How to write a business plan (example)

Business plan has many definitions, but in short, this is a step-by-step instruction to bring any business idea to life. Planning a future business or improving an existing enterprise is not only a basic requirement for investors, creditors and partners, but also a necessity for a businessman.
Drawing up a business plan implies a deep and accurate analysis of all aspects of the future enterprise, and this allows you to turn the idea into specific goals and figures. And yet, a business plan is always an unfinished book, since in the process of changing economic conditions, the competitive environment, the investment market, you can always make adjustments to successfully promote your business.

Any business idea can become a successful business if the future entrepreneur clearly understands what he needs to implement his plans. It is the business plan that is the starting point for starting a business, which makes it possible to assess the real state of affairs, study the market and competitors, give an adequate assessment of your capabilities, and think about how to make your business unique, and therefore in demand.

Basic principles for preparing a business plan

So what should must be in the business plan .

1) Summary of the project. This is a concise description of a business idea, a vision of development and tools to achieve results. Also, the summary should display data on what advantages you see in your business in comparison with other players in the market. In a word, this section should give a brief description of your business idea.

2) Information about the company. Here it is necessary to indicate the name of the enterprise, form of ownership, legal and actual address of the company, describe the structure of the enterprise.

It is also necessary to describe the goods or services that you are going to produce or sell in the market.

Specify the main goals of the enterprise.

3) Market analysis. This part involves considering the conditions in which you are going to enter the market - the competitive environment, demand, what price you are going to charge, and how much profit you are going to make in the next three years. It is also necessary to indicate which particular advantages of your products or services can become especially attractive to consumers.

4) Product. This part should contain a detailed description of the future goods or services that you will offer to the consumer. You also need to indicate what target audience your activity will be focused on, indicate future suppliers, partners, contractors and other counterparties with whom you plan to cooperate.

5) Development strategy. This section involves a description of the tools for the development of the future enterprise - growth rates, advertising, possible expansion.

6) Tools for the work of the enterprise. In this chapter, you need to reflect information about what equipment you are going to use, how to package the goods, deliver them, and if these are services, where will you provide them and by what means.

Also, this section should include information about your team - from management to auxiliary workers.

7) Financial analysis. This section is business plan key , which should be the rationale for your idea in numbers. Here it is necessary to analyze and calculate all the costs associated with the organization of the enterprise, its location, maintenance costs, payment for the work of employees, settlements with suppliers, etc. You need to take into account everything, up to buying a pack of paper.

Also in this section, include information about your actions in case of debt from partners, buyers or suppliers. What debt recovery schemes are you going to use, and how you can protect yourself from such situations.

8) Accompanying documents. This is certainly not a section, but an important component of a business plan. It is necessary to attach all documents related directly to the enterprise as a legal entity, lease agreements, resumes, job descriptions, etc.

Common mistakes in business plans

Examples of business plans can be browsed endlessly, but a beginner may not always be able to main disadvantages of a business plan. Often, a business idea does not get implemented because it is absolutely impossible to see the main essence and advantages of the future enterprise in the business plan.

So let's consider major mistakes that inexperienced businessmen allow while working on a business plan:

• Unnecessary information. Often business plans are written in such a way that behind the description of the professional skills of employees, information about the business itself is lost, or the story about competitors turns into an essay “Who today offers the same goods as mine and what a fine fellow I am, what can I do better (or cheaper )". In fact, a list of competitors is enough, a couple of words about the pros and cons of their work, pricing policy and an indication of your advantages over them.

• Unsubstantiated figures . As mentioned earlier, financial analysis is crucial for a business plan, so all calculations must be made on the basis of real numbers. Of course, it’s easier and faster to estimate “by eye”, but if you seriously decide to do your business, then remember that accuracy loves any business.

In order for an investor to be interested in you, work hard to ensure that everyone the figures in the business plan were reasonable. Keep in mind that investors and lenders go into negotiations prepared, since it is their money that is at stake. And, in the event of even a slight uncertainty about the reality of your calculations, you can forget about investing in your business.

• Vague information about goals and tools to achieve them . This problem arises, as a rule, when there is an idea, but there is no vision of its implementation, or, this vision has an unfinished form. Roughly speaking, if the future businessman has not thought through everything to the end.

A business plan must disclose a list of specific goals and ways to achieve them, work with the target audience, assess its solvency, clearly define the place in the market that you plan to take, and who exactly will be your main competitor. Specify what is the basis for such conclusions (analysis, market research, survey, etc.).

• Exceeded expected result . Often, when calculating the potential profitability of a future business, the dreams of entrepreneurs take precedence over real numbers. You should not get carried away with what you want, but it is better to honestly look at reality. If adequate figures are taken into account in the financial analysis, then the expected financial result will also have a real form.

