[Edit this paragraph] Define what is a business plan?
The business plan (Jushi Company) is a document that comprehensively describes the development of an enterprise, embodies the quality of enterprise managers, and is one of the important conditions for an enterprise to have good financing ability and achieve expert development beyond the business plan. A complete business plan is not only the key factor of successful financing, but also the core management tool of enterprise development.
A business plan is a written material for an enterprise or project unit to fully show the current situation and future development potential of the enterprise/project to readers (investors and other relevant personnel) according to the specific requirements of certain format and content on the basis of investigation, analysis and collection of relevant information of the project. Business plan is the blueprint and guide of business activities, including project financing and strategic planning, and also the action plan and implementation plan of enterprises.
Business plan is a project proposal formed by standard text format commonly used in international practice. It is a written material that comprehensively introduces the operation of the company and the project, and expounds the future development prospects and financing requirements of the product market, competition and risks.
The business plan first sells the enterprises to be established in the plan to the venture entrepreneurs themselves. Secondly, the business plan can also help to promote the planned venture enterprises to venture capitalists. One of the main purposes of the company's business plan is to raise funds.
Business plan is one of the most widely used writing styles in the market at present.
Value and elements of business plan (Jushi Company)
The value of a business plan lies in its influence on decision-making. At this point, the value of the business plan is immeasurable.
I remember when I was studying in the United States, when I was talking about business plans, the professor asked everyone, "How valuable is a business plan?" I replied: "Thousands of dollars to tens of thousands of dollars." The professor shook his head and said, "No, not nearly. The value of a business plan lies in its influence on decision-making. In this regard, the value of a business plan is immeasurable. "
He illustrated how business plans affect decision-making. If an enterprise does not make a very careful plan before making a decision, such a decision is unfounded. In the subsequent consultation and writing of business plan, I deeply felt the important role of business plan in helping decision-making.
Business plan is an enterprise's vision for the future in order to look forward to business prospects, integrate resources, concentrate on solving problems and find opportunities. Unfortunately, people now only think that business plans are used to apply for venture funds. In fact, a business plan is to predict the growth rate of an enterprise and make a future action plan.
The business plan mainly includes:
1. executive summary: it appears in front of the business plan, but at my suggestion, this part should be completed at the end.
2. Company profile: including the company's registration, history and start-up plan.
3. Product service: Describe the particularity of your product or service and the target customers.
4. Strategy execution: You need to know your market, customers' needs, where customers are and how to get them.
5. Management team: describe the main team members.
6. Financial analysis: Make sure that this part truly reflects your current financial situation, including your cash position and profitability.
So how to make a good business plan? How does a good business plan begin?
1. A successful business plan should have a good start-up plan. Is your plan simple and easy to understand and operate?
2. Is your plan specific and appropriate? Does it include specific dates and specific personnel responsible for specific projects and budgets?
3. Your plan should be objective, and whether your sales forecast and expense budget are objective and accurate.
4. Whether this plan is complete, whether it contains all the elements, and whether the context is connected smoothly. [Edit this paragraph] The requirements for writing a business plan are as follows: The business plan must state:
(1) What is the purpose of starting a business? Why take risks and spend energy, time, resources and funds to start a business?
(2) Why do you need so much money to start a business? Why is it worthwhile for investors to inject funds into this? For established venture enterprises, business plans can set more specific directions and priorities for the development of enterprises, let employees know the business objectives of enterprises and encourage them to work hard for the same goal. More importantly, it can make the investors, suppliers and sellers of the enterprise know the operating conditions and objectives of the enterprise, and persuade investors (old or new) to provide funds for the further development of the enterprise.
It is for the above reasons that the business plan will be the most important business document written by venture entrepreneurs. [Edit this paragraph] How to write a good business plan Those business plans that can neither give investors sufficient information nor excite investors can only be thrown into the trash can. In order to ensure that the business plan can "hit the target", venture entrepreneurs should do the following:
1. Focus on products
In the business plan, all details related to the products or services of the enterprise should be provided, including all surveys conducted by the enterprise. These questions include: What stage of development is the product in? What is its uniqueness? What is the method for enterprises to distribute products? Who will use the products of the enterprise and why? What is the production cost and price of the product? What is the enterprise's plan to develop modern new products? Pull investors into the products or services of enterprises, so that investors will be interested in products like venture entrepreneurs. In business plans, entrepreneurs should try to describe everything in simple language. The definition and attributes of commodities are very clear to entrepreneurs, but others may not know their meaning. The purpose of making a business plan is not only to convince investors that the products of the enterprise will have a revolutionary impact in the world, but also to convince them that the enterprise has arguments to prove this. The description of the product in the business plan should make investors feel: "Oh, how wonderful and inspiring this product is!"
