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Business plan(business planning) is a structured description of the main directions of activity and development of a company that correspond to its strategy. This description refers to a method generally accepted in world practice for the development and form of presentation of specific prospects, tasks (see Objectives of strategic management) and goals (See Goal setting) of activities and means of achieving them. A business plan usually contains detailed information about the mission (See Mission), production, everyday and financial work of the company, an assessment of the prospects, conditions and forms of cooperation based on the balance of its own economic interest and the interests of partners, investors, consumers and competitors.

Business plan is a road map that leads you to your planned business goal, outlines the routes to follow, indicates intermediate stages and, most importantly, shows what you will achieve when you reach the final destination.

Term on English language - business plan

Why do you need a business plan?

Preparing a business plan has important, because he:

1. It will help to more clearly outline the motives and goals of your business work. Without knowing why and why you are going to do it, you will not be able to deliver

Business plan structure

Each business plan has a certain structure - a list of points of which it consists. The features of the structure differ only depending on the standards for drawing up business plans, but in general, any business plan includes the following sections:

• Summary.
• Idea of ​​the proposed project, analysis current state industry.
• Marketing research, identification of the target audience and its purchasing potential.
• Organizational plan.
• Production plan.
• Market assessment.
• Applications

The most famous business planning standards

The structure of the plan may vary depending on the type of enterprise, goals, objectives and, importantly, the standards for drawing up such documents.
A business plan standard is a certain scheme, recommendations, requirements, structure, and a set of rules that must be adhered to so that the presented business plan gives a complete picture of the project.
That is, in order to achieve the goal, the business plan must be drawn up according to a certain “template”.
Among the most famous and widely used business plan standards, the following should be noted:

Business plan according to EBRD standards

(European Bank for Reconstruction and Development, founded in 1991 with the participation of 60 countries and a number of international organizations as an investment organization to support market economies and the establishment of democracy in the countries of Central Europe and Asia).
This is one of the generally accepted standards in business planning, since the EBRD attracts a lot of foreign investment and has close ties with government institutions and is himself a major investor.
The European Bank for Reconstruction and Development has developed and offers for use its own business plan structure, which is distinguished by its emphasis on the financial section - more attention is paid to accounting for loan funds, SWOT analysis, etc.
The EBRD standard is the most concise and block-based, which opens up space for ideas and plans. But this standard requires experience in writing business plans.

Business plan according to BFM Group standards

(“BFM Group” is a Ukrainian investment and project company operating in the market of business planning, investment consulting, assessing the investment attractiveness of enterprises).
She developed her own internal business planning standard, which was adopted by many entrepreneurs for their own purposes.
The proposed standard has the most extensive structure, allowing the future project to be presented in all aspects of business activity and contains unique sections, such as:

• Value Chain Analysis.
• Boston Consulting Group Matrix.
• PEST analysis.
• Industry environment in a business environment.
• SWOT analysis of the industry.

Business plan according to KPMG standards

(KPMG International Cooperative is a Swiss association, an international network of companies founded in 1987. It provides consulting, auditing and other types of services).
KPMG developed this standard for its clients and partners. This association has almost no connection with Russian investors, it has no direct influence on improving the economic climate in the country, so its business planning standards can be perceived more as recommendations. But this company is the largest in its field and has authority, so these recommendations can be trusted.

Business plan according to the TACIS standard

(TACIS - Technical Assistance for the Commonwealth of Independent States - technical assistance to the Commonwealth of Independent States).
This program, developed in the early 90s European Union to develop strong economic and political ties between the countries of the former Soviet Union And Western Europe, to provide assistance in conducting and organizing business.
TACIS has special standards that take into account the Russian specifics of business, but they can only be considered as a guide for drawing up a business plan.
Sample points of the structure of a business plan according to the TACIS standard:

• A page dedicated to the regulation of copyright for this document.
• Business management system.
• Description of the personnel chain.
• Process of approval and decision making.
• Description management team with a track record

Business plan according to MEDT standard

Standard requirements if an entrepreneur expects to receive budget investments.
In general, it must be taken into account that, in principle, there are no single universal standards, since the goals and methods of doing business differ significantly.

