LECTURE № 4. Business planning

1. The value of a business plan in entrepreneurial activity

Business planning is necessary to achieve financial success, for the long-term and efficient operation of a firm or enterprise. A modern entrepreneur should be able to determine the prospects for the development of his enterprise, justify the feasibility of obtaining bank loans and attracting investments, and also be prepared for structural changes within production.

Planning is an integral part of market economic activity. Both individual business operations and the entire business activity as a whole can be planned. If there are several operations connected with each other, it is necessary to carry out joint planning, taking into account their interaction.

When carrying out large and long-term operations, as a result of which significant profits are possible, planning becomes a necessary condition for the implementation of this project.

The program of action or plan for the implementation of entrepreneurial operations is called business plan.

The business plan is a permanent document in which the necessary changes and updates are made, depending on changes in the economic market, as well as changes taking place within the company. A business plan is written by every firm, regardless of its size, although a small firm may involve specialists from consulting organizations to draw up a business plan. When drawing up a business plan, it is necessary to take into account the concept of the company's development, its financial and economic aspect, its technical and technological capabilities. The presence of a business plan allows a businessman to justify the feasibility of a business operation, correctly calculate sales, profits and incomes, determine the source of financing for the operation, and select a team to implement the plan.

The main objective of the business plan is to concentrate finances to carry out strategic actions in the course of the operation. An equally important task of the plan is to attract partners, creditors, investors, who must be confident in the effectiveness of a thorough study of the project. Before investing their capital in a project, investors study a business plan, and in the absence of one, they may completely refuse to meet with a businessman. The business plan should be no more than 50 pages, its content should be simple and understandable, include information about the main controversial issues.

A business plan can be written by a consulting organization, an entrepreneur, a manager, a single firm, or a group of firms. If one of the employees of the company has an idea for the manufacture of a new product, or a new method of production management, he can offer his idea for the company's business plan or create his own business plan. Firms that manufacture products are constantly developing new types of products. With a lack of own finances to translate ideas into reality, the company offers a business plan outlining this topic to investors and creditors, which can ensure that their capital is attracted to the production of the company.

With the help of a business plan, the company's management is guided by the conditions of shareholder ownership, makes a decision on the distribution of profits among shareholders.

A business plan helps to organize joint activities with other firms that manufacture similar or complementary products that carry out common financing.

The business plan is most actively used in the process of finding and attracting investors (shareholders, sponsors, creditors). Firms that decide to expand their production or organize a new organizational and production structure draw up a business plan indicating the benefits and efficiency of the new production. Investors are usually offered a summary of the business plan, which is a difficult task to prepare. First, the entire plan is developed and the main measures for its implementation are determined. From this, the main important points are highlighted, which are included in the summary, which is provided to investors. According to this material, investors will draw conclusions about the effectiveness of the project.

To obtain the desired result in the course of the ongoing business operation, it is necessary to thoroughly think over, work out, justify and determine the main goals, objectives and main meaning of the upcoming operation.

If a businessman has certain experience and knowledge in entrepreneurial activity, he has formed ideas about the state of the economic market, his needs and demand for goods and services, as well as about possible income and profit after the sale of products.

When forming a business plan, a businessman will choose the product or service that represents the main purpose of the operation. After choosing the main product, the entrepreneur calculates the quantity of products that he has the opportunity to produce, and calculates the expected profit received after the sale of this product. In the process of forming a planned operation, a businessman comes to the decision of the main question: is it worth starting this business. After conducting their own analysis, the entrepreneur should discuss his ideas with other businessmen, and especially with specialists and experts in the field of entrepreneurial activity.

Having decided that the operation would be a worthwhile undertaking, the businessman must draw up a plan of action during the course of the business operation. The plan of operation should include all the necessary questions that will confirm the necessity, reliability and profitability of the planned operation.

There is no specific structure for the preparation and content of a business plan, there is no strict prescribed form for the design of this document, but the presence of generally accepted main sections is desirable.

A business plan may consist of the following sections:

1) company summary (contains information about the company);

2) types of goods, services, manufactured products that are the subject of business;

3) analysis of the market for goods and services;

4) marketing;

5) organizational and production plan of the company;

6) sources of financial support;

7) financial plan;

8) legal aspects of the business plan;

9) assessment of critical risk points;

10) the final section of the business plan.

2. Firm and its business

In the first section of the business plan, a description of the company is given, brief information about the company that may be of interest to investors. These include the following sections.

