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How to write a business plan

Quite often, novice entrepreneurs only very vaguely present a complete picture of their future business. They do not have a structured business plan, and therefore are denied a loan. And this affects the relationship with partners and investors. It is very important to know how to draw up a business plan. To do this, they often hire a special person, but the head of the company himself can draw up this plan. It should disclose all important issues. After all, with a bad business plan, you will not succeed and negotiations will be completely unsuccessful. You must adhere to a certain plan to make it work.

Business plan and why you need it
A business plan must be prepared correctly and reasonably. It will be needed by investors who will lend you money to implement your ideas, your employees who need to understand their goals and objectives, as well as you.

But what is a business plan? This is a document in which you describe the main aspects of your enterprise or project, talk about all the problems that may arise and how to solve them. The right business plan should answer the questions: is it worth investing money to implement this idea or not, will it bring a good income that will cover all costs and expenses?

Here are the main purposes of a business plan:

Helps to study the prospects of the future market;
Estimates the costs that will be spent on manufacturing products and compares them with prices in the market;
Defines indicators by which it will be possible to regulate the whole matter.
Remember that a business plan is not drawn up for a month or six months. It used to be at least 3 years in advance, but due to the unstable economy, many people prefer to write it for a year.

How to draw up a business plan? Structure

Drawing up a business plan is not easy and takes more than one day. You need to thoroughly study everything to provide investors, bankers or future partners with this plan. It must be written in plain language. The volume of the business plan is from 30 to 70 pages. Additional material must be included in the annex to the business plan. Here is the complete structure of the business plan:

Title page.
Memorandum of confidentiality.
Objective of the project.
Analysis of the situation in the industry.
Analysis of the position of the enterprise in the industry.
Product product descriptions.
Marketing and sales plan.
Production plan.
Financial plan.
Risk analysis.

Now about each item in more detail.

Title page
On the title page you must write the name of the project, the name of the organization that will carry out this project, the location of the company, a phone number by which you can contact the owner of the company. Be sure to indicate the name of the owner of the business plan, as well as the month and year of creation. If it is intended for the lender, it is necessary to indicate how much is needed for financing, the payback period and the index of profitability.

Memorandum of confidentiality
A privacy memorandum protects your rights. That is, he warns people who get to know him that they can not use it for their own purposes. There is also a ban on copying, transferring to third parties. If it is not interesting, then it contains a demand for a return to the author of a business plan.

This section is intended for general information, advertising, which should arouse interest in the person to whom this business plan is intended. From this section, investors will build their first impression of your project. And very often, he decides the fate of a business plan. Here is the structure of the Summary section itself:

A brief description of the project, its goals and objectives.
Resource provision;
Implementation mechanism;
The uniqueness of the product and its competitiveness;
Required external financing;
Forecast of volume, sales and profits;
Estimated repayment of loans;
Project performance indicators.
Everything should be stated clearly and concisely. The volume should be no more than 1-2 pages.

Objective of the project
Here you need to talk about the products or services that you offer. Be sure to indicate the technology by which the product will be produced. Indicate the advantages of the product, on its uniqueness. Emphasize that products have the opportunity to improve. Describe the patents and copyrights of the invention.

Industry Analysis
In this section, investors should learn about the results of the analysis of the current situation in this industry. And assumptions are made on their impact on implementation and outcome. Provide information on the latest innovations in this industry. List potential competitors, their strengths and weaknesses.

Analysis of the position of the enterprise in the industry
This item is needed for those who are creating a new enterprise. It is necessary to state all types of activities, its products and services, the legal form of the enterprise, the financial and economic indicator of the company, the location of the enterprise, the specifics of the work. The section should convince the investor that the company is reliable and promising.

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