home Accounting How to write a detailed business plan. How to write a business plan: from introduction to execution

How to write a detailed business plan. How to write a business plan: from introduction to execution

Many financiers and entrepreneurs wonder how to write a business plan. Step-by-step instructions with an example would be very helpful. We wrote it. Use it. You can also download samples and examples.

How to write a business plan: preparatory stage

The success of a company is associated with its ability to develop and its readiness to move towards new goals. Like red blood cells, which are formed in the body every second, maintaining the life of the human body, new ideas should fuel the activities of any, even the most conservative organization. In order for these updates to bring profit to the company without negatively affecting its sustainability, you need to seriously prepare for the preparation of the document.

So, where to start writing a business plan? First you need to find and collect the following information:

texts of UNIDO recommendations. There are no uniform standards in Russia, so it is customary to use the standards of UNIDO - the United Nations Industrial Development Organization;
requirements of the Ministry of Economic Development;
requirements of the regional and regional administrations of Russia (in case the project is submitted to these structures for participation in a competition or grants);
requirements of potential investors for the project;
certified software products for drawing up plans, assessing the financial condition of an enterprise, calculating the project budget;
copies of contracts, agreements, licenses, etc.;
copies of documents on which the plan data will be based;
price lists of suppliers;
financial information of the company for several years (calculations of financial indicators);
list of experts who can help before presenting the document to investors.

It is also necessary to form a working group and appoint a leader.

How will the bank evaluate your business plan?

There are no officially approved requirements. Everything is determined by the rules of a particular bank, its credit policy and approaches to working with clients. It is possible that the initial version of the business plan (or its equivalent) will undergo significant changes. The editors of the Financial Director magazine interviewed bankers and found out that bankers do not judge the prospects of a project by traditional indicators of investment efficiency.
For a credit institution, a potential borrower’s business plan is by no means an empty formality, but the main source of data for assessing risks. That is why bankers almost unanimously noted that there are several most important sections of the document on the basis of which they judge the prospects.

Step. 1. Define your business plan goals

First of all, it is necessary to determine the purpose - whether the document will be needed only for internal use, or the circle of potential readers will be wider. For example, will investors consider it for financial projection. It is advisable, in any case, to compose it as if it would be studied by seasoned heads of investment funds or heads of large banks (). If you were them, would you give personal money to this project? How much do you personally need what will become the goal of the project - as a manager, specialist or ordinary person? What is the tangible value of your proposal? Be the strictest reader, only from this point of view it will be possible to see. Then, a list of information sources is compiled and the structure of the document is developed.

Step 2: Gather all the necessary information

In order to understand how to make a business plan from scratch, you will need to collect the necessary information - about the sales market, price forecasts for services / goods, legislation that may affect the company's work, and other accurate data that every from statements and forecasts. Some can be collected independently, from industry media, scientific periodicals, stock exchange news, ready-made marketing research, information about similar projects of other companies. If this information is not enough, you should conduct or order your own marketing research from specialized companies.

When should you draw up a business plan yourself, and when should you turn to professionals?

Expert commentary

Ksenia Shvetsova, business trainer

The higher the significance of the project and the requirements for it, and the larger the amount involved, the higher the likelihood that the company will turn to third-party specialists. If the company has competent employees in management, marketing and financial planning, it is quite possible to cope with the task on its own. If they are not there, it is advisable to order the development of the document from professionals.

Turning to third-party specialists is also relevant when an investment project is drawn up for certain competitions or government programs. Specialized firms have experience in this matter and know the subtleties and nuances that may be unknown to entrepreneurs. If a business plan is being created for internal use, then it is more effective to first write it yourself, and then, if necessary, seek help from professionals.

How to write a business plan that will definitely give you a loan

In an effort to obtain a loan, companies often draw up a formal business plan and tailor it to the bank’s requirements. As a result, they do not take into account the specifics of the project and make mistakes. See six tips that will help you objectively assess the effectiveness of your future project and increase your chances of funding.

Step 3: Develop a Marketing Plan

Now let's look at the main sections of the business plan. The marketing plan is one of the most important sections. First, you need to conduct a marketing study in which to evaluate profitability and payback in different situations, depending and not depending on the company’s activities, including the volume of financial investments. Next, create a marketing plan. It is he who will determine the direction of the development of the project and give an understanding of the most suitable tools and means to achieve the goals. Include the following items:

1. Marketing strategic planning:

Company's mission;
company goals;
competitive advantage of the company;
marketing strategy, its characteristics;

2. Product Description:

product description and assortment;
main product characteristics, performance characteristics;
attractiveness for the client, benefits of using the product;
requirements for consumer properties of the product;
competitive advantages of the product and competitiveness of the product;
patents, licenses, certificates for the product;
product packaging;
delivery conditions;
guarantees and service;
taxation feature.

