As a rule, a classic Business Plan consists of twelve main elements, including a title page and a confidentiality memorandum.
A well-written business plan can both simply become the basis for organizing a business, and help raise funds for the development of a project if it turns out to be attractive to an investor or lender. Below is step-by-step instruction how to write a business plan, with a description of its most important elements and recommendations for drafting.
What is a Business Plan in simple words and an example
A business plan is a document that provides a detailed rationale for the project and the ability to comprehensively evaluate the effectiveness decisions taken, planned activities, answer the question of whether it is worth investing in this project.
A ready-made business plan includes all elements of the development and operation of the business for the planned period. How detailed and competently a business plan for starting a business is written depends on how much the idea will be evaluated from the outside, as well as the number of sudden nuances that were not taken into account initially.
We can say that the development of a business plan is half the creation of a business. It outlines the details of the technological processes, accounting, the state of affairs in the industry, as well as documentation.
Thus, business plan in simple terms - this is a detailed description of the planned project, containing calculations and expected results for the next few years.
Sample Business Plans (download)
Below you will find some more examples and samples of business plans that you can download and study in detail.
Types of business plans
When deciding how to write a business plan correctly, you must first determine for whom it will be written. There are two main formats for this document:
- Interior. Such a business plan is intended solely for private use among the founders. With its help, expenses, production volumes and necessary stocks, etc. are planned. Such a business plan should be as close to reality as possible and reflect all the risks even in the worst case scenario. Some details of such a business plan that are obvious to the founder can be omitted, since in this case there will be no one to evaluate the extra details.
- For external users. Such business plans are prepared for presentation to investors or creditors, as well as government support agencies from which funds are expected to be received. This type of plan is distinguished not only by greater detail, but also by a wider evidence base, a large number of calculations. In this case, it is necessary to convince your counterparties of the validity of the calculations and prospects described in the plan. Logic and sequence of presentation of information, the quality of its presentation, design and accuracy are important. It is often possible to use the maximum and minimum possible real numbers where it directly affects the result of the calculation and efficiency, in order to increase the attractiveness of the idea for those who can invest in it. It will be good if all facts and figures contain sources that support their reliability. A business plan that will have visual materials will also win.
You cannot write a business plan for yourself and for an investor at the same time, because they have different purposes.
Internal plans should be more meaningful and practical, and the values in the calculations should be closer to the average or even worse. Plans for external users should be logical and neat, and the values in them are usually close to the ideal scenario.
What does a Business Plan consist of - Structure
Depending on the specifics of the business and the purpose of the document, the number and content of the points of the business plan may vary. A typical business plan usually consists of the following elements:
- Title page.
- Confidentiality Memorandum.
- Summary.
- Objective of the project.
- Analysis of the position of the enterprise in the industry.
- Description of the product of labor.
- Production plan.
- Organizational plan.
- Risk analysis.
- Applications.
Some elements required for writing a business plan for an employment center or lenders are optional for writing documents for internal use. For example, it doesn't make much sense to write a confidentiality memorandum or cover page for yourself.
At the same time, a business plan for a store may not contain a paragraph describing the product of labor, since in this case all goods are purchased for resale, and the list of services is standard.
How to start making your Business Plan - Instructions
To begin with, it is necessary to clearly define the scope of activity and the product that will be produced by the newly created enterprise. To do this, it is necessary to conduct a preliminary analysis of the market situation in real time and identify niches that are not sufficiently represented on the market. Choosing one of these niches will make it more likely to successfully occupy your market share in a short time.
Next, you need to collect all the information available in the public domain about this field of activity. Most Attention worth paying attention to real stories and reviews of people applying in this area. Only they are able to give an idea of the nuances that at first glance are implicit.
For popular industries, for example, for a cafe or a beauty salon, you can find a sample business plan for review or even special services that help in its formation. In the case of more specific industries, the amount of information freely available may be limited.
In case of a clear lack of data for analysis, it is best to seek a paid consultation from specialists - they will help fill in the gaps in knowledge.
SWOT analysis
This type of analysis is used to assess the strengths and weaknesses of the idea in the presence of information about the latter. Conducting a SWOT analysis helps to visually correlate the pros, cons and dangers of a future project in order to conduct a holistic assessment of them.
The essence of the method is encrypted in the name as an abbreviation: strengths, weak sides, opportunities and threats. It is for these four columns that the data is posted in the SWOT analysis.
- To the strengths refer to the advantages that the chosen niche has.
- Weak sides should be described in as much detail as possible, as they are needed in order to eliminate them in the future. This column includes all the shortcomings in the theoretical implementation of the plan, from low profitability to the lack of own premises.
Strengths and weaknesses, for the most part, are internal factors that are directly affected by the founder.
Opportunities and threats, on the contrary, are considered external factors that must either be used or adjusted and kept in mind. A sample table for conducting a SWOT analysis of a production project for a business plan is presented below:
Resume writing
One of the elements of writing a business plan from scratch is resume writing.
This element is always located at the beginning of the business plan and contains some brief information about it, forcing people who decide to read the content of the document to become interested in it and continue reading.
This is most important when looking for potential investors and lenders.
Despite the location of this element in the document, the founder does not start working on it before writing a business plan for a small business, since the summary is a section that presents consolidated information from the rest of the business plan.
Accordingly, the work on the summary is the last thing the founder starts - this is, for the most part, the business card of the project for external users of information.
The main points that counterparties want to see in a resume are usually the possible level of return on investment in the development of the project, as well as the risks taken on such investments.
Often in separate section define the purpose of the project.
In this subparagraph, it is necessary to indicate the goals, tasks set for the business, and also to argue the success of the future enterprise. Often in this paragraph, the results obtained from the SWOT analysis are used.
Analysis of the company's place in the market
This section usually contains an overview of competition in the selected industry, presented by the number of competing firms and their market shares, product specifics and sales volume, if such data are available.
Also, this section usually includes data on the planned size of the organization being created and competing organizations: the number of employees, production capacities, and so on.
- Check out (download).
Based on this analysis, a promising place in the industry is usually determined, that is, the market share that is planned to be taken in the future and in what time frame this should happen. If the business plan is drawn up for external users, then this item is one of the fundamental ones and should be disclosed in detail.
As advantages, one can take into account the experience of hired employees and managers, possible prospects for the development of the organization, various know-how, and so on.
When it becomes necessary to write a business plan yourself, you need to pay special attention to some mandatory elements in its content. In the case of a marketing plan, such elements are promotional tools, demand analysis, and preliminary sales directions, especially when it comes to production.