Literature

Links

This is a preliminary encyclopedic article on this topic. You can contribute to the development of the project by improving and expanding the text of the publication in accordance with the rules of the project. You can find the user manual

One of the organizations offering standards for business planning is the UN, an organization fighting for global prosperity by supporting the industrial development of developing countries and countries with economies in transition.
The UN provides various assistance to countries with economies in transition and developing countries in adaptation and development in the context of globalization of the economy and the world as a whole. The organization collects knowledge, information, experience and technology, transfers it to countries in need and thereby contributes to the development of a competitive economy and increased employment.

UNIDO - United Nations Industrial Development Organization (UNIDO) is a division of the United Nations aimed at fighting poverty by increasing productivity. Founded in 1966.

Business plan structure according to UNIDO standards:

• summary
• description of the industry and company
• description of services (products)
• sales and marketing
• production plan
• organizational plan
• financial plan
• project effectiveness assessment
• company guarantees and risks
• applications

1. Summary
   This section contains general information about the business plan. The resume gives an impression of the entire project, so potential investors always look at it. The resume should contain brief but understandable information and provide answers to questions that concern investors - what is the volume of investments, loan terms, return guarantees, the amount of equity, etc. The remaining sections of the document should provide more extensive information about the project and prove the correctness of the calculations in the summary.
2. Description of the industry and company
   Description of general information about the enterprise or company, description of the industry and prospects for its development, financial performance indicators, personnel and management structure, direction of activity and manufactured products or services, partnerships.
3. Description of services (products)
   The best would be a visual representation of the products produced by your company - let it be a photograph, drawing or natural sample. If you produce more than one type of product, then the description should be for each type separately.

   Structure of this part:

   • Name of product
   • Purpose and scope
   • Main characteristics
   • Competitiveness
   • Patentability and copyright
   • Availability or necessity of licensing
   • Degree of readiness for production and sale of products
   • Availability of a quality certificate
   • Safety and environmental friendliness
   • Delivery conditions and packaging
   • Warranties and service
   • Product Operation
   • Disposal
4. Sales and Marketing
   First of all, there must be a market for your product. In this section, you must show the investor that this market exists. Potential buyers are divided into final consumers and wholesale buyers. If the consumer is an enterprise, then it is characterized by the location and industry in which you work. If the consumer is the population, then it is characterized by standard socio-demographic characteristics - gender, age, social status, And so on. Also worth describing consumer properties goods - price, product service life, appearance and others.

   Structure of this part:

   • the requirements that the consumer places on products of this type and your ability to meet them
   • analysis and description of competitors, what strengths and weak sides you will have
   • marketing research, description of the market and its development prospects
   • sales - from packaging and storage to direct sales at points of sale and warranty service
   • attracting consumers - in what ways (marketing tools), analysis of price elasticity of demand
5. Production plan
   Calculation of fixed and variable production costs, production and sales volumes, calculation of production costs and general information about the capabilities of the enterprise.

Structure of this part:
- geographical position enterprises, transport routes, availability of communications
- technology and level of personnel qualifications
- need for space
- staffing
- environmental friendliness of production and safety of workers
- volume of production
- wage and other personnel costs
- costs of raw materials and supplies
- current production costs
- variable costs
- fixed costs

6. Organizational plan
The success of the project directly depends on the top management of the company. This section describes the organization of the management team and key specialists, the organizational structure of the enterprise and the timing of the project, and methods of motivating the management team.

7. Financial plan
It is necessary to describe the main financial calculations and costs, carry out cost calculations and describe the cost estimate for the project. Also, describe the sources of funds, provide a table of expenses and income and describe cash flow.

