is not unique. Try to take a sober look and evaluate your opponents. Who are they? What are they selling? What part of the market do they occupy? Why will customers choose your product or service over theirs? What obstacles may arise when entering this market? Don't forget about indirect competitors who are currently working in a different segment, but have similar capabilities and can compete with you later.

Promotion of goods to the market. Describe how you will promote your products or services to consumers. Conditions and organization of product sales. What promotion channels will you use? In this section, describe pricing issues.

Company structure. Control. Staff. Execution is almost as important as the idea itself. Therefore, investors are interested in who is on your team. Attach a resume of all founders, partners and managers: what are their skills and achievements. Here you should also add information about the legal form of the enterprise and its internal organizational structure, the staff of the enterprise.

Business model. This section includes a detailed description of all sources of income (sale of product, service) and the company's cost structure (payroll, rent, operating expenses). Describe the premises, equipment, technologies, production flow diagrams. Make sure you mention and justify all potential revenues and costs. Also include the names of major suppliers and buyers. In essence, this section is the production plan of the future company.

Financial indicators and forecasts. Make a forecast for profits, losses and cash flows (income-expenses) for at least three years in advance (it is advisable to divide the first year into quarters or even months). Also provide an analysis that shows how quickly your startup investment will pay off.

Risks. Don't wait until disaster strikes to find out how your business can handle it. Work through possible worst-case, best-case and average scenarios, and what you will do to reduce the negative impact of the risks or prevent them altogether. Make sure you have enough money to weather any storm. If you insure risks, write down the amounts you will insure for and the types of insurance policies.

Sources of funds and their use. If you're trying to raise money from investors, they'll want to know how you plan to manage your capital. In this section you need to indicate the expected costs of launching: premises, purchase of new equipment, design of the company logo, etc. Most entrepreneurs underestimate the cost of starting a new business. So do your research in advance before approaching investors.

Applications. This may include a resume, credit information, market overview, schemes, promotion plan, copies of contracts, including leases, letters of guarantee from future clients, patent and trademark registration certificates, partnership agreements, and a company registration certificate.

10 mistakes when writing a business plan

According to professional project managers, there are 10 things that should not be written in a business plan.

1. "Dead Souls". A common mistake made by entrepreneurs preparing a business plan is that it includes information about certain management members who, in fact, have nothing to do with the team. Information about consultants should be reliable, because the investor may wish to communicate with them personally.
2. "Homework". There is no need to go through the trouble of going into confusing descriptions of the entire range of products and services. This will only overload your plan with a large size, which is not at all to your advantage, because the investor must understand the very essence from the first pages, otherwise further reading will not make sense for him.
3. "Fictional characters." All biographies of board members and founders must be extremely honest and not embellished.
4. "Who, when and how." Marketing plans should be based only on existing offers.
5. "Year after year". You cannot submit financial plans broken down solely by year in a business plan. As mentioned above, the first year's forecast should be done monthly and show start-up funding, and then a quarterly breakdown for the following period. The investor must see when the full return on investment will occur and whether the investment will pay off.
6. "Monopoly". There is always competition and similar products or services, the consumer market is not that large, and it takes a lot of effort to implement a business plan. Therefore, in the text you need to abandon phrases about the lack of competition, a huge market that has no analogues, products or services, and simple implementation of the project.
7. "Hockey stick". Financial indicators absolutely cannot, when viewed graphically, constitute a curve in the shape of a hockey stick, i.e., profits falling from the very beginning and boundlessly rising in the future. The most ingenious idea, even if it pays off, will generate competition, so income cannot grow indefinitely.
8. "There is no counting of indicators." The market must be assessed by you from different angles in quantitative terms: prospects, market share, customers. Otherwise, you are incompetent.
9. "Promises." You should not stipulate in the business plan possible financial investments that are at an unfinished stage. Either there is funding or there is not.
10. "Somewhere like that." Your business plan must operate with accurate numbers. You must clearly understand the scope of fixed, variable, direct, indirect and outsourcing costs.

Print out your business plan. Set aside all pages starting from the third. Re-read the first two pages - do they make you want to read the rest of the document? Brevity, simplicity, clarity - cross out everything unnecessary.