Product promotion tools are usually advertising, direct sales, and other options, depending on the field of activity.
In some cases, competent merchandising can be used as a promotion tool. It is also necessary to indicate by what means the promotion will be carried out: whether it will be a special department, an individual employee, or the services of outsourcing firms and inviting third-party specialists.
Marketing demand research is an extremely difficult and serious work, therefore, if you are not confident in your own skills, it is better to leave it to professionals. In this case, the likelihood that such a study will be positively assessed by creditors will be higher.
However, if it is important how to draw up a business plan yourself from and to, then it is necessary to take into account not only the volume of demand at a particular moment, but also its seasonal fluctuations, elasticity under the influence of the price factor, average prices for goods, the possibility of stimulating demand.
If there are already preliminary sales options for products, it would be good to indicate them and draw up for each its own sales program, which will include sales volumes for the period, revenue, tax administration (for example, payment of VAT if the counterparty is not its payer etc.), methods and terms of delivery and payment. Here you can also specify the rules and content of future promotions and discounts, if there are any developments on them.
It would be good to make a forecast sales table with calculations of the total revenue for each counterparty or for each product. Tables can have a simple but informative look:
If possible, it is better to give accompanying documentation to the amounts so that prices and volumes are not taken from thin air. Also, do not deliberately overestimate prospective indicators if such documentation is not available - this section should not cause doubts among investors.
Production plan
One of the most important elements of any business plan. It must be understood that this part of the plan applies not only to manufacturing enterprises – production plan includes the entire process of the functioning of the organization.
An exception may be a business in which no actions are taken by the staff at all with the products - for example, a wholesale store that simply purchases products, stores them in a warehouse, and then sells them.
If we consider the business plan of a restaurant or coffee house, then the production plan includes everything from the purchase of products for cooking and the time it takes to make a dish or drink, to the equipment used, the cost and shelf life of the finished dish, as well as the process Maintenance available equipment and machinery.
This paragraph, depending on the field of activity, should include:
- Raw materials and other production costs.
- The cost of acquiring equipment and premises.
- Labor costs.
- General production and general business expenses - rent, utilities, etc.
- Overheads.
In addition to costs, this paragraph describes in detail the work processes, the timing of each production cycle and storage of products, terms beneficial use equipment, mechanisms of interaction between different departments, requirements for employees, planned wages, salary schedule, and so on.
As a result, we can present a production plan painted by sub-items, starting with the purchase of raw materials and ending with the payment of wages and the sale of final products.
organizational plan
In this section, it is necessary to describe the structure of the company and its management system. This includes organizational structure, staff list of employees, information about the management of the enterprise, founders, organizational and legal form, planned management mechanisms, distribution of responsibility.
- (download in PDF).
This section also discusses the process of documenting activities in the process of its organization, with references to primary legal acts, according to which the registration and operation of the enterprise will take place. As a rule, this item is signed in order, starting with the lease of the premises and ending with the start of production.
This section of the plan, regardless of the purpose of the document, must be disclosed in as much detail as possible, since it depends on how much the planned expenses and incomes will coincide with the real ones in the future.
This item is the preparation of settlement documentation for planned costs, as well as approximate amounts of revenue. The best option for presenting this information is tabular, with separate explanations, since the amount of information in the financial plan of even a small enterprise is quite large.
Be sure to remember that the company has fixed costs, independent of the volume of production, such as rent, and variables determined by the volume of output. It is also necessary to take into account the cost of maintenance and repair of units, and all this must be taken into account when calculating the cost of a unit of production. Fixed assets transfer their value to finished products gradually, therefore, their cost is included in the cost, depending on the useful life in the form of depreciation.
- (download).
After the cost of a unit of production has been calculated, as well as the volume of fixed costs over a period of time, the break-even volume of production is calculated - that is, the amount of products that must be produced and sold at a given price in order to fully cover the cost and fixed costs. A further increase in production and sales will mean an increase in profits.
Also in this section, it is necessary to present the payback period of the project, which in a simplified form is calculated as the ratio of initial costs to monthly net profit. The result will be in months.
Also in this section, you can include other indicators necessary depending on the scope of the enterprise. In general, the more detailed information provided in this section, the better. For example, in the case of opening an online store, you can create a similar table:
Identification of risks
In this paragraph, it is necessary to consider the various risks that are inherent in the industry, region or type of activity, assess their theoretically possible impact on the organization's activities and possible damage, and also describe in detail the ways to counter them, highlighting those that will be used in certain situations.
If the business plan is for internal use, this section should be as detailed as possible - this can be very helpful in the future.
When drawing up a document for investors, some implicit risks can be omitted, but in no case should the obvious ones be omitted - this will be noticed and perceived as a flaw or short-sightedness of the founder. When developing this item, the founder will also be helped by the SWOT analysis carried out at the beginning.
Formation of applications
Annexes are an essential element of a business plan, especially for external use. All possible documents confirming the theses expressed by the founder earlier are attached to the plan as annexes.
It is highly desirable to confirm all figures, for example, with official statistics, reporting documentation of similar firms, letters of guarantee and references, and so on.
It is important to attach to applications also various treaties concluded with contractors or other founders, the existing documentation of the company, documents certifying the qualifications and data of the founders and the planned senior staff and in general, all possible documents confirming the information and judgments presented in the business plan itself.
These documents should be referenced in the text of the plan. Here you can also make too voluminous calculations or schemes.
Each business plan requires an individual approach, but there are some general recommendations applicable to most of these documents, according to which you can both draw up a business plan for an individual entrepreneur for internal use, and develop a plan for creditors of an existing large enterprise.
- reflect the real situation. If the plans take into account highly inflated profitability indicators or too low prices for raw materials, in the end you can get completely different financial results, which was calculated in the marketing plan.
- write literate, plain language . If the business plan is written confusingly and with an abundance of errors, no investor or lender will take such a document seriously.
- Take into account the nuances. It is necessary to pay attention to such things as seasonal changes in prices for some goods and services, climatic conditions that affect production. For example, in different regions, the cost of heating workshop premises, especially large ones, can vary greatly.
- Make a business plan concisely, but without unnecessary volume. The usual length of this document is 20-25 pages, excluding appendices. If it turns out to be much larger, then it is better to transfer all documents, volumetric calculations and schemes to applications.
- Calculate costs as accurately as possible. If the price of a particular product or raw material fluctuates greatly, it is better to take the maximum values so that in the event of another price fluctuation there will be no unpleasant surprise in the form of a loss of profitability.
- See related documents. Working on a plan is much easier when you have an example of writing a business plan at hand. To do this, below are examples of business plans in various areas that can be taken as a basis.