1. Company formation. This section contains the date of creation and registration of the company, its location. The name must indicate the legal form of the company. The capital structure is indicated in the form of the quantitative content of shares, their nominal and exchange value. The content indicates the bank where the company's open accounts are located. The management of the company is listed: general director, lawyer, accountant, managers.

2. Structural divisions of the company: organizational, production and management.

3. Idea about the image of the company: how it has established itself, its difference from other similar firms, with the help of what types of goods it has gained fame, what is the constancy of the consumer market, the commodity market.

4. Conditions of the company's activity: internal (technologies, equipment, production costs, quality characteristics of goods) and external (consumer demand, supply of raw materials and material resources, financial capabilities of the company in the economic market).

In drawing up a business plan, it is necessary to form the goals of the company's development and the possibility of achieving them. The goals for which the activity of the company is directed depend on what it is focused on. If this orientation is aimed at rapid growth, then the goals will be to increase sales by a certain number of times, increase the profits of the company in existing economic markets, and expand entrepreneurial activities in new markets. If the company's plans do not include a rapid growth in sales, then its goals will be aimed at improving the quality of products, improving the quality of services provided, and increasing the technical capabilities of production. If the company is focused on the production of new products, its goals will be to accelerate the development of these products or services, increase the volume of products, and promote the new product to the markets.

3. Entrepreneurial product: concept and essence

In entrepreneurial activity, the main factors aimed at achieving the desired results are the production and sale of goods produced by the company.

The entrepreneur should determine in advance the main characteristics of the product that he planned to produce. This factor gives confidence not only in the implementation of the planned plans, but is also able to convince investors of the efficiency of the production of this product (product, service). If it is possible to produce a ostentatious sample of the product and give it the main characteristics, this will give solidity and reliability to the company.

Regardless of whether there is a sample or not, the content of the business plan must contain a complete description of the product, its properties and characteristics. It is necessary to indicate the demand for this product in consumer markets, its ability to meet the needs of consumers, as well as its main and secondary use. Emphasis can be placed on the difference between this product and those already on the market. The plan provides general technological assessments of products, their competitiveness, product advantages and ways to use these advantages.

The product can be presented in the form of the following scheme:

1) the name of the product (service), its trademark, patent for the product;

2) the essence of the product (service): what it is intended for, its necessity;

3) characteristic features of the product (service): what needs can be satisfied with its help; demand for it

availability to buyers; ways of its implementation; what is the possibility of mastering the production of this product; costs in the process of its production; advantages of the product over others similar to it; how profitable is its acquisition by buyers; monetary opportunities for acquisition by the population;

4) forecast and analysis of goods: price forecast for the sale of goods, expected terms for maintaining competitiveness and stability of prices for goods, the need and possibility of updating it, intended sales markets;

5) a list of production conditions: increasing requirements for personnel, improving their qualifications, training and education of workers, supply of equipment and materials, development of instructors and technologists.

When planning business operations, it is important to take into account inflation, to predict all kinds of changes in the economic and industrial spheres.

4. Market analysis

The entrepreneur needs to be aware of his opportunities related to the sale of goods in consumer markets, since the market itself is an unpredictable factor in entrepreneurial activity. The state of the consumer market depends on the demand for the product. Market analysis has a huge impact on the volume of production and the ability to successfully place and sell it in the markets.

To conduct market analysis, it is necessary to collect information about customers and consumers of the future product.

The business plan has a section on the problem of market demand. It is advisable to prepare this section at the very beginning of the preparation of the plan, since the rest of the business plan depends on it.

Depending on the results of the market analysis, the firm chooses a marketing strategy. The strategy helps to develop a business plan correctly.

In order to choose the right strategy, it is necessary to determine factors such as:

1) production program;

2) competition of similar goods in the market;

3) determination of the market segment where the sale of goods is planned;

4) determination of needs for the proposed product;

5) assessment of possible costs;

6) determination of expected income;

7) assessment of purchasing opportunities and ways to attract buyers;

8) the assumption of possible consumer needs.

The section of the business plan devoted to this subject is the most difficult task in planning a business operation. If a business operation is planned for the short term, this task is much easier than when planning a long-term operation.

Market demand can be estimated and anticipated in several ways. One of them is that there is a practical study of demand, sales volumes of goods, the capacity of its individual parts. Another way is that customers and buyers are offered a product in advance, which they guarantee to purchase. For this, methods of preliminary preparation of applications and orders for goods, the conclusion of contracts and agreements on the supply of goods are used.