3. Pricing policy:

factors influencing pricing;

4. Sales of products:

volume and level of development of the industry;
main categories of clients;
target markets and their comparative characteristics;
barriers to entry and development in the market;
product sales strategy;
product distribution scheme;
sales channels;

5. Promotion:

sales promotion methods;
advertising.

6. Schedule planning of the intended strategic plan:

dates for achieving intermediate goals;
date of achievement of the final goal.

7. Detailing of the plan down to specific performers and designated responsible persons. Answers to the questions of who should do what, when, where, with what resources and how it affects the final result.

8. Formation of a marketing budget:

sales volume forecast;
cost forecast;
determining the budget for marketing activities.

Marketing planning will help determine the price level for a product or service - the maximum amount that a buyer is willing to pay for your offer. The more accurate this forecast is, the more stable the profit will be and the more effective promotion costs will be.

It is equally important to correctly identify the choice of suppliers of equipment, tools, services and other things that are necessary in the implementation of the project. Don’t chase cheapness, find even a smaller quantity, but find those companies that do not let you down with supplies and quality. You also need to identify the sales market, potential buyers or service users. No matter how reliable a small number of them may seem, the disappearance of the need for your product will reduce all the effort and cost to zero. Therefore, expand your customer base in advance. At the same time, it is important to correlate the search for clients with promotion costs. The business plan budget is not infinite, advertising agencies promise a lot, but be realistic, even large audience coverage does not always bring target clients.

Reflect in your marketing plan the sales methods you will use - directly to the consumer, through a network of distributors, etc.

Step 4: Create a production plan

The next part of creating a business plan is the production plan. Here you need to answer the following questions:

Where is the production located?
Is it provided with transport routes?
Are all necessary communications available?
Is the construction of production facilities required?
How are the equipment supply issues resolved?
Is the enterprise staffed with qualified personnel?
What technologies are planned to be used?
Is cooperation established with suppliers and subcontractors?
How is the problem of waste disposal solved?

Answering these questions should be based on the information provided in the market research.

Production control

Particular attention should be paid to the description of the production of the product and the quality control system at each stage. To do this, the TQM control chart (process quality control chart) and the economic order quantity model are used.

The key point of the production plan is evidence of the need for the selected production technology (service provision). If there is a choice of production processes, then you need to mention them all, listing the serious disadvantages so that the merits of the technology the company needs appear reasonable. You can consider the possibility of saving budget funds at each point of the plan: using leasing, renting equipment, collaborating with freelancers instead of permanent employees, transferring some functions to outsourcing. It is very important to identify the most effective and low-cost opportunity to conquer an economic niche in the market.

Recruitment

Recruitment is another important part of the production system, because its success depends on the skills and reactions of project managers. The description of the level of qualifications and the company's provision with the necessary specialists should reflect the real picture. If there is a need for additional recruitment of personnel and a management core, it is important to clarify whether it is possible to find them at the location of production or whether you will have to incur costs to motivate them to move from other cities. Don't waste too many words on the management biography. It is necessary to show that each of the managers is truly a professional in his field, dedicated to him and the team believes in the leader. For this, specific data about his role in participation in other projects is sufficient, while it is not necessary to describe exclusively successes. An adequate analysis of one’s past mistakes and the ability to draw the right conclusions is positively perceived by investors.

Loading production

The next point is production utilization or production capacity (PM). It contains data on the volume of products (services provided) that the company is able to produce (provide) for a specific time period. This paragraph examines the company's PM in several categories: project, current, reserve, and from the point of view of its possible increase and decrease. Here you need to provide information about how flexible production will be - whether it is possible to quickly increase or reduce the production of goods without significant losses and breaks in the production-supply chain.

The production plan must include a layout of equipment and its justification.

Aggregate plan and work schedule

An aggregate production plan for product sales is created to compare marketing data and production capacity for a period from one year to 5–7 years. Characterized by clear definitions of goods/services that must be produced to fulfill the business plan. The production and sales plan is usually divided into periods of up to a year. It can be adjusted every month, depending on the current situation in the company. The very concept of “aggregate” means to enlarge. In this case, we mean the generalization of individual indicators and their reduction into one position.

The next items are scheduling work and planning material requirements. For this it is convenient to use .

Step 5: Prepare a Financial Plan

This part of the business plan is designed to evaluate the project in terms of its costs and profitability. It should justify the need for finance, describe ways to replenish the project budget, and guarantees. It also provides a description of the economic situation in the area of interest of the project, difficult to predict factors and possible options for financial behavior under several scenarios for the development of events. Preparing to work on a financial plan consists of drawing up an estimate and the degree of its accuracy.

It is important to list in detail all planned expenses for the project and the rationale for their necessity by year, dividing them into quarters. It is advisable to plan the first year monthly.

For each month (quarter, year) of the project, you need to reflect:

taxes and their rates;
inflation;
information on capitalization methods;
loan repayment schedule.

Take data from:

;
documentation on the movement of money;
balance sheet.

