It is a document that highlights all the characteristics of the future organization, analyzes possible problems and risks, predicts them and methods by which they can be avoided.
Simply put, a business plan for an investor is the answer to the question “Should I finance the project or throw it in the trash?”
Important! A business plan is drawn up on paper, taking into account some procedures and rules. This presentation of the project to some extent materializes your idea and shows your desire and willingness to work. Also, putting it on paper makes it easier for investors to perceive the idea.
Drawing up a business plan yourself
Making a business plan yourself is not that difficult, you just need to think about the idea carefully. Before you grab a calculator and calculate your income, there are several steps you need to take.
- Identify the “pros” and “cons” of the idea that has arisen. If the number of “minuses” is off the charts, don’t rush to give up. Some aspects can be turned in the opposite direction, think about ways to solve such “cons”.
- Important characteristics are competitiveness and market sustainability.
- The sales market needs to be thought through to the smallest detail.
- The payback of the product (service) and the time of receiving the first profit will allow you to determine (approximately) the required amount for investment.
If after such a superficial analysis you don’t want to abandon your brainchild, then it’s time to take a clean slate and start creating a business plan.
It is important to know! There is no single structure and step-by-step instructions on how to calculate a business plan. Therefore, the presence and order of items included in the plan are determined independently. However, experts have established the most optimal plan structure option. If you have no experience in drafting such documents, you need to use these recommendations to correctly compose your work.
Structure and procedure for drawing up a business plan
The structure of a good business plan, according to economists, should include 12 points. Each of them is described below.
Title page
The following parameters are specified here:
- name of the project;
- name of the organization where the project is planned to be implemented, indicating telephone numbers, addresses and other contact information;
- head of the above organization;
- developer (team or manager) of a business plan;
- date of document preparation;
- It is allowed to include the most significant indicators of financial calculations for the project on the first sheet.
This document is necessary to protect the copyright of the idea and business plan. This reflects the reader's awareness that he does not have the right to distribute the information contained in the document without the permission of the author. There may also be an instruction prohibiting copying, duplicating the document, or transferring it to another person, or a requirement to return the read business plan to the author if the investor does not accept the agreement.
An example of a confidentiality memorandum can be seen below.
The next 2 sections of the plan – “Brief Summary” and “Main Idea of the Project” – are introductory. They can be used as a preliminary proposal (for review) to partners and investors until negotiations are scheduled.
Brief summary
Although a brief summary of such a document is at the beginning, it is written at the final stage, as a summary. A summary is a short description of the project idea and a list of the most significant characteristics of the financial component.
The following questions will help, answering which can lead to an excellent resume:
- What product does the company plan to sell?
- Who would want to buy this product?
- What is the planned sales (production) volume for the first year of the company’s operation? What will be the revenue?
- What is the total cost of the project?
- How will the enterprise be formed according to its organizational and legal form?
- How many workers are planned to be recruited?
- What is the required amount of capital investment to implement the project?
- What are the sources of funding for this project?
- How much is the total profit (profitability) for a specific period, the payback period, the amount of cash at the end of the first year of operation of the enterprise, profitability. Net present value.
It is important to know! The summary is read by the investor first. Therefore, the future fate of the project depends on this section: the investor will either become interested or bored. This part should not exceed 1 page.
Main idea of the project
- What is the main project goal?
- What are the objectives of the enterprise to achieve the main goal?
- Are there any obstacles to your goal and how to get around them?
- What exact actions does the author propose to perform in order to achieve results and achieve the goal as soon as possible? What are these deadlines?
Important! It is necessary to provide clear, real and explicit arguments that will confirm confidence in the profitability and success of the project. The volume of this part is optimal within 1-2 pages.
In this section, it is customary to use the conducted SWOT analysis – assessment of the strengths and weaknesses of the enterprise, opportunities (prospects), as well as possible threats. It is unlikely that you will be able to make a business plan correctly and as completely as possible without such an analysis.
A SWOT analysis reflects two aspects that influence the life of an organization: internal, relating to the enterprise itself, and external (everything outside the company that it cannot change).
Do not forget: You are describing a company, not a product! A common mistake authors make is that they start writing product characteristics in the “strength” column.
