Additional investments are needed to develop any type of business. The sources of investment are investors, banks, financial support funds. A business plan is a detailed description of all operations on the way to the full implementation of an entrepreneurial project. Planning should describe the required set of basic business data. Businessmen on luminablog share the following ideas and steps.
What is and how is a business plan
A business plan is a document that describes the main features of a future project. He has to answer several questions at once: it is possible to implement the project, how much time and money it will take if it will bear fruit and if it will bring a stable income. You can also ask for help from online business administration when you want to create a perfect business plan.
Creating a business plan means testing the rationality and reality of your ideas. It is designed for internal and external use, can be simple (or one page) and detailed. The first is more often used to approve a project with a manager or partner or as a short description of an idea. In detail, it includes numerous calculations and analyzes.
Why do you need a business plan and for whom it is created
The main purpose of creating a business plan is to assess the prospects of the project and, in the initial stage, to find the pitfalls to be faced and which may interfere with the implementation of the plan.
The document is created for internal and external use. In the first case, it is needed primarily as a management tool. It is important to describe in it all the strengths and weaknesses of the company and the prospects for developing the idea. It is useful to get acquainted with it for people with the same idea who need to clearly understand the objectives and objectives of the project and decide how to contribute to its implementation. An internal business plan helps to assess project costs and the need to raise funds from the outside.
The structure and content of the business plan
The document must be drawn up in such a way that the information of interest in it can be easily found. After the title pages, you need content with a division into chapters: not every potential investor, partner or employee will want to thoroughly understand all the details of your project.
A standard business plan usually includes the following sections:
- a summary based on clear figures and data. The goal is to give an idea about the project and get interested;
- a description of the product or service. It includes the main features, shows the uniqueness and the difference from the competitors;
- market analysis. Planned sales volume, distribution channels, level of competition;
- marketing plan. There should be information on the strategy for promoting a product or service, a pricing system, a distribution system, methods of promoting sales;
- production plan. How the process will be organized – from the purchase of raw materials to the release of finished products;
- organizational plan. A detailed description of all the structures of the enterprise and their interaction with each other;
- financial plan. The budget for revenues and expenditures, the project funding program and the calculation of key performance indicators should be indicated;
- risks – what they are and how to minimize them.
A good bussines plan attracts a lot of investment
A business plan for investors is a presentation of the main concept in the formation of income from invested funds. Describing a good business idea is not enough to motivate you to invest money in it. First, financial calculations will be needed to translate the idea into reality. It is necessary to calculate the costs and revenues that justify the amount of funds needed for investments.
In addition, investors will need to provide information on potential consumers, sales markets, periods of return on investment, level of return and accompanying additional data in a particular area of activity. Every investor wants to know the return on investment and the value of the net profit from the proposed project.