Business planning

Basics of business-planning
Essence and purpose of Business-planning
Investment project as an object of Business-planning
Business-plan structure and process of Business-plan development

Essence and purpose of Business-planning
Planning is a managerial process of designing a desired future and effective ways of its achievement, considering today's and future conditions and possibilities
Planning is managerial a process of goals setting and working out the plan of their achievement

Essence and purpose of Business-planning
Good plan is always based on forecasting
Forecasting is a foresight process, built on probabilistic, scientifically based judgment about the prospects of object in the future, its possible state.

Essence and purpose of Business-planning
Planning principles:
Unity (vertical and horizontal)
Participation
Flexibility
Accuracy

Essence and purpose of Business-planning
Business plan is a writing document, where the essence of enterprise idea, ways and tools of its implementation are described, and also market, production, organizational, financial and managerial aspects of future business are described, and efficiency of its implementation is proved and calculated.

Essence and purpose of Business-planning
Business plan is:
- a presentation of evidence to convince investors of the benefits of the project;
- a tool to determine the degree of viability and future sustainability of the business;
- business risks predicting tool;
- specification of business prospects in the form of quantitative and qualitative indicators of development;

Essence and purpose of Business-planning
Major reasons for Business-planning:
The process of putting a business plan together, including the thought put in before beginning to write it, forces entrepreneur to take an objective, critical, unemotional look at the business project in its entirety.
Business plan helps to foresee future problems
Business plan is an operating tool that, properly used, will help to manage business and work toward its success.
The completed business plan is the means for communicating ideas to others and provides the basis for the financing proposal
Business plan helps to involve business partners.

Essence and purpose of Business-planning
Business-plan structure and content are determined by several major factors:
Type of business plan
Business plan purposes
Business plan audience
The essence and scope of business
Value and directions of funding

Essence and purpose of Business-planning
Types of Business-plan:
Enterprise Business-plan
Business-plan of department
Investment project Business-plan
Business-plan of an entrepreneur's idea implementation
Business-plan for different types of partners

Essence and purpose of Business-planning
Business-plan can have different purposes:
To manage a business (a project)
To get funding
Debt funding
Equity funding
To merge or acquire business
To get a big contract
To reorganize a business

Essence and purpose of Business-planning
Business-plan has two types of users:
Internal
- business owners
- managers
- staff involved in the process of Business-plan performance.
External:
- investors
- partners
- financial institutions
- key customers

Essence and purpose of Business-planning
Enterprise Business-plan is a complex tactical plan of enterprise activity, that covers a period from one to five years.
It describes all basic functional areas of enterprise activity:
marketing,
production,
sales,
procurement,
delivery,
financing,
human resources,
information technologies,
technical development of production,
general management etc.

Essence and purpose of Business-planning
In the enterprise Business-plan purposes for each of activity areas are set and a plan of measures is developed.
As a rule, a plan of every functional sphere of activity is designed as a separate section.

Essence and purpose of Business-planning
Investment project Business-plan describes purposes of investment project, ways and tools of its achieving in each activity areas and proves economic efficiency of investment project.

Investment project as an object of Business-planning
Project is a unique set of interrelated activities (works) with determined start and end dates, that are necessary for successful achievement of common goals.
Projects have following specific features:
- Clarity of objectives;
- The complexity of relationships, transactions, tasks and resources that require precise coordination in the implementation of the project;
- Limited resources;
- Certain degree of uniqueness of the project objectives;
- The emergence of different conflicts

Investment project as an object of Business-planning
Project is a unique set of interrelated activities (works) with determined start and end dates, that are necessary for successful achievement of common goals.
Projects have following specific features:
- Clarity of objectives;
- The complexity of relationships, transactions, tasks and resources that require precise coordination in the implementation of the project;
- Limited resources;
- Certain degree of uniqueness of the project objectives;
- The emergence of different conflicts

Investment project as an object of Business-planning
Investment project is the plan or program of activities related to the implementation of capital investments for the next refund and getting a profit.

Investment project as an object of Business-planning

Essence and purpose of Business-planning
Investment project Business-plan has two objectives:
to prove the possibility and profitability of the investment project
to provide a comprehensive plan of reasonable measures to achieve the project objectives.

Business-plan structure and process of Business-plan development
Summary
Memoranda on confidentiality
1. Project concept
2. Characteristics of enterprise
3. Projected product or service
4. Market analysis
5. Marketing Plan
6. Production plan
7. Organizational Plan
8. Legal Plan
9. Financial Plan
10. Risk Analysis

Business-plan structure and process of Business-plan development
Business plan can be developed:
Inside the company
By consultants

Business-plan structure and process of Business-plan development
Procedure of Business plan development:
Concept development
Information gathering
Marketing calculations
Operational decisions and calculations
Financial calculations
Risk calculations and decisions
Text description
Business plan figuration