How to write a business plan so that investors and bankers like it

It depends on how the business plan is designed, what issues are covered in it and how, whether it will be possible to get money for the idea. We have prepared recommendations that will help you create a business plan that is understandable to investors and bankers, and not miss anything really important.

Recommendations to help you write a competent business plan yourself

Reflect in the plan the approximate period when the invested funds will be returned and what specific steps are provided for this.
When making forecasts, check project performance indicators.
Experts advise, after accurately calculating the costs of implementing the project, to double this figure. Lack of funds can ruin the most promising project.
Compare the timing of receipt of funds with the timing of the company’s regular expenses.
Create a financial reserve while the income growth from the project exists only on paper.
Create informed profitability forecasts. It is better to expect less than to be captured by illusory expectations and create a difficult financial situation for the company.
Tightly control costs until operational returns are achieved.

A business plan is a short-term course of action for a business entity. The document contains information about the company and ways of its further profitable operation. It contains information and proposals for the production of a new product, the provision of a service, the sales market is assessed, calculations of the necessary materials and equipment, marketing moves are made, and a conclusion is drawn about the feasibility of implementing the project from a financial point of view, the profit received and the payback period are predicted.

A business plan is an important strategy, management and planning tool. Any investment agreements and transactions are concluded subject to the mandatory availability of this document. Having seen the forecasts set out on paper, confirmed by real figures, investors will make a deal with the entrepreneur, enter into a contract, and invest the necessary resources.

When issuing loans to start-up entrepreneurs, the bank needs a guarantee of repayment of funds. The provided business plan informs the credit institution about the existing or future activities of the businessman in a succinct, understandable form. By and large, such a document answers the question that interests every business owner: is it worth investing in a particular project?

Writing a business plan is a long, labor-intensive process that will require the author to have extensive knowledge in the subject area and the ability to analyze - in total, this data will allow you to clearly define tactics and strategy to achieve the desired result. There are 3 ways to become the owner of a finished document:

Compose yourself. In this case, the entrepreneur will need knowledge of the economy, legislative acts, all the nuances of his business, and, finally, the rules for drawing up a business plan.
Use the services of specialists. There are companies that, in a number of services provided, prepare and compile similar documentation. The negative aspects of this method include the high cost of the service and the subjectivity of the information presented.
Download from the Internet. Rather, this option is recommended to help the first.

You can see how to correctly compose such a document in the following video:

Stages of document preparation

A competent business plan should contain maximum information about the company’s activities.

Its approximate structure:

Although a summary belongs to sections, it should be written separately, after completing the entire document. It performs the function of an extended output, a summary. After reading it, the investor, lender or business owner will have a general understanding of what is written below.

A standard resume is 1 page in A4 format.

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Overview section

The purpose of compiling this paragraph is to provide information about the enterprise. The section should provide answers to the following questions:

What is the organizational and legal form of doing business?
The main activities of the company?
Job profile: sales, production, intermediary, etc.?
What does the company intend to offer to the potential target audience?
What goals does the organization pursue in implementing this project?
In what geographical area does the company plan to develop?
What is the main difference between this company and its main competitors?
How does the company see its development prospects in the next few years?

At the end of the paragraph, the legal details of the organization must be provided: address, contact phone number, website (if available).

Description of the product (service)

The main objective of this section is to present in a concise form the features, qualities and characteristics of a product or service offered by a specific business. The section should contain a physical description of the product or service, a description of the benefits, possibilities of use, problems that the described product helps to solve, and the stage of readiness to enter the market.

It would not be amiss to indicate the data of experts and consumers who had the opportunity to familiarize themselves with the products and give positive feedback. If we are talking about a product, it is recommended to attach high-quality photos from different angles.

Marketing plan

The section allocated for marketing research is one of the largest and most important parts of the business plan. The main task of the compiler is to explain how the described business will influence the market and respond to its rapidly changing trends in order to ensure the sale of goods in the stated volumes. The marketing plan should reflect the following aspects:

demand for the products offered;
market expansion opportunities;
analysis of competitors, factors influencing the internal and external environment;
market research results;
projected sales volumes.

To confirm the information described, one can cite ready-made versions of SWOT analysis tables. To summarize the point, a description of the marketing strategy is given (the expediency of using marketing means is explained, in particular a description of sales strategies, product promotion, advertising, pricing, and sales promotion).

Production plan

The purpose of creating this section is to describe the technological process of product production. A general approach to organizing production is indicated. Characteristics are given to suppliers of raw materials and auxiliary materials that will be used. A description of the main technological processes is attached. Options for purchasing equipment, its main characteristics, and power are considered.

A separate paragraph indicates the qualification requirements for personnel involved in production. Divisions are formed (if we are talking about a large business). The terms of payment, labor incentives, and proposed changes in the personnel structure as the enterprise's capabilities expand are considered.