Here are some parameters you can use to describe strengths or weaknesses:
- high-tech production;
- service and after sales service;
- versatility of the product (without affecting its specific properties);
- level of qualifications and professionalism of employees;
- level of technical equipment of the enterprise.
External factors (“opportunities” and “threats”) include:
- market growth rate;
- level of competition;
- political situation in the region, country;
- features of legislation;
- features of consumer solvency.
Example
Characteristics of the industry on the market
- dynamics of sales of similar products in the industry in recent years;
- market industry growth rate;
- trends and features of pricing;
- comprehensive assessment of competitors;
- search and identification of new and young enterprises in the industry, as well as characteristics of their activities;
- description of the consumer market, their desires, intentions, requirements, opportunities;
- assessment of the possible impact of scientific, social, economic aspects;
- prospects for development in the market.
Essence of the project
This section reveals the idea, the subject of the business plan. It also reflects the level of preparedness of the enterprise to go “into the world”, the availability of all the funds required for this.
The most important provisions in this section:
- primary goals;
- description of the target consumer segment;
- key performance factors for market success;
- a detailed presentation of the product, the characteristics of which must be within the market segment defined above;
- stage of product development (if production has started), patent and copyright purity;
- characteristics of the organization;
- the total cost of the project, indicating the financing schedule by periods and investment amounts;
- required initial expenses for a marketing campaign and the formation of a coherent organizational structure.
Marketing plan
The objectives, goals of marketing policy and methods for solving and achieving them are indicated here. It is important to indicate which task is intended for which personnel, in what time frame it is required to be completed and with the help of which tools. The funds required for the latter also need to be indicated.
Marketing plan is a strategy, a set of sequential and/or simultaneous steps created to attract consumers and provide effective returns on their part.
The investor will be attentive to such points as:
- a well-developed system of comprehensive market research and analysis;
- the planned volume of sales of goods (services) and its assortment, scheduled by time periods until the enterprise reaches full capacity;
- ways to improve products;
- description of product packaging and pricing policy;
- procurement and sales system;
- advertising strategy – clearly formulated and understandable;
- service planning;
- control over the implementation of the marketing strategy.
Production plan
Everything that directly concerns the creation of products is reflected in this part. Therefore, it is advisable to compile this section only for those companies that plan not only distribution, but also production of products.
Points that must be specified:
- required production capacity;
- detailed interpretation of the technological process;
- a detailed description of the operations entrusted to subcontractors;
- necessary equipment, its characteristics, cost and method of purchase or rental;
- subcontractors;
- required area for production;
- raw materials, resources.
It is important to indicate the cost of everything that requires expenses.
Organizational plan
At this stage, the principles of organizational strategic management of the company are developed. If the enterprise already exists, then this point is still mandatory: the compliance of the existing structure with the intended goals is determined here. The organizational part must certainly contain the following data:
- name of the organizational and legal form (individual entrepreneur, JSC, partnership and others);
- an organizational management system that reflects the structure in the form of a diagram, regulations and instructions, communication and dependence of departments;
- founders, their description and data;
- management team;
- interaction with staff;
- supplying the management system with the necessary material and technical resources;
- location of the company.
Financial plan
This chapter of the business plan provides a comprehensive economic assessment of the written project, accompanied by calculations of the level of profitability, payback period, and financial stability of the enterprise.
A financial plan is very important for an investor; here it determines whether a given project is attractive to him.
Here you need to make some calculations and summarize them:
Risk analysis
In a risk analysis, the author must examine the project and identify potential threats that could lead to decreased revenue. It is necessary to take into account financial, industry, natural, social and other risks. At the same time, it is necessary to develop a detailed and effective plan to prevent them or minimize the impact on the company. Therefore, the business plan must indicate:
- a list of all potential problems;
- a set of techniques and tools that prevent, eliminate or minimize risks;
- models of the company’s behavior when events occur that are not conducive to its development;
- justification for the low probability of such problems occurring.
Applications
This is the last link in the structure of a business plan. It includes documents, quotes, sources, copies of contracts, agreements, certificates, letters from consumers, partners, statistical data, calculation tables used in the preparation of this document. It is required to insert links and footnotes to the appendices in the text of the business plan.