In addition, there is a way to predict the possible sales of products manufactured by the firm. To this end, there is a study of trends prevailing in the markets, a study of changes in consumer demand for certain goods and services. All this data is used in making forecasts about the possible sales of the company's products.

Important information for this section of the business plan is information about potential customers or buyers of the proposed product. Customers or buyers are subject to classification by age, gender, income level, belonging to a certain social class, professional affiliation, nationality, education, interests and lifestyle. If the customer is an independent company, they are characterized depending on their structure, production volumes, location, number of people working in the company, field of activity.

The market is to be divided into segments in order to single out the most promising and targeted ones. This is necessary for the purposeful conquest of the desired market segment, where the sale of products or services will be most effective. In addition, the most priority buyer in this segment is identified and the main reason for purchasing the product is determined (high quality, reasonable price, good service, recommendations from friends). It would be useful to provide a list of customers or customers who have shown interest in the product, as well as explain the reason for their interest.

Once the customer base has been identified, the ways in which you can expand your customer base, attract new customers, and help keep them interested in the product in the future should be identified.

If the firm has regular customers, it is necessary to list them, as well as indicate the intensity and quantitative volume of their purchases.

In the final part of this section of the business plan, it is necessary to record some data obtained as a result of market analysis. These include:

1) the presence of the alleged main customer or buyer of the goods;

2) the place of his location or residence;

3) places of constant demand for goods;

4) preferences of buyers to a certain source of sale of goods (regular or occasional seller);

5) preferences of buyers or customers for a certain type of packaging or packaging.

In the planning process, it is important to establish the total volume of goods sold, which will have a constant value. Conclusions about expected constant sales volumes can be drawn by analyzing information on sales volumes of similar products in individual market segments. It is necessary to highlight the sources of this information, ways to achieve constant sales volumes, and the possible growth in the consumer trend of the product every year. The plan of total sales is drawn up for three years, for each year separately. The need for the presence of specialists who promote the promotion of goods on the markets (distributors, sales agents) is explained and the requirements put forward for their work are given.

In relation to the competitiveness of the company, an assessment of the goods that make up the competition is carried out, during which it is necessary to highlight their strengths and weaknesses, determine the most competitive goods, compare their cost, quality characteristics. In order to correctly analyze a competing product, it is necessary to highlight the main advantages and disadvantages, explain their cause. After that, you need to present the found ways to eliminate the main shortcomings of the product, improve its quality features.

By analyzing the activities of competitors, you can get comprehensive answers to a number of questions. These include:

1) information on the number of firms that can compete in the markets;

2) determination of market sectors in which control is exercised over the implementation of a similar product by leading firms;

3) organizational and production differences from competing firms;

4) the main reasons for the persistence of competing firms in the market (reasonable prices, high quality, and others).

It is necessary to conduct a comparative analysis of competing firms, determine the areas of their activities, highlight the advantages and disadvantages, compare the prices and qualities of their products, determine the reasons for the persistence or inconstancy of the competitiveness of these firms in the market, familiarize themselves with the methods of their advertising.

By evaluating the merits of a product or service, you can identify the main customers of the company and outline the scope of sales of goods. The change in the dynamics of sales depends on the change in the position of the firm in the markets or changes in the competitiveness of the firm.

When evaluating the sales area and sales volumes, one must take into account their dynamics over the past two years, the results of this assessment are indicated in the business plan.

If the products were produced by the company earlier, when assessing sales volumes, the places of further distribution of the product are shown: either these are already existing market sectors, or the product will be sold to new markets.

Improving the quality of the product helps to oust competitors from certain market sectors.

All this determines the important role of choosing a marketing strategy.

5. Marketing

Marketing is a profitable process for a firm that aims to satisfy the needs of people through the production and offer of goods and services.

Since the needs of the population are diverse, marketing usually begins with the division of the market into segments. Marketers distinguish certain groups of buyers whose needs differ. Depending on these differences, different marketing strategies are used. The firm chooses the most suitable market segments, the needs of which it can satisfy to the maximum.

A market is a place where goods are exchanged between buyers and sellers. In a modern market economy, companies or manufacturing firms are united in such a thing as an industry, and buyers of manufactured goods are called the market. Sellers supply the market with goods in exchange for receiving money, as well as information about the effectiveness and need of goods.

