What is a business plan? Before answering this question, let's first analyze such a concept as business planning. Business planning is the preparation of a probabilistic model of business development for a certain period of time. Business planning involves analysis of the current state of affairs in this business, analysis of the organizational structure of the enterprise, as well as technology of production or provision of services, analysis of the tax environment of the business, forecast the situation on the market Analysis of business competitiveness, forecast of the situation in the market of finished goods (services) and so on. On the basis of this analysis the economic model of business is built, which describes the forecasted income and expenses, payback of initial investments, planned profitability and other economic indicators of business.
And so, business plan is an economic forecast of development of your business for a certain period of time.
The task of the business plan is to help the entrepreneur understand his future business in the complex, to calculate possible financial results and to make an objective look at the feasibility of opening a business. In other words, the business plan helps to determine whether to invest money in this project or not.
It is due to the well-written business plan, even at the planning stage you can avoid big expenses in the future and understand the main ways of business development.
In addition to internal tasks, there is a business plan and other tasks-external. For example, if you attract private investment, the lender and investor should find in your business plan the economic attractiveness of the project, its profitability and realistic performance.
If you are applying for a grant, the official will be interested in the basic socio-economic indicators of the business, how much your project would create new jobs, the amount of tax revenues in the budget and so on.
How to make a business plan yourself, what is included in its structure, and what you need to pay attention to when writing a business plan read the article on our website-How to make a business plan.
If you have any difficulties with writing a business plan for your project, you can refer to our section –. In this section you will find all areas of activity, and you may find the answer to your questions.