The calculation of the business plan can be done independently or with the help of specialists working in consulting agencies or firms, to perform student work to order. Consulting agencies will help the entrepreneur attract future investors, to determine the viability of the business idea. A student business plan is much simpler, so you can easily execute it yourself.
Business plan: structure and content
The business plan consists of such parts as:
- Privacy statement, ie that the information is not subject to copying or use without the knowledge of the author. Rare in student work;
- Resume with a description of the idea and method of project implementation. The necessary expenses on articles, and incomes are specified, and the necessity of credit means is analyzed. Here you can briefly indicate the economic feasibility of implementing a business plan;
- The project aims to describe the characteristics of the product or service, and their difference from the products of competitors;
- Analysis of the market, consumers, and competitors. It is advisable to segment, make a competition map, and consider development strategies;
- Product description with emphasis on the features of operation, certification, and package required for the issuance and implementation of documents.
The marketing plan is based on the 4P marketing complex with an emphasis on methods of promotion, pricing, advertising, and sales.
Production of products with a step-by-step description of the process, indicating the number of required workers, resources, equipment, and suppliers.
Organizational plan with a schedule for the implementation of the idea, indicating the responsible persons at each stage, the necessary documentation, and costs. It consists of the entire period of production and sales.
Financial planning is based on the calculation of indicators of investment feasibility of the project, the forecast values of income, expenses, and profit. The calculation of the business plan itself involves determining the payback point, the internal rate of return, the payback period, and others.
Description of risks indicating the method of their and impact, methods of its minimization.
Appendices consist of documents that allow you to more fully judge the viability of the idea.
Business plan: calculation of indicators independently
Any textbook on investment management will tell you how to calculate a business plan yourself using indicators such as:
- Monthly, annual and final expenses and income, the amount of net profit, and accrued taxes.
- The quantity and price of products that need to be sold for revenues to cover costs.
- A simple rate of return is the ratio of planned profit and selling expenses.
The payback period, is the ratio of investment costs to net cash flow received during sales. The term can be both a month and a decade.
Net current flow is the amount of payments reduced to date and adjusted for inflation. Independent calculation is performed on the basis of the average deposit rate in the country’s banks.
On the basis of net discounted flow, you can calculate the profitability index, expressed as the ratio of discounted income to the sum of all investments.
When determining the internal rate of return is looking for an interest rate at which the amount of net discounted income is zero. Sometimes, it is better to pay someone to write my paper.
The business plan analyzes not only the simple payback period but also the discounted one. In this case, the temporary value of money is taken into account.
