Why do you need a business plan?
Planning is a process that never ends for all companies. It is extremely important in the early stages of any venture, when the entrepreneur will need to prepare a preliminary business plan.
There are different types of plans that can be part of any business operation. These include, but are not limited to, financial plans, marketing plans, human resources plans, production plans, sales plans, etc. The plans can be short or long term or they can be strategic or operational. Whatever the type of plan or function, plans have an important purpose; to provide guidance and structure for management in a rapidly changing market environment.
A business plan, on the other hand, is a written document prepared by the entrepreneur that describes all the relevant external and internal elements involved in starting a new venture. It is usually an integration of functional plans, such as marketing, finance, manufacturing and human resources. It also addresses short- and long-term decision making in the first three years of operation. So, the business plan, or roadmap, answers the strategic questions of where am I now? Where am I going And how am I going to get there? Potential investors, suppliers and even customers will request or require a business plan.
How I prepared my preliminary project proposal
In my case, I followed the following analyzes, keeping each section as brief as possible.
1 bottom: in this section, I established the context of the project, giving an account of the problem it is trying to solve.
2. State of the art: I gave an overview of the existing and emerging technology in the field, including an account of rival technologies and a comparison of the advantages and disadvantages of the various options.
3. Proposal: I wrote an overview of the proposed project and approach, that is, the activities that I will carry out to achieve the project’s objectives. Clearly establish the research element or novelty component in the proposal.
4. Consortium: an overview of the proposed workforce and establish the necessary capacity to carry out the project successfully (for example, skills, competences, etc.)
5. Objectives and deliverables: Identify (1) the objectives and (2) the deliverables of the proposed project.
6. Competitiveness: if applicable, establish the competitiveness or advantages of the proposed solution in relation to other solutions, already existing or in the research phase.
7. Cost: provides an overview of the cost of the project (including initial cost and working capital requirements).
8. Impact: This section should include:
I. Markets and Uses: identify possible uses and markets for project deliverables.
ii. Benefits and Beneficiaries: identify the beneficiaries of the project results (for example, the project participants, the general public, third parties) and how they will benefit.
iii. Roadmap: give an indication of what additional steps, efforts, costs and timelines are needed before tangible benefits can be realized from project deliverables or results (unless they are realized during the project lifecycle).
iv. Indirect benefits: identifying any secondary benefits of the project (for example, facilitating participation in funding programs, improving Malta’s ranking, strengthening Malta’s reputation in a specific area, etc.)
Preparing a Detailed Business Plan
The steps in preparing a business plan are: After the decision to open the business, before starting the business and when the update is necessary.
Business plans can be written for retail, wholesale, services, manufacturing and any other type of business.
A business plan is written by doing the following:
Identify any questions that may be asked about the business.
Determine what additional information needs to be collected to answer all questions.
Getting all the necessary information.
Comparing various alternatives
Making a decision on each issue.
A business plan should:
Look good
Provides an index
Provide a summary
Number each copy
Be signed to show who is sending.
It depends on the nature of the business.
A business plan must be organized to include a cover page, index, executive summary, business description, marketing plan, organizational plan, operational plan, financial plan and appendices.
The outline of a typical business plan is as follows;
1. Title: Feasibility study report on______________________
Commissioned by_________________________
2. Project consultants
3. Index:
Executive summary
The report
Project History
Study objective
Project description and
Loan advance
District Attorney
Location
Marketing and marketing plan
Potential customers
Competition
Prices
Sales Tactics
Advertising and promotion
Distribution.
Technical feasibility and management plan:
Factory
Machinery
General expenses
Packaging materials
Labor and raw material costs.
Projection / Financial Feasibility:
Capital requirement overview
Financial plan
Projected cash flow
Projected profit and loss account
Projected balance
Balance analysis
Origin and application of funds
Organization Plan:
Form of ownership
Identification of partners / main shareholders
Authority of directors.
Management team history
Roles and responsibilities of members of the organization
Risk assessment:
Assess business weaknesses
New technologies
Contingency plans.
Schedules:
Projected sales for 12 months
Projected purchase for 12 months
Fixed assets and depreciation schedule
Profitability index.
Thanks for reading