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What is business planning

Business planning is a plan to effectively start or continue running your own business or another form of business of varying degrees of organization.

In business planning, all possible courses of development of the event are worked out, efficient and economical business management is minimized with financial and property losses minimized, including production costs, a plan is calculated to increase results and final products with profit maximization. The business plan collects, organizes and takes into account data on operations, marketing, goods or services and other nuances of doing business.

BUSINESS PLAN – SUCCESS STRATEGY
By itself, a business plan is a completed document in which it is deployed, with all the necessary data and arguments, and answers are given to several simplest, and, at the same time, crucial questions at the start:

– Is it worth to invest in the project?

– how to conduct business most effectively?

– Does the project pay off?

– how to minimize costs and what they will be at all?

– what markets to find?

– where and how to find reliable suppliers of quality raw materials and products?

– what will be the behavior of competitors, and who will become them?

– how much will the products be in demand in specific conditions?

– How will responsibilities be delimited between employees?

– How will the income be distributed among the beneficiaries?

In addition to answering these questions, the business plan will contain information on how to get out of conflict, crisis and other adverse situations and, of course, help in matters of orderly business management.

In turn, for many credit institutions, the business plan plays the role of a catalyst in the field of cooperation with the company, issuing loans and loans to it due to the fact that the business plan essentially describes the existing financial situation of the organization (or private enterprise), and clearly articulated perspective.

STRUCTURE OF BUSINESS PLAN
In general, any business plan is divided in its structure into the following components:

– Brief plan description, introductory part

– Goals and objectives of this business plan

– Analytical market research

– Products

– Marketing plan, marketing research

– Production plan, planning its effectiveness

– HR plan

– Financial plan, planning and fundraising

However, the standards of business plans vary (for example, the standards of the European Bank for Reconstruction and Development, UNIDO, KPMG, BP, BFM, etc.), but the essence remains approximately the same, that is, as outlined above. Naturally, a standard plan requires knowledge and skills in its preparation, writing and design.

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