What is a business plan? Writing a business plan

Business plan

What is a business plan?

Why is it necessary to write a business plan?

Business plan, purposes of his designing.

The business plan is designing in the purpose of efficient management and planning the business and is one of the main instrument of the management of an enterprise, defining efficiency to his activity.

In condition of the market and severe competition the enterprise must have ability to respond quickly and adequately to the changes, occurring in external ambience and within the enterprise.

It becomes possible under the execution of some conditions:
  • the administration and investor set the correct value upon the real financial standing of the enterprise and his place on the market;

  • the enterprise must strive for real goal achievement;

  • they design a plan and execute every point of goal achievement;

  • the administration of the enterprise and investor understand the essence of the processes occurring on the market, in external ambience and within the enterprise.
Thus, the business plan is designing for internal and external purposes.

In suppressing majority of the events, the designing of the business plan is necessary to attract to investments. On the one hand it is the problem, on the other hand the business plan made not only for external integer.

The external purposes - a necessary ground for attraction additional investment or other people money, demonstration of the available possibilities beside company and attraction the attention of investor and bank, by means of persuasion them in sufficient level of efficiency of the project and high level of management of the enterprise. Each investor will want to value profitability investments in business and value correlation of the possible return from project and riskiness of the embedding, but best way for it - study and analyse the business plan.

The business plan, as a rule, is a visiting card of the capital investment project.

In other words, it gives the investor an answer to question - is it necessary to put the facility in given capital investment project and in what condition it will be the most efficient under possible degree of risk for investor and faithfulness of the admissions of the business plan.

The obligatory condition of the reception of the bank credit is the accordance of the literate made business plan of the capital investment project to the bank. If a borrower has no the business plan, it means the low professional level of the administrations of the enterprise and drawing up is impossible.

The internal purposes are much more important for enterprise that needs in the business plan.

The internal purposes - a checking the controlling personnel's knowledge, their understanding of the business sphere and the enterprise's place on the market. It is very important for the investor and administration of the enterprise to understand the achievement strategic integer, features, competitive ambience, weak and strong points of the concrete business-project, its possible efficiency under such condition.

So, the having designed the business plan, you will make the enterprise more controlled and will be able to forecast the situation for the future.

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