Having polished your plan to a shine, do not send it to a distant drawer to gather dust. “A business plan is just the beginning of the process. Planning a business is like steering a ship at sea: you need to constantly adjust the course. The plan itself is of little value. It is important to go back to it and see where you were wrong and what it cost you.

We wish you success! All in your hands!

Many people come up with business ideas – the question is what these ideas are worth. That is why, if you are going to implement an idea into a business, it is worth creating a business plan in which you can detail your concept and prove its effectiveness, both organizationally and financially.

A business plan is a document that outlines your business. In it, you talk about what exactly you will do, the structure of the business, the state of the market, how you plan to sell your product or service, what resources you need, what your financial forecast is, and also provide permits, lease agreements and any other necessary documents. documentation.

In fact, a business plan helps you prove to yourself and others whether your business idea is worth pursuing. This is the best way to take a step back, look at the idea from all sides and protect yourself from possible problems for years to come.

In this article, we share tips for writing a successful business plan, describe items that should be included in the plan, and provide examples.

The translation of the article was prepared with the support of the online English language school. Before we get into the details, let's start with some basic, general tips.

Focus on your features

Before you dive headfirst into creating a business plan, you should carefully consider what makes your business unique. For example, if you are going to start a sportswear brand, you need a way to stand out from the many other sports brands that are already on the market.

What makes your brand stand out from others? Do you plan to create clothing for a specific type of workout or activity, such as yoga, tennis or hiking? Do you use environmentally friendly materials? Do you give part of your proceeds to charity? Does the brand promote positive body image?

Remember: you are not just selling a product or service - you are selling a product, value and brand experience. Consider and answer these important questions before diving into the details of the research for your business plan.

Be brief

The modern business plan is required to be shorter and more concise than ever before. Resist the temptation to include all your marketing research, go into detail about every product you plan to sell, and describe in detail what your site will look like. In the format of a business plan, this information will not provide much benefit, rather the opposite.

All of the above details are important to collect and keep in mind, but Only the most important things should be included in the business plan itself. Otherwise, readers may lose interest in you.

Make a good design

Your business plan should not only be easy to read - it is important that the reader can understand the essence without going into details. Formatting plays a big role here. Use headings and bulleted lists, and highlight in bold text or color those key points and indicators that you want to draw readers' attention to. You can even use shortcuts and bookmarks throughout your document (both digital and print) for ease of reference.

Edit as you go

Remember that your plan is a living, breathing document, which means you can edit it as you work. For example, update the plan a year or two after launching the business, before submitting a new funding request.

Here are the key elements in a business plan template:

1. Marketing and sales plan
2. Application

Let's take a closer look at what is included in each element of a business plan:

The purpose of this section is to give readers a clear understanding of the company and the market before you delve into the details. Tip: Sometimes it is worth writing the main points after you have written the rest of the business plan so that you can easily isolate the key points.

The main points should take up about a page. Dedicate 1-2 paragraphs to each of the following points:

• Overview: Tell us briefly about what your company is, where it will be located, what exactly you are going to sell and to whom.
• About the company: Describe the structure of your business, tell us about the owner, what experience and skills you already have and who you are going to hire first.
• Products and/or services: Briefly describe what you will sell.
• Market: Briefly summarize the key findings of the market research.
• Financial Forecast: Tell us how you plan to obtain financing and what your financial expectations are.

Example of a “Basics” section

Startup Jolly's Java and Bakery (JJB) is a coffee and baked goods store located in southwest Washington. JJB plans to gain an audience of regular customers by offering them a wide selection of coffee and confectionery products. The company plans to take a strong market position in the city thanks to the professional experience of its partners and the mild competitive climate in the area.

JJB strives to offer competitively priced products to meet market demand among area residents and tourists with middle and upper-middle incomes.

The next point in the plan is a description of the company. Here you can describe what your company does, state its mission, talk about the structure of the company and its owners, location, as well as the market needs that your company is trying to satisfy and how exactly you are going to do this.

Example of a “Company Description” section

NALB Creative Center is a startup that is entering the market this summer. We will offer customers a large selection of arts and crafts supplies, primarily items that are not currently available on the island of Hawaii. Our competition remains the Internet, as artists tend to buy familiar products online. We will be supplying items that are not necessarily well known to local artists. We will also continue to monitor prices and include products available online in price comparisons.

