A business plan – is a document containing structured technical, economic, financial, and organizational information on an investment or innovation project, necessary and sufficient to decide on the implementation of the project.

The business plan reflects the objectives, the proposed activities, the values of the necessary resources, financial projections, etc. for projects for the creation of new production or further development of the enterprise. A business plan is necessary for the owners or managers of the created (developing) enterprise to identify what exactly needs to be done to achieve success. But it is especially important when using external investments, in particular loans. In this case, the business plan will help to assess the competitiveness of the future enterprise in the market.

Typical elements of a business plan are:

– the name of the enterprise, its address, products, and business prospects;

– what product will be produced;

– market analysis: consumer needs, competitors, market size, etc., and the proposed marketing strategy;

– Production analysis – production, purchasing, sales, etc.;

– Financial analysis – forecast of profits and losses, cash flow figures, need for capital investments;

– management style and production control information – documentation procedure, progress tracking.

Business planning

– The process of developing and implementing a system of measures for the implementation of entrepreneurial, innovative, investment, and other projects, the development of the enterprise (organization) for a certain period.

Business planning performs several functions:

– development of a general concept, the general strategy of development of enterprises (organizations);

– assessment and control of the development processes of the core activities of the enterprise (organization);

– justifying the attraction of funds (loans, credits) from outside;

– ensuring the attractiveness of the development plan of the enterprise (organization) for potential partners who will be able to invest their capital or provide technology, knowing its future financial and economic results.


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