What is the use of a business plan

Business planning helps to anticipate possible difficulties and calculate the profitability threshold, determine the payback period and view upcoming expenses.

You will need

• - a computer;

• - notepad;

• - a pen;

• - calculator

Instruction manual

1

A business plan allows you to determine the goals of the future business and its niche. Having compiled this important document, you will be able to identify the main direction of your activity and your target audience. A correctly drawn up business plan reflects those responsible for the future business and outlines an action strategy.

2

As a rule, a business plan lists the main goods or services that are planned to be provided to customers. Next, you should calculate the costs of their production, storage and marketing, as well as current costs. This data is needed not only to plan the budget, but also to calculate the payback period of the business.

3

In accordance with the goals and objectives of the business, the composition of the employees of the enterprise is determined, which will need to be attracted to implement the plan. In parallel, determine the requirements for qualifications, experience, skills and abilities that you will present to future employees of the company. It is better to immediately determine their responsibilities and draw up job descriptions. Outline the organizational structure of the enterprise.

4

In the business plan, it is necessary to reflect not only the costs of producing the goods, but also the price at which they should be sold. In the calculation of value, one should focus not only on expenses, but also on the average market price of similar goods. For this it is necessary to conduct market research in order to study the competitive environment. Plan the necessary activities and reflect their cost in the business plan.

5

When drawing up a business plan, future difficulties that can be encountered in the implementation of the plan should be predicted. Pay a certain amount for unforeseen expenses. You should also make a reserve on time, because due to unforeseen circumstances, the implementation of the business plan may be postponed.

6

Complete the document with a production plan in which you need to consider what material means of labor you will need. Think and reflect in the business plan where and at what cost it is planned to purchase the necessary equipment and tools. Indicate the main characteristics of future products.

7

Thus, a business plan is a document that reflects all components of a business: financial and organizational. Also in it you can see the risks of the future business, information on competitors, the specification of goods or services that are planned to be sold.