We will conduct master classes on working with new materials and techniques.

We also organize a tourist program “Oasis of the Artist”. We will provide local bed and breakfast reservations, maps and directions for plein air paintings, easel and material rentals, sell paints and other supplies, and deliver finished artwork to clients once the canvases have dried.

In the future, the store will turn into an art center, which will combine: an art gallery where you can purchase original works of art at wholesale prices; studio space with musical instruments; classrooms for music and art lessons; literature on music and art; coffee bar with live music; handicraft items such as branded T-shirts, badges, postcards, ceramics for trade with tourists.

One of the first questions to ask yourself when testing a business idea is whether there is a place for it in the market. It is the market that will dictate how successful your business will be. Decide what audience you are targeting and why customers will want to buy from you.

Add specifics. Let's say you sell bedding. Don't include everyone who sleeps in bed in your target audience. First, identify a small target group of clients for yourself. These could be, for example, teenagers from middle-income families. Once you have decided on your target audience, try to answer the following questions:

• How many teenagers from middle-income families live in your country?
• What supplies do they need exactly?
• Is the market growing or staying the same?

When analyzing the market, consider both already available research conducted by others and primary data that you have collected yourself, through surveys, interviews or any other means.

This should also include competitor analysis. In our example, questions might include: How many other bedding companies already have market share, and who are these companies? Describe the strengths and weaknesses of your potential competitors, as well as the strategies that will give you a competitive advantage.

Example of a summary section “Market Analysis”

Green Investments has identified two separate target groups of clients, which differ in the level of family wealth. One group included clients with a family income of less than a million dollars, the other - with an income of more than a million. The main thing that characterizes both of these groups and makes them attractive to us as a company is their desire to change the world for the better by making financial investments that take into account environmental factors.

There are many different niches in the financial services industry. Some advisors provide general investing services. Others offer one type of investment, such as mutual funds or bonds. Some service providers focus on a specific niche, such as technology or socially responsible business.

Market segmentation

Green Investments segmented the target audience into two separate categories, based on family wealth: more and less than $1 million.

• <1 миллиона долларов (семейный бюджет): представители среднего класса, которых волнуют проблемы окружающей среды и которые вносят личный вклад в ее защиту, приобретая акции компаний, которые демонстрируют высокие экономические и экологические показатели. Так как свободных денег у таких людей немного, они предпочитают инвестировать в акции без особого риска. В целом акции составляют 35%-45% от общего портфеля.
• $1 million (family budget): These clients have an average or above average income. They have managed to save over a million dollars and invest quite carefully (either themselves or the people they hire). These people are usually concerned about return on investment, but they are also concerned about environmental issues.

Here you can delve into the details of what exactly you sell and what your advantage is for customers. If you can't articulate how you can benefit your customers, your business idea may not be that good.

Start by describing the problem your business solves. Then address how you plan to solve the problem and how well your product or service fits into the big picture. Finally, think about the competitive landscape: what other companies are providing solutions to this particular problem and how is your solution different?

Example of the “Products and Services” section

AMT provides computer products and services to help small businesses. We primarily provide network equipment and network services to small and medium-sized businesses. These include LAN-based computer systems and server-controlled minicomputer-based systems. Our services include network system design and installation, training and support.

Description of goods and services

In the field of personal computers, we support three main areas:

1. Super Home is our smallest and least expensive line of computers, which are initially positioned by the manufacturer as home ones. We primarily use them as low-cost workstations for small businesses. Specifications include...[additional details omitted]
2. Power User is our main premium area. This is our premier system for organizing high-performance home stations and basic workstations for small businesses, thanks to... Key benefits of the system... Specifications include... [additional details omitted]
3. Business Special is a mid-level system, an intermediate link in positioning. Its technical characteristics include... [additional details omitted]

As for peripherals, auxiliary and other hardware, here we provide a full range of necessary equipment, from cables to molds and mouse pads. ... [additional details omitted]

We offer a wide range of in-office and on-site maintenance and support services, as well as service contracts and warranty agreements. So far we have not been successful in concluding technical support contracts. Our networking opportunities... [additional details omitted]

Competitive Analysis

The only way to gain an advantage and stand out from competitors is to offer information technology partnerships to our clients. We will in no way be able to compete effectively with network providers that offer out-of-the-box or hardware/software solutions. We must offer clients a true partnership.

