Marketing & Asset Company

Thursday, December 08, 2016

Business Plan

mark2A "Business Plan" is a document, with a precise and fixed layout, that sums up the contents and the features of the business project that is the business idea. International Market is a big country with great opportunities but not for this reason it must be under-evaluated or must imply an easy management or administration, that's why the "Business Plan" is an indispensable element in the start-up stage and then in the operative stage.

It is a useful tool to be aware of all the points of strength and the perspectives of the business project. But it must not be considered an absolute instrument but a dynamic tool, adjustable to the changes occurring within and externally of a company.

The "Business Plans" can also get quickly obsolete, but they have a high value if drawn up and used in a correct way. Practically, every "Business Plan" is a kind of business vade mecum or of the business idea, it must be regularly verified from the entrepreneur; it has to be changed a sit is a prediction based on the "Company Investigation & Commercial Information", where are grouped data that sometimes are difficult to find or require knowledge to be found. In this connection an accurate marketing research is undoubtedly winning for a better sustainability.

It is used both for business planning and business management and also for external communication, in particular towards perspective sponsors or investors. Although it is future-oriented, "Business Plan" cannot set aside the present and past of the company, and that's way it must be sided by a balance analysis and of business strategies of the last years (if available), necessary also to realise the compatibility of the new projects with the current situation.
Although "Business Plan" is usually considered a useful tool in case of loan applications, it is important to remember that such a document, especially if well-built and coming from a structured process of planning and scheduling, it may actually carry out different functions.

Drafting up a "Business Plan" is useful, firstly to the businessman in shedding light on the project contents and on its internal feasibility. Having to report in a written document the contents of a project urges in fact to wonder whether that project is truly achievable, with which means, times and expenses, thus changing the idea, maybe just hinted at, into a better detailed and less blurred project.

It is important to point out that a "Business Plan", if drawn up in a complete and strict way, may represent to a useful tool for a posteriori evaluation of the achieved results: once the project has started, the comparison between the really achieved results with those expected recorded in the "Business Plan" may truly help to consider if it is going towards the right direction and in case adjust the business strategies, if necessary. In this field the "Business Plan" is a tool linked in a pressing way to the budget and reporting system or, in general to the management control system.

Beyond these internal functions, the "Business Plan" develops also an important external function if used as a means of communication towards investors interested to finance the business project. The function that a "Business Plan" has to carry out and obliges, in such a way, the person who plans it, to adjust its contents by enhancing more a dimension rather than another. A mistake that people usually make in drafting a "Business Plan" consists in building it up by considering that both the background and the organization attitudes may be precisely planned and that people operating within the company may be able and have the possibilities to make correct predictions.

Besides, a suitable information support is nor frequently supplied as regards the hypotheses subtending the plan, so the effect is that the receiver of the document is not allowed to evaluate its practical feasibility.

In order to be considered a reliable document, the "Business Plan" must therefore have two requisites:

  • Coherence.
  • Trustworthiness.

The "Business Plan" is composed of two parts or macro areas of work, the beginning part, descriptive one and the following one, that contains the economic and financing data.

The descriptive part is indispensable to introduce the reader to the presentation of the data that will occur in the second part of the project, beyond the presentation of the business or the project or and the communication of the subtending business view, it is composed of that analysis and studies necessary to a correct understanding of the market, of the competitors, of the product, of the offered service and of the strategic and operative plan. The economic-financing part covers the analysis, investment and balance areas that are anyway many-sided.

The purpose is that of granting a tool that allows to interpret the collected data in the first part of the "Business Plan", setting it in a series of tables that may lead the reader to the evaluation of the project and that may be the instrument for a professional and accurate presentation of the study.

Confronted with it, Bright Business Consulting LLP offers its customer "Warranty & Assistance" beyond an accurate professional service for the assistance in drafting a correct document of "Business Plan" so that with a straightforward and essential style one can take into account not only information enquiries of the receiver of the plan, but also aims pursued in the planning activities, marketing analysis, business evaluation, strategic planning and budgeting.

A correct "Business Plan" must therefore include:

  • General description of the investment project.
  • Market references, features of the competitors and critical factors (points of strength and points of weakness in comparison with the market).
  • Sale objectives and commercial organization.
  • A marketing plan, a strategic origin of positioning onto the market.
  • Description of the technical feasibility of the project, related to the production process, to the necessity of investments in plants, to the availability of labour force and services such as tran sport, Energy, telecommunications and so on.
  • Five-year or three-year long plan of economic-financial feasibility depending on how deep you want to go into the analysis.
  • Information about the total economic requirements (aimed at technical investments, immaterial and for circulating capital) and of the corresponding coverings.
  • Information about the expected profitability of the investment and of the factors of risk that may affect it in a negative way, starting from realistic and precautionary hypotheses.
  • Information about the involved investors.
  • Synthetic evaluation of the environmental impact of the project.
  • Scheduled plan of development of the activities.

Beyond the features as regards coherence and trustworthiness that a "Business Plan" must have, it is also important to pay attention to its organization and layout. As concerns the organization you have to consider that a "Business Plan" may be an efficient instrument if it is adjusted in its contents, in function of the type of presented project and of the features of the receiver.

On this point Bright Business Consulting LLP warrants and assists the customer for all purposes mentioned above, thus for the fulfilment of a specific "Business Plan" aimed at using, drafting and setting financial plans, balance analysis, setting up risk management: these aspects, as above hinted at, represent complementary activities to a "Business Plan".

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