Structure of this part:
- Costs of the preparatory period
- Costs of the main period
- Calculation of income
- Costs associated with servicing the loan
- Tax payments
- Other receipts and payments
- Gains and losses report
- Flow of real money
- Forecast balance

8. Project effectiveness assessment
Assessing the significance of the project, its effectiveness and focus. Analysis of the enterprise's sensitivity to external factors.

9. Company guarantees and risks
Guarantees for project payback and repayment of borrowed funds. Description of possible risks and force majeure situations.

10. Applications
All details that are not included in the main sections can be described in the appendices. This will unload the main part from unnecessary tables, graphs and other things.

The annexes most often describe the following points:
1. full information about the company (registration documents, etc.)
2. photographs, drawings, patent information about products
3. results of marketing research
4. photographs and diagrams of the enterprise
5. schemes according to organizational structure enterprises
6. financial and economic calculations (tables, graphs)
7. regulations and legislative acts confirming the described risks of the project

This standard for writing a business plan is the most detailed, so it is ideal for beginning entrepreneurs.

The importance of a business plan in international practice

Entry of the enterprise into the world market in mandatory accompanied by the preparation of a business plan, especially if the enterprise intends to attract foreign investment or credit resources.

Note 1

The objectives of a business plan in international practice are much broader than at the national level. A business plan in this case is not only a way to present a specific business project, but also a way to present an organization on the world market, an opportunity to present its history, successes and achievements.

In conditions international development business requirements for the business planning process are increasing, but even in this case there are no uniform requirements for the content of the business plan.

International Business Planning Standards

At the international level, there are several options for standards for the formation of business plans, recognized to varying degrees. These standards include:

• UNIDO business planning standards developed by the UN for countries in transition;
• KPMG business planning standards, developed by an international network company offering consulting, auditing and other types of services;
• business planning standards, developed by the European Bank for Reconstruction and Development, and so on.

The distinctive characteristics of business plans in accordance with various standards are determined solely by an understanding of the importance various aspects document from the point of view of standard developers. Some standards pay more attention to the economic justification for the effectiveness of the project under consideration (for example, the standards of UNIDO and the European Bank for Reconstruction and Development), others - to the assessment and analysis of the market situation within which the business project will be implemented (for example, the standards of the International Bank for Reconstruction and Development ).

When choosing the standards according to which a business plan will be developed, an organization must take into account certain factors, which include the following:

• the need for investments necessary to implement a specific business project;
• specific characteristics of potential investors, ranging from their interests to nationality;
• target orientation of the business plan (attracting credit resources, attracting investors, and so on);
• existence of intentions to raise funds state support (tax benefits, partial or full government financing of the project, government guarantees for loans, etc.);
• having plans to invest your own funds in the creation or expansion, business development, and so on.

Ultimately, regardless of the standard chosen as a guideline (American, German or other) for developing a business plan, the main requirement for it is the presence in its structure of significant sections that present specific, reliable and reasonable information about the project and its implementation. In addition, the business plan must be drawn up in such a way as to ensure that it is understandable to those for whose consideration it will be submitted.

Business planning according to UNIDO standards

In Russian practice, the most widely used business planning standards are UNIDO, in accordance with the requirements of which the structure of a business plan includes 9 sections, which include:

1. market analysis and marketing strategy section;
2. division of material support (raw materials and materials);
3. section of the place of implementation, construction site and environmental assessment;
4. section of engineering design and technology;
5. section of production organization and overhead costs;
6. labor resources section;
7. section of planning and estimated cost of design work;
8. project financial assessment section;
9. section of economic analysis of costs and financial results.

In Russian practice, the structure of a business plan, drawn up in accordance with UNIDO standards, is supplemented by 2 more sections: a summary section summarizing the content of the entire document and a historical section, which sets out the characteristics of the business before the implementation of the project disclosed in the business plan.

The presence of any of these sections is prerequisite successful implementation of the project. As practice shows, the greatest difficulties during development are caused by such sections as marketing plan regarding issues of organization and implementation promotional events and sales, labor resources, problems with which are caused by the unpredictability of the human factor.