Below it is recommended to draw up a production flow diagram that will clearly demonstrate the processes of receipt of raw materials and components, the processes of their processing into a finished product, where the goods will be stored, how and where they will be delivered from the enterprise.

In the case of the provision of services, the scheme will have a slightly modified form. It should reflect the way in which services are provided to clients, where the initial stage will be the provision of the necessary tools and materials.

The following aspects of the production process should not be ignored:

estimated production capacity;
need for land, buildings, structures;
the need to purchase equipment;
terms of supply of raw materials;
quality control of received materials;
requirements for sources of energy, water, gas;
quality control of manufactured products.

Financial plan

An important condition for drawing up a business plan is to determine the financial indicators of the business. These calculations are based on taking into account costs and sales (income) forecasts. The result of the calculations will be the amount of profit that the enterprise will receive from the implementation of this project. In essence, this is basic information that is of interest to investors and credit institutions.

Investment costs (to start a business):

registration of an organization;
purchase or lease of production space;
arrangement of the premises;
acquisition of equipment and auxiliary materials;
registration of a license.

Basic costs are usually divided into fixed and variable.

The volume of fixed costs does not change depending on the increase (decrease) in the volume of output:

rental of premises;
depreciation of fixed assets;
employee salary (rate);
tariffs for water, heating, electricity, gas, communications;
equipment servicing;
payment of taxes.

As a rule, the basis for calculation is a time period: month, six months, year, etc.

The volume of variable costs is directly proportional to the volume of production:

costs of raw materials;
salaries to employees (piece-rate form of accrual);
transportation costs (gasoline, etc.);
payment for communications equipment.

To determine operating profit, it is necessary to subtract expenses from the cost of production. An important condition for making correct calculations is the construction of a break-even point - a graph displaying the minimum permissible volume of production and sales at which costs will “cover” income. This means that the production and sale of each subsequent unit of production will bring profit.

To calculate the level of profitability of production, it is necessary to relate the cost of goods for a certain period to the amount of costs. The calculation of the payback period for production is carried out by the ratio of investment costs to net profit.

Risk assessment

This section provides an approximate assessment of the risks that are most likely to occur for this project. In addition, a number of preventive measures are proposed to prevent or minimize their negative impact on business.

Today, small business is a common phenomenon in the economies of various countries, including Russia. It can be represented either by a small private enterprise, that is, a legal entity, or by an individual in the individual entrepreneur format. Small businesses are represented in the field of sales and services.

Note that small businesses in Russia include organizations in which the number of workers does not exceed 100 people in the field of construction and industry, 30 people in retail trade, in agriculture and scientific and technical enterprises this figure reaches 60 people. In Europe and the USA, this figure is much higher and amounts to 300 and 500 people, respectively.

The importance of small business for the economy of any country is very great, especially for states that have high unemployment rates. Due to it, new jobs are created, and the needs of consumers for many services and goods are satisfied. In this regard, the state is pursuing an active policy in supporting small businesses. For its successful creation, development and existence, an effective plan is necessary, taking into account all possible scenarios.

A business plan at the initial stage of creating your own business helps to finalize the idea and methods of implementing the business, as well as determine the amount of investment. The main goal of any business plan is to describe all stages of business implementation, calculate the necessary costs, determine its elements, determine the time for the business to make a profit, calculate the strengths and weaknesses, as well as the risks and advantages of your own business.

Let us note that such an important matter as drawing up a strategy for the development of their own business is also carried out by large companies that have worked for more than one year. They have special departments involved in planning the further promotion of the business and keeping it afloat.

When starting your own business, you can create a strategy for developing your business yourself based on the templates and tips that will be given below. In this article we will tell you how to write a business plan with step-by-step instructions.

When writing a business plan, we must take into account and describe the following main points:

goals for starting your own business;
competitiveness in the market;
managerial potential (in other words, the amount of work that a manager and his subordinates can handle);
model flexibility;
degree of exposure to external factors;
financial component, as well as final results.

Registration of a business plan

A business plan can be in the form of an official document with a cover, written on a piece of paper by hand, or presented in electronic format. The structure of the business plan and the content of its main sections, including points that in some cases may be omitted:

title page (not always used);
a brief description of the project as a whole (summary);
main ideas of the project;
analysis of the sector and market in general, SWOT analysis, target audience;
project implementation plan;
profitability of the business idea;
necessary regulatory framework;
applications.

Title page

A project title page is a cover page that outlines the important elements of a business idea. These include: the name and author of the project (business), the year and place of creation of the project, you can also indicate its initial cost, that is, investments.

Summary

The summary in a business plan is a brief description of the business as a whole, which is compiled so that it interests potential investors and partners.

First, you need to describe the rationale for the relevance and demand of the proposed service or product. To do this, it is necessary to conduct a market analysis in this area. Determine the target audience to which your business will operate. To do this, it is necessary to pay attention to the business idea itself, its relevance, degree of prevalence, as well as the income generated. The second important point is a description of the factors influencing the viability of the business, its income and implementation according to plan. We pay special attention to describing the ideas, goals and objectives of the project.

