Business plan is unformalized economic document that allows entrepreneurs to formulate business idea, to develop business model and to see full picture of new project.
Classical business plan is divided into 5 main parts:
- Project description
- Market Analysis
- Organizational plan
- Production plan
- Financial plan
Depending on specification of components there are different types of business plans:
1. Business idea formation
Technically business idea is not a business plan because it has only descriptive part of the project with approximate estimates of income and expenses. In other words, business idea is a short project presentation.
2. Business plan for a grant
The document is being presented to local municipalities wich have budget for development of a small business. Usually such business plans are interesting for those who is interested in becoming individual entrepreneur and is searching for initial financing.
3. Business model
Description of all business procedures of the enterprise. The process of business model formation is the part of business strategy.
4. Classic business plan
The business plan is not only official document for banks, creditors, investors, partners and authorities, that is aimed to get money. Professionally prepared business plan is very important business tool that is allows entrepreneur to see a picture entirely and to build effective business development strategies.
5. Feasibility statement
The business plan with extended production part. The emphasis in this research is placed not on justification of an existence of the enterprise (mission and purpose, market analysis, etc.), but on justification of the product. Big experts's database allows us to formulate technical aspects of any business qualitatively.
6. Investment memorandum
The preliminary business plan in which emphasis is placed on idea, business model and team. This document is being created to demonstrate the project to potential investors or to estimate investment attractiveness of future business.
7. Development strategy of the company
Mostly development strategy is a consequence of conducted marketing research. There are 4 types of strategies:
- Product development strategy (new product + existing market);
- Strategy of presence expansion on the same market (existing product + existing market);
- New markets development strategy (existing product + new market);
- Diversification strategy (new market + new product).
1. Creation of financial model
The financial model represents the spreadsheet with cash flow calculation and financial performances according to the project purposes (profitability, IRR, cost of business, NPV, a payback period, loan repayment period).
2. Presentation of the project
There are two important tools that each entrepreneur should have before starting: business plan and presentation of the project. The presentation is a short review of the business plan, is a description of a core essence. The presentation gives a general idea about the business and allows investors to learn the project quickly to understand whether it worth their money or not. Qualitative presentation is one of the most powerful parts of any sucessful project!
3. Business plan protection in a bank or before the investors in Russian or English
4. Examination of the existing project
5. Searching for investors
6. Turnkey business start