Conclusion
Drawing up a business plan is a rather complicated and time-consuming task. However, a well-written business plan can be considered half of starting your own business. Each industry has its own specifics for compiling this document, but there are some general points that must be taken into account when drawing up a high-quality business plan.
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Last update: 02/17/2020
Reading time: 24 min. | Views: 40308
Hello, dear readers of the Internet magazine about money "RichPro.ru"! This article will talk about how to write a business plan. This publication is a direct instruction for action that will allow you to turn a raw business idea into a confident one. step by step plan to achieve a clear goal.
We'll consider:
- What is a business plan and why is it needed;
- How to draw up a business plan;
- How to structure it and write it yourself;
- Ready-made business plans for small businesses - examples and samples with calculations.
At the end of the topic, we will show the main mistakes of novice entrepreneurs. There will be a lot of arguments in favor of creating quality And thoughtful business plan that will bring the realization of your idea and success affairs in the future.
Also, this article will provide examples of finished works that you can simply use, or you can take as a basis for developing your project. Ready examples submitted business plans download for free.
In addition, we will answer the most frequently asked questions and clarify why not everyone writes a business plan, if it is so necessary.
So, let's start in order!
The structure of the business plan and the content of its main sections − step by step guide in its drafting
1. How to write a business plan: detailed instructions on how to write it yourself 📝
7. Conclusion + related video 🎥
For every entrepreneur who wants to develop himself and develop his business, a business plan is very important. He performs many responsible functions that no other person is able to do differently.
With it, you can get financial support and open, develop your business much earlier than you can collect a significant amount for the business.
Investors generally react positively to a good, thoughtful, error-free business plan, as they see it as a way to make easy money with all the troubles invented and described.
In addition, even before the establishment opens, you see what awaits you. What risks are possible, what solution algorithms will be relevant in a given situation. This is not only favorable information for the investor, but also desired plan, if you get into trouble yourself. In the end, if the calculation of risks is too daunting, you can remake a little, transform the general idea to reduce them.
Creating a Good Business Plan is an excellent solution for finding investments and developing your own action algorithms even in the most difficult situations, which are more than enough in business.
That is why, in addition to their own efforts it is worth using "other people's brains". A business plan includes many sections and calculations, research and knowledge, only with successful operation, with which success can be achieved.
The ideal option would be to study all aspects on your own. To do this, it is not enough to sit and read the relevant literature. It is worth changing the circle of contacts, turning to courses and trainings, finding specialists for consultations on certain issues. That's the only way really figure it out in the situation and dispel all your doubts and delusions.
A business plan is worth writing for many reasons, however home is a clear algorithm of actions by which you can quickly get from point A(your current position, full of hopes and fears) to point B(in which you will already be the owner of your own successful business stable and regular income). This is the first step towards fulfilling the dream and the confident status of the middle class.
If you still have questions, then perhaps you will find the answers to them in the video: "How to write a business plan (for yourself and investors)".
That's all we have. We wish everyone good luck in business! We will also be grateful for your comments on this article, share your opinions, ask questions on the topic of the publication.
Greetings readers "site"! Today we will talk in detail about what is a business plan and why is it needed how to draw up a business plan as clearly, competently and concisely as possible (we will give a sample with calculations), as well as provide links so that you can download ready-made examples for free .
This material will be useful to all novice entrepreneurs and businessmen who plan to attract money from banks (investors).
How to draw up a business plan for a small business yourself, what rules and procedures exist, and where to download a ready-made business plan - read further in the issue.Sooner or later, every entrepreneur faces the concept of a business plan.
Business plan(from English. business plan) is a project of your business, in which the goals and objectives of its creation are clearly defined. In it, the entrepreneur must describe his actions for a specific period of time to make a profit.
Business plan structure, objectives and strategy 2. Rules for compiling (writing) a business plan 📝
Rule 1 Study the market situation in advance
Before starting to draw up a business plan, it is necessary to analyze the situation on the market as a whole. Gather as much information as possible about an upcoming venture or successful implementation.
Rule 2 Create a clear business strategy and follow it
The business plan must include specific actions throughout a certain period of time.
You must write down your actions in month, 3 month, 6 months, year and 3 of the year.
Rule 3 Consider both the pros and cons of the chosen business
In a business plan, you need to describe not only your strengths, but also possible losses, so to speak, weaknesses.
For example , strengths include highly qualified specialists, recognition in the market, bright brand etc. Possible losses or threats include: greater competition, high cost of goods or services.
3. How to write a business plan yourself - the order of writing and the structure of a business plan 📑
Regardless of the type of your activity, the main components of a business plan will be the same.
How to write a business plan - step by step instructions with an example 1. Introduction
The introductory part should not be too voluminous, but it should describe the most important:
- direction of the enterprise;
- payback period of the project;
- specific indicators.
Your potential investor should know the terms of return of their investments and possible losses.
2) Description of services
In this section, describe in detail the direction of your activity. Decide for yourself which segment of the market you will work with.
Important! Evaluate your competitors and your advantages over them.
Decide what you plan to focus on in your activities: low cost with high sales volumes, high service, or maybe something else.
To completethissection you need to do the following:
- Give a description and characteristics of the main and secondary products of the company;
- Take photographs of goods and services;
- Form a portrait of your intended consumer;
- Research and test your target market for similar products or services;
- Organize the service;
- Provide a pricing model. Assess the competitiveness of your project in the market.
After conducting such an analysis, you will definitely understand and be able to highlight the differences between your products in the sales market. And also clearly formulate what you produce and who needs it.
3) Marketing plan
Marketing plan - perhaps the most important stage in the development of your business. A lot will depend on well-designed marketing. You need to identify the main competitors for yourself, understand how they promote their project, and do better.
Ways to promote a business can be different:
- Place ads on radio, in magazines, on websites. It is only important to determine which advertising project format suits you;
- Be sure to work on direct selling. Starting with cold calls potential buyers ending with the sale of goods and services with the help of representatives;
- Encourage staff to achieve high performance. Come up with promotions, bonuses for employees;
- Find out a more favorable season for your business;
Main, really assess the situation, do not exaggerate your capabilities. Brainstorm regularly, come up with new routes. Read more about that here.
4) Organizational plan
Specifically write down all the steps of the activity, appoint persons responsible for the implementation of certain actions. Limit the timing of the task.
5) Financial plan
When compiling financial plan it is necessary to take into account all the little things, divide the costs into permanent and one-time.
- fixed costs - this is a monthly stationery, rent payment, utilities, internet, telephone, etc.