Business planning according to TACIS standards

The desire of the European Union countries to participate in the economies of the countries of the Commonwealth of Independent States at one time led to the development of the TACIS business planning standard. The development of this standard was carried out in the 90s with the aim of ensuring the development of economic and political ties between Europe and the countries of the collapsed Soviet Union.

The use of TACIS standards is focused on the formation of an economic community, which is based on the economic prosperity and political freedoms of the participating countries.

Like almost any international document, TACIS business planning standards are advisory in nature, but their use is welcomed by investors and, therefore, beneficial to businessmen.

In accordance with TACIS standards, a business plan includes the following sections: title page, characteristics of copyrights for the business plan, thesis essay (description of the business, product, market, personnel and funds), business strategy, marketing measures, production strategy, management strategy, financial plan, risk analysis, applications.

Business planning is effective tool investment management. Drawing up a business plan helps to determine the goals of the project, structure, volume and schedule of investments, predict financial flows and planned results, as well as assess the risks and effectiveness of the investment project.

At the preliminary stage, a business plan helps the investor make a decision on the advisability of investing in a given project. In addition, a professionally drawn up business plan is a prerequisite for obtaining a bank loan and attracting external investment.

In the future, the business plan becomes an effective tool for monitoring the progress of the project; it allows you to promptly identify emerging problems and develop effective management decisions.

In order for a business plan to pass banking examination and be taken seriously by the investment community, it is necessary that it meets generally accepted requirements.

Advantages of purchasing a ready-made business plan
By purchasing ready business plan, Firstly, you significantly save your time - a ready-made copy of the business plan will be at your disposal no later than the next business day after payment.
Secondly, you get the opportunity to choose one of two business plan options (basic or extended), the most suitable from the point of view of the purposes of purchasing a business plan and its cost (see Ready-made business plans for more details).
Thirdly, we provide all our Clients with special terms of cooperation, including the provision of a financial guarantee for all our products.
You can find additional information about ready-made business plans in the section Standard business plans

Advantages of ordering the development of a business plan
In this case, the Client receives a professional solution that optimally meets all the goals of developing a business plan, fully complying not only with international business planning standards, but also with all the personal requirements and wishes of the Client.

Advantages of ordering a business plan from Inventica
Inventica specialists have experience in developing more than a hundred business plans and feasibility studies of investment projects, completed to order commercial companies(RAO UES of Russia, Lukoil, etc.) and government bodies (governments of the constituent entities of the Russian Federation and municipalities).

Our employees have experience in developing business plans designed for various purposes:
1) creation of a new business,
2) construction of facilities,
3) reconstruction of buildings and structures,
4) modernization of production,
5) expansion of the range of products and/or services,
6) etc.

We have experience in developing business plans for the creation and development of enterprises in a wide range of economic sectors:
1) trade,
2) food production,
3) household services,
4) catering services,
5) entertainment sector,
6) accommodation services,
7) agriculture,
8) transport, logistics,
9) chemical and petrochemical industry,
10) mechanical engineering,
11) woodworking,
12) medicine and pharmaceuticals,
13) media,
14) etc.

Our additional advantages are:
1) High professionalism
2) Long-term partnership
3) Financial guarantees
4) Independent examination

Business Planning Standards

Business planning standards do not define the methodology for developing a business plan; they set the logic and structure for presenting information on an investment project.

Currently, the most common international standards for drawing up business plans are:
UNIDO (United Nations Industrial Development Organization)
EBRD (European Bank for Reconstruction and Development)
Tacis (Programme developed by the EU for the Newly Independent States, former republics THE USSR)

UNIDO Standards (UNIDO (United Nations Industrial Development Organization)

In accordance with UNIDO standards, the structure of a business plan should include the following sections:
1. Title page
2. Memorandum of Confidentiality
3. Summary
4. Description of the enterprise and industry
5. Description of products (services)
6. Marketing and sales of products (services)
7. Production plan
8. Organizational plan
9. Financial plan
10. Project focus and effectiveness
11. Risks and guarantees
12. Applications