Read also: Are external part-time workers included in the average headcount?

Key Ideas

The next paragraph must be devoted to a complete and detailed description of the idea of the business itself. When compiling it, it is necessary not only to describe the basis, but to think through possible options and ways to expand the existing proposal. For example, expanding the product line or modifying it, expanding the range of services. Careful, competent and thoughtful writing of the previous paragraphs will allow you to draw up a plan for the implementation of the main activities and stages of running a business and its functioning.

Before putting forward an idea for its subsequent implementation, it is necessary to carry out a qualitative analysis of the market for goods and services. This will help you identify an empty and underdeveloped segment of proposals. After forming the idea, it is necessary to study the profile area in more detail in order to determine possible ways of business development, the target audience, that is, the consumer. It is necessary to indicate the following data: general, brief information about the industry, its main economic indicators, prospects and dynamics of development; A description of competitors and their financial indicators and market conditions is important.

Sector and market analysis in general, SWOT analysis, target audience

At the same time, it is necessary to determine the strengths and advantages of your project, opportunities, describe risks, threats - in other words, perform a SWOT analysis of the idea. For convenience, a table is compiled. For each risk, an action plan to overcome it or alternative courses of action must be drawn up.

It is necessary to pay special attention to the description of the target audience of consumers - to create a portrait of it. It includes information about gender, age and social group, values and motives that will motivate people to use your service or purchase a product. This work will identify ways to increase interest and consumption of your products and services among your existing target audience, as well as attract new groups. In the same paragraph, you need to describe the most profitable and cost-effective ways to sell your product or service. This point of your business plan is an important and integral part of it, so you must approach its writing responsibly.

Project Implementation Plan

When drawing up an action plan, it is not recommended to indicate exact dates and times for completion of a particular action. Here it is also necessary to remember that there are different types of plans that perform certain functions and include their own specific functions. The first of these is the strategic and marketing plan. It includes drawing up a table of activities with approximate time periods and the necessary funds and resources, as well as the construction of a strategy close to it (tasks and methods for their implementation). Here the principles of pricing for a product or service, their distribution channels are determined, and advertising tactics are developed.

Profitability of a business idea

Based on the previous plan, a financial plan is drawn up, which includes all items of income and expenses for the entire period of work, including salary accounting. If you are not confident in the correctness of its preparation, then it is better to entrust this function to a professional. The next step is to write a production plan. This is a description of the entire process of creating a product, from choosing a supplier and receiving raw materials, to manufacturing the product and its sale. It is imperative to write down an administrative plan, which includes defining the responsibilities of each work unit, the level of wages, as well as measures to optimize the work of employees. For example, participation in competitions, advanced training.

Profitability is an indicator of business performance.

When calculating it, all available resources are taken into account that can and should be used at the initial stage of creating a business, as well as throughout its development. Here we are talking about initial capital, as well as possible investment injections. This calculation allows us to determine the time to reach the break-even point and transition to profit. If the forecast is made for a long period, it is important to take into account the possible growth of the wage fund, the level of inflation, as well as possible costs for updating equipment and rising prices for materials.

When opening a new company, it is not enough to calculate the costs of purchasing goods or raw materials and their retail price. An entrepreneur will have to face developing competition, visitor traffic and other important nuances. We need to prepare for this. How to draw up a business plan for a small business yourself so that it is competent and meets all market challenges, read the article.

How to Write a Business Plan for a Small Business

Regardless of the structure, the business plan is based on three criteria:

location of the retail outlet;
planned profitability;
sequence of actions leading to achieving a goal.

In fact, this is a documentary reflection of a business idea (with calculations, indication of the property being used, study of the target audience, etc.).

SWOT Analysis Methodology

To draw up a business plan for starting your own business, methods such as SWOT analysis are used. They allow you to solve the issue structurally, taking into account the necessary factors. If you follow the rules, even without experience, you can create a full-fledged opening and development plan.

The name of the method contains:

Strengths - advantages;
Weakness - shortcomings;
Opportunities - opportunities;
Threats – risks.

All points are considered. There are no business ideas without drawbacks or risks, just as there is no unprofitable business in advance. The main thing is to choose a profitable place to locate a retail outlet, take into account the presence of competitors, and develop a marketing strategy. At each of the listed stages, it is recommended to involve specialists. They will help you make calculations based on real statistical data.

How to write a business plan for a small business. Example of a typical structure

When considering samples of business plans for small businesses, you can focus on their standard structure. Each section has a specific function, making it easy to compare options.