2. Dare to compete
In the business plan, venture entrepreneurs should carefully analyze the situation of competitors. Who are the competitors? How do their products work? What are the similarities and differences between competitors' products and our own products? What are the marketing strategies adopted by competitors? It is necessary to clarify the sales, gross profit, income and market share of each competitor, and then discuss the competitive advantage of this enterprise relative to each competitor. It is necessary to show investors that customers prefer this enterprise because its products are of good quality, fast delivery, moderate positioning and reasonable price. The business plan should convince its readers that this enterprise is not only a strong competitor in the industry, but also a leader in setting industry standards in the future. In the business plan, entrepreneurs should also explain the risks brought by competitors and the countermeasures taken by enterprises.
Understand the market
A business plan should provide investors with an in-depth analysis and understanding of the target market. It is necessary to carefully analyze the influence of economic, geographical, occupational and psychological factors on consumers' choice to buy the products of this enterprise, and the role of each factor. The business plan should also include a major marketing plan, which should list the areas where the enterprise intends to carry out advertising, promotion and public relations activities, and specify the budget and income of each activity. The business plan should also briefly describe the sales strategy of the enterprise: does the enterprise use external sales representatives or internal employees? Does the enterprise use distributors, distributors or franchisees? What kind of sales training will the enterprise provide? In addition, the business plan should also pay special attention to the details of sales.
4. Indicate the direction of action
The enterprise's action plan should be unsolvable. The following questions should be made clear in the business plan: How can the enterprise push the products to the market? How to design production lines and assemble products? What raw materials do enterprises need for production? What production resources do enterprises need? What is the cost of production and equipment? Does the enterprise buy equipment or rent equipment? Explain the fixed and variable costs associated with product assembly, storage and delivery.
5. Show your management team
The key factor to turn an idea into a successful venture enterprise is to have a strong management team. The members of this team must have high professional and technical knowledge, management ability and many years of work experience, in order to give investors such a feeling: "Look, who are these people in this team! If this company is a football team, they will always reach the World Cup finals! " The function of managers is to plan, organize, control and guide the company's actions to achieve its goals. In the business plan, we should first describe the whole management team and its responsibilities, then introduce the special talents, characteristics and achievements of each manager respectively, and describe in detail the contribution each manager will make to the company. The business plan should also specify the management objectives and organization chart.
6. Excellent plan summary
The plan summary in the business plan is also very important. It must make readers interested and eager to get more information, and it will leave a lasting impression on readers. The plan summary will be the last part written by venture entrepreneurs, but it is the content that investors should read first. It will extract the most relevant details from the plan, including a concise and vivid summary of the company's internal basic situation, the company's capabilities and limitations, the company's competitors, marketing and financial strategies and the company's management team. If the company is a book, it is like the cover of the book. If it is done well, it can attract investors. It will give venture capitalists the impression that "this company will become an industry giant, and I can't wait to read the rest of the plan". [Edit this paragraph] Contents of business plan (Jushi Company) 1. Plan summary
The plan summary is listed in front of the business plan, which is the essence of the condensed business plan. The outline of the plan covers the main points of the plan, making it clear at a glance, so that readers can review the plan and make judgments in the shortest time.
The summary of business plan expert plan generally includes the following contents: company introduction; Main products and business scope; Market overview; Marketing strategy; Sales plan; Production management plan; Managers and their organizations; Financial plan; Capital demand, etc.
When introducing an enterprise, we should first explain the idea of establishing a new enterprise, the formation process of new ideas, the goal and development strategy of the enterprise. Secondly, it is necessary to explain the present situation, past background and business scope of the enterprise. In this part, we should objectively comment on the past situation of the enterprise, and avoid the heavy and light. A pertinent analysis can often win more trust, which makes it easy for people to agree with the business plan of the enterprise. Finally, it is necessary to introduce the background, experience, experience and expertise of entrepreneurial entrepreneurs themselves. The quality of entrepreneurs often plays a key role in the performance of enterprises. Here, entrepreneurs should try to highlight their own advantages and show a strong enterprising spirit in order to leave a good impression on investors.