- One-time costs is the purchase of equipment for work, For example, computers, scanners, telephones, etc.
After compiling expenses, determine for yourself the minimum sales volume that will cover current expenses. Anything sold from above will be yours profit .
By calculating this, you will determine for yourself breakeven point. We can say that this is the purpose of the business plan.
6) Conclusion
The conclusion is intended to attract investors. Optimal partition size from 2 before 4 pages, which must be indicated:
- The main vector of your company's activity;
- Project profitability;
- Analysis of the company's place in the sales market;
- Company personnel, responsible persons;
- expected quality and quantitative indicators each period.
The "Summary" section should provide answers to 2 main questions:
- What result can investors expect with a favorable business development?
- What should investors expect in the worst case scenario?
Of course, it is better to write a conclusion when the business plan has already been practically drawn up.
4. Sample business plan with calculations using the example of an anti-cafe
Consider in detail the ready-made sample business plan on the example of anticafe .
The structure of the business plan - an example of "Anticafe" 1) Overview section
In the table we will see all general information about the project:
| № | Titles | Descriptions |
| 1. | Name | "gloss" |
| 2. | Organizational form | Individual entrepreneur |
| 3. | Services available |
|
| 4. | Locations of the organization and the sales market | Stavropol |
| 5. | Working mode | From 11.00 until the last client. |
| 6. | Facility staff | Supervisor - 1
people Administrator - 1 people Service staff - 3 people Director - 1 people security - 1 people |
| 7. | Required start-up capital | 500 000 rubles |
| 8. | Expenses | 167 000 rubles |
| 9. | Return on investment | 10-11 months |
| 10. | Competition | small |
| 11. | Organization income | 216 000 rubles |
| 12. | Organization loss | 167 000 rubles |
| 13. | Organization profit | 49 000 rubles |
2) Goods and services
Time spent in anticafe will be charged 2 rub/min . For this money, the cafe will provide services such as:
- Mini-library, you can retire and read books;
- Lots of games for big companies (mafia, board games);
- Game console;
- Karaoke, projector, tablets;
- You can arrange various courses, For example, in English, in Spanish, in psychology, visage trainings;
- You can also order banquets, children's birthdays;
- There is Wi-Fi, it can be used by any visitor;
- Tea, coffee and various sweets.
Ideal Clients: people aged 17 -45 years who live an active life; they have an average income; without bad habits; these people like to spend time for their own benefit; they would like to get good knowledge and great emotions.
The client must spend in a cafe near 22 hours per month. From this, the profit per person is calculated approx. 3600 rubles per month.
3) Marketing strategy
In the city on this moment there is one cafe in this segment. It poses a potential threat as they already have an established customer base.
- Social networks (Instagram, telegram and others);
- SMS mailings;
- Discounts, coupons;
- Announcements on the radio.
New anti-cafe promotion strategy:
- Direct attraction. Search for clients or organizations that will come to us big company. Hosting children's parties. Discounts regular customers. Advertising in institutes.
- Advertising in Odnoklassniki, Agent and many different networks. Coverage of a group of people who are at home. Advertising in in social networks allows you to get a lot of information from customers and very quickly answer all your questions, while requiring very little financial outlay.
- Building partnerships with firms that specialize in various holidays, show programs, corporate parties and more.
- Club card. This card entitles you to spend as much time as you like in the anti-cafe. Price 4 800 rubles, expiration date 1 month.
- Radio advertising. After a month of work, a story about events in the anti-cafe.
Such a business has seasonality . Anticafe has the highest attendance during autumn and winter seasons. And in summer and spring there are fewer customers ↓.
Therefore, the plan should be drawn up in such a way as to increase profit several times, so as not to go into lesion .
| № | Name | Timing | Responsible | Results and notes |
| 1 | Study | 01.01.14 – 01.02.14 | Manager | We have proven all our data |
| 2 | Recruitment | 01.02.14 – 01.03.14 | Manager | Found employees |
| 3 | Room search | 01.03.14 – 01.04.14 | Manager | Found a room according to the criteria |
| 4 | Repair | 01.04.14 – 01.05.14 | Manager | Renovated to all requirements |
| 5 | We buy equipment | 01.05.14 – 01.06.14 | Manager | Delivery to the place |
| 6 | Action plan approval | 01.06.14 – 03.06.14 | Director | Contracts signed |
| 7 | We are registering | 01.06.14 – 03.06.14 | Manager | Bought cash machine and documents |
| 8 | Advertising | 03.06.14 – 10.06.14 | We hire a specialist | Conducted advertising on all counts |
| 9 | Opening | 12.06.13 | Manager | Everything went well, a lot of competitions and gifts, there were journalists, everyone learned about us |
4) Financial plan
| № | Expenses | Quantity (piece) | Cost, rub.) | Amount (rub.) |
| 1 | Purchase of equipment | 50 | 5 000 | 250 000 |
| 2 | Purchasing inventory | 100 | 1 000 | 100 000 |
| 3 | Finishing work | 1 | 150 000 | 150 000 |
| Total: | 500 000 | |||
5) Conclusions
| № | Name | Quantity | Cost, rub.) | Amount (rub.) |
| 1 | Building for rent (150 sq. m.) | 1 month | 40 000 | 40 000 |
| 2 | Payment of wages | 6 people | 15 000 | 90 000 |
| 3 | Public utilities | 1 month | 5 000 | 5 000 |
| 4 | Products | 700 sets | 10 | 7 000 |
| 5 | taxes | 1 month | 15 000 | 15 000 |
| 6 | Deductions for depreciation | 1 month | 10 000 | 10 000 |
| Total: | 167 000 | |||
After analyzing all the costs for the reporting month, we can say - if the institution's profit is more 167 000 rubles, this will be breakeven point .
Given:
Simultaneous costs
= 500 000
rubles
Consumption per 1 month
= 167 000
rubles
Find: Payback period -?
Solution :
Payback period \u003d One-time costs / PI per month
1) We find an emergency per month
NP per month = Income per month - Expense per month
Profit per month = (Profit per day) * 30
days = ( 30
Human * 2
hours * 120
rubles/hour) * 30
days = 216 000
rubles
PE per month = 216,000 rubles - 167,000 rubles = 49,000 rubles
2) Finding the payback period
Payback period \u003d 500,000 rubles (initial payment) / 49,000 rubles (PE per month) \u003d 10 months
*Of course, all calculations above are approximate and may vary from region to region.
5. Ready-made business plan examples for free + template 📎
We present a ready-made template for writing your plan, in which you can easily enter your data for calculation and overview analytics.
