Lecture number 2. Business plan of the organization

1. The concept, purpose, objectives and features of drawing up a business plan

Business plan - a concise, accurate, accessible and understandable description of the proposed business, the most important tool when considering a large number of different situations, allowing you to choose the most promising solutions and determine the means to achieve them.

A business plan is a document that allows you to manage a business, so it can be presented as an integral element of strategic planning and as a guide for execution and control. It is important to consider the business plan as a planning process itself and as an internal management tool. The business plan is a kind of document that insures the success of the proposed business, at the same time, the business plan is a self-learning tool.

main goal The development of a business plan is the planning of the company's economic activities for the nearest and long-term periods in accordance with the needs of the market and the possibilities of obtaining the necessary resources. Along with the main, defining goal, the compilers of the business plan should reflect other goals:

1) social goals - overcoming the shortage of goods and services, improving the environmental situation, improving the psychological climate in the country, creating new spiritual and cultural values, developing scientific, technical and creative potential, expanding business contacts, international relations;

2) raising the status of an entrepreneur - the development and strengthening of the economic potential of an entrepreneur (including production potential, financial, technical and technological, scientific, educational, as well as spiritual). This serves as a condition and guarantee of the possibility of successful subsequent transactions, increasing the prestige of the entrepreneur, generated by his fame, good reputation, guarantees of high quality goods and services;

3) other, special goals and objectives - the development of contacts, foreign trips, entry into various kinds of associations, etc.

Or, for example:

1) to understand the degree of reality of achieving the intended results;

2) to prove to a certain circle of people the expediency of reorganizing the work of an existing company or creating a new one;

3) convince the company's employees of the possibility of achieving the qualitative or quantitative indicators outlined in the project, etc.

The main focus of the business plan is the concentration of financial resources to solve strategic problems, that is, it is designed to help the entrepreneur solve the following main tasks related to the functioning of the company:

1) determine specific areas of activity, promising markets and the place of the company in these markets;

2) estimate the costs required for the manufacture and sale of products, commensurate them with the prices at which the goods will be sold in order to determine the potential profitability of the project;

3) identify the compliance of the company's personnel and conditions for motivating their work with the requirements for achieving the goals;

4) analyze the material and financial situation of the company and determine whether the material and financial resources correspond to the achievement of the intended goals;

5) calculate the risks and foresee the difficulties that may interfere with the implementation of the business plan.

In modern practice, a business plan performs five functions.

First of which is related to the possibility of using it to develop a business strategy. This function is vital during the establishment of the enterprise, as well as in the development of new areas of activity.

The second function - planning. It allows you to assess the possibilities of developing a new direction of activity, to control the processes within the company.

The third function allows you to attract funds - loans, credits. In modern Russian conditions, without credit resources, it is almost impossible to carry out any significant project, but it is not easy to get a loan. The main reason is not so much the problem of high interest rates, but the increased non-performing loans. In this situation, banks take a whole range of measures to ensure the return of funds, among which the requirements of bank guarantees, real collateral and others should be noted, but the decisive factor in granting a loan is the presence of a well-developed business plan.

The fourth function allows you to attract potential partners to the implementation of the company's plans, who wish to invest their own capital or their technology in production. The solution to the issue of providing capital, resources or technology is possible only if there is a business plan that reflects the course of the company's development for a certain period of time.

The fifth function by involving all employees in the process of drawing up a business plan, it allows them to improve their awareness of upcoming actions, coordinate efforts, and create motivation to achieve goals.

The preparation and effective use of a business plan is of paramount importance. This plan can be developed by a manager, an executive, a firm, a group of firms, or a consulting organization. To determine the development strategy of a large company, a detailed business plan is drawn up. Often, already at the stage of its preparation, potential partners and investors are identified. As for the time aspect of business planning, most firms make plans for the year. They examine in detail the various activities of the company during this period and briefly characterize further development. Some firms make plans for up to 5 years, and only large companies that are firmly on their feet plan for a period of more than 5 years.

Along with intra-company functions, business planning is of great importance in determining the planning strategy at the macro level. The totality of long-term business plans of enterprises constitutes an information base, which is the basis for the development of a national planning policy within the framework of state regulation of the economy.

Thus, to the greatest extent, a business plan is used in assessing the market situation both outside the company and inside it when looking for investors. It can help large entrepreneurs expand their business by buying shares in another firm or organizing a new production structure, and also serves as the basis for the formation of a nationwide planning strategy.

In a market economy, there are many versions of business plans in terms of form, content, structure, etc. The greatest differences are observed within the modifications of business plans depending on the purpose: by business lines (products, works, services, technical solutions), by enterprise in general (new or existing).

There are two main approaches to developing a business plan. The first is that the initiators of the project themselves develop a business plan, and receive methodological recommendations from specialists, in particular from potential investors. According to foreign practice, this approach is more preferable. In addition to the authors of the concepts laid down in the business plan, financiers who know the features of the credit market, the availability of free capital, and the risk of this business take an active part in its creation. In the second approach, the initiators of the business plan do not develop it themselves, but act as customers. The developers of the business plan are firms specializing in the field of marketing activities, groups of authors, individual authors. If necessary, consulting firms and experts are involved.

In foreign practice, it is accepted that the development of business plans is carried out with the obligatory participation of the head of the enterprise. Many foreign banks and investment funds refuse to consider applications for funds if this condition is not met.

