Enterprise business plan
Which business to open? What do I want from my business? Do I need a business plan? – such a set of questions torments sleepless nights of future entrepreneurs. And if you can answer the first two of them only personally, then we are ready to give a confident and clear answer to the third: of course, a business plan is needed!
But the format of the business plan and, ultimately, the fate of your future business will depend on why you need it. For example, if you open a small and not too complicated enterprise like a self-service car wash or resale of goods, it will be enough to compile a small table of income and expenses in Exel only to make sure that you do not go bankrupt. But with such a business plan, you will have to develop your business exclusively at your own expense.
If you are planning a serious project that will require no less serious financial investments, you will have to join the game with investors. Moreover, rest assured, you will have to play not according to your own rules.
The bad news is that all the serious companies and departments that can influence the financing of your business have come up with their own rules and standards for business planning. Well, the good news is that all these standards have been known for a long time and it’s quite possible to fit your document under them. So what are the basic business planning standards and what do they imply?
This standard was developed in the early 90s specifically for the CIS countries by the European Union. This standard is interesting primarily because it takes into account the specifics of business in the countries of the Commonwealth. In its most general form, a business plan according to TACIS standards includes the following sections:
Brief description of the document. What kind of product do you offer? In what market conditions? Who is the project team composed of? How will the funds be distributed?
Marketing plan. It includes both marketing analysis and a description of the marketing strategy.
Production strategy. In this section, you need to tell how exactly you will deploy production, what infrastructure for this is presented in your chosen area, whether you have enough resources, how exactly you plan to integrate your production, what equipment you need and how much you will have to invest in its purchase.
Business management system or organizational plan. This section will cover all personnel issues of the future enterprise: what kind of specialists and in what quantity will you need, what competencies should they have, what will be the size of the payroll fund? It is also worth talking about the leadership of the company.
Financial plan. This section will consist mainly of tables with calculations of the cost of production, as well as profit and loss. In addition, you need to attach a cash flow forecast, a balance sheet and data on the overall profitability of the business.
Risk analysis. It is important to consider the most likely project risks, both technical and financial.
KPMG is an international network of companies focusing on accounting, tax and advisory services. Of course, world-renowned experts could not help but create their own sample business plan. Here is the structure KPMG offers to its customers and partners:
Summary. This includes data on services or products, a story about the mission of the company, as well as a brief overview of the entire business plan.
Products and services. Here, information about what the company offers to the market, presented in the first section, will have to be disclosed in more detail.
Market analysis includes a story about the use of a product or service, competitor analysis, demographic analysis, as well as SWOT analysis.
Target Markets. Which customers are your products for? How far geographically are you prepared to go by selling your products? What will the price consist of?
Promotion strategy. Here you will need to tell how you plan to market your products and services, what advertising channels you want to use for this, as well as forecast sales.
Management is a section in which it is necessary to tell not only about the organization of work and personnel, but also about the costs of creating production and consuming assets.
The financial analysis. The information here will be similar to the one that TACIS offers in a similar section, but the risks of the enterprise and quantitative analysis will be added to it.
Of course, with this list the whole variety of business standards is not limited. Many organizations, for example, Russian Agricultural Bank, put forward their requirements for business plans for a loan or subsidization. Before choosing which of these standards to write a document, check the requirements of your investor.