business plan
Business Plan is perhaps the most important and, as a consequence, the popular and the document among experts in the investment environment.
In practice companies the term business plan is used to refer to:
- launch plan or business development (Group), a private company, subsidiaries, individual products, services and activities;
- production and financial plan of the company.
to designate the last of our company uses the term "budget" and, in the case of interest in this particular process, be sure to refer to the appropriate section of the list of services.
These processes largely overlap, but fundamental differences could be called users, target of the final document, the depth and the planning period.
So the business plan is an investment and strategic goals.The Business Plan is perhaps the most important and, as a consequence, the popular and the document among experts in the investment environment.
Investment analysts and bankers, as a rule, do not start the conversation without a well-structured business plan, since the document is essentially a written statement of your investment ideas, ranging from the description of the market environment, product and calculating the effective ending of the project with the definition of over-less accurate due date of return on investment and return on investment mechanism.
In summary, business plan serves the following two purposes:
- gives investors the answer to the question, is it worth it and when to return the invested funds
- serve as a reference for those directly implementing the project
structure of a business plan depends on the naturebusiness plan objectives and requirements of potential investors and generally consists of the following major sections:
- Product, Business
- Analysis of market and competitive environment
- production technology or services with the release of the competitive advantages of the product (service)
- Marketingplan.He is one of the most important sections of the business plan
- necessary resources to achieve the stated targets of revenue in the context of two major areas: operating costs and investments
- work schedule
- Calculation of planned budget revenues and expenditures and plan of cash flows with the definition of clear planning periodswith the need for investment and return on investment starting
Everything else additional to the above, is the result of creativity and management consultant, prepares a business plan.Based on the fact that the template document is unlikely to meet the requirements of different users and the developer must take this into account.Thus, the business plan developed in accordance with the requirements of the Bank formalized, often redundant and thus not sufficiently beneficial owner.
fundamental point lay in the settlement plan is mandatory reflection of assumptions used in the calculations, and their relationship with certain characteristics.Simply put, the user of the business plan must be capable of critical evaluation indicators.Investment planning is largely uses statistical data, for peers, marketing research on changes in the market, etc.
sufficient and correctly simulated reflection of the conditions and assumptions enables scenario forecasting - analysis of changes in underlying assumptions.Access to the conditions laid down in the calculations - the inherent requirement of a quality business plan.
Developing the theme of reflection conditions and assumptions that lay in the calculations, you should pay attention to the possibility of operational control of the project and its outcome prediction through comparison of planned and actual values.
Finance unit's business plan, if you do not take account of the preparation period, is directly dependent on the volume and level of detail of the financial and economic data, the presence of change description of effect relationships of various indicators, the quality of planning conditions change.
source: www.mainspring-consult.com
