DRAWING UP A BUSINESS PLAN

We draw up a business plan on our own

A business plan is a program of entrepreneurial activity. In its form, it is a document that is one of the main tools of an entrepreneur to attract external financial resources.

This document provides the owner of financial resources with information for negotiations and demonstrates the soundness of the entrepreneurial project.

When starting business planning

, it should be borne in mind that the development of even the smallest business plan, including the collection of the necessary information and design, usually takes at least two weeks of hard work.

A sign of a well-developed business plan is the presence of meaningful and sufficiently complete information in all its sections, as well as attention to detail. When developing and designing a business plan, you should focus on the volume of 15 - 35 pages.

A business plan is a document that should attract the attention of potential partners and investors, so it should look good. Use business graphics (graphs, diagrams, schemes, tables) that allow you to better perceive the information presented. Use a simple and clear style of presentation, avoid professional jargon.

It is necessary to know for sure whether the type of business activity that the entrepreneur plans to engage in is licensed. If so, which executive body does it and what is required (documents, staff qualifications, etc.).

There is a generally accepted range of information that is usually set out in a business plan, regardless of the field of activity, formed into the following structure, which we recommend entrepreneurs to use:

• Title Page
• Summary (3-5 pages)
• Description of the project applicant (no more than 5 pages)
• Market research (no more than 10 pages)
• Project description (no more than 10 pages)
• Marketing strategy (5-7 pages)
• Production plan (5-7 pages)
• Risk assessment
• Financial Analysis

1.Summary
This section, unfortunately, is often underestimated by developers. Although it is one of the most important sections of a business plan, as it may or may not arouse the interest of a potential partner or investor.

Checklist of questions for this part of the business plan:

• Brief description of the company (name, history of development, founders and their shares, successfully implemented projects, field of activity);
• Name of the project and a brief description of the project;
• Objectives of the project;
• Commercial product of the project, its brief characteristics;
• Project resources (total cost of the project, need for additional finances and the amount of own investments, need for human resources);
• Indicators of socio-economic and financial efficiency of the project (profitability, payback period, amount of taxes paid);
• Description of the market, competitive advantages of the project's product/service;
• Project team (business description of the main participants and their previous successes that are important for the implementation of the proposed project);
• Marketing strategy (planned market share in 3-5 years, promotion methods);
• Conditions for attracting investments (percentage of loan repayments, the amount of profit received on invested capital, conditions for the investor's withdrawal from the project, acceptable to the applicant).

2. Description of the Project
Applicant Checklist of questions for this part of the business plan:

• Information about the applicant. Status, share capital, financial position. When, by whom, for what purpose the company was / will be founded;
• Organizational and legal form, ownership structure (founders and their shares);
• Management structure, number of employees and their qualifications;
• Support of the project by the local administration;
• Current and past financial liabilities (credit history).

3. Project Description
Checklist of questions for this part of the business plan:

• Description of the problem to be solved within the framework of the project;
• Description of the consumer qualities of the commercial product/service;
• Description of the technology used in the project;
• Competitive advantages of a commercial product;
• Protection of intellectual property, if it is used in the project;
• A schedule for the implementation of the project indicating the stages, deadlines, results to be achieved, responsible persons and necessary resources.

4. Market
Research Checklist of questions for this part of the business plan:

• Description of the industry (level of competition in the industry, forecast for the future - growth/decline, seasonality, etc.);
• Description of sales markets (forecast of market growth; capacity of the potential market; market share that the project expects to occupy; market structure; description of the main consumers and their needs; description of product distribution channels);
• Description of competition (main direct competitors, their strengths and weaknesses, characteristics of existing analogues of products on the market);
• Forecast of sales volumes (in physical and monetary terms);
• Consumer reviews of products.

5. Marketing Strategy This section is often the main obstacle for entrepreneurs developing business plans. In this section, you need to evaluate the marketing capabilities of the product.


Checklist of questions for this part of the business plan:

• Преимущества и недостатки продукции относительно конкурентов;
• Конечные потребители. Особенности сегмента рынка, на которые ориентируется проект;
• Организация сбыта (описание системы сбыта с указанием фирм, привлекаемых к реализации продукта);
• Обоснование цены на продукцию (метод установления цены, конкурентоспособность цены, возможные скидки, надбавки);
• Advertising program, approximate amount of costs.

6. Production The
purpose of the section is to justify the choice of the production process and characterize the technical and economic indicators according to the design and estimate documentation approved by the applicant.

Checklist of questions for this part of the business plan:

• Production and sales program, production technology;
• Requirements for the organization of production;
• Composition of the main equipment, its suppliers and terms of delivery (rent, purchase, leasing);
• Suppliers of raw materials and materials, approximate prices;
• Alternative sources of supply of raw materials and materials;
• Number of employees and labor costs;
• Cost of production fixed assets;
• Form of depreciation (simple, accelerated), depreciation rate;
• Annual production costs, variable and fixed costs, unit cost;
• The cost of construction, the structure of capital investments provided for in the design and estimate documentation and the cost estimates.

7. Risk Assessment

• Possible types of risks and their analysis;
• A strategy to mitigate identified risks.

8. Financial Analysis
This section is the key one, according to which the costs of the project are planned and its effectiveness is determined.

Checklist of questions for this part of the business plan:

• Description of the taxation system and other conditions of financial settlements;
• List of project stages, their cost (the main areas of investment of financial resources for the project);
• Offers to external investors (possible amount of borrowing, estimated interest rate on loans);
• Description of possible collateral, guarantees, sureties for the loan.