In the modern world, there are two forms of market activity:

material (shops, trading houses) and spatial (Internet).

For each of the selected markets, the company must develop an offer, which is compiled depending on the needs of consumers. The firm is an active subject of the market, which is looking for its potential client. Both parties that seek to exchange goods are active market participants.

The needs of people take the form of certain needs that need to be satisfied. The need of people for certain types of goods for which they are able to pay is called demand. A tool that can satisfy the needs of people is called a product. A product that represents a certain value for the consumer and is able to satisfy his needs will be successfully sold on the market.

In marketing, there is the concept of exchange, the essence of which is to offer a product to another party in exchange for receiving the desired equivalent. To complete the exchange process, it is necessary to have two parties, the presence of a mutually acceptable product for these parties, readiness for cooperation, equality of both parties, deriving mutual benefit from the exchange.

Deal (transaction) - this is the exchange of values ​​between a certain number of parties, which occurs in concert with respect to conditions, place and time.

There is a special form of exchange, which differs from a transaction in that some value is transferred without receiving another material object in return. This form is called a transfer and can mean the transfer of a gift or charitable contribution. In return, the donor receives only verbal gratitude.

The basis for the transaction (or exchange) is the coincidence of the needs of the buyer and the seller (represented by the firm).

In the process of negotiations, three types of marketing channels are used: communicative (exchange of information through advertising, television, radio, Internet); distribution channels (wholesale warehouses, transport); trade channels (distributors, retailers and wholesalers).

The consumer makes his choice of product based on whether the value of the product corresponds to its expected value.

The overall value for the consumer is to obtain the maximum amount of benefits when purchasing a product or receiving a service.

Price - is an element of marketing, which is the main producer of profit. Price, unlike product characteristics, is a flexible element that is subject to rapid change. The pricing process contains six main stages: setting the task, demand, cost assessment, analysis of the pricing policy of competitors, determining the pricing method, final price setting.

The price of goods or services of the company is set depending on the prices of competitors. The pricing process takes into account the cost of transporting goods and storing them.

The price of a product is directly dependent on demand, i.e. the lower the price, the higher the demand. In relation to prestigious goods, an inverse relationship can be observed, since high prices for a certain category of buyers are an indicator of the high quality of the goods. In marketing, there is such a thing as the demand curve. The demand curve reflects the behavior of different categories of buyers, which differ in their attitudes towards price. With the help of the demand curve, you can estimate how much sales are expected in the market at various prices.

Demand curves can be determined in three ways:

1) analyze the achieved sales volumes at current prices;

2) conduct an experiment with changing prices for the same type of product;

3) draw conclusions about the dependence of sales volumes on prices based on the results of a survey of buyers.

Demand determines the highest cost of goods, the lowest cost is determined by the costs of the firm. Ideally, profit should cover all production costs. Costs are divided into variable and fixed. Variable costs are related to their change depending on the quantity of goods produced by the firm. Fixed costs are determined by the fixed costs of maintaining production (heating, rent, staff salaries). Variable and fixed costs are combined into total costs.

In addition to the dependence of pricing on demand and costs, prices, costs and the behavior of competing firms are taken into account. If the characteristics of a product differ little from those of a competing product, the price should be about the same. If the quality of the product is higher than the quality of the competing product, it is possible to set a higher price.

Based on the above, we can conclude that pricing depends on three factors: consumer demand, cost analysis and competitor price analysis.

The final price is set after studying such additional factors as the buyer's psychological perception of prices, the impact of prices on other market participants, and the firm's pricing policy.

The psychology of price perception by the buyer lies in their attitude to the quality of the goods. A high price is perceived as a confirmation of high quality. Many firms use prices that end in odd numbers. For example, a TV costs 4999 rubles. The buyer perceives this figure as exceeding 4000 rubles, but not reaching 5000 rubles. Another explanation for this is that the odd last digits may indicate to customers that there is a discount or lower prices. When changing prices for goods, it is very important to take into account the reaction of buyers, competitors and other market participants. The most noticeable reaction of consumers to changes in prices for expensive goods.

The reasons for setting the price higher than those of competitors must be justified (better quality, service, product features). If the price is too high, it may reduce sales.

The business plan should contain the methods used to deliver the goods (mode of transport, delivery times), methods of selling goods (wholesale, retail), elements of the distribution network (shops, distributors, sales agents).

