Business plan structure

What kind of war without a plan? That’s about the same thing you can say: you can not open an enterprise and compete with competitors “on equal”, if you do not know all the nuances and subtleties, and more than that you can not imagine how much money you will invest, and how much you will earn in the end. And is it worth it to get involved in this fight?

For these purposes, and there is a business plan that not only takes into account all the subtleties of your future business, but also helps to draw a conclusion, but does it need to realize your business idea?

Of course, not every business plan is trustworthy. Therefore, in order to assess the industry and the possibilities of a new business correctly, you need not only everything according to the rules, but also guided by the principle of “bad weather.” That is, in a good business plan, reality is presented in an even worse light than it really is. This helps the business to survive, even in the face of a sharp decline or unforeseen difficulties. Still, you must be prepared for any unexpected twists and turns of fate.

In addition to this principle, the business plan must take into account a lot of other important indicators and fully describe your company. Given the large amount of information included in this document, it should be divided into several sections, each of which carries a certain meaning.

Short Investment Memorandum

This paragraph assumes a brief description of both the business concept and its main processes. It also involves summarizing and defining business goals. Based on this section, you can draw a conclusion for yourself: is it worth it or not to enter this industry?

Description of business, product or service

Allows you to get acquainted with the main object of all business processes, includes all the subtleties of its production or purchase to the final implementation of the client. In this section, you need to think over every little thing, because the object of sale is the foundation of your business.

Descriptions of the market

Your target audience, competitors, conjuncture – this section describes all the details of the environment of your business. As an experienced commander, you must understand that the terrain is the decisive factor for victory in the battle. For your enterprise, its location can also ultimately predetermine the fate of the project.

Sales and marketing

You know, your product in person, guess where you will implement it, and at this point you must decide for yourself the most important question: how will you sell it? Still, if you can not correctly explain about it, then with all the positive qualities of your product or service, business on its basis is doomed to failure.

Production plan

Under this impressive heading, the whole process of your company’s work is hidden: starting from the production of goods or services and ending with the servicing of customers. Thanks to this section, you must form in your mind a clear picture of the functioning of your enterprise and strive for its materialization.

Organizational structure

Who will help you realize your plans? Of course, the right staff, the presence of each of which in your team is economically feasible. Be sure to describe carefully all employees of your company, their functions and wages. Do not forget also about bonuses and taxes, as the loss of these expenses can distort the financial picture.

Financial plan

This section includes absolutely all expenses for the opening and operation of your company. Registration of a legal entity, repair of premises and other investments should be calculated first, followed by monthly expenses for the smooth operation of your business. They are divided into permanent and variable, the latter are calculated taking into account the planned turnover and sales of the company. In addition, the financial plan helps determine the payback period of your business and is the main factor for the decision to start a business.

Risk factors

The last point of your business plan is to form an idea of all the threats and positive conditions for the existence and development of your business. Strong competitors or high rents? Take these factors to business threats. A unique product or an original advertising campaign? They are better attributed to factors that positively affect the state of your case.

A business plan is the main document of your enterprise, so it is worth taking it seriously. And if you are planning the work of an enterprise that has not yet opened, then on the basis of this document it is worth deciding whether it should be launched at all and whether this business will bring profit to me? If you doubt the answers, then it is better to choose a different field of activity. Be honest with yourself.

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