7. Production plan
This section provides general information about the enterprise, calculation of production costs for the planned sales volume, direct (variable) and general (fixed) costs of production, calculation of production costs, estimates of current production costs.
Approximate section structure:
General information about the company
— Description of the location of the enterprise (in many cases a determining factor for the success of the project). Availability of necessary transport connections, engineering networks (electricity, water, heat, sewerage, communications, etc.), resources, as well as proximity to the sales market.
— The technology used and the level of qualification of the performers.
- Need for space.
— Staffing.
— Meeting the requirements for ensuring environmentally friendly production for environment and safety of workers.
Volume of production
Personnel costs:
— costs for management personnel (director, chief engineer, production manager, accountants, planners, etc.);
— costs for production personnel (designers, technologists, repair workers, etc.);
— costs for other employees (marketers, storekeepers, security).
Costs of raw materials, materials and components
The calculation is performed for each type of product or service.
Operating cost estimate
This subsection provides the current costs of producing products (services). Production costs or, in other words, production costs are classified into direct (variable, i.e. depending proportionally on changes in production volumes) and general (constant, independent of changes in production volumes).
Calculation of variable costs
Variable costs include:
— Costs of raw materials and materials, components of products.
— Costs for production personnel.
— Costs of fuel, electricity (in some cases).
Calculation of fixed costs
Fixed costs include:
— Production costs (rent, repair and maintenance of equipment, fuel and energy).
— Trade costs (advertising, promotional activities, sales).
— Administrative costs (salaries of administrative staff, public utilities, communication services, travel expenses, etc.).

All generally accepted standards for writing business plans for investment projects, compliance with which will help obtain project financing. Experts' comments on these standards and recommendations for their application.

TACIS Business Plan Standards

TACIS (Technical Assistance for the Commonwealth of Independent States) - technical assistance to the Commonwealth of Independent States.

KPMG Business Plan Standards

1. Title page
2. Summary
   3.1. Short review
   3.2. Products and services offered
   3.3. Mission, goals and objectives
3. Products and services
   4.1. Introduction
   4.2. Products and services
   4.3. Related products and services
4. Market and industry analysis
   5.1. Use of product and service
   5.2. Demographic analysis
   5.3. Competition
   5.4. SWOT analysis
5. Target markets
   6.1. Target consumers
   6.2. Geographic target market
   6.3. Pricing
6. Advertising and promotion strategies
   7.1. Promotion strategy
   7.2. Advertising media
   7.3. Sales forecast
7. Control
   8.1. Organization and key personnel
   8.2. Constant consumption of assets
   8.3. Pre-production costs
8. The financial analysis
   9.1. Cost of goods sold
   9.2. Break-even analysis
   9.3. Quantitative Analysis
   9.4. Income and losses
   9.5. Flow of funds
   9.6. Enterprise balance sheets
   9.7. Risks
9. Applications

European Bank for Reconstruction and Development (EBRD) - founded in 1991 as an investment mechanism, at the initiative of 61 states and two international organizations. Designed to support democracy and market economies in 29 developing countries.

Business plan standards offered by the EBRD

1. Title page
2. Confidentiality Memorandum
3. Summary
4. Company
   4.1. History of the development of the enterprise and its condition at the time of creation of the business plan, description of current activities
   4.2. Owners, management personnel, employees of the enterprise
   4.3. Current activity
   4.4. Financial condition
   4.5. Loans
5. Project
   5.1. General information about the project
   5.2. Project investment plan
   5.3. Market analysis, competitiveness
   5.4. Description of the production process
   5.5. Financial plan
   5.6. Environmental assessment
6. Financing
   6.1. Schedules for receiving and repaying loan funds
   6.2. Bail and surety
   6.3. Equipment and work that will be financed using loan funds
   6.4. SWOT analysis
   6.5. Risks and measures to reduce them
7. Applications

UNIDO — United Nations Industrial Development Organization (UNIDO) is a division of the United Nations aimed at fighting poverty by increasing productivity. Founded in 1966.