In the content of the business plan, it should be noted the quantitative ratio of sales to various structural units of the distribution network.

Of great importance is the service and warranty service of the goods. The business plan should contain measures for the current maintenance and warranty repair of the goods, for the replacement of goods and the conditions for the return of money for defective goods. In addition, you need to specify the terms of service for the goods: paid or free.

A special issue in the promotion of goods in the markets is the issue of attracting attention to the product through advertising. This may be advertising on TV, radio, newspapers, billboards, catalogs, using the services of distributors, sales representatives.

The cost of advertising must be specified in the business plan.

6. Organization of production management

This section of the business plan should contain information on the production support for the release of products, the performance of work, the provision of services.

Production planning includes provision of the necessary equipment, logistics, management of production activities, control of products, procurement management.

Each enterprise is engaged in a certain type of activity, produces certain types of products. It is necessary to have a clear idea of ​​what mission the company intends to carry out. This makes it possible to determine specific tasks and goals, to assess the possibilities of their achievement. If the mission of the company has a clear statement, it is possible to define the main goals and directions of production activity. These include:

1) productive field: direction of activity of manufactured products and its range;

2) industry field: the industry in which the firm operates. Some firms are engaged in the production of consumer goods and services, others produce industrial products, others have the opportunity to contact and conduct business in any industry;

3) field of competencies: the scope of the company's technological capabilities;

4) market field: type of market segment, category of customers and consumers of the company's products;

5) vertical field: a system for organizing the production of products from the supply of raw materials to their final distribution on the markets;

6) geographic field: area of ​​activity of the company, its location, the advantages of these places.

If a firm is well located, this is an important success factor. The business plan should indicate the address of the enterprise or firm, the types of activities of the company in this region, the features of production facilities, the ownership of land or the lease agreement, and possible restrictions on the activities of the company in this region.

The operating company is obliged to describe the existing conditions of its activities. The description includes all premises (offices, industrial premises, warehouses), plots of land, machinery, equipment, a list of tools. It should be noted the possibilities of the current production, planning the expansion of the company. In addition, it is necessary to indicate the amount of costs for the purchase of new equipment, machinery; explain the need for these acquisitions, as well as the need for additional acquisitions in the future.

The business plan may contain a three-year production planning period.

It is advisable to list production process components... These include:

1) planning of production purchases;

2) attracting finance;

3) improving the working conditions of employees and improving their qualifications;

4) issues of expanding production.

The management of the firm must have a concrete idea of ​​the activities of its firm. This may be only the production of goods, or only the purchase and distribution of products of other firms.

The financing project should include indicators of the cost of material and labor resources, the cost of materials, the amount of possible attraction of additional finance.

Due to the occurrence of a large number of surprises in entrepreneurial activity, an important factor is the control over the activities of the company. The purpose of control is to confirm that the company is acting strictly according to the planned plan.

The main type of control is control over management by objectives, which includes four types of control:

1) control of annual plans: control of market analysis, sales analysis, comparative analysis of sales and costs, financial analysis, marketing analysis;

2) control over production efficiency (advertising, sales, distribution of goods, elements of the trading market);

3) profit control: assessment of various sources of profit (customers, market segments, volumes of orders and purchases, distribution channels);

4) control of the firm's strategies (marketing).

A necessary factor for the successful existence of the company is the management team.

When forming a management team, it is necessary to take into account the professional qualities of people, which include: business, managerial, commercial, technical, economic.

The formed management team earns the respect of investors and attracts their attention and interest in financing the proposed projects of the company.

The business plan should include information about management, the extent to which they have made a decision and the impact on the process of implementing the plan. This is a paramount issue that is of interest to investors. You should indicate a list of people who are part of the management team, indicate their positions, note the successful combination of skills of team members, which contributes to the achievement of the goal. If substitutions are expected, this must be indicated in the plan.

This section of the business plan describes the qualitative characteristics of each member of the management, including their education, experience, professional success, ability to perform specific functions in the production process. You should indicate the initial distribution of wages among team members, indicate their salaries, the amount of incentives in the form of shares and bonuses.

Pointing out the strengths and weaknesses of the administration, it is necessary to train the staff, as well as to consult with specialists.

Specialists who provide the necessary professional support and help establish external contacts and attract investors should also be included in the business plan.