📌
We present detailed instructions from business institute experts, which will help you draw up the right and effective business plan for your business.
How to create a business plan from scratch? To get started, do a little analysis of your project, identify its strengths and weaknesses, and set specific goals. Based on this, you will draw up a development strategy.
The list of preliminary studies includes the following sections:
Research of the chosen market niche, be it industry, trade, services.
Study thoroughly manufacturing process , demand for products, features of pricing.
Competitor analysis. Who else works in your field, produces the same goods, is located near your establishment?
Carefully study what they offer and at what price. Your task is to offer consumers better conditions and prices than competitors.
Research of requests and needs of buyers. Think about what is most important for them when choosing a product or service (price, quality, service, discounts, wholesale opportunities, etc.).
For yourself, you need to develop a table with an assessment of the strengths and weaknesses of your enterprise, or the so-called SWOT analysis. This will help strengthen your strengths and deal with your weaknesses.
In the Strengths line, write down your strengths, Weakness - vulnerable, Opportunities - opportunities and prospects (for example, the ability to significantly reduce the cost of products, create a whole network of enterprises, etc.), Threats - threats (what threatens the corporation).
The last point will help you find solutions possible problems in the future, plus these barriers will not come as a surprise to you.
Business plan structure
Below is a sample of a clear structure that will allow you to step by step describe the scheme for opening a company.
The main components of a business plan
- Project summary;
- Description of activity;
- Marketing plan;
- Industrial;
- Organizational;
- Financial calculation;
- Risk assessment;
- Application.
Summary
Section gives general idea about the project: what the organization does, what resources it uses (for example, raw materials), what schedule it works in, how much money it plans to invest and bail out, what are the payback periods.
It is worth specifying what results the company wants to achieve, for what period of time.
Usually investors decide on the summary, whether it is worth continuing reading, considering the offer and investing your money in the business. A business plan summary consists of 5-7 sentences.
Company Description
This part is a kind of short pomace» from the entire document describing the project.
Its structure:
- Industry (e.g. clothing store, kitchenware, app development, etc.);
- Short description manufactured products or services (names, scope, features);
- Areas of work;
- Advantages and used innovations;
- Structural structure of the organization (departments, subdivisions);
- Available licenses and certificates.
Let's analyze in detail the main and most important points of a business plan.
Marketing plan
well-formed marketing strategy will allow you to successfully start in the market and receive good profit from the very beginning.
It uses the research and market analysis that was carried out prior to the drafting of the document.
Description of activity
To be successful in trading, you need to think through a number of issues.
Features and geography of the sales market. In which region do you plan to work or where to supply products? Does demand depend on the season, political or economic situation?
For example, if demand falls during a crisis period, you should think in advance about ways to reduce the cost of a product, stimulate sales (for example, promotions and bonuses from the category “Third product as a gift”, “Installments for regular wholesale customers”, etc.).
Competitor analysis. What do they offer and how are they progressing? What features can be used in own business how to move better?
It is worth adopting all the advantages from competitors and analyzing their disadvantages in order to avoid other people's mistakes. This will give you additional competitive advantages.
Buyer portrait. Gender, age, financial situation of your main audience, their needs and interests.
Thanks to this information, the most profitable proposition for a particular category of the population, the benefits that may be of interest to them. Appropriate advertising channels are also selected.
How to draw up a business plan yourself, taking into account the portrait of the consumer?
Example : The average youth prefers to purchase clothes and accessories through online stores with delivery. The selection criteria are a low price, a large and frequently updated assortment, the presence of sales, and a pleasant design of the store site itself.
Main advertising channel– Internet (direct advertising, communities in social networks). Depending on the gender of the buyer, the design of the store, salon, website, advertising slogans and offers is selected, and an assortment is formed.
For wholesale buyers low prices, fast delivery, possible installments, etc. are important.
Consumer characteristics of the goods. Describe in detail the properties of the products or services provided, their availability. Why they are useful and unique, what needs they satisfy, why you should choose them. This will help in the preparation of advertising texts.
Sales promotion
Your business plan must contain ways to stimulate demand and sales.
This includes various promotions (promotions, discounts, tastings, distribution of leaflets, sponsorship at events and festivals, " guerrilla marketing”), unique offers for customers, marketing techniques, such as the correct layout of products in the store.
Manufacturing program
This item carefully considers the whole production process, technology and innovation, necessary equipment, purchases, storage. This is true for any type of activity..
If the firm is engaged in wholesale purchases and retail resale, then the emphasis is on suppliers (analysis best offers, selection criteria, terms of cooperation), storage of goods, methods of implementation.
How to draw up a business plan for the production part? Main sections:
- Location of the enterprise, requirements for the premises, necessary communications, repairs (list of works and calculation of their cost);
- Technological process, if we are talking about production;
- Required equipment. Here you should list all the machines, machines, apparatus, equipment, indicating their cost and brand of the manufacturer. What capacities will you need, will you have to increase them later? Describe the process of installing the equipment (sequence), how much time and money it will take.
- Volumes of output and/or sales of goods and services;
- Raw materials, where they are purchased and in what volumes. For stores, purchases of necessary products for resale are prescribed here. For the service sector - Consumables. A scheme is needed for the delivery of raw materials and consumables to the factory, store, salon, etc .;
- Calculation of the cost of goods and services;
- Storage of products and raw materials (where, under what conditions);
- Will the dynamics of production or sales increase over time? Describe how and what is required.
A good business plan includes various schemes, tables, charts. In this form, it is worthwhile to draw up data on production volumes, deliveries, and repair activities. They can be placed in the Appendix.
Mandatory schedule production / sales, clearly illustrating the required volumes of output and sales for 3, 6 and 12 months of work.
Organizational program
All details related to the organization of the case, the internal structure of the organization, personnel and work schedule are given in this section.
It will become a kind of scheme according to which you will create a company.
General structure of this section
To open a business questions need to be addressed:
- Legal form (IP, LLC, etc.), OKVED codes, The best way taxation;
- Permissive papers: licenses, certificates. List the services with which you will need to sign service agreements (disinfection, disinsection, garbage collection, etc.);
- Organization structure: division into departments, management staff, number of employees in each department;
- Possible personnel training system;
- Information about partners;
- List of products or offers;
- Schedule.
To write a business plan yourself, you need to consider some points in more detail.
Legal support
In addition to registration and permit documentation, need to prepare the charter of the company, product patents, quality certificates, licenses for engineering supply, lease or purchase / sale of premises, agreements with partners and suppliers.
At this stage, the prospects for participation in government programs, tenders, obtaining grants for benefits and reducing the cost of starting a business are considered.