Don't try to impress creditors, partners and investors with a profit of 500%. Believe me, they will calculate your result much faster and more accurately in their head, because their experience and knowledge will be greater than yours. And if the presented idea is worthwhile, even if not profitable from the first day, but promising in the future, it will not be ignored.

Sample business plan

So let's consider Sample business plan for a cafe good time ».

1. Summary .

Name - Cafe "Goodtime".

Legal form - Limited Liability Company.

Location - Kyiv

Services provided - Cafe, bar, karaoke, celebrations, trainings, seminars.

Working hours - 8.00-23.00 without breaks and days off.

Staff - 1 manager, 2 administrators, 1 bartender, 4 waiters, 2 cooks, 1 art director, 1 cleaner, 2 dishwashers.

The required starting capital is UAH 500,000.00.

Expenses per month - UAH 197,000.00.

The planned return on investment is 18 months.

Competition is high

Demand is high

Planned income per month - UAH 180,000.00.

Planned expense - UAH 120,000.00.

The planned net profit is UAH 60,000.00.

1. Cafe services and goods .

Cafe Goodtime will provide the following services:

1) Cafe, bar services.

2) Conducting trainings, seminars.

3) Theme parties.

4) Karaoke services.

5) Providing Wi-Fi for visitors.

6) Separate playroom for children.

Goods that the Goodtime cafe will sell:

1) Confectionery products of own production.

2) Semi-finished products of own production.

3) Lunch / dinner with home delivery or "to go".

4) Sale of coffee and tea by weight.

1. The target audience .

The work of the cafe is focused on people aged 18-55 with an average income and above average. They should be interested in spending time in a cozy atmosphere, with the opportunity to participate in interesting programs, perform songs in karaoke. Each client should generate income in the amount of 50-250 UAH.

Also, the planned consumers of services are small firms that are interested in holding events for small groups of people 10-30 people.

1. Market promotion methods .

1) Distribution of flyers-invitations to the opening.

1. Customer retention tools .

1) An interesting menu, the possibility of preparing dishes under the order of customers.

2) Promotions, discounts for regular customers.

3) Holding interesting themed parties.

4) Gifts for regular customers in the form of desserts, drinks.

5) Service at the highest level.

1. Competitors .

Cafe "Goodtime" will be opened in the center of the sleeping area, where there are also 4 cafes of a similar level. But, our cafe will have the following advantages:

1) Availability of karaoke;

2) The presence of a children's playroom;

3) Possibility of ordering food at home;

4) Thematic evenings.

5) The location of the cafe has a convenient entrance and a parking place.

1. Action plan for opening a cafe .

1) Market analysis.

2) Team selection.

3) Repair of the premises.

4) Purchase of the necessary equipment and inventory for work.

5) Elaboration of the menu and a plan for upcoming events.

6) Registration of activities and obtaining all necessary permits.

8) Checking the cafe for performance.

9) Opening.

1. The financial analysis .

One-time costs:

1. Purchase of equipment and inventory - UAH 350,000.00.
2. Repair of the premises - UAH 150,000.00.

Total: UAH 500,000.00

Recurring costs:

1. Rent – ​​UAH 50,000.00
2. Salary - 48 000.00 UAH.
3. Utilities, Internet - UAH 8,000.00.
4. Purchase of products - UAH 70,000.00.
5. Taxes and fees - UAH 21,000.00.

Total: UAH 197,000.00

Payback period:

Provided that the cafe will be visited by 50 people a day and the income from each will be 150 UAH, the payback period will come in 18 months.

50 people *150 UAH*30 days =225,000.00 UAH

UAH 225,000.00 – UAH 197,000.00 = UAH 28,000.00

UAH 500,000.00/UAH 28,000.00 = 17.86 ≈18 months.

Conclusion

Subject to the competent implementation of the idea and the effective work of the advertising company, the administration of the cafe and the art director, you can count on profit after the first month of work. Considering that the cafe opens in autumn, attendance is expected to be high in the next 6-9 months. In order to retain customers in the summer, it is possible to open a summer site in the future.

So, it is possible to draw up a business plan yourself. Here is a simplified version, due to the fact that it concerns production issues. Also, keep in mind that this is just an example, so these numbers are very approximate. If you decide to take it as a basis, conduct a thorough analysis of the financial side of the issue yourself.

And yet, if there is no confidence in the issue of business planning, then you can always use the services of professionals who will work your idea well and turn it into quality business plan.

But, most importantly, persistently move in the direction of your goal and do not despair, because mistakes are always possible. The most important thing in business is not that you cannot make mistakes, but the ability to quickly navigate the situation and choose the right direction for solving problems.