General requirements for the document
- it is necessary to write a business plan in clear, precise language, without long and complex formulations;
- desired volume – 20-25 pages;
- the business plan must cover all the information required by the investor in full;
- the document must necessarily be based on real facts, substantiated rational proposals;
- the plan must have a strategic foundation: strict, delineated and complete, with clear targets;
- interconnectedness, complexity and consistency are important features of drawing up a plan;
- the investor must see the future, prospects for the development of the project idea;
- The flexibility of the business plan is a significant plus. If adjustments can be made, amendments to the written project are a pleasant bonus for the investor;
- conditions and modes of control over the functioning of the enterprise should become part of the business plan.
Making a business plan from scratch without the help of a specialist is not easy, but it is possible. It is important to adhere to the above rules, construction structure and avoid mistakes.
The most common mistakes
- Illiterate syllable
The rules of language cannot be ignored. It often happens that the most incredible and promising idea goes into the trash bin along with a bunch of plans of mediocre IP specialists. And all because errors in spelling, vocabulary, punctuation and poor presentation of the text completely discourage any investor.
- Careless design
The design should be the same throughout the document: bullets, headings, lists, font, size, numbering, spacing, etc. Contents, headings, numbering, names of figures and tables, designation of data in graphs are required!
- Incomplete plan
To properly draw up a business plan, you need a comprehensive amount of information. The sections of the document listed above are the minimum that should be unconditionally included in the project.
- Vague plan
The work should be “like in a pharmacy on a scale.” Clear, defined, specific statements of goals and (important!) ideas.
- Too many details
An abundance of technical, financial, and marketing terms will only help in exams. For a business plan, you need to select only the most significant details. If there is a great need for a thorough description of a process, then you can add it to the appendix.
- Unrealistic data
Business proposals like these are based on assumptions. Therefore, the author needs to approach the idea rationally and have a reasonable background, a real reason, supported by calculations.
- Few facts
For each assumption there is its own justification - real, valid. Facts give work meaning and confidence. You shouldn’t create a fountain of facts either, but if you get carried away, then look at the rule about details.
- “We have no risks!”
The main rule: there is no business without risk. There is no such business in which it is “quiet and calm.” The investor knows this, and the author should know this. Therefore, it’s time to come down from the clouds to the ground and study, explore, analyze.
- “And we have no competitors either!”
There is always a competitor, as well as a risk. It can be direct or indirect. Study this topic carefully and meticulously, and a rival will definitely appear on the horizon, waving his hand at you.
- Neglecting outside help
Creating a business plan yourself does not mean doing absolutely everything yourself. Moreover, obtaining a high-quality result is possible through the joint efforts of several specialists. Don't be afraid of helpers!
Why do you need a business plan? Most will probably answer - to get a loan from a bank. This statement is true, but only partly. First of all, the entrepreneur himself needs a plan in order to understand the size of the initial investment for starting, how long it will take to reach self-sufficiency and forecast revenue indicators, assess the level of profitability, payback period of investments and many other parameters.
Very often, a beginning businessman (and not only beginners) does all planning and calculations “by eye” on a napkin or in his head (and sometimes does not do it at all), forgetting about many costly items, which results in many mistakes and leads to bankruptcy.
Typical mistakes: when determining investments, the costs of financing activities before reaching self-sufficiency are not taken into account, the amount of inventory is incorrectly determined (the amount of goods and materials is set for one month, and based on the turnover period, reserves for 3 months are required), taxes and insurance contributions are not taken into account in the calculation of the wage fund , the need for personnel is incorrectly calculated and many others.
A correctly drawn up business plan with detailed calculations is the key to a successful start in any business activity, which will allow you to cut out unprofitable options at the forecasting stage and, as a result, protect yourself from losing your own investments or the funds of the investor (creditor).
Let's say you plan to install, the calculation shows that the full payback will be 5 years, it is obvious that this will not be the right investment, it is unlikely that the machine will work without breakdowns for such a period of time. (For reference: the optimal payback for this type of activity is 12-18 months.)