Business plan structure according to UNIDO standards:

- summary
- description of the industry and company
- description of services (products)
- sales and marketing
- production plan
- organizational plan
- financial plan
- assessment of project effectiveness
- guarantees and risks of the company
- applications

1. Summary

This section contains general information about the business plan. The resume gives an impression of the entire project, so potential investors always look at it. The resume should contain brief but understandable information and provide answers to questions that concern investors - what is the volume of investments, loan terms, return guarantees, the amount of equity, etc. The remaining sections of the document should provide more extensive information about the project and prove the correctness of the calculations in the summary.

2. Description of the industry and company

Description of general information about the enterprise or company, description of the industry and prospects for its development, financial performance indicators, personnel and management structure, direction of activity and manufactured products or services, partnerships.

3. Description of services (goods)

The best way would be a visual representation of the products produced by your company - let it be a photograph, a drawing or a natural sample. If you produce more than one type of product, then the description should be for each type separately.

Structure of this part:
- Name of product
- Purpose and scope
- Main characteristics
- Competitiveness
- Patentability and copyright
- Availability or necessity of licensing
- Degree of readiness for production and sales of products
- Availability of a quality certificate
- Safety and environmental friendliness
- Delivery conditions and packaging
- Warranties and service
- Product operation
- Disposal

4. Sales and marketing

First of all, there must be a market for your product. In this section, you must show the investor that this market exists. Potential buyers are divided into final consumers and wholesale buyers. If the consumer is an enterprise, then it is characterized by the location and industry in which you work. If the consumer is the population, then it is characterized by standard socio-demographic characteristics - gender, age, social status, etc. Also, it is worth describing the consumer properties of the goods - price, product service life, appearance and others.

Structure of this part:
1. the requirements that the consumer places on products of this type and your ability to meet them
2. analysis and description of competitors, what strengths and weaknesses you will have
3. marketing research, description of the market and its development prospects
4. sales - from packaging and storage to direct sales at points of sale and warranty service
5. attracting consumers - in what ways (marketing tools), analysis of price elasticity of demand

5. production plan

Calculation of fixed and variable production costs, production and sales volumes, calculation of production costs and general information about the capabilities of the enterprise.

Structure of this part:
- geographical location of the enterprise, transport routes, availability of communications
- technology and level of personnel qualifications
- need for space
- staffing
- environmental friendliness of production and safety of workers
- volume of production
- wages and other personnel expenses
- costs of raw materials and supplies
- current production costs
- variable costs
- fixed costs

6. Organizational plan

The success of the project directly depends on the top management of the company. This section describes the organization of the management team and key specialists, the organizational structure of the enterprise and the timing of the project, and methods of motivating the management team.

7. Financial plan

It is necessary to describe the main financial calculations and costs, carry out cost calculations and describe the cost estimate for the project. Also, describe the sources of funds, provide a table of expenses and income and describe cash flow.

Structure of this part:
- Costs of the preparatory period
- Costs of the main period
- Calculation of income
- Costs associated with servicing the loan
- Tax payments
- Other receipts and payments
- Gains and losses report
- Flow of real money
- Forecast balance

8. Project effectiveness assessment

Assessing the significance of the project, its effectiveness and focus. Analysis of the enterprise's sensitivity to external factors.

9. Company guarantees and risks

Guarantees for project payback and repayment of borrowed funds. Description of possible risks and force majeure situations.

10. applications

All details that are not included in the main sections can be described in the appendices. This will unload the main part from unnecessary tables, graphs and other things.

The annexes most often describe the following points:
1. complete information about the company (registration documents, etc.)
2. photographs, drawings, patent information about products
3. results of marketing research
4. photographs and diagrams of the enterprise
5. diagrams of the organizational structure of the enterprise
6. financial and economic calculations (tables, graphs)
7. regulatory documents and legislative acts confirming the described risks for the project