Personnel management
We consider the internal structure of the company, the interaction of its departments, the selection of personnel and contact with them.
Internal structure of the company
Describe in detail all departments of the company: their number and names, responsibilities, number of employees, what goals they must achieve for the stable development of the company as a whole.
Specify what employees are needed(heads, managers, workers, their profile) for each position in the company.
Write them down official duties and qualification requirements, selection criteria.
Are on-site training and staff development planned, in what way, with what regularity and at what cost?
Also, describe the rules internal regulations, work schedule, possible penalties and fines for non-compliance with the rules.
Employee salaries and incentives
Here we determine the salary for each position, the form of payment (rate, percentage), bonuses (conditions of receipt and size), other material and non-material incentives.
With this item, the entrepreneur can easily calculate the payroll.
Work Schedule
Even in order to draw up a business plan, you will need to make a table with a project launch schedule. It is necessary to describe the sequence of actions (registration, purchase of equipment, hiring personnel, etc.), what resources and investments are required.
The table will help you plan the launch, control the preparatory process, make changes in time and, if possible, accelerate the course of events.
Financial plan
This includes all financial transactions of the company. from getting a loan and paying taxes to utility bills. This part brings together all sections of the business plan.
If a loan is required to start, the first step is to indicate the bank and the conditions for obtaining a loan, repayment terms. We need data on insurance, what amount is planned as a "buffer" - for unforeseen expenses and risk coverage.
Design Two Tables: for one-time and recurring costs.
- One-time expenses (fixed assets ) is the money to open a business. This includes the lease or purchase of premises, equipment, registration and permits, outdoor advertising, investments in the Internet site and advertising printed or souvenir paraphernalia.
- Recurring costs (working capital ) are the monthly expenses of the company for the purchase of raw materials, rent, salaries, taxes and other payments (utilities, loans), advertising, fare etc.
How to write a business plan for a project with a profit calculation? To do this, you need to specify the sales volumes and calculate the break-even point.
This is the number of sales that will be able to cover regular expenses. Upon reaching it, the business will begin to make a profit. Successful project reaches this figure in a few months.
The next step is to calculate the payback period. When capital investments in the opening of the company will be fully covered net profit, it pays off.
The table-scheme for calculating profits consists of the following points:
- Organizational costs (or prime cost);
- Total revenues;
- net income;
- Payback periods.
Risks and how to overcome them
Every idea comes with certain risks.. To avoid bankruptcy and loss of invested money, think in advance what could threaten your corporation and how to deal with it.
Uncontrolled risks. These are factors beyond the control of the entrepreneur: natural disasters, changes in the political and economic situation, various force majeure. To mitigate the consequences, develop an insurance system, an attraction scheme additional funds from investors.
It is realistic to predict other problems and develop ways to overcome them.
The most frequent situations:
- Exceeding the planned budget. Usually this figure reaches 5-15% of the planned costs. The solution is to initially budget 15% more after all calculations have been made;
- Too high cost, insufficient volume of production or sales. It is necessary to develop “backup” options for the supply of raw materials, options for increasing production capacity, sales promotion campaigns. You must be prepared to reduce the cost of the product without prejudice to yourself;
- Decrease in the relevance of the presented product or service, increased competition. Powerful marketing tools to maintain the interest of the audience (advertising, promotions, sales) and the opportunity to improve your product or move to a new direction.
Applications
The development of a business plan involves the preparation of graphs, charts, tables, charts for visualization and convenient calculation.
This also includes copies of certificates, licenses, contracts, photographs of products, diagrams and drawings of premises and communications. In the text, place references to the documents in the appendix.
This is a detailed description of how to make a business plan yourself with calculations and development forecasts.
In simple terms, a business plan is a document that defines the goals of your business and describes how to achieve those goals. In this guide, I will describe in detail all the steps in drawing up a business plan that will help you open a successful one. A well-thought-out business plan is the key to success for any entrepreneur, no matter what goals he sets for himself - from attracting investments to developing a plan for the strategic growth of the company.
Here are the four basic rules for writing a business plan:
1. Be brief.
Your business plan should be short and concise. This requirement is due to two reasons:
- Your business plan should be such that the reader has a desire to read it in its entirety. Who wants to waste time on a document that is 40 (and sometimes all 100) pages?
- As a tool for business growth and development, the business plan should change with your company. A long document is more difficult to work with, which means that a business plan that is too long is more likely to get covered in dust on the shelf.
2. Know your audience.
Write a business plan in a language that your target audience. For example, if your company is in the sciences and your potential investors don't understand complex terminology, you must tailor your investors' needs.
Here is an example of overly complex wording:
“Our technology is a single-connection accessory for CPAP machines. When connected to a CPAP machine, our product provides non-invasive dual pressure ventilation.”
Simplified wording:
“Our product is an easy-to-use device that replaces traditional medical ventilators and does not require an electrical connection. The cost of our product is 1/100 of the cost of a traditional ventilator.”
Focus on investors. Describe your product as simply as possible and avoid complex terms. More detailed information is better to take out in appendices.
3. Don't be afraid.
Most entrepreneurs are not business experts. They have no special education, and they are forced to learn as they go. Writing a business plan may seem like a daunting task, but it's not. If you know and love what you want to do, it will not be difficult for you to write a good business plan and adjust it as your project develops.
Moreover, it is not at all necessary to immediately create a full-fledged, detailed business plan, the structure of which will be described in this article. It's best to start with a simple one-page business plan and work from there into a more detailed document.
Before writing a business plan, it is better to look at a sample business plan for a company in your industry (cafe, beauty salon, car wash, online store). You will be able to understand how it should look like, how to make the right calculations, what to include in a business plan, industry features, etc. Examples ready-made business plans you can find and download . You can also search for examples on the Internet - just type in the search bar, for example, "coffee shop business plan" or "barbershop business plan."
Six things you need to include in a business plan
Having dealt with the basic rules for writing a business plan, let's move on to describing the structure of the document. In the rest of this article, I'll cover the do's and don'ts of your business plan, list key financial projections, and provide links to additional resources to help you write a smart document.
remember, that your business plan is not some boring document that has nothing to do with practice. A good business plan is a tool that can help you build a more efficient and profitable business. This is a flexible document that you will return to from time to time. As you get to know your customers, identify the strengths and weaknesses of certain marketing strategies, evaluate the accuracy of budget planning and forecasts, you will constantly make changes to your business plan. Your business plan defines the goals you want to achieve and you should use it to track your progress and correct your course.
