How to make a business plan: a few practical tips.
If you seriously decided to stop working forsomeone else's uncle and start your own business - we congratulate you on the best choice of your life! Immediately warn that it will not make your life easy and calm - rather, on the contrary, you will lose sleep and peace for many years, but we assure you that after many years you will be sure that it was the decision to establish your own business was the best in your life. However, business is not an activity that can be done, as they sometimes say, without a calculator in hand. Therefore, you must plan the future enterprise. There is a natural question - how to calculate a business plan, and what items should be included in it? We will talk about this in this article.
First of all, the purpose of the business plan is toto present to the future businessman (as well as the investor potentially interested in investing in the future enterprise) clear and understandable information about the planned activity, the required volumes of investments, risks and projected indicators of costs, revenues, profits, profitability and payback of the project.
There are many standards of compilationbusiness plans that regulate how to make a business plan, which items should be included in it and in what order. As a rule, all these standards change only the form of presentation of data depending on how convenient it is for them to analyze the representatives of an organization, and as regards content, the requirements for it are similar in all standards.
Starting to answer the question of how to compilebusiness plan, we recommend in the first section of the business plan to present the idea of your future business as concisely as possible. To approach the choice of an idea is worthwhile and do not try to implement an over-innovative idea, if you are not sure that the product or service that is being provided will be in high demand. In the first section, also called a resume, it is worth mentioning several predictable figures, in order to interest the investor in the further reading of the document.
The second section of the plan, we suggest devoting morea detailed description of the production process and a description of the final product. Thanks to this, your investor will immediately have an idea of what you plan to do.
Beginning with the third section, calculations begin.The third section we recommend to devote to the analysis of the potential market, for this you need to analyze the geography of distribution of products and learn all the demographic information about the population of the target region: age, sex structure, level and structure of household incomes, housing provision and much more. Thanks to this you will be able to evaluate the target audience of your product. After that you will be able to determine the plan of marketing activities to attract consumers.
In the fourth section you will needcalculate the production plan based on the received data on the consumer audience. Based on the planned quantity of products, you can calculate the unit cost of production.
The fifth point is the most important. This is the financial plan of your business. If you do not know how to make a financial plan - then you do not know how to make a business plan in general. In the financial plan, you must specify all the costs for the organization of the business and the start-up of the production process, also you must describe the ways of obtaining the necessary funds - investment, bank credit, investing your own savings (it is also possible to combine several sources in different shares). Having described all costs, proceed to revenue planning and based on a comparison of these two indicators, calculate the net profit. The final stage in the preparation of the financial plan and the business plan as a whole should be the calculation of the payback period of the enterprise - based on this indicator, you and your investor will be able to understand when the invested money is fully returned and the enterprise starts to bring a net profit.
We hope that by reading our article, you will get rid of doubts about how to make a business plan. Good luck to you and your future business!