Typical structure of a business plan:

Section name	Purpose
Brief summary	Designed for investors, reflects general indicators such as payback period, level of profit per month, amount of one-time investments
Project Description	Information about the legal form of the company, staff, premises
Niche in the market	Results of market research for the presence of competitors, needs for the product or service offered
Marketing strategy
Production plan	Equipment of the premises - from cosmetic repairs to the purchase of technical equipment. funds, advertising materials
Organizational plan	Employee salaries, work schedule, what tasks can be outsourced
Financial plan	Calculations taking into account one-time, variable costs, cost of goods or services
Risk management	Types of risks, ways to compensate for them

It is recommended to take real figures for wages, taxes, prices for services of third-party companies, and the number of competing companies at the time of calculations. Otherwise, a good plan may turn out to be unprofitable. Particular attention is paid to calculating risks - periodic absence of buyers, opening of new competitors, etc. Determine in advance whether it is worth outsourcing tax and accounting, this often allows you to avoid unnecessary costs of fines and save on taxes.

How to determine the benefits of a new project

Before you write a business plan for your small business, it's worth taking the time to analyze your competitors and figure out what offers are attracting them. This is a convenient location, low prices or favorable service conditions. It is important for a small company to find a solution that will allow it to stand out against its competitors. Without this, it will be difficult to reach the estimated profit level.

An entrepreneur will have to face the following difficulties:

Retail space in high-traffic areas is expensive. You will have to sacrifice space or invest significant funds from the moment the store opens.
High prices require significant investments in an advertising campaign. A small company may not be able to bear such expenses.

Therefore, it is worth striving for a unique positioning of goods, the introduction of additional services, and maximum elaboration of the target audience. All this is done at the stage of creating a business plan. At the time of opening, there should be no questions about how and to whom to sell.

Why is it important to find out the shortcomings in advance?

Before starting financial calculations, it is recommended to study the regulatory framework: is it necessary to obtain licenses and other permits, what organizational and legal form of the enterprise will be the least expensive. Small businesses are most often opened in areas where there is no need to invest a lot of money - retail trade, provision of personal services.

In addition to clarifying the list of costs, it is necessary to take into account the likely weaknesses of the business:

local market - limited by constant traffic near the location of the point, often associated with the impossibility of moving without significant costs and loss of clientele;
growth prospects are practically non-existent; business expansion is usually carried out by opening retail outlets in other areas;
additional investments - new investments in startups are possible after achieving full payback of the previous ones; during this period, the entrepreneur can only rely on his own resources.

Before drawing up a sample business plan with calculations, it is recommended to make the most accurate assessment of the capabilities of the local market (taking into account existing competitors, the likelihood of opening new ones, the number of people living and working near the store). Such studies are ordered from specialized companies.

Where to get resources to start a business

Calculations and document execution “according to the rules” are necessary to present the project to an investor or potential partner. In the field of small business, this could be an employment center or a private individual. Lending from banks or investing your own savings is not excluded.

When drawing up a business plan, the following types of resources are taken into account:

the premises where the retail outlet will be located - find out whether there are rental holidays, whether it is possible for the owner to participate as an investor;
employees working in a company - in addition to hiring according to the Labor Code of the Russian Federation, there are many options, such as outsourcing to individual entrepreneurs and individuals;
funds for registration, equipment, purchase of the first batch of goods - payment schemes “in installments” and “for sale” are very popular in small businesses.

If you take into account all possible savings options, the payback period, the need for money and personnel will decrease. The same applies to the registration procedure. You can register an individual entrepreneur or LLC for free, for example.

What is important when assessing risks

Selection of partners and investors reduces costs at the start-up stage. But then you will have to deal with current risks and rely only on yourself. When considering the question of what a business plan is and how to draw it up with sample calculations, they may be limited to figures on the costs of paying for premises, employees, and tax contributions. But in the process of activity, unforeseen situations may occur, leading to a sharp increase in costs and a decrease in profits.

There is a whole list of factors that an entrepreneur cannot influence:

change in tax rate;
increase in the cost of rent and utilities;
the emergence of large competitors in the area of operation, capable of offering reduced prices for a long time (usually network companies).

The operation of the company may be affected by the performance of the equipment. Even with a warranty on those. means you will have to put up with downtime and damage to goods if they require special conditions. You can’t predict this at the stage of creating a business plan. Therefore, you have to limit yourself to general figures: consider a 10-30% risk of decreased profits (traffic) or increased costs.

In this article, we will walk you through step-by-step instructions on how to create a business plan. This will be a real roadmap for your business that will help you grow quickly. You can also use it as evidence of your ideas when negotiating with potential investors.

And let's first look at the 5 worst mistakes that are often made when drawing up business plans. These mistakes can ruin all your future efforts.

5 main mistakes when writing a business plan

So, you have decided to start your own business so that you will never work for someone else again, earn millions of dollars, and become a free person. The decision is highly commendable. And you heard that first you need to draw up a business plan.

You don’t really understand why it is specifically needed, and how to compose it. But it is necessary - that means it is necessary. And while it comes to that, let’s first look at how NOT to write a business plan. Here are five of the most common beginner mistakes.

