The business plan of the enterprise is a document with deployed information about the possibility of working effectively to the enterprise when taking a set of measures that answer the question of whether it is worth investing.
A business plan shows that whether it is worth investing, which will allow you to find a consumer of this service or product, evaluate market capacity, sales channels. The business plan of the enterprise evaluates the costs for receiving finished products and sales costs. The business plan is fully designed by indicators of profitability, payback and cash flows.
For an entrepreneur, the business plan of the enterprise is an instrument of objective assessment of the project, evaluating its risks and income. A business plan also serves as an instrument for attracting investments from third -party companies, whether it is a venture fund or a bank, or a private person. A business plan allows a fairly accurate tool for the implementation of an enterprise strategy.
The business plan of the enterprise begins with the content. The first stage is the descriptive part, where the product describes, with which the business begins, the purpose of the project. Brief information about the company, business, about owners and key company employees, description of the business idea of a product or service, positive and negative aspects of business ideas.
The structure of the company, all business processes are described in detail. Stages of business development, geographical location, the difference between an enterprise and competitors and advantages. The technical and economic model of the enterprise is described. The business plan of the enterprise is voluminous, but, in fact, very substantial.
Further, the business plan of the enterprise describes the product and service that the company will sell. The product and its capabilities are described, how it differs from competitors. An expert assessment of people who are market experts or a regular focus with a group may also be included.
Further, in the business plan of the enterprise there is a marketing part to understand how to promote and sell a product where the market analysis is going on, what share can take the product, whose share can take the product, in which niche will be sold. What expenses will attract the involvement of the consumer in order to evaluate the margin of the project. The product promotion strategy is chosen taking into account the consumer behavior model.
The production part in the business plan describes how the product is produced, which raw material base, the cost of processing raw materials in the finished product. The required room, a list of equipment, specialists for servicing production and implementation of the production plan. Sometimes they write R&D if you need to get significant investments. The calendar production plan, the volume of products, the percentage of marriage and the further plan for the development of production are painted.
In the business plan, production is not the last place to ensure the production of materials for the production of finished products. A list of raw materials suppliers with prices and conditions is required, with the calculation of delivery and supply schedule.
Further in the business plan of the enterprise is occupied by management, which includes the owners, director, personnel department and labor protection. They develop the personnel policy of the enterprise, expect motivation and salaries taking into account the production plan.
The financial plan business plan evaluates the gross revenue of the company, the volume of sales in money and pieces, the financial balance of the enterprise, expenses and income. The main economic indicators of the enterprise.
At the end there is an assessment of risks for each section. Analyzes the weaknesses of the enterprise and the action plan to eliminate them. Risk assessment can be either local or global. Problems within the company that may occur due to poor-quality raw materials, equipment, and staff can be considered local. And global risks can arise due to political problems, military conflicts, loss of interest in the product.
At the end there are applications in the form of graphs and tables of market analysis, product that are not included in the main part of the business plan of production