The advantages of this approach include many intangible assets: reliability and confidence that the client will always receive help and answers to his questions at the right time.

The products we supply and work with require serious knowledge and experience, while our competitors only sell the product itself.

Unfortunately, we cannot sell products at a higher price simply because we provide service - market conditions demonstrate that this approach will not be effective. Therefore, we will provide service for a fee.

In this section, you can briefly describe the features of the organizational and management structure of the business (taking into account the fact that it may change). Who will be responsible for what? How will tasks and responsibilities be assigned to each person or team?

Include a short bio of each member of your team here. Justify why these people are the right people for the job - talk about their experience and education that is relevant to your business. If you haven't hired the roles you've planned yet, that's okay—but make sure you clearly identify those gaps and explain what the people in those roles will be responsible for.

Example of a personnel plan in the “Operations Management” section

DIY Wash N' Fix does not require much labor. The company will hire a general manager who will work part-time to perform corporate responsibilities and handle interorganizational issues. DIY Wash N’ Fix will also hire three certified mechanics/managers to perform day-to-day tasks for the business. These responsibilities fall into two categories: managerial and operational. Management tasks include planning, inventory control and general accounting. Employees are also responsible for operational tasks: security, regulatory affairs, customer service and repair consulting.

In addition, maintenance staff will be hired to handle the most basic tasks. Their functions will include customer service and content and storage supervision. DIY Wash N’ Fix will employ one general manager to coordinate all external business operations and partnerships. Business relationships include accounting services, legal advice, communications with manufacturers and suppliers, as well as persons providing service, advertising and marketing services, and investment services. This management position will be filled by Laurie Snyder. She will receive her MBA from the University of Notre Dame in May 2001.

The day-to-day business management tasks will be handled by the Lead Mechanic. Although DIY Wash N' Fix does not provide a full range of repair services, you can expect some customers to attempt repairs they have never done before, meaning they will need advice. Therefore, we intend to hire three fully certified mechanics. These mechanics will not be allowed to perform any work on the customer's vehicle, but will be able to inspect the vehicle and assess the damage. We believe that only professional mechanics should advise clients - this will reduce our liability for incorrectly performed repairs. The primary duties of mechanics will be customer service and management functions.

6) Marketing and sales plan

Here you can describe your marketing and sales strategies and tell us exactly how you are going to sell your product. Before you begin developing a marketing and sales plan, conduct a complete market analysis and identify target people - your ideal customers.

From a marketing perspective, you may need to answer questions like: How are you going to market? How will you grow the business? Which distribution channels will you focus on? How will communication with clients be organized?

When it comes to sales, try answering these questions: What is your sales strategy? How will the sales department work and how will you develop it in the future? How many sales calls will it take to close a deal? What is the average selling price? Speaking of average selling price, you can move on to the details of your pricing strategy.

Example of a Marketing Plan section

Skate Zone will be the first amateur inline hockey facility in Miami, Florida. Due to the extraordinary growth in popularity of inline hockey in the United States, the company has the opportunity to advertise in various media and advertising platforms. Below is a list of channels currently available.

Public relations. Press releases will be sent to specialized trade magazines and leading business publications, such as USAHockey Inline, roller sports magazine INLINE, PowerPlay and others.

Tournaments. Skate Zone will be presenting its services at annual championships throughout the United States.

Print advertisements and articles. Our advertising campaign includes advertising in publications such as The Yellow Pages, Miami Express News, The Skate Zone Mailing, as well as printing school flyers and publications in specialized inline hockey magazines.

Internet. Skate Zone already has its own website on which we have already received several applications. Currently, work is being planned to optimize the site. We expect that in the future the site will become one of the company's main marketing platforms.

Finally, detail your financial model, including start-up costs, financial plans and required investments if you are approaching investors.