Mistake #1 – We don’t write a business plan at all

Yes, we need to say this first of all. Russian maybe is a good thing, and constantly helps us out even where even the most complex scientific research does not help. But for business you need to have at least a rough plan of action. Therefore, under no circumstances try to keep everything “in your head.”

Paper has some magical properties. As soon as we start writing, our head immediately begins to work in a completely different way. I suspect that this has something to do with the nerve endings that go from the fingertips to the deep layers of the brain, but I don’t have exact data. One way or another, you definitely need to write down a plan.

Moreover, you need to register it for each project, even within an already existing business. If you want to open a new direction, take the step-by-step instructions that I provide below and make a plan.

Mistake #2 - Writing too big a business plan

The other extreme of a novice businessman is an attempt to calculate and prescribe absolutely everything. Such people find hundreds of pages of business plan templates on the Internet and believe that this is exactly how it should be done. In fact, all these multi-page business plans are just training works. They are written in institutes and colleges.

They also have their own “instructions,” but they have nothing to do with real life. Because these "plans" will never be used for real business. Wrote it, passed it, got a grade. But you and I will have more serious tasks.

Your business plan should consist of 1-2 pages maximum. Yes, yes, just a couple of pages. Because you will actually use it later. And it should be comfortable. That is, you should immediately have all the numbers and calculations before your eyes. Therefore, there is no need to “calculate” everything in advance. You'll still end up miscalculating.

Mistake #3 - Writing a business plan “for investors”

The next common misconception is the belief that a business plan must be written for certain “investors.” Beginning businessmen go to websites and forums for so-called “business angels”, and there they try to find a “moneybag” who will agree to sponsor their entire enterprise for a percentage of future revenue.

How can you convince a person with money that your project is a very good and profitable business? Naturally, show him a high-quality business plan. If this is your case, then I have to severely disappoint you. No one will ever give you any money, even if you have a wonderful business plan a hundred times over.

That's not how things are done in business. Any wealthy person has a large number of close people who need his money. And an endless number of not very close people who want to get to him through their loved ones.

And he always has somewhere to invest even without your projects. And even if investors suddenly want to invest in some startup, they will never evaluate its prospects based on the numbers in the business plan. They will look at people - what experience do you have in business, how many successful projects have you done, and so on.

Accordingly, forget about “business angels”. Your business plan is just for you. And solely in order to actually earn money, and not to extract it from some people, funds and the state.

Mistake #4 - Drawing a “beautiful fairy tale”

We will deal with this error in detail below, in our step-by-step instructions. And here I’ll just say briefly - we all have a tendency to greatly overestimate the expected result. And also - greatly underestimate the time, money and other resources that will be needed to achieve this result.

And if, when drawing up a business plan, your picture suddenly turns out to be not very “beautiful” - in no case do not adjust the numbers to suit your “wants”. Be completely honest with yourself. You and I can make candy out of even a not-so-cool project. But first you need to know the exact source data.

Mistake #5 – We write a business plan and forget about it

In order for your business plan to really work, and for your business to really make money, you need to periodically make changes to the document. It is simply impossible to calculate everything correctly in advance. There will always be some adjustments, new circumstances and new ideas.

Please remember this expression - “Goals should be made of stone, but plans should be written in sand.” This means that you have to remember where you are going, but constantly try different options.

A business plan is just a map. But reality is completely different. In the same way, you can look at a map of a place, and then you will be very surprised when you get to this place in person. Everything will be different there. Therefore, always keep your business plan at hand and don’t be afraid to “betray” your original ideas and calculations. This is not betrayal, but “adjusting the fire.”

Now let's move on to the step-by-step instructions for drawing up a business plan. It will consist of five steps.

Step-by-step instructions on how to write a business plan

Step #1 - Defining a Goal

As always, any project must begin with setting a goal. That is, before you start making calculations, try to set yourself a specific goal that you want to achieve.

For example - “I want to receive 300 thousand rubles of net income per month from the business.” This is not a bad goal. It might be a little steep for the start, but in principle it will do. And your business plan should not answer the question “What can happen if I open this business.” It should answer the question: “How should I run a business to get what I want?”

This is a very important point. There are a lot of options for “what could happen.” And you only need to know one thing - how to get exactly what you need, and for the sake of which all this is being started. Therefore, the first step is to determine a goal and a deadline for achieving it. Only when there is a specific goal and a specific deadline - only then do your “dreams” turn into a “project”.

Step #2 — Marketing research “on the knee”

Now we need to understand whether our idea has the right to exist or not. That is, will our project be viable, or are we getting into something that is doomed to failure from the very beginning?

Usually it is recommended to conduct “marketing research” for this purpose. Somehow - collect “focus groups”, conduct “target audience analysis”, draw up a “portrait of an ideal consumer”, calculate “sales volume”. And so on and so forth.

Firstly, it is simply unrealistic to conduct all this research, especially if you are new to business. And secondly, even if you conduct them, they will not give you any specific answer. Because in “focus groups” people tend to say one thing, and when it comes down to it, buy something completely different.

