Business Plan Preparation
A business plan is the foundation of any company’s activity and in addition to collateral security is among minimum guarantees to attract investments.
A good business plan promotes successful cooperation with investors and credit organizations as it makes them confident in the future development of the company and gaining profit.
There are no strict rules in business plan development. There are general guidelines for drafting such documents based on which «Auction House REM» suggests the following business plan structure:
- introduction;
- brief description of the company and its market position;
- description of a new product or service;
- marketing events and sales strategy;
- production plan;
- planned organizational arrangements;
- financial data;
- direction and calculation of efficiency;
- current and potential risks and ways to neutralize them.
The introduction (resume) - is a brief summary of the entire plan. This is generally the part read by potential investors. This section should indicate the required amount of external credit funds, expected schedule of loan repayment, the entity that will guarantee the return of the loan and what will serve as the collateral security. It should also state the amount of internal project investments. If several external investors are available, it will be plausible to list them all.
Company and industry description. This section should describe the most significant economic features of the company related to the new project: economic and financial performance data, quality and quantity of top managers and employees, major achievements and outlook for the company. The industry is briefly described to illustrate manufacture-related and other links of the company.
New product description. This section describes the new product, its innovative features and its differences from competitors’ products. It lists technological aspects and innovations to be used in the production of the new product. This section should be easy to comprehend for general public, not only for a particular specialist. It is necessary to pay attention to all the advantages of the new product and show that it can be improved further in the future in response to market requirements.
The section on marketing and sales strategy describes what will make consumers purchase your product or service. It gives an overview of planned advertising events to promote the new product, lists sales methods and contains results of consumer surveys regarding image preferences, etc.
The production section - is a description of existing or planned production, information on your contractors involved in the manufacture of the new product. This section describes specific aspects of production optimization in the interests of new production, contains data about production processes, supplies of materials and ingredients for the new product and planned terms of supplying the new product to the sales network, etc.
The section on organizational measures presents project developers and those who will implement it. It describes incentives and motivation system inside the company hierarchy, etc.
The section on financial performance lists major financial aspects including production expenses for the new product, calculation of the new product cost, necessary financial receipts and their sources, cash flow and expected profit, etc.
The section of project efficiency and direction briefly describes for whom the new product is meant and to what extent the project may prove to be effective.
The section on potential risks and their elimination analyzes current and future potential risks with unforeseen circumstances taken into account and lists guarantees for external investors.
A well prepared business plan imparts the following benefits to the project:
- Project goals and ways to achieve them. This part of the business plan gives an opportunity to regularly refer to original goals and objectives, keep to the given direction, evaluate your achievements and to be aware what has been omitted and what project areas require improvement..
- External financing. A business plan is a tool to convince potential investors of the project’s feasibility and the company’s potential to generate reasonable profit.
- A detailed research with useful information about the company and the branch of industry that it represents shows to what extent the actual situation in the market or inside the company is different from the ideas of project participants and identifies earlier unexplored opportunities.
- A comprehensive and detailed business review reveals problems which may seem insignificant at first sight. It makes it possible to identify criteria for business viability and sustainability.
- An evaluation of your competitors’ activities identifies their strengths and weaknesses and a potential market niche for the investment project. It shows how your company will compete against other companies in this market.
- The identification of potential risks and ways to eliminate them allows a potential investor to see what measures have been developed to protect the project from various risks at all stages of its implementation and to make a well informed decision of investing in the project.
«Auction House REM» developed professional business plan for business projects, including 3D-presentation of the project, the full construction cost estimates, the project contractors search, search supplier equipment, and search for an investor. Cost of services for each client individually and depends on the workload and deadlines.
Samples business plans projects the group REMTECHSTROY and business plan projects made to order for our customers.
The cost and timing of:
- from negotiated euro;
- from 3 weeks.
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