What business plan will attract investors

What business plan will attract an investor?

A business plan is a guide to action for those who decide to start their own business. His goal is to give an objective assessment of the success of the project and help avoid financial risks. This document is needed not only for investors whose money you are interested in, but also for you. What for? To clearly understand the purpose and ways to achieve it.

Business Plan Structure

The business plan contains the answer to the question whether it is advisable to invest time and money in a particular project and what return it is worth while to count on. Information in it should be presented in a businesslike manner concisely and intelligibly. The maximum allowable document size is up to 70 pages. Additional materials are made out as applications.

The business plan describes the prospects for the development of the enterprise for the next 3-5 years. The main financial indicators of a future company should be broken down by year:

  • 1st year: monthly;
  • 2nd year: quarterly;
  • 3rd, 4th, 5th: by year.

The variability of the domestic economy makes it meaningless to build long-term forecasts, therefore, Ukrainian and Russian businessmen, making a business plan,most often cost a one-year period.
There are no strict requirements for writing a plan to open a new case. Any business has its own specifics, therefore standards and patterns are unacceptable here. However, there is a certain structure to build this document, which can be oriented to businessmen who do not have the necessary experience.

Summary

Investors are often limited to reading this section, leaving the rest of the business plan to be studied by their experts. Therefore, it is important to arouse interest from the first pages by showing the financial attractiveness of your idea.
The summary contains:

  • description of the purpose of the business plan;
  • the amount of investment and transfer of items of expenditure;
  • a brief description of the business and target audience;
  • list of competitive advantages;
  • financial indicators of payback and profitability.

Example
Business plan of the project to open the Club of couple lovers

The purpose of the business plan is to open in N at the address: ul. N-Skye, house number __, of the Couple Club, providing recreation services to private clients (individuals).

The organizational and legal form of business - a private (individual) entrepreneur - will minimize the cost of paying taxes and simplify the maintenance of financial statements.

The degree of success of the project is estimated as quite high, since with a high demand for sauna and bath services in the specified area there is a low level of competition (1 competitor providing Finnish sauna services).

Project Description:

It is planned to open a Russian bath with a round-the-clock mode of operation that provides a full range of services:

  • recovery in the steam room;
  • pool;
  • recreation room with soft furniture and billiards.

The amount of investment funds will be $ 139 thousand. The main items of expenditure:

  • purchase and equipment of the premises - $ 100 thousand;
  • staff salary - $ 20 thousand per year;
  • purchase of consumables - $ 15 thousand per year;

The total investment at the start will be $ 139 thousand (actually $ 39 thousand, because the room is an asset that can be sold at any time by returning the invested funds).

Sources of income:

- bath services - from $ 3000 to $ 10 thousand per month (with income from all club services $ 30 per hour).

Total: from $ 36 thousand to $ 72 thousand per year.

According to calculations, the payback period of the sauna will be about two years. The time to break-even level can be reduced by earning income from the provision of additional services (selling beer, chips, tea, massage services, etc.).

In the summary of the business plan, you give a brief description of the market of bath services in the specified area, a list of locations of the nearest similar enterprises and make brief characteristics of competitors with a list of their strengths and weaknesses. The latter will help take into account the shortcomings of rivals, to prevent similar in the work of your bath.

We recommend reading:How to make a million

Goal and tasks

This section contains:

  • the goal of the project (what you plan to achieve). For example, open a private motel on the road for 20 beds with a payback period of 3 years and the possibility of receiving further profits of $ 30 thousand per year;

  • current analysis of the state of affairs in the industry. You will find the necessary numbers on the Internet, with familiar entrepreneurs and in urban statistics departments.

Product / Service Description

This section should be in an accessible language to state:

  • description of products / services and their scope.
    For example, the opening of an event-agency that organizes cultural events: weddings, birthdays, anniversaries, corporate events;
  • uniqueness. If your product / service is not unique (for example, a hairdresser),create another detuning from competitors: emphasize the advantages of the product / service offered by you (except haircuts and dyeing, make a professional make-up), focus on the advantageous location of the enterprise and high attendance (location in the shopping center, the number of visitors reaches 1000 person per day), etc .;
  • availability of licenses and patents. The fact of possessing the necessary licenses and patents in the business plan must be noted. In the eyes of investors, the availability of permits is an additional advantage, because it reduces the cost of obtaining it and creates the legal basis for building a business.

Market analysis

Market analysis is the foundation on which any business is based. Evaluating the market capacity of the relevant goods / services, give a description:

  • buyers (age, gender, income level). A properly composed portrait of a consumer will help you to understand who will become your client and how much he is willing to spend on your product / service. You will get an idea of ​​where a potential buyer spends time, what he reads, looks and listens.Having such information in hand, it is easy to choose the most effective advertising channel;

  • competitors. Analyze (in more detail than in the summary) the strengths and weaknesses of competitors (prices, uniqueness, complexity of services / goods, high / low level of service, location, attractiveness of packaging, availability of loyalty programs (bonuses), etc. Good you can learn to avoid the bad, but at the same time to find and offer consumers something that competitors have not yet reached;
  • to the market. Information about the size (capacity) of the market and its growth forecasts give an idea of ​​whether you can find your niche and whether your business will have development prospects. For example, it will be much more difficult and costly to win a place in the segment of retail sales of food than in the sphere of providing hotel services for pets that belong to a low-competitive business.