So we need to do some quick market research. And we will do it for free, and we will get an almost 100% accurate answer - whether our business can make money or not.

Small business idea

This method is very simple. See if there are companies on the market that are already successfully running the business you want to open. This is where 90% of all business ideas start pouring in. For some reason, people believe that if they’re going to open a business, it should be something unique that doesn’t exist anywhere else (or competitors, you know).

In fact, it's quite the opposite. If there is no such business in your market, then most likely no one needs it. And no one needs your product. And you sign up for a hopeless venture with investment and loss of money. Don’t worry about competition, we’ll talk about it now.

What to do with competitors?

The second step in our research is to estimate the number of competitors in the market. If there are a lot of them, then the demand for this product is very high. This means that the competition is very high. And then you most likely need to choose some narrower niche in the market.

That is, for example, not just opening the hundredth bookstore in the city, but opening a store that will sell exclusively literature in a foreign language. By “niching” you show your specialization, and you will be more trusted than “generalists.” And you can offer a wider choice than the same station wagons.

And if there are very few competitors, then calmly do the same thing they do. Part of the market will simply automatically go to you.

By the way, “a lot/a little” must, of course, be assessed relative to the population of the city where you are going to work. And if we are talking about business on the Internet, then it is relative to the entire population of the country.

Step #3 - Forecast expenses and income

This is the most important and most subtle point in the entire business plan. We need to roughly estimate how much money we will need to invest in our business, and how much we can earn from it. And (remember step #1) - will it meet our goal or not.

Cost forecast

There are two types of expenses - fixed and variable. We incur fixed expenses every month, regardless of whether we have sales or not. For example, office rent must always be paid. You also have to pay salaries to employees, pay for internet and electricity. All of these are fixed costs.

These are the first things we indicate in our business plan (at the end of the article there is a link to download a business plan template that you can fill out). We copy their constant monthly expenses throughout the entire business period. In my template, the business period is 6 months. During this period it should already be clear whether our business is working or not.

Below we indicate one-time expenses. These are expenses that we incur only once (usually at the very beginning of work). For example, we need to buy office chairs, a table, a printer, and stationery. We put all these expenses in the “one-time” section.

The next type of expense is variable expenses. These are the expenses that “appear” only at the moment when we make a sale. For example, this is the cost of goods. Or the percentage of the cost of the service that we pay to the end performer.

Enter the amount of variable expenses in the appropriate field in the business plan template.

Now we have a rough understanding of what investments we need to “recoup” in order to start earning money.

Revenue forecast

Now that we see expenses, it will be much easier for us to plan our income. Usually three scenarios for the development of events are prescribed.

The first is minimal - when we only return our investments to “zero” (that is, we essentially earn nothing). The second - average - is when we cover all expenses, plus earn some small money on top (“small” is about a tenth of what you set for yourself as a goal).

The third - maximum - is when we have covered all expenses and earned as much as we wanted. If you set a goal of 300 thousand net income per month, then by the sixth month you should have a net profit of just 300 thousand rubles.

That is, you are not obliged to fulfill the ideal plan from the first month. But you need to come to it within the allotted business period.

Now look at the numbers you received and tell yourself honestly - can you make the volume of sales that is needed to fulfill at least the minimum plan? If so, that’s already good. What about the average? What about the maximum? If not, either reduce the size of the ideal goal or increase the business period.

This is how, based on expenses, we get an approximate picture of what sales volume we need to make. And here, in most cases, you can estimate by eye whether we are setting realistic goals or not.

The most important step

But now that we are satisfied with all the numbers in the business plan, and sales volumes have been calculated and scheduled, we need to do one very important thing. Divide income by two, and expenses, on the contrary, multiply by two.

And now see how long it will take you to reach your planned sales volume. This is approximately what your business can expect in reality.

Yes, we tried to be honest with ourselves. Yes, we moderated our appetites and were not stingy in describing our expenses. But all the same, we painted ourselves a fairy tale. We always do this. Therefore, divide your income by two and double your expenses at the end of each planning. Then you will get a more or less objective picture.

Business plan template in Excel format

As promised, you can download a business plan template in Excel format from this link. There are only two pages, but we don't need more. You can, of course, supplement and expand it.

But what already exists, in principle, is enough for more or less objective planning of your business project.

Conclusion

If you were looking for step-by-step instructions on how to write a business plan in order to complete your college homework, then I probably disappointed you. Because real business plans have nothing to do with this writing.

But if you are serious about starting your own business, then my business plan is exactly what you need. Now you can plan with your eyes wide open, instead of wondering why things didn't turn out the way you planned.

Bookmark the article and share it with friends. I will be very grateful to you for this. Don't forget to download my book. There I show you the fastest way from zero to the first million on the Internet (a summary from personal experience over 10 years =)

See you later!

Yours Dmitry Novoselov