What’s better – buy a ready-made business plan or make it yourself? If we are talking about a small business, then you definitely need to do it yourself. This will allow you to dive deeper into the project, understand its essence, and sort out the economics of future activities for yourself. Well, if you want to organize a production that requires multi-billion dollar investments, then you cannot do without the help of specialists.
On the site you will find samples of ready-made business models with all the calculations, which you can use as the basis for drawing up a feasibility study for your specific project.
Algorithm of actions
- Familiarization with the provided sample feasibility study.
- Collection of statistical data for a specific region where business activities will be carried out.
- Conducting marketing research: identifying the strengths and weaknesses of the project ().
- Updating information on the economic part: searching for potential and raw materials, requesting commercial proposals, recalculating costs and determining the final price based on current market realities, as well as determining the level of profitability.
- Conducting a stress test of the figures reflected in the calculation (what will be the payback if the revenue is N percent less than planned). Based on the data obtained, drawing up several options for the development of the event: conservative, realistic and optimal.
- carrying out economic activities.
- Choosing the most profitable one (studying legal schemes to reduce the tax burden).
Based on the analysis and generalization of the information received, you draw up your own economic justification for the project, with the help of which you can determine the feasibility of investing money.
Please note that you can download any business plan you like for free. If there is no download form somewhere, you can ask a question through a special form, and within a short time we will add this feature. Through this form, you can also clarify any point regarding the described model, and we will try to find a specialist to provide competent advice on the point that interests you.
- 1. Sample business plan
- 1.1. Sections of a business plan
- 1.2. Project Description
- 1.3. Production plan
- 1.4. Marketing plan
- 1.5. Financial plan
Each company, in the course of its activities, must clearly understand the needs for all types of resources, and also be able to accurately calculate the amount of funds required to implement its business ideas. In a market economy, it is necessary to be able to plan, regularly analyze the internal and external environment, and assess one’s own prospects and capabilities. For clarity, consider a sample business plan with calculations. Also at the very end of the article you can download a detailed business plan for a grocery store.
Business plan for a web studio - sample with calculations
1. Sample business plan
The article presents a sample business plan with calculations for opening a website development company. Today, many companies decide to open their representative office on the Internet. As a result, there is a need to create an official website.
A business plan is an official document that will subsequently be presented to potential investors and partners. Therefore, when developing it, certain principles should be adhered to.
1.1. Sections of a business plan
- introduction,
- (brief description of the project and main financial indicators),
- project description,
- analysis of enterprise capabilities,
- production plan,
- marketing plan,
- financial plan,
- risk analysis,
- conclusion,
- links to sources.
1.2. Project Description
The company being designed is created for the purpose of developing websites and subsequently posting them on the Internet. The product of the enterprise is the website, made in accordance with the client’s requests, selected concept and functionality. The average price of a website (at the arithmetic mean) will be 64 thousand rubles.
At the moment, the development stage of the project is assessed as a business idea. The goal of the project is to position itself on the market as a professional company for creating websites of varying complexity, with a modern concept and user-friendly interface.
When recruiting personnel, it is planned to look for professional layout designers and web designers based on an assessment of their portfolio (resume).
1.3. Production plan
It is planned to spend 200 thousand rubles of own funds and 800,000 rubles of borrowed funds in the form of a bank loan, i.e. All in all 1 million rubles.
All information is given as an example - this business plan is a sample with approximate calculations
Currently, the IT technology segment is in a stage of dynamic growth. As a result of the penetration of broadband access into Russian regions and the development of mobile and wireless data networks, there is an increase in Internet users.
The preparatory period for the opening of the project is planned to be completed in full within six months.
The company's staff will consist of 6 people: CEO, accountant, employees and four programmers, each of whom is responsible for a specific project and is a highly specialized specialist.
Web studio company staff
Estimated payroll will be 1659 thousand rubles. in the first year, 1893 thousand rubles. in the second year and 1962 thousand rubles. in the third year of the project.
Planned revenue for the first year will be 3793.93 thousand rubles, for the second year - 6140.19 thousand rubles, and for the third year - 6278.12 thousand rubles.