An important component of the business plan is the business schedule, which indicates the time of the main activities aimed at the implementation of the project and the implementation of the project goals. The calendar plan can have a big impact on getting finance from investors. In the process of drawing up a calendar plan, a monthly schedule is established indicating important events:

1) the beginning of project planning;

2) approval of the plan;

3) date of commencement of activities for the implementation of the plan;

4) commencement of trading activities;

5) determination of the commercial type of products;

6) the beginning of the activities of sales representatives (distributors, advertising agents);

7) start of work with suppliers of materials;

8) the beginning of the release of goods;

9) the beginning of measures for the sale of goods (first sales);

10) receiving the first profit.

The calendar plan should contain realistic dates.

The business plan should include information on entrepreneurial risk. A preliminary discussion of possible points of critical risk increases the confidence of investors in the professional abilities of the firm's management. The project describes the dangerous moments in the process of its implementation: financing, the behavior of competitors, production problems, increasing costs. Among these problems, the most dangerous ones are singled out, after which ways to minimize them are proposed.

Dangerous situations can be the following situations:

1) price reduction for competing goods;

2) changing industrial trends;

3) increased production costs;

4) problems with the supply of raw materials and materials;

5) delay in the planned start of production of goods;

6) problems with investments or obtaining loans;

7) increase in the cost of activities for the sale of products;

8) increased costs for training and education of personnel;

9) increased costs for the purchase of new equipment and technology.

Of the possible dangerous situations, the most dangerous for the project should be identified and measures should be developed to prevent them and reduce business risk.

7. Financial resources and their sources

The financial resources are a set of sources of funds that are combined to carry out entrepreneurial activities. The activities of the company can be carried out at the expense of its own funds and income, as well as by attracting finance from outside.

At the time of the creation of a new project by the company, a new cost of goods is formed. The formation of financial resources occurs at the stage of distribution, when the goods are sold and certain elements of value can be distinguished from the profit received.

The sources of financial resources of the firm can be three groups of resources:

1) financial resources that come in the process of redistribution of government revenues: insurance, subsidies, and others;

2) financial resources that are formed by the enterprise's own funds (profit, income, reserve funds);

3) financial resources received in the course of the company's activities in the financial market (realization of shares, dividends, interest income, loans).

Financial resources are used to finance the production of goods and their sale in the markets, to make budgetary and extrabudgetary payments, to pay loans and borrowings, to make charitable contributions.

The financial plan should be prepared with the help of accountants. In this section of the business plan, you should indicate the available financial capital, sources of additional investment, and the expected level of profit.

A mandatory item in the preparation of a sales forecast is to determine the expected profitability of the project. The level of production depends on sales volumes; when forecasting, the costs of production elements are taken into account: transport, advertising, storage of goods, sale of goods.

The costs are divided into: trade, general and administrative, production and advertising.

Trading costs include the cost of transporting goods, their storage, warehousing.

General and administrative expenses include salaries of administration staff, payment to involved specialists (lawyers, accountants).

Production and advertising expenses are intended for payment of utilities, rent, insurance premiums, payment of telephone services.

The business plan should present ways to reduce production and sales costs. Issues that are controversial should be presented in a plan and have a detailed explanation. Disputable issues may include the amount of administrative costs, interest rates of costs, the amount of general costs.

Risk situations that may be an obstacle to the successful achievement of project objectives should be identified.

The main goal of the project is the profit received in the process of selling the goods, so the most important issue is the issue of forecasting sales and profits. At the beginning of the project, the level of profit usually does not exceed the costs. By forecasting the levels of sales and costs, it is possible to determine the need to attract additional investments in certain periods. The firm's management team determines ways to obtain additional funds and the timing of their receipt. Sources of additional funds may be short-term bank loans. Cash flow projections are important in a seasonal industry where payments may be required before sales occur. Cash flow projections should be made monthly during the first year and quarterly during the second and third years.

At the beginning of the project and at the end of each year, a balance sheet form is prepared. The balance sheet form is used to study in detail and calculate the investment of finances that are required to support the project and its implementation.

In addition to the above documents, a break-even schedule is drawn up, which includes the costs of production and non-production levels. If the level of sales covers all costs and expenses of the firm, it is the break-even level. In the process of carrying out the production activities of the company, it is necessary to strive to ensure that the level of sales is much higher than the break-even level.

The amount of financial resources depends on price control and pricing management. The contents of the financial plan should include ways to achieve and maintain the price level. These factors usually arouse the interest of investors.

