Developing a business plan

Business planning is the process of calculating and setting the order of actions before an economic decision, and its result is a document called a business plan. A business plan is the “map” of entrepreneurial activity: it shows the aim and stages and later lets you compare real results with the plan and notice problems. It has three functions: first, it sets goals and tasks; second, it turns the idea into a programme of practical action, showing calculations and costs; third, it is the basis for getting a loan or attracting a partner. The usual structure: summary; project idea; market assessment (consumers, competitors, own strengths and weaknesses); marketing plan; production plan; organisational plan (form, structure, staff); financial plan (income and expenses, cash flow, break-even, financing, risks) and appendices. No two business plans are the same, because each entrepreneur’s conditions and funds differ. Hiding weaknesses or writing unrealistic figures makes the plan useless, so honest, checked information is given; if necessary a lawyer, economist and accountant are consulted. What matters is not copying a ready sample but calculating for your own conditions.