Acquisition costs fixed assets are estimated at 634.88 thousand rubles. The amount of depreciation deductions is not calculated, since the organization will operate under a simplified taxation system.
Cost of services provided will amount to 3918.55 thousand rubles in 2015, 3491.906 thousand rubles in 2016 and 3527.547 thousand rubles in 2017, respectively. The decrease in cost in 2016 compared to 2015 is due to the write-off of the cost of fixed assets, and the increase in cost in 2017 compared to 2016 is due to an increase in the cost of paying staff and purchasing consumables for the subsequent creation of services. It should be noted that business plan calculation samples depend on the specific economic situation in the country.
1.4. Marketing plan
Marketing expenses are estimated at 13% of revenue in 2015, 4.2% in 2016 and 4.15% in 2017.
1.5. Financial plan
The financial results of the project are assessed as follows. In the first year of activity, the financial result will be negative and the loss in 2015 will be 124.62 thousand rubles.
In 2016, the profit will be 2,648,284 rubles, and the maximum profit of 2,750,573 rubles will be achieved in 2017.
Net profit on an accrual basis at the end of 2015 will be -230.807 thousand rubles, at the end of 2016 – +1813.725 thousand rubles, and at the end of 2017 – +4215.028 thousand rubles.
We will calculate the efficiency of investments for the project
- Net present value:
NPV = 2947.435 rub. - Internal rate of return (IRR):
2947.435 / (1 + x) 3 = 100 * 0.579;
2947.435 = 57.9 * (1 + x) 3;
(1 + x) 3 = 50.91;
x = 2.71, IRR = 271%. - Profitability Index (PI):
PI = A / KV = 2947.435 / 1000.0 = 2.647
Investment return index > 1. This indicates that this project is effective. - Payback period (PP):
PP = 2 + = 2 + 0.7 = 2.7 quarters - Discounted payback period (DPP):
DPP = 3 + = 3 + 0.74 = 3.74 quarters
Thus, the payback period of the business project is 3.74 quarters; also, a year after the start of the project, there will be a guaranteed repayment of the loan and receipt of income if the specified conditions for the project are met.
2. How to write a business plan - video + ready-made sample
This sample includes all the main points and necessary calculations and can be used as an example of a business plan for your own developments. It should also be noted that a detailed business plan sample with calculations can be purchased from specialized companies.
You can also view a detailed grocery store business plan
3. Create and implement a business plan
Now that you know the basic principles of writing a concrete business plan, try to implement your long-held business idea. Carefully consider each step; the business plan should be drawn up taking into account the characteristics of the market you are going to enter.
In many regions, the composition of drinking water, due to the climate, soil composition and technogenic factors, is often oversaturated with salts and microelements. Excessive consumption of fluorine, iron, particles of limestone deposits, chlorine, nitrites, cadmium and others negatively affects the condition of the body.
From 500,000 rub.
Sooner or later, at least once in their life, every person thinks about creating and developing their own business. We invite you to consider an option such as the production of napkins and toilet paper. They are present in every apartment and are used up quite quickly, which is why they are sold in large quantities. The production and sale of napkins is one of the promising areas of business; this product can be sold to a huge number of companies and stores.
The production of foam rubber is a profitable business idea. The resulting raw materials are sold for the needs of the furniture market, the production of sports equipment, protective packaging, shoes and soft toys. Foam rubber is made by foaming liquid polyurethane. The material is 90% air, but has great elasticity. This quality of foam rubber allows it to be used in various industries.
The business of producing disposable tableware can be classified as a promising area with a high level of profitability. Every year, the population’s demand for these products only increases, and this trend seems likely to continue for a long time.
From 800,000 rub.
The production of modern window systems is one of the most promising areas of modern production. But to open your own business, you need to be absolutely confident in the end result. Therefore, it is important to calculate each line of expenses and possible income. A well-drafted business plan for the production of plastic windows will help with this.
“I earn too little to afford bad shoes” - you’ve probably heard a similar phrase at least once from relatives, friends or colleagues. And indeed, in addition to practical ones, shoes, their appearance, and quality play a huge role in our lives. It is often compared to a litmus test, which determines our property, social status, aesthetic preferences, and tells about a person’s habits and lifestyle.