The start-up cost of your business includes all the resources needed to get started, as well as an estimate of how much each of those resources will cost. Do you rent office space? Do you need a computer? Telephone? Make a list of your needs and expenses for them, try to be objective and economical. The last thing you want is to run out of budget.

Once you have decided on your expenses, justify them. To do this, write down your financial forecast in detail. This is especially important if you are looking for external funding for your business. Make sure your financial model is 100% accurate to ensure you convince investors and lenders to back your business.

Example of a financial plan for an online store

Application

If desired, you can add an appendix at the end of the plan. There is space here for your and co-owners' resumes, as well as legal documents, including permits and lease agreements.

That's all. We hope this article has helped you better understand what your business plan should look like. All that remains is to turn the idea into reality. Good luck!

Having a business is a great way to start earning money on your own, but it cannot be opened without first developing a special project. In this publication you will find the answer to the following questions: what is a business plan, how to draw up this document, are there any nuances of its design.

What is a business project?

A business project describes all the features of the future organization. It analyzes possible problems, identifies options for solving them, and predicts the result. How to draw up a correct business plan is a question asked by people who are planning to attract investors. Competent preparation of the document will guarantee the successful future of your enterprise.

Drawing up a correct business project is not easy even for an experienced entrepreneur, so it is advisable to entrust this work to a team of competent economists. The plan must contain, regardless of the type of activity:

1. Justification of economic feasibility.
2. The state of the economic environment in which it is planned to open a business.
3. Financial results (sales volume, revenue and profit).
4. Sources of financing.
5. Task execution schedule.
6. Appointment of people responsible for the implementation of the business.
7. Determine indicators that allow you to monitor intermediate results.

Useful instructions on how to write a business plan. Take note!

Even if you first asked the question, how to write a business plan, then you understand that it is impossible to get a finished document in 10-15 minutes. However, all the time spent will be fully paid off.

A well-drafted plan will help outline the opening stages, a project development plan, assess the risks of the activity and get help from investors.

Being able to articulate what you want and how you plan to achieve it means doing half the job.

It often happens that a novice entrepreneur, faced with risks that he did not draw up on paper in advance, loses motivation and gives up developing his business. Therefore, you need to pay due diligence and write a competent business plan.

How to create a “Summary” section in a business plan

This part of the document is the shortest; 5-7 sentences are enough.

But its value cannot be underestimated. This is especially true for those who need to draw up a business plan to receive financial assistance from investors or a bank!

The summary should concisely indicate the essence of the project. Depending on how interesting and capacious this section of the business plan is, potential investors will either enthusiastically study everything from cover to cover, or immediately close and put the document aside.

Having outlined your goals, you can move on to specifying practical information, figures and activity forecasts.

We draw up a business plan: company activities

To draw up this section of the business plan, you need to dwell in more detail on the activities of your future company. Moreover, we are talking not only about the name, details, location and other characteristics.

• What goals do you set?
• How should you achieve them?
• If there are several founders, indicate the distribution of roles.
• What will be your competitive advantage?
• What prospects for the development of the business do you see?

Be sure to conduct an analysis of your target audience. It needs to be presented as specifically as possible in order to be able to determine the ways of “enticement”.

A separate item in the business plan should include a description of the product or services provided by the company. This includes any information: from technical parameters to color and packaging design.

How to Analyze a Market Niche When Writing a Business Plan

An analysis of the current state of affairs on the market will help you and potential investors correctly identify a possible niche, potential business risks, customer flow and other important parameters.

The phrases “has no competitors” and “one of a kind” should definitely be avoided when drawing up a business plan. Even if at the time of opening you have a monopoly on the market.

In the case where the services or goods offered really have great prospects for development, tomorrow there may be those who also want to make money on it. This must be taken into account and be able to predict.

If there are already competitors, the situation becomes simpler. You just need to specify them and describe the activity using the following parameters:

• Quantity and names.
• The share that each holds in the market.
  If there are too many competitors (as is often the case in retail), describe the main ones.
• Determine their strengths and weaknesses independently and honestly.
  Based on this data, you need to create competitive advantages for the previous section.
• Describe the advertising methods used and their effectiveness in such activities.

During this work, you also need to isolate the strong behavioral drivers of these firms (pricing, customer acquisition, special services) and use them to grow your business.

