Starting with a business plan outline
The preparation of a business plan is subject to specific rules, and sequence. In this form, your idea begins to materialize and demonstrates a desire to develop and a willingness to work. Besides, the plan, implemented on paper, simplifies the perception of ideas from the outside.
When drawing up a business plan, it is necessary to identify all the advantages and disadvantages of the idea that has arisen, and then calculate the income and take any action. Pay attention to competitiveness and market stability.
When conducting a surface analysis, pay attention to the payback of a product or service, as well as the period through which you can get your first profit – this will help determine the amount of initial investment. If, after a superficial analysis, you still have not abandoned your idea, then it is time to start creating a business plan.
When compiling it, the following information is indicated on the title page:
- The name of the project;
- Name of the company;
- Project manager data;
- Information about the developer;
- Date of preparation;
The next stage involves the development of a brief summary, which displays information about the idea of the project with significant characteristics of the financial component. It covers the following issues:
- What service or product is the investor going to implement?
- Which audience will be interested in this product?
- Desired sales or production?
- What are the proceeds of production?
- What costs will the investor incur?
- How many people are planned to be involved in this project?
- What are the sources of financing?
- What will be the total profit for a particular period?
- How soon can the project pay off?
- Clean discounted project.
In the resume, it is imperative to interest the investor because the fate of your project financing will depend on this.
The next part of the paper should be devoted to the main idea of the project. Here, the main goal, tasks, obstacles, and a list of exact actions that will help the author to achieve the tasks in the shortest possible time will be displayed.
The SWOT analysis is also performed in the same section. Its main goal is to assess the strengths and weaknesses of the enterprise, prospects, and possible threats. It is with the help of such an analysis that the business plan will be the most complete and correct. Using it, you can reflect two sides that affect the life of the company: the internal, which is related to the enterprise itself, and the external – everything that is beyond its borders and which cannot be influenced.
SWOT (Strengths, Weaknesses, Opportunities, and Threats) Analysis
Moving on to the next point, an author must perform marketing analysis, again proving the validity of a project. Here it is necessary to be based on the following indicators:
- Sales dynamics of similar products, according to signs for several years;
- The growth rate of the industry;
- Competitiveness assessment;
- Subtleties of pricing;
- Study of the consumer market, with its desires, requirements, and opportunities;
- Market development prospects.
When preparing a marketing plan, it is required to indicate what tasks should be performed by staff and in what time frame. A marketing plan implies the concept of a strategy that reflects simultaneous or sequential steps that can attract consumers by receiving sufficient returns on their part.
As for the creation of the product, it will be necessary to open the next part. Only those companies whose primary purpose is not only distribution but also production should pay attention to this point.
Disclose of business plan
Next, you need to disclose a business plan, which develops the principles of strategic management of the company. Even if the organization is already working, this is still an obligatory thing. It contains the following information:
- Name of the brand as well as the legal form;
- Company management system in the form of a diagram;
- Information about the founders;
- Interaction with staff;
- Material and technical resources of the company.
Mind that some business fields have their own business plan requirements. This happens due to different parameters that should be taken into account.
Preparing a financial plan
This part of the business plan is intended to evaluate the project in terms of its costs and its profitability. It should justify the need for finance, paint ways to replenish the project budget and guarantees. It also describes the economic situation in the area of interests of the project, difficult to predict factors and possible options for financial behavior in several scenarios.
Preparation for writing a financial plan consists in drawing up an estimate, and the degree of its accuracy. It is important to list in detail all the planned costs of the project and the rationale for their need for years, breaking them into quarters. And it is advisable to plan the first year on a monthly basis. For each month (quarter, year) of the project, you need to reflect:
- Taxes and their rates;
- Inflation information on capitalization methods;
- Loan repayment schedule.
Recommendations that will help you to write a competent business plan by yourself
Predict in the plan the approximate time period when the invested funds will return and what specific steps are provided for this. When making forecasts, check the project performance indicators. After accurate calculations of the project costs, specialists are advised to double this figure.
Lack of funds can ruin the most promising project
Compare the timing of receipt of funds with the timing of the regular expenses of the company. Create a financial reserve, while the growth of project income exists only on paper. Create sound profitability forecasts.
It is better to expect less than to be captured by illusory expectations and create a difficult financial situation for the enterprise. Until the advent of operational payback, tightly control costs.