From 500,000 rub.
Food mixtures for pets such as cats and dogs became popular in Russia a little over 10 years ago. Before this, feed was produced and sold for animals raised in rural areas for milk, wool or slaughter. The production of animal feed is a very profitable business.
From 70,400,000 rub.
One of the interesting and popular production options that will remain relevant for many years is the production of polyethylene film. There are also risks in the form of mass abandonment of these products in favor of biodegradable materials, but complete abandonment will take many years, which means that you have several years left in which you can make a good profit.
From 530,000 rub.
The rapid development of technology has led to the emergence of new types of building materials on the market. However, despite everything, cinder block is still very popular among developers. Houses built from this material are strong and durable.
From 1,100,000 rub.
Most of us are very familiar with these disposable shoes, which are indispensable in clinics, kindergartens and many enterprises. Maybe some of the readers have already had the idea of starting their own shoe cover production. But you don't know where to start or how risky such an undertaking will be. Let's look at these issues together.
From 10,000,000 rub.
In the modern world, it is impossible to imagine humanity without a plastic or polyethylene terephthalate material, sometimes called PET bottles. When we come across these objects every day, we no longer notice how we use them in everyday life. Plastic follows us almost everywhere.
From 1,000,000 rub.
Polystyrene foam production is a great business idea. This material is used in many sectors of life and is widely in demand in our country. Although a business producing such products requires large investments, it pays off quite quickly. The entire foam production line can be located in a small area. Polystyrene foam, due to its performance qualities, will be in demand for a long time.
From 300,000 rub.
Change houses are premises for temporary residence and storage of tools. They are used by builders, installers, oil workers and representatives of other professions. Modern cabins can be used not only for temporary residence, but also as a first-aid post, security post, field office, etc. Recently, such trailers have begun to be replaced by block containers.
From 600,000 rub.
The production of expanded clay concrete blocks is based on mixing building materials such as cement, water, expanded clay and enriched quartz or expanded clay sand. The technological part of production is almost identical to the method of creating cinder blocks.
From 200,000 rub.
Doors are a necessary piece of furniture that is installed in houses, apartments and offices. They will be in demand at any time, regardless of economic crises. Door production is an interesting business; it can be started by any person who is interested in working with wood and making a profit from it.
Business plan for a small business from scratch: recommendations and samples with calculationsHow to write a business plan correctly? We share recommendations, convenient methods, samples and calculations.
Business plan is the document from which implementation should begin. If you do not first calculate expenses and income, do not take into account demand and the presence of already operating competitors, you can waste your budget. In our article you will find a sample business plan with calculations and learn how to prepare it for yourself.
But when the development of a business plan for a small enterprise is needed specifically for investors, guarantors, and creditors, then the document must comply with the requirements of the Federal Small Business Support Fund. You can learn how to draw up a business plan in accordance with these requirements from, and we will look at the brief structure of the plan here.
Structure of a business plan from the Federal Small Business Support Fund:
If you follow all the recommendations of the Federal Fund for Support of Small Business, then it is quite difficult to draw up your own business plan. But there is another way to calculate the prospects of your project - using the SME Business Navigator.
How to write a business plan yourself
If you decide to open such a store, you will need to find the missing amount of 1.7 million rubles. Of course, you can take out a loan, especially since Business Navigator offers you to choose one of the partner banks. However, we must not forget that such interest-bearing borrowed funds increase the cost of the project and extend its payback period. You need to carefully weigh whether this is worth doing.
If you do not want to attract additional funds to the project, especially borrowed funds, then the navigator will prompt you to select the type of business based on the volume of investment. We go to the appropriate tab and see an extensive list of projects that you can start using only your own funds. All that remains is to select several areas that interest you and calculate their payback.
Now you know how to make a business plan with calculations for a small business in a specific situation. On the Internet you will find many more methods for writing and drawing up business plans, samples for different businesses (coffee shop, car service center, beauty salon, etc.). But remember - you need a business plan for your specific business, an individual one, and no one has ever written one for you. This video briefly and succinctly describes how to do this “on the fingers of a milling machine operator”:
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