In the plan summary, the enterprise must also answer the following questions: (1) the industry in which the enterprise is located, the nature and scope of its operation; (two) the contents of the main products of the enterprise; (3) Where is the market of the enterprise, who are the customers and what are the demands; (4) Who are the partners and investors of the enterprise; (5) Who are the competitors of the enterprise and what influence the competitors have on the development of the enterprise.
Try to be concise and vivid. In particular, it is necessary to explain in detail the differences between their own enterprises and the market factors for their success. If an entrepreneur knows what he has done, just two pages of summary is enough. If the entrepreneur doesn't know what he is doing, the summary may be more than 20 pages. Therefore, some investors "pick out wheat from chaff" according to the length of the abstract.
2. Product (service) introduction
When evaluating investment projects, investors are most concerned about whether and to what extent the products, technologies or services of venture enterprises can solve real-life problems, or whether the products (services) of venture enterprises can help customers save money and increase income. Therefore, product introduction is an important part of business plan. Product introduction should generally include the following contents: the concept, performance and characteristics of the product; Introduction of main products; Market competitiveness of products; Product development process; Plan and cost analysis of developing new products; Market prospect forecast of products; Brand and patent of products.
In the part of product (service) introduction, entrepreneurs should explain the product (service) in detail, which should be accurate and easy to understand, so that non-professional investors can understand it. In general, product introduction should be accompanied by product prototype, photos or other introductions.
Generally speaking, product introduction must answer the following questions:
(1) What problems do customers want the products of the enterprise to solve and what benefits can customers get from the products of the enterprise?
(2) What are the advantages and disadvantages of the enterprise's products compared with those of competitors? Why do customers choose their own products?
(3) What protection measures have the enterprise taken for its products, what patents and licenses the enterprise has, or what agreements have been reached with the manufacturers applying for patents?
(4) Why can the pricing of enterprise products make enterprises generate enough profits, and why do users buy enterprise products in large quantities?
(5) What methods do enterprises adopt to improve the quality and performance of products, and what plans do enterprises have for developing new products, etc.
The content of product (service) introduction is more specific, so it is easier to write. Although it is necessary to praise one's products to promote sales, it should be noted that every promise of an enterprise is a kind of "debt" and should be fulfilled with efforts. Please remember that entrepreneurs and investors have established a long-term partnership. Empty promises can only be complacent for a while. If an enterprise can't fulfill its promise and repay its debts, its reputation will be greatly damaged, so it is despised by real entrepreneurs.
3. Personnel and organizational structure
With products, the second step for entrepreneurs is to form an effective management team. The quality of enterprise management directly determines the size of enterprise management risk. High-quality managers and good organizational structure are important guarantees for managing enterprises well. Therefore, venture capitalists will pay special attention to the evaluation of management team.
Managers of enterprises should complement each other and have team spirit. An enterprise must have professionals in charge of product design and development, marketing, production and operation management, corporate finance and so on. In the business plan, it is necessary to define the main managers, introduce their abilities, their duties and responsibilities in the enterprise, and their past detailed experiences and background. In addition, in this part of the business plan, the company structure should also be briefly introduced, including: the organization chart of the company; Functions and responsibilities of various departments; Heads of departments and main members; The company's salary system; List of shareholders of the company, including stock options, proportions and privileges; Board members of the company; Background information of directors.
4. Market forecast
When an enterprise wants to develop a new product or expand a new market, it must first make a market forecast. If the forecast results are not optimistic, or the reliability of the forecast is in doubt, then investors will have to take greater risks, which is unacceptable to most venture capitalists.
Market forecast must first predict the demand: is there any demand for this product in the market? Can the degree of demand bring the expected benefits to the enterprise? How big is the new market? What is the future trend of demand development and its state? What are the factors that affect demand? Secondly, the market forecast also includes the analysis of the market competition situation and the competition pattern faced by enterprises: Who are the main competitors in the market? Is there a market gap that is beneficial to the products of this enterprise? What is the expected market share of this enterprise? How will our competitors react when we enter the market and what impact will these reactions have on the enterprise? Wait a minute. In the business plan, the market forecast should include the following contents: a summary of the current market situation; Overview of competitors; Target customers and target markets; The market position of the products of this enterprise; Market area and characteristics, etc.