In any case, regardless of the methods of drawing up a business plan, in the process of its development, the interests and conditions of the interested parties are subject to mutual consideration and coordination:

1) the customer of the business plan, who is an independent investor or uses borrowed capital, whose interest is the implementation of the project and the receipt of income;

2) an investor whose interest is the return of invested funds and the receipt of dividends;

3) consumers using products, whose interest is the satisfaction of needs for goods;

4) authorities that determine the needs and priorities of business development, the main purpose of which is to meet public needs.

The business plan assesses the prospective situation both within the firm and outside it. It is especially necessary for management to navigate in the conditions of joint-stock ownership, since it is with the help of a business plan that company leaders decide on the accumulation of profits and the distribution of part of it in the form of dividends among shareholders. This plan is used to justify measures to improve and develop the organizational and production structure of the company, in particular, to justify the level of centralization of management and responsibility of employees. It should be noted that this plan, as a rule, actively helps to coordinate the activities of partner firms, organize joint planning for the development of groups of firms associated with cooperation and the manufacture of identical or complementary products. In this case, partner firms provide joint financing.

There are certain features in the development of business plans for various organizations, such as for single-point and multi-point organizations. A single-point organization is understood as an organization (legal entity) consisting of one enterprise. Accordingly, an organization consisting of two or more enterprises will be multipoint. When planning the activities of such an organization, plans are first developed for each enterprise, and then these plans are reduced to one business plan. If the business starts for the first time, then only calculated indicators are included in the plan. If the business already exists, then the plan includes reporting data for the previous year, with which the indicators of the planned year are compared. A business plan for organizations with a large investment project requiring external financing is the most complex type of business plan. The first place here is occupied by indicators characterizing the investment project. Then the usual sections of the business plan, linked to the investment project, are outlined.

A feature of diversified organizations is the directed implementation of several types of activities. This should be reflected in the business plans of such organizations. Most often, in diversified organizations, certain types of activities are carried out in special divisions - branches (business units). In such cases, the organization acts as a multi-point, and the business plan is drawn up accordingly.

A business plan for non-production organizations is different in that instead of a detailed production plan, it briefly outlines the planned list of services (works) that will be provided. In the first place here is the coverage of the conditions for the provision of services (performance of work), the availability of licenses, permits, certificates, and ensuring the rights of consumers. Instead of a production plan, a business plan for a non-manufacturing organization develops an operational plan that forecasts the funds, facilities and resources that will be needed to run the business in the coming period, as well as the need for materials, labor, communications, etc. The remaining sections plans are developed similarly to the plans of production organizations.

2. The difference between a business plan and other planning documents

The business plan, like no other plans of the company, has an external focus, turns into a kind of commodity, the sale of which should bring the maximum profit. Therefore, unlike the traditional plan for the economic and social development of an enterprise, a business plan takes into account not only the internal goals of an entrepreneurial organization, but also the external goals of persons who can be useful to a new business. In addition, the business plan focuses on the marketing and financial and economic aspects of the business, while scientific, technical, technological and social aspects are presented in less detail.

Closer to the business plan is such a familiar document, previously known to Russian entrepreneurs, as a feasibility study (feasibility study). The main difference between a feasibility study and a business plan is that a feasibility study is a specific planning document for the creation and development of industrial facilities. Therefore, special emphasis in the structure of the feasibility study is placed on the production and technical aspects of the project, and the commercial, market problems of the future business remain almost undisclosed. In addition, the difference between a business plan and a feasibility study is its strategic focus. Therefore, we can talk about a much narrower, specific nature of the feasibility study compared to the business plan. The business plan is gradually replacing the feasibility study from the sphere of entrepreneurial activity.

A business plan is one of the key elements of strategic planning. Like the strategic plan of the organization, it covers a fairly long period, usually 3-5 years, sometimes more. However, there are a number of differences between a business plan and a strategic plan:

1) unlike the strategic plan, the business plan does not include the entire set of general goals of the company, but only one of them - the one that is associated with the creation and development of a certain new business. An organization's business plan is focused only on development, while a strategic plan may include other types of organization strategies;

2) strategic plans are usually plans with a growing time horizon. The business plan has a clearly defined time frame. Thus, in its form, a business plan, unlike a strategic plan, gravitates towards a project with its specific elaboration and a certain self-sufficiency;

3) in the business plan, the functional components (plans for production, marketing, etc.) are much more significant than in the strategic plan, they are full-fledged, balanced parts of the structure of the business plan.

In a market economy, the functions of a feasibility study are increasingly performed by investment projects that are closest to the business plan in terms of the structure and nature of the presentation of the material. The concept of an investment project can be used in two cases: as an investment activity (implementation of a system of investment measures), as a system of organizational, legal, analytical, engineering, economic, settlement and financial documents necessary to justify and carry out the relevant work on the implementation of the project.

It is expedient to consider the investment project in the second sense. An organization's business plan sometimes acts in relation to an investment project as a document that represents plans for the development and implementation of the relevant part of the investment project.

For short-term, small-scale or local business projects that do not require significant costs and are short in terms of implementation, a business plan can replace an investment project. It combines all the stages and work performed in the pre-investment phase of business planning. There may also be an organization's business plan that includes the planned results of the investment project, for example, if the investment project is being implemented at an existing enterprise (production expansion, modernization, reconstruction). In this case, the investment project can be included in the business plan of the enterprise, which regulates the procedure for using the free funds of the enterprise and borrowed financial resources within the framework of the investment project.

Thus, an investment project and a business plan can be close in structure. The structure of a business plan is similar to an investment project, especially in the part where the justification of the investment plan is carried out.

Author: Beketova O.N.

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