The financial section of the business plan should include the amount of funds needed to finance the development of the project, as well as possible prospects for increasing the company's capital.

Often, in order to obtain funds, it is necessary to provide special guarantees to investors.

By combining all types of cash flows, it becomes possible to establish the total amount of project financing.

Guarantees provided to investors can be of various types and volumes. Guarantees may be limited to shares or provided in the form of private investments. Investors should be familiar with the limitation of guarantees.

The financial plan must include the number of shares issued and distributed among the staff, as well as the number of shares that are not in circulation.

Investors must be provided with information about the increase in their capital in the process of its use.

In the conditions of market relations, financial resources obtained through investments become a kind of commodity that takes a special part in the implementation of entrepreneurial activities in the market.

To receive investments, the firm must find a source of financing, negotiate and conclude agreements between the two parties to the financial transaction. In addition, the conditions for obtaining investments and the obligations of the company to return financial resources are stipulated.

Investors can participate in productive activities using one of the forms of participation: either as the provision of loans or as future participants in the firm's ownership. Given this provision, the management of the firm should be more serious about the use of investor assistance. If the firm's management does not have sufficient experience in working with investment resources, this can cause problems with payments on investments and investors.

A well-written business plan helps to avoid such problems with investment resources. In order to correctly evaluate investments, it is necessary to calculate their maximum correspondence to those estimates of profit, which are expected to be received after the completion of the sale of the company's products.

The founders of the project must be well aware of the intermediate and final results of the intended process. All possible options for the effective use of financial resources should be calculated, from which the most appropriate option for implementing the project is singled out. In the course of negotiations with investors, economic aspects can be reviewed, developed and formalized in the form of new decisions.

Investment efficiency has two main groups of criteria: absolute and relative.

Absolute criterion - this is a significant excess of profit over the amount of costs (net profit).

Relative criterion - these are various ratios of income to investment funds (profitability).

Investors, when deciding to invest in a company's project, are interested in the following issues: profit margins, loan repayment terms, ability to pay interest.

For the founders and participants of the project, the following performance parameters will be of interest: net profit, break-even rate, the cost of long-term current net profit to their share of the contribution, the ratio of net profit to sales volumes.

Taking into account all the indicators of interest, the project participants have the opportunity to make the most rational decision in choosing the method of financing, in choosing the form of organization of the company, as well as in choosing the marketing strategy.

The financial section of the business plan combines sales and cost forecasts, payment forecasts, and financial risk analysis.

Financial risks include:

1) associated with a change in foreign economic policy;

2) associated with adverse changes in the social and political spheres;

3) related to changes in economic legislation;

4) associated with poor orientation in new technologies and insufficient knowledge of new technology;

5) instability of prices in the markets;

6) the possibility of changing natural and climatic conditions;

7) associated with production and technical failures;

8) associated with the uncertain behavior of project participants;

9) instability and unreliability of the financial position of the company or firm.

Given the possibility of these risks, it can be concluded that the investment assessment should depend on taking into account all possible changes in various areas that relate to the implementation of the project. Evaluation of the effectiveness of investment resources should be based on a qualified expert opinion.

8. The final section of the business plan

The final section of the business plan combines in its content all the results of the entrepreneurial activity of a company or firm. Based on the study of all issues that relate to the organization of production and the final sale of goods, conclusions are drawn about the effectiveness and expediency of implementing the planned project of the company.

In this part of the business plan, a general analysis of the profitability and production costs of the goods is carried out; analysis of problems and risks, the possibility of which is provided for in the content of the project plan; possible ways to minimize the degree of risk and dangerous situations; analysis of the consequences of the conducted business operation.

The final section of the business plan should include a forecast about the future activities of the company, as well as the ability and strength of the proposed project to influence the future activities of the company or firm.

All this is necessary in order to show how far-sighted the company's strategic plans are.

The final section summarizes the results of all activities of the enterprise or firm. An analysis of possible profits, envisaged costs, production costs is carried out, an assessment of the possible risk is made. The final section contains a description of the expected dangers and ways to avoid them to reduce business risk, ways to manage business risk. It is equally important to consider the likelihood of an unfavorable outcome of business transactions. When planning a large business project, it is necessary to analyze the consequences of the operation.

In the final part of the business plan, it is customary to indicate its impact on the future activities of the enterprise or firm.

Authors: Egorova E.N., Loginova E.Yu.

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