Marketing plan. This section includes:

  • comparative characteristics (in relation to competitors) of a product / service. Mark your offer better: in your private kindergarten, children from three years old will be taught English,you will sell higher quality bed linen, with your judo section you will have short-term self-defense courses for women, etc .;
  • pricing. Competent calculation of the cost of goods, firstly, will help your business not to go "in the minus", and secondly, it will help to calculate the percentage of mark-up and vary it during stocks and sales. If you do not have the appropriate education and experience, contact an economist who has encountered in his practice writing a business plan;
  • sales scheme (sales channels). The product can be sold in one outlet or in several, the sale can occur through its own newly created trading network or through a dealer.

The last option is the least costly, but you should understand at the stage of developing a business plan: dealer “interest” is associated with additional costs that should be taken into account in calculating the payback period of the project;

  • sales promotion methods: advertising, loyalty program (discount and bonus cards), promotions, seasonal promotions and sales. The use of any of these methods should be economically justified and ultimately bring benefits.

Knowing the habits and preferences of your consumer, you can find the most effective tools for influencing his mind.

For example, opening a beauty salon, designed for girls and women with a high level of income, it would be logical to decompose advertising leaflets in boutiques and fitness centers. In the new photo studio, it makes sense to introduce cumulative discount cards that will “tie” the client to you with increasing discounts. For more information on building a profitable business, see the article "7 secrets of successful sales."

Production plan

The production plan answers the questions:

a) how many rooms do you need for the project? Their characteristics;

b) necessary materials and equipment, terms and methods of their delivery and installation;

c) sources of raw materials, data on suppliers (including logistics);

d) a general idea of ​​the production process, which is better to draw up in the form of a diagram and to make as a separate application to the business plan.

Organizational plan

The organizational plan can be divided into two subsections:

  • enterprise structure, team description (with an emphasis on professional skills) and staff motivation programs (bonuses, 13th salary, etc.);

  • phased planning of activities for the construction of the future company.We recommend using the table:
No. p / p Stage name Terms of implementation Responsible Notes
1 Registration of a private enterprise in tech. 10 working days Ivanov I.I.  
2 Staff recruitment in tech. 30 business days Petrova A. A.  
3        


Sources and volume of investments

This section contains the following data:

  • amount of invested funds;
  • sources and terms of receiving investments. For example, equity, investor funds, loans, etc .;
  • terms of return on investment.

Risk analysis

This part of the business plan reflects your vision of possible risks and ways to minimize their negative consequences. What unforeseen factors can affect the financial stability of the enterprise and how much should be budgeted for unexpected expenses?

a) external risks:

  • growth of tariffs for electricity, water supply and heating. If there is no information in the press about the increase in the cost of housing and communal services planned for the new year, follow the trend of previous years, calculate the arithmetic average and add this percentage to your annual expenses;

  • changes in legislation. The business operates in the legal field and sharply responds to changes in regulatory acts.The lawmaker will decide to classify your type of activity as licensed, and you will have to obtain an appropriate permit, spending unplanned funds. Considers it necessary to change the conditions for the lease of state-owned water bodies, and you will have to increase the rental costs.

Typically, these goals in the business plan lay 30% of the profits;

  • Force majeure situations associated with man-made disasters and natural phenomena entail an increase in the expenditure item in the amount of 2% of the revenue. Entrepreneurs prefer to insure their business against emergencies - insurance at the planning stage should also be taken into account;
  • rent increase. If the lease agreement for the entire term of the business plan specifies a fixed monthly fee, there is no threat of a change. But landlords are in no hurry to deprive themselves of the ability to influence the price. Therefore, we advise you to increase the planned costs by 4% of the amount of projected revenues;
  • increased competition. The emergence on the market of new rivals or products manufactured using innovative technologies, forces to take retaliatory actions that entail certain costs.Experts advise to allocate in the budget for these purposes 7% of the profits;

b) internal risks:

  • poor quality of goods / services will lead to a loss of 20% yield. Work with staff and suppliers, then this money will remain in your budget;
  • low qualification of personnel threatens to lose a tenth of revenue. Promising employees should be trained by conducting trainings that promote professional growth. The rest will have to be replaced;

  • the inevitable breakdown of equipment will reduce the profitability of your business by 2%. This is also worth considering when writing a financial plan.

Financial forecast

The purpose of this part of the business plan is to provide a financial justification for the profitability of the project. Investors want to see in it:

  • sales forecast;
  • calculation of income and expenses, forecast profitability;
  • the plan of movement of funds in the accounts (for the first year on a monthly basis);
  • annual balance sheet;
  • total investment amount.

It is better to entrust this section to specialists.

What not to write in the business plan

There are several taboos that can negate all your efforts to find an investor:

1. False information about team members or their level of professionalism.Often entrepreneurs point out non-existent people or specialists who have no idea about this project as consultants. And if the investor wants to talk with them? Your business plan will be doomed to failure.


2. Do not use the expressions “lack of competition”, “unparalleled product”, “huge market”, “ease of implementation”. They are determined by non-professionals. There is almost always competition, the market has its limits, and at any time it can be occupied by other players, and implementation cannot be easy: every business has its own pitfalls.
3. Surface market analysis. A biased view of the market situation reduces the likelihood of a correct prediction of income and expenses.
4. Unreasonably optimistic growth rates. Financial performance in the form of English J is fantastic.

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  • What business plan will attract investors

    What business plan will attract investors

    What business plan will attract investors

    What business plan will attract investors

    What business plan will attract investors

    What business plan will attract investors

    What business plan will attract investors

    What business plan will attract investors

    What business plan will attract investors

    What business plan will attract investors

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