How to prepare a good business plan for the company
Few entrepreneurs setting up their own company chooses to draw up a business plan for their own use. Such a document is created only when it is required when applying for investment credit with a bank or EU funds or from the Labour Fund. This is a clear mistake, because a well-constructed business plan can be a beacon for the company, it allows you to schedule and manage business expenses.
Does your company need a business plan?
Both people just trying on to start their own business, and actively operating businesses mistakenly assume that a business plan is created only for the needs of potential investors or by raising funds for running your own business. On the contrary, the business plan should be a useful tool for the entrepreneur himself. It should in fact allow him to order placed against company goals and plan a strategy to bring it to them. The business plan can serve different functions, eg .:
- scheduling - allows you to schedule set for the company goals,
- control - allows to analyze the goals and results allows to assess whether the company pursues its goals,
- information - a source of information for investors, lenders, contractors.
The structure of a business depends largely on the purpose for which it is written. Will take a different form, when he created for his own use entrepreneurs, and another when he has to be presented at a bank or a potential investor. However, you can extract the basic elements that should be included every business plan.
The structure of a business plan
1. Description of the project (ie. Abstract). It's a total the most important part of the business, but what is important, should be established at the very end after writing all the parts. Summary must be designed so as to encourage eg. A potential investor to read the rest of the document. Must one word catch his attention.
Remember to describe it, among others, the purpose for which created a business plan, determine the amount and purpose of the necessary financial resources, material and personal information and give key figures and financial ratios. In addition, you need to include a general description of the products or services described owned by entrepreneur skills, experience or resources that will be necessary for attaining the objective of the project. It is also worth mentioning advantage over current competitive company like.
2. Characteristics of the company. This part contains information about the company itself, and thus its name, legal form, in which it is or will be conducted, address, brief statement of its owners and the history of the company itself. It is in this section provide any prizes, awards, certificates, which the company or its owner has. Briefly, you must also outline what is the purpose and mission of the company.
3. Characteristics of the project. At this point we introduce the concept of the company's business, a detailed description of the object of its activity (depending on whether it is a service company, manufacturing, which sells etc.). The product is characterized by a description of its features and application which stands out against the background of other products. It describes ways of distribution, technology, which is used in its production.
You should also give entrepreneurs vested copyrights, patents, trademarks. Similarly, describe the type of services provided - has a profile of their audience, the distinguishing features of these services in the market and their value for the customer.
4. Setting internal (employees and managers). The strength and success of the company is primarily shaped by the people. It is therefore important at this point to describe the qualifications of both managers and employees, organizational structure, system of motivation and remuneration of employees, segregation of duties, training system.
5. The external environment (market analysis). In this passage describes the business environment in which the company operates. On which the market operates (it is an analysis of the market, its behavior, trends, development, its segmentation). It should also identify and describe acting in the market competition. It should also analyze and conclude the characteristics of potential customers (why you would be interested in a product or service that they have requirements, etc.). In this section you may be performed so. SWOT analysis (analysis of strengths, weaknesses, opportunities and threats of the market, it can also be an entirely separate point of business), as well as sales forecasts, given the expected size of the market share and describe the expected entry barriers to the market.
6. Advertising, marketing and sales principles. First of all, introduce planned strategies and advertising campaigns, advertising budget, ways to reach the customer, distribution methods, planned promotions, prices, discounts, methods of obtaining trading partners, etc.., Planned form of payment, after-sales services, for example. Service, PR (Public Relations ).
7. Financial Analysis. This is undoubtedly one of the most important parts of the business that can determine the success of the entire project. Should it submit an investment plan with projected sales of goods and services, and the costs to be incurred in order to meet their objectives.
The financial analysis should consist of a balance sheet, income statement, cash flow statement, break-even analysis, a list of assets.
8. Schedule of activities. It should lay out detailed schedule of activities, because only strict implementation of the objectives pursued in accordance with the adopted action program will be fully carried out. It is assumed that the timetable should be written out at least 5 years. You have to present the objectives of the company and give the expected timing of their implementation, and further identify ways to achieve goals, and predict factors that can affect their implementation.
For each business must also include a number of additional documents, such as eg. The results of market research, job descriptions, copies of the agreements, biographies of executives, patent data, a list of institutions other co-financiers of the project entrepreneurs, etc.