1. Resume
A business plan begins with a summary - a brief description of your business and plans. The summary should take no more than 1-2 pages. In some documents, this chapter is listed last.
2. Opportunities
In this chapter, you should describe what you want to sell and how you are going to solve the problem (satisfy certain need) of your market. Also here it is necessary to pay attention to the description of the target audience and main competitors.
3. Implementation
How are you going to take advantage of this opportunity and launch your business on it? Here you should describe your marketing plan, sales plan, operations and success rates.
4. Team and company
In addition to attractive ideas, investors are also looking for good teams of specialists. In this chapter, you should talk about those who already work in your company, as well as list the specialists that you plan to recruit into your team. If your project has already started, please provide information about the legal form and location of your company, as well as a brief description of the history of its creation and development.
5. Financial plan
Any business plan should include a financial forecast, which we will discuss in more detail a little later.
6. Application
Applications contain images of products and Additional Information.
Now let's look at each chapter in more detail and try to write a business plan that would make a favorable impression on your potential investors and creditors.
Summary
In a resume, you introduce people to your company, describe your line of work, and explain what you want from your readers. Since this is the very first chapter that potential investors will read, it is best to write it last. Why? By already describing other aspects of your business, you will have a clearer picture of your project and therefore be able to write a more accurate and concise summary. The resume should sum up the entire business plan, so start with the Opportunities chapter and return to writing the resume when the entire document is ready. Ideally, the summary should act as a standalone document summarizing the most important aspects detailed in your business plan. Often, in order to evaluate a project, investors only need to read the summary. If they like the resume, they will ask you to provide the entire business plan, organize a presentation, or request other information of interest to them.
Thus, the summary is the most important chapter of the business plan, on which the success of your entire project depends. Therefore, try to present the information as concisely and clearly as possible. Highlight the main aspects of your business, but do not go into details. The resume should not exceed 1-2 pages. This should be some kind of bait that will arouse investors' interest in your project and the desire to get to know it better.
Key elements of a good resume:
Brief description of the business in one sentence
At the very top of the page, right below , express the essence of your business in one sentence. It can be a slogan, but it's still better to state what your company does.
Problem
Each business solves a specific market problem by satisfying the demand for that or any other product or service. In one or two sentences, describe the problem you intend to solve.
Solution
The solution is your product or service. How are you going to solve the existing problem?
Target market
What is the profile of your ideal customer? How many buyers might be interested in your product? Try to provide as accurate information as possible.
Just because you're in the shoe business doesn't mean that your target audience is absolutely everyone (because almost everyone has feet). . Your activities should target a specific market segment, such as runners or fashion-conscious men. This will make it much easier for you to develop the appropriate marketing strategy and sales strategy, as well as attract potential buyers who may be interested in your products.
Competition
How does your target audience solve the existing problem? Are there alternatives or substitutes for the missing product on the market? Any company has competitors, and in your resume you need to pay due attention to this aspect of your business.
Team
Briefly describe your team. Justify why you and your team can successfully bring your idea to market. Remember that for investors, the team is even more important than the idea. Without a strong team, even the most attractive idea will not get a decent implementation.
Financial plan
Provide basic information from your financial plan. Ideally, this should be a chart that clearly shows your planned sales, costs, and profitability. If your business model (i.e., how you are going to make money) requires further explanation, this chapter is perfect for that purpose.
Financing
If you are looking for funds to start or grow your business, you should describe your needs on your resume. It is not worth thinking about the timing of potential investment yet, since such issues are usually discussed at later stages of the project discussion. For now, you only need to indicate how much money your project will require.
Milestones and work done
Finally, we come to the last important part of the resume. Tell us about what has already been done, and also indicate the main goals (stages) that you are going to achieve. It will be great if you demonstrate to investors that you already have buyers who are interested in your product, or are already buying it. If you are writing a business plan for internal use, then you can significantly reduce the length of the summary or omit this chapter altogether. In this case, you can choose not to provide information about the management team, funding, and work already done. Essentially, the inner plan is created as a description strategic development company so that all team members know what to strive for.
Possibilities
This chapter can be called the heart of your business plan. Here you should describe in detail the existing problem and its solution, as well as tell who your potential buyers are and how your product or service will fit into the competitive environment. Also indicate how your solution differs from other similar solutions and how you plan to expand your product line in the future.
Since readers have already read your resume, they already know something about your project. However, this does not detract from the importance of the "Opportunities" chapter, since here you provide more detailed information and answer additional questions that were not covered in the Summary.
Problem and solution
Begin this section by describing the problem you want to solve for your prospects. What are your potential clients missing right now? How do they solve their problems? Maybe existing solutions are too expensive or inconvenient?
The description of the problem you intend to solve for the benefit of your potential customers is the core of your business plan and directly affects your success. If you can't clearly identify the problem, you won't be able to deliver a viable business concept that would be of interest to investors. How do you know that you can really solve a problem that makes customers uncomfortable? Turn off your computer, go outside and talk to your potential customers. Making sure that this problem does exist, tell them about the solution you propose. What do people think of your decision? After paying attention to the problem of the target market, proceed to the description of the solution you have developed. In other words, tell in detail about the product or service that you intend to offer customers. What is your product and how will you offer it? How will he solve the problem of your potential customers? For some goods and services, it will not be superfluous to give specific cases and situations in which it can be used. this product or service. So you can clearly explain to a potential buyer how to interact with the proposed solution and how it can improve his quality of life.
Target market
Once you've figured out the problem and the solution, focus on your target market. Who are you going to sell your product or service to? How much detail you describe your target market depends on the nature of your business and the type of business plan you have. But in any case, you should have a clear idea of who your potential buyers are and what their approximate number is. If the number of potential customers is small, this calls into question the feasibility of your project. If you are going to conduct a full market analysis, it should be preceded by a little research: you need to determine the target market segments and the size of each of them. A market segment is a group of people (or companies) who may be interested in buying your product or service.
Here we want to warn you against a common mistake: your target market is not "all buyers". Let's take a shoe company as an example. Theoretically, such a company could claim that their target market is all people who have legs. But in real life, in order to survive in the market, a company must focus on a certain segment of the market - athletes, businessmen, families with children, etc.
SDR, SDR, LDR
A good business plan must identify target market segments and contain data that characterizes the growth rate of each segment. The standard measures of SDR, SDR and LDR allow target market sizes to be determined using both a top-down approach and a bottom-up approach.
Let's start with definitions:
- ODR: This is your General Available Market (everyone you would like to offer your product to)
- HAPPY BIRTHDAY: This is your Segmented Available Market (the part of the ODR that you are going to target)
- ldr A: This is your Market Share (the portion of the SDR that you will actually offer your product to, particularly in the first few years).