How to create a “Production” section for a business plan

Planning without action is a dream. Action without planning is a nightmare.
Japanese proverb

No less important is the section of the plan describing production.

The business plan must indicate how, from what and on what equipment products will be produced or services will be performed. What equipment do you need to achieve your goal, and what do you need to purchase? Technology also matters, especially if you plan to introduce any innovations that no one else has yet introduced.

But what if you do not plan to produce products, but will order them from suppliers?

In this case, you need to indicate from whom you will buy the finished product. All details are important: names of organizations, terms and conditions of delivery, confirmation of reliability.

The main task of this section of the business plan is to convince investors that the activity will not “stop” a day after the start due to the banal lack of necessary materials.

Drawing up the financial section of a business plan

No matter how important all the previous chapters of the plan are, it is impossible to draw up a business plan without financial calculations and you need to pay special attention to them.

You can easily analyze your expenses yourself. They are divided into two categories: opening costs and monthly development costs.

What does it include?

Start-up costs

1. Cost of equipment.
   To describe the equipment, it is worth creating a separate section in the business plan. You need to make a list of equipment, indicate technical characteristics and supplier.
2. Purchase of raw materials and consumables.
   As with equipment, you need to not only list the items and their costs, but also where you will order them. The supplier must be reliable and, in addition, offer the best prices.
3. Paperwork.
   This includes the costs of registering your state of emergency, purchasing a seal, and obtaining permits from the relevant authorities.
4. Repair and decor.
   If the room requires renovation (and most often it does), you need to indicate who will do it and why. Also indicate in the business plan who will supply the building materials.
5. Purchase of premises (only if it is not rented).

Monthly expenses

1. Staff salaries.
   In a separate section of the business plan, you should make a list of positions that will participate in the company's activities. For each, you need to write down your responsibilities, based on the labor code. The salary is also indicated. The total data on regular expenses for paying wages is entered into the corresponding column of monthly expenses. If you plan to increase your salary in the future, as well as conduct training courses and advanced training courses, you also need to write about this.
2. Rental of premises.
   Most ideas for organizing a business require just such a solution. If in the future you want to become the full owner of the premises, look for an option with the possibility of subsequent purchase. As long as the building is leased, you do not risk anything. If the business fails, you simply break the contract. But if it is purchased, if it fails, you will have to suffer significant financial losses.
3. Replenishment of materials.
   Indicate in your business plan what, in what volumes and from whom you need to buy. The list of consumables may include food, stationery, household chemicals and other small related products.
4. Public utilities.
   Most often, utilities are paid separately from the rent for the premises. Therefore, data on the amounts also needs to be entered into the expenses table of the business plan.
5. Tax deductions.
   To analyze the potential income from an activity, you need to study the sales figures of close competitors. It is somewhat easier for those who already have an existing business that requires additional investment. Then it is enough to take the current indicators and calculate their potential growth. Those who have not yet entered the market can make calculations based on data on the future cost of the most potentially popular positions or services.

Based on these data, it’s as easy as shelling pears to calculate the amount of future profit and the time the activity will reach the so-called break-even point.

P.S. Potential investors and bank representatives issuing commercial loans pay particular attention to this data in the business plan.

All the above data must be compiled in the form of tables and placed in a separate application. This makes it easier to study the indicators.

But information about profit growth or the development of sales levels should be presented in the form of a graph. Don’t overdo it, because a curve that suddenly goes from negative to sky-high profit is more likely to arouse suspicion than delight and approval.

We draw up a risk analysis in the business plan

No one will invest money in a project that may fail immediately after the start due to a lack of analysis of potential risks. Therefore, this data also needs to be included in the business plan.

What might be included in this category?

• Decrease in consumer demand for your goods or services.
• Sales level is too low.
• Changes in the economic state of the country (“jumps” in exchange rates, price changes).
• Emergencies (fire, work injury, natural disasters).

All these and other potential risks need to be more than just listed. You need to draw up a business plan for solving them for the company if you suddenly find yourself in such a situation. Such an analysis will help in an emergency to save the business and act correctly. In addition, it instills confidence in your activities and in yourself.

where practical and life recommendations are presented

on the correct preparation of a business plan!

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