Are you thinking about starting a business? You may have the knowledge and passion, but your dreams of becoming an entrepreneur can be left unfulfilled without creating a business plan. An effective business plan is essential for any new enterprise to move from concept to reality – chances are, it’s what potential investors will want to see before deciding whether or not they’ll back you. While writing your business plan can seem daunting, with practice and guidance, it doesn’t have to be overwhelming!
The summary is a short overview of the project. It includes the most important parts, what is needed, what will happen, and possible risks. This part is very important because it needs to make the investor interested in learning more about the project. The summary should usually be no more than 2-3 pages long.
In this section, the investor should learn more detailed information about your company and its activities and analyze its work for the previous period. Here you need to present the structure of the organization, indicate the legal form of the organization, and provide information about partners, founders, and suppliers. It also indicates the exact location of the company and what premises, structures, and buildings are at its disposal, whether owned or rented, and whether repair or reconstruction of production facilities is needed.
Characteristics of products or services
Describe the products your enterprise makes in detail. It includes the product or service name, what it does, patents, technical specifications, licenses and certificates, comparison reports with competitors’ products, operating rules, etc. Photos, diagrams, and drawings are helpful here.
Marketing and sales
You should figure out what people want to buy or use. Next, you need to find out about products or services that are already available. It includes information on the product, how it is better than other products, who would want to buy or use it, and how much people would want to buy or use it.
This section reveals the organizational structure of the enterprise. In addition, a description of the management system is given, information on the quantitative and qualitative composition of units, and requirements for the management personnel qualifications are indicated.
It is one of the most important sections. It reflects the costs of preparing and implementing the project. In particular, the financial section shows what financial resources are needed to implement the project and the planned return from the project. Finally, it describes the company’s cash flows: costs, revenues, taxes, and profits.
Risks and guarantees
Here it is necessary not only to analyze in detail the possible risks associated with the implementation of the project but also to indicate the proposed strategy for minimizing them.