Once you have identified your main market segments, indicate the trends prevailing in each market. For example, is the market shrinking or expanding? Describe the needs and preferences of each market, as well as the changes that await it.
Now you can start building a portrait of the ideal buyer in each market segment. The ideal buyer is an average image of a representative of your market, which should have a name, gender, income level, preferences, and so on. After selection market segments Drawing up a portrait of the ideal buyer may seem like extra work, but it is not. This portrait will be for you useful tool which will help you develop marketing events to attract ideal buyers.
Key Buyers
The final part of this chapter should be devoted to key buyers. This information needs to be provided only for companies that work with a very small number of customers. Ordinary companies that sell goods and services primarily to ordinary consumers can skip this section. If you sell products or services to other companies, you must have several key customers, abouton which the success of your business depends, and which set trends in your niche.At the end of the Target Market chapter, talk about these customers and describe their relevance to your business.
Competition
After describing your target market, move on to describing your competitive environment. What other companies offer their products or services in an attempt to solve customer problems? What are your advantages over competitors?
Business plans often present this information in the form of a "competition matrix" that compares competitors' solutions to yours. A simple competitive matrix is a table that lists competitors vertically and comparison criteria horizontally. If a competitor's solution meets a certain criterion, a mark is placed at the intersection of the corresponding row and column. Your main job is to show that your solution is different or superior to what other companies offer. Investors will be interested to know what competitive advantagesdo you possess and how do you plandifferentiate your solution.
Many entrepreneurs make the serious mistake of claiming they have no competition. Remember that every business has competitors. It is not necessarily "direct competition" when another company offers a solution similar to yours. Often we are talking about "indirect competition", when consumers find completely different solutions to their problem. For example, when Henry Ford first started selling his cars, he had almost no direct competitors in the face of other automakers. However, Ford had to compete with other modes of transportation (horses, bicycles, trains, and hiking). At that time, these were all alternative ways of solving the problem of moving from one point to another.
Future products and services
All entrepreneurs make plans for how their business will develop if successful.
While it is a pleasure for any entrepreneur to dream of expanding their business, try not to get carried away. Share your plans for the future in a paragraph or two to show investors where you want to go. Refrain from describing long-term plans in detail, because now no one can guarantee that they will actually be implemented. Instead, you should focus on your current products or services.
Implementation
Once you've completed a comprehensive description of the market opportunities, tell investors how you're going to put your ideas into practice. In this section, you need to pay attention to the following aspects: marketing and sales, operations, success rates and milestones that you plan to achieve.
Marketing and Sales
A marketing plan and a sales plan describe how you intend to bring your product or service to your target markets, how you plan to market your product to those target markets, what pricing scheme you will use, and what activities and collaborations will be needed to be successful. Before you start writing your marketing plan, you must clearly define your target markets and draw a portrait of your ideal buyer(s). Without a clear idea of who you will be selling your product to, your marketing plan will be useless.
Positioning
The first part of your marketing plan should focus on positioning your company and product/service. Positioning is how you will present your company to potential clients. For example, you offer budget solution or are you a premium brand? Are you offering a product that none of your competitors have?
Before starting to develop a positioning strategy, analyze the current market situation and answer the following questions:
- Do you offer any benefits or benefits that your competitors don't? If so, which ones?
- What are the main needs of your customers?
- How are your competitors positioning themselves?
- How do you plan to stand out from your competitors? Why should customers choose your product?
- What place do you give your company in the current competitive environment?
With these questions answered, you can start thinking about your positioning strategy. Your positioning strategy doesn't have to be voluminous and very detailed. You need to explain how your company will position itself in a competitive marketplace and how your value proposition differs from that of your competitors.
Here are some examples of language that you can use in your positioning strategy:
For [target market description] that [target market needs], [this product] [how the product meets existing needs]. Unlike [major competitors], it is [the most important distinguishing feature].
Pricing
Having decided on the positioning strategy, you can begin to consider pricing issues. In most cases, your positioning strategy will be the main factor in pricing your products/services. As a carrier of information, the price is able to tell buyers about how you position your product. If you offer a premium product, buyers will instantly recognize it from the price.
The pricing process is more like an art than a science. However, it is subject to some universal rules:
- Cost coverage. There are exceptions to this rule, but in most cases you should charge more for a product than you had to spend to produce it.
- Primary and secondary sources of income. The base price may not be your main source of income. For example, you can sell a product at cost (or even less), but charge a lot more for further contracted services.
- Compliance with the market situation. Your prices should match the demand and expectations of potential customers. If you set the price too high, you may not find buyers for your product. And if your price is too low, your offer risks being underestimated.
3 approaches to pricing
- Plus costs. You can set prices based on several factors. The cost-plus approach means that you determine your cost level and charge a price that exceeds that level. This approach is popular in manufacturing, where upfront cost recovery is critical to a company's success.
- Market pricing. Another view of the competitive environment and pricing is based on market expectations. Depending on how you position your product, you can work in the high or low price segment of a particular market.
- Cost pricing. With this approach, you price based on how much value you offer to your customers. For example, you offer lawn care services to busy people who do not have time for this. If you save them 1 hour a week and their hour costs $50, then you can rate your services at $30 an hour.
Promotion
Having dealt with positioning and pricing, you can move on to a promotion strategy. A promotion strategy describes how you are going to interact with your potential and existing customers. At the same time, you must be able to determine the cost of promotion and the volume of sales that it can generate. In the long term, maintaining ineffective promotion strategies becomes extremely unprofitable.
Your promotion strategy should cover several aspects:
Package
The way your product is packaged has a direct impact on the purchase decision. If there are images on the packaging, feel free to include them in your business plan. When describing the packaging of your product, answer the following questions:
- Does your packaging match your positioning strategy?
- How does your packaging communicate your value proposition?
- How does your packaging compare to competitors' packaging?
Advertising
Your business plan should describe what types of advertising you are going to spend your budget on. For example, are you planning to run ads online or on traditional media platforms? Special attention in your advertising strategy should be given to evaluating the effectiveness of your advertising.
Public relations
Media coverage of your product is great way coverage of the target audience. A good media coverage of your product or service will give you the wide audience coverage you need to grow your business. If public relations is part of your promotion strategy, be sure to dedicate a few paragraphs to this topic.
Content Marketing
One of the popular promotion strategies is content marketing. It should be understood that your goal here is not to tell target market about their products or services. The essence of content marketing is to provide potential buyers with interesting and useful information on topics of interest to them.