The market forecast of venture enterprises should be based on rigorous and scientific market research. The market faced by venture enterprises is inherently more unstable and unpredictable. Therefore, venture enterprises should strive to expand the scope of information collection, attach importance to environmental prediction, and adopt scientific prediction means and methods. Venture entrepreneurs should bear in mind that market prediction is not imaginary, and the understanding of market errors is one of the most important reasons for the failure of enterprises.
5. Market strategy
Marketing is the most challenging link in enterprise management, and the main factors affecting marketing strategies are:
(1) consumer characteristics;
(2) the characteristics of the product;
(three) the enterprise itself;
(4) Market environment factors. What ultimately affects marketing strategy is marketing cost and marketing benefit.
In the business plan, the marketing strategy should include the following contents:
(1) Selection of market organization and marketing channels;
(2) Marketing team and management;
(3) Promotion plan and advertising strategy;
(4) Price decision.
For start-ups, it is difficult to enter the stable sales channels of other enterprises because of the low visibility of products and enterprises. Therefore, enterprises have to temporarily adopt high-cost and low-benefit marketing strategies, such as door-to-door sales, commodity advertising, giving profits to wholesalers and retailers, or giving them to any enterprise willing to distribute. For developing enterprises, on the one hand, they can use the original sales channels, on the other hand, they can also develop new sales channels to adapt to the development of enterprises.
6. Manufacturing plan
The manufacturing plan in the business plan should include the following contents: the current situation of product manufacturing and technical equipment; New product production plan; Requirements for technical upgrading and equipment updating; Quality control and quality improvement plan.
In the process of seeking funds, in order to increase the evaluation value of enterprises before investment, venture entrepreneurs should try their best to make the production and manufacturing plan more detailed and reliable. Generally speaking, the manufacturing plan should answer the following questions: what are the factories and equipment needed for the enterprise's manufacturing; How to ensure the stability and reliability of new products when they enter mass production; Who is the supplier for the introduction and installation of equipment; What is the design and product assembly of the production line? Lead time and resource requirements of suppliers; Formulation of production cycle standards and production operation plans; Material demand plan and its guarantee measures; What is the method of quality control? Other related issues.
7. Financial planning
Financial planning needs to spend more energy on specific analysis, including the preparation of cash flow statement, balance sheet and income statement. Liquidity is the lifeline of an enterprise, so when an enterprise starts or expands, it needs careful planning in advance and strict control in the process; The income statement reflects the profitability of the enterprise, which is the operating result of the enterprise after a period of operation; The balance sheet reflects the state of the enterprise at a certain moment, and investors can use the ratio index obtained from the data in the balance sheet to measure the operating status and possible return on investment of the enterprise.
Financial planning generally includes the following contents:
(1) Conditional assumptions of the business plan;
(2) Expected balance sheet; Estimated income statement; Analysis of cash receipts and payments; Source and use of funds.
The business plan outlines what venture entrepreneurs need to do in the process of financing, and financial planning is the support and explanation of the business plan. Therefore, a good financial planning is very important for evaluating the amount of funds needed by venture enterprises and improving the possibility of obtaining funds for venture enterprises. If the financial planning is not fully prepared, it will give investors the impression that enterprise managers are inexperienced, reduce the evaluation value of risky enterprises, and increase the operational risk of enterprises. So how to do a good job in financial planning? This first depends on whether the long-term planning of venture enterprises is to create a new product for a new market or to enter an existing market with more financial information.
It is impossible for a startup enterprise that focuses on a new technology or innovative product to refer to the data, price and marketing methods of the existing market. Therefore, it should predict the growth rate and possible net profit of the market it enters, and sell its ideas, management team and financial model to investors. A venture enterprise preparing to enter the existing market can easily explain the scale of the whole market and the ways to improve it. Venture enterprises can plan the sales scale of the first year on the basis of obtaining the target market information.
The financial planning of an enterprise should be consistent with the assumptions in the business plan. In fact, financial planning is closely related to enterprise's production plan, human resource plan and marketing plan. To complete the financial planning, we must clarify the following issues:
(1) What is the product output in each period?
(2) When will the product line expansion start?
(3) What is the production cost of each product?
(4) What is the price of each product?
(5) What distribution channels are used, and what are the expected costs and profits? (6) What kind of people do you need to hire? (7) When to